FINANCIAL AND MANAGEMENT ACCOUNTING PART-I
Stichwörter:Book-keeping: It is the art of recording in the books of accounts the... mehr anzeigen Book-keeping: It is the art of recording in the books of accounts the monetary aspect of commercial or financial transactions. Accounting: It is the means of collecting, summarising and reporting in monetary terms, information about the business. Financial accounting: Financial accounting deals with the maintenance of books of accounts with a view to ascertain the profitability and the financial status of the business. Accounting principle: Accounting principles are the assumptions and roles of accounting, the methods and procedures of accounting and the application of these rules, methods and procedures to the actual practice of accounting. Accounting concept: It refers to assumptions and conditions on which accounting system is based. Accounting convention: Accounting convention refers to the customs and traditions followed by accountants as guidelines while preparing accounting statements Accounting equation: Accounting equations is an accounting formula expressing equivalence of the two expressions of assets and liabilities. Journal: Journal is a tabular record in which business transactions are recorded in a chronological order. Journal entry: The record of the transaction in the journal is called a journal entry. Ledger: Ledger is the principal book of accounts where similar transactions relating to a particular person or thing are recorded Cash book: Cash book is a book in which receipts and payment of cash are recorded. Petty cash book: A petty cash book is used to record all cash payments of smaller demoniations. Contra entry: If the same entry appears on both debit and credit side then the entry is referred to as contra entry. Trial Balance: A Trial Balance is a statement of debit and credit balances extracted from all the ledgers with a view to ascertain arithmetical accuracy of posting of all transactions into the respective ledgers. Clerical Errors: Those errors which are committed by the clerical staff during the course of recording business transactions in the books of accounts is known as clerical errors. Compensating Errors: Compensating errors are those errors which cancel or compensate themselves. Adjusted trial balance: Trial balance redrafted after incorporating all the adjustments. Bad debts: An irrecoverable debt. Depreciation: Fall in the value of a fixed asset. Provision (Reserve) for Doubtful Debts: Reserve created for meeting expected bad debts. Reserve for discount on creditors: Discount expected to be allowed by creditors. Reserve for discount on debtors: Reserve created for allowing discount to debtors.
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