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The expenses which are recorded in the debit side of Profit and Loss Account may be classified under the following heads.

When an error affects both the debit and credit by an equal amount it is called two-sided or double-sided errors. They are as follows:

Bank reconciliation Statement is a statement not an account because of the following reasons:

The following procedures are followed for recording the transactions in the ledger:

The various steps involved in the accounting process are as follows:

In order to incorporate bank transactions (receipts and payments by cheque) which are allowed by the business to its customers and cash discounts.

The various types of liabilities are given below:

Sales Day book is used to record the credit sales of goods only. It means Only credits sales of merchandise or goods meant for sale are recorded.

Subsidiary book may be defined as a book of prime entry in which transactions of a particular category are recorded. In other words, in order to save time and energy, the transactions…

Crossed cheques are those, the payment of which are not made over the counter. These cheques are collected by the bank of the depositor.

The advantages of maintaining a bank account are:

Sometimes the drawee of a bill is unable to pay the bill amount on the due date and he may request the drawer to allow him some extra time.

The main advantages of accounting are:

The necessity of Bank Reconciliation Statement are given below:

The advantages of Bill of Exchange are as follows: