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The documents for receipt side entries are (i) copy of cash memo given to customer (ii) copy of money receipt issued to debtors for payment in cash…

Documentary evidences for recording the Receipt side of Single Column Cash Book are:

The difference between Special Journal and Journal Proper are:

Trade discount is given by the wholesaler to retailer on printed price for encouraging bulk purchase of an item and to earn profit by selling the goods at printed price.

When the size of an organisation is very large and there are a number of accounts, it is not possible to keep all these accounts in a ledger.

In accounting certain steps are to be followed which are repeated year after year. These are:

The main reasons for subdividing the journal into many subsidiary books are as follows:

The advantages of accounting equation are as follows:

The whole of financial accounting (i.e. recording of transactions) is based on the accounting equation. The following is the accounting equation:

The various conventions followed in accountancy are:

Prepaid expenses are those expenses which have been paid in advance. In other words, these are the expenses which have been paid during the accounting period for which the final

Following are the reasons of providing depreciations on fixed assets:

Except the opening balance all entries on the debit side of the cash book are posted to the credit sid of the respective account in the ledger with the words “By Cash/Bank” written in the particulars column.

Three branches of accounting are as follows:

Even though it is assumed that business will continue to exit for a long time, it is necessary to keep accounts in such a manner that the results are known at frequent intervals.

If both the total is not equal then it is decided that there is error in the books of account and efforts will be made to locate the error by following several steps as follows: