Direct Expense and examples
Direct Expenses are expense which are directly involved in the production process in case of manufacturing or selling process in case of a trading business. While calculating cost of the goods sold or cost of production it is necessary to include all expenses directly attributable to putting the goods in a saleable condition.For Instance,When Goods are… (0 comment)

Trial balance – How to prepare & Format
Trial balance is a list of ledger accounts balances, showing debit balances and credit balances, separately on a certain date. Trial balance is only a statement not an account. As we learned, every transaction has equal debit and credit aspects so that the trial balance possesses equal debit and credit balances. Trial balance preparation You… (2 comments)

Posting of Transactions In to Ledger
What Is a Ledger & Why Ledger ? In previous Lesson we have learned how the transactions are recorded in Journal.But there may be several transactions relating to one particular expenses, income. In a journal these transactions are appear in different pages . Suppose your Boss asking you ,what is the total travelling expenses for… (4 comments)

Journal Entry Example
Now You have learned What is a Jouranl, Types of Journals,What is journalising, to find out the Debit & credit aspects of a transaction. Let’s Do some Journal entry examples in this chapter. What is journalising? The process of recording of transactions in the books of accounts is called “Journalising”Journal is called primary books of  accounting.Journal records… (3 comments)

Types of Accounts
For a better financial reporting system classification of accounts is necessary. Similar nature  of transactions are brought together in order to create reports. For example travelling expense of an organisation is recorded in the journal book on various date.It is difficult to find-out the total of travelling expense in a week or in month. You have to… (14 comments)

Important terms in accounting
  Accounting is the art art of recording, classifying and summarizing of business transactions. In this part lets understand some important terms of accounting. What is Business Transaction Transactions are the buying and selling of goods and services.It doesn’t require much much explanation. Asset Assets are economic resources which are owned by a business.or in other… (6 comments)

What is a ledger ?Types of Ledgers
What is a Ledger? A group of Account is known as a ledger.After the transactions have been recorded in the journal the accounts are prepared in this book.The Ledger is,therefore, a derived or secondary record.Its source of information is the book of original entry, that is journal. The ledger is considered to be the principal… (0 comment)
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