Bank reconciliation in case of overdraft -Example
In this sessions we will learn Preparation of Bank reconciliation statement in case of overdraft. When the bank balance represents an overdraft ,That is a credit balance  as per depositor book or a debit balance as per pass book,the adjustment should be made in the opposite direction of preparing normal bank reconciliation statement.For example, in case the… (0 comment)

How to prepare bank reconciliation statement?
Earlier we had a lesson on What is a bank reconciliation?  and about the causes of disagreement between bank ledger with depositor ledger. Here lets try for reconcile the two balances. How to prepare bank reconciliation statement.? To do this you have to analyse both the ledgers rest with bank and depositor and analyse the entries this way.… (0 comment)

What is Bank Reconciliation?
What is  Bank reconciliation statement. This is an important tool of the Management and Finance department of any organisation in order to utilize the Funds effectively.We all know what is a bank passbook?. This is a book where all transactions of a depositor are recorded. Still bank passbooks are popular in spite of on-line banking and… (0 comment)

What is subsidiary ledgers?
In order to avoid details from the General ledger we create subsidiary ledgers. The combined account balance of a subsidiary ledgers brought in a single account of general ledger called control account or master account. Example of Subsidiary Ledger An examples of subsidiary ledger is Debtors subsidiary ledger or Accounts receivable subsidiary ledger. The total of… (0 comment)

What is a General Ledger?
General Ledger is a Group of accounts that are stored in a book or in electronics means containing all the transactions related to a business.A General ledger contains information that are required for the preparation of final accounts. All account of a business brought together for easy management of accounting is called general ledger.The term GL… (0 comment)

What is an early payment discount?
Early payment discount is a discount allowed by the seller to its debtors for quick payment. The early payment discount is also known as cash discount, Seller often refer this discount as sales discount where as buyer refer this as early payment discount. Early payment discount motivate customers to make quick payment earlier than credit… (0 comment)

Difference between trade discount and cash discount
Trade discount differ from cash discount in the following ways. Key Differences between Trade Discount Cash Discount Trade discount is merely a device to determine the price.Sales are invoiced at the net price after deducting the trade discount Cash discount is the deduction from the net Invoice price. Trade discount is allowed by the whoesalers… (0 comment)
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