Posted inAccounting Basics
Analysis and Treatment of Transactions
Let us go through the nature of transactions and their treatment in our books of…
Posted inAccounting Basics
Financial Accounting – Journal
“The process of recording a transaction in a journal is called journalizing the transactions.” ---Meigs…
Posted inAccounting Basics
Golden Rules of Accounting
The Problem with Debit Credit Rules The system of debit and credit is right at…
Posted inAccounting Basics
Accounting – Systems
There are two systems of accounting followed - ● Single Entry System ● Double Entry System Single…
Posted inAccounting Basics
Accounting – Classification of Accounts
It is necessary to know the classification of accounts and their treatment in double entry…
Posted inAccounting Basics
Conservation or Prudence
It is a policy of playing safe. For future events, profits are not anticipated, but…
Posted inAccounting Basics
Convention of Materiality
If the disclosure or non-disclosure of an information might influence the decision of the users…
Posted inAccounting Basics
Convention of Disclosure
The Companies Act, 1956, prescribed a format in which financial statements must be prepared. Every…
Posted inAccounting Basics
Convention of Consistency
To compare the results of different years, it is necessary that accounting rules, principles, conventions…
Posted inAccounting Basics
Objective Evidence Concept
According to the Objective Evidence concept, every financial entry should be supported by some objective…