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In order to open a current account, one has to fill in a prescribed application form. The bank usually insists on such person of business enterprise being introduced by an existing customer of the bank or other reputed businessman.

A bank may be defined as a institution which deals in money. Banks draw surplus money from the people who are not using it at the time and lend to those who are in a position to use it for productive purposes.

Special journals are the journals in which special classes of transactions are recorded such as; purchases book records purchases of goods on credit; sales book records sales of goods on…

Every business has to make payments involving smaller or petty amount, e.g., carriage, cartage, coolly hire, postage telegrams etc.

In the three column cash book there will be some cross or contra entries i.e., transfer of money from cash to bank (amount deposited) and vice versa (amount withdrawn from bank for office use).

There is difference between bank loan and bank overdraft. When bank gives a loan the amount of the loan must be debited to the bank column of the cash book from where it is posted to the credit of bank loan account.

There are some differences between the cash account and cash book as given below:

The advantages of cash book are as follows:

In the case of continuing business we are required to pass an entry in the journal for bringing in the new books all assets and liabilities as appearing in the books on the last day of the previous year.

Dual concept may be stated as “for every debit, there is a credit.” Every transaction should have two sided effect to the extent of same amount.

Accounting presumes that the purchasing power of monetary unit, say Rupee, remains the same throughout, thus ignoring the effect of rising or falling purchasing power of monetary unit due to deflation or inflation.

According to this concept, the task of measuring income and wealth is undertaken by accounting, for an identifiable unit or entity.

Certain fundamental accounting assumptions underlie the preparation and presentation of financial statement.

Doctrines mean principles of belief: what the scriptures teach on any subject. It refer to an established principle propagated by a teacher which is followed in strict faith.

The difference between data and information are as follows:

There the basis of difference between book-keeping and accounting :