Double Entry System:

-

 Double Entry System is introduced by"LUCAPACIOLO" in modern methods in 1494. Every transaction should write in two accounts is "Receiving aspect" and another is "Giving aspect". The receiving aspect is known as two fold aspects. It is a complete, accurate and scientific system of accounting. Because it will be taken from personal accounts Real accounts, and Nominal accounts. It is possible to prepare final accounts at the end of the accounts at the end of the year.

Comments

Post a Comment

Popular posts from this blog

Preference Shares

-
Image
  Preference Shares:-   Preference Shares are those which carry preference over other classes of shares in the payment of dividend and repayment of capital at the time of winding up. Types of preference Shares:-   Preference Shares can be broadly divided into. 1) Redeemable preference Shares. 2)irredeemable preference Shares 3) Cumulative preference Shares 4) Non - Cumulative preference Shares 5) Convertible preference Shares 6) Non - Convertible preference Shares 7) participating preference Shares. 8) Non - participating preference Shares   Redeemable preference Shares:-   These are the shares, the capital of which is refundable after a stipulated period. Irredeemablepreference Shares:- These are the shares, capital of which is not refunded during the life time of the company. Cumulative preference Shares:- These are the shares on which a fixed rat of dividend is paid out of the current or future profits. If in any year, the company doesn't pay the dividend will accumulate and the
Read more

Accountancy and book-keeping

-
Image
    Accountancy:-          Accountancy refers to a systematic knowledge of Accounting. It explains' why to do' and'how to do' of various aspects of accounting. It tells us why and how to prepare the books 📚 of accounts and how to summarize the accounting information and communicate it to the intrested parties. Accounting:-     It deals with the following points: 1. Identifying the transactions and events. 2. Measuring the identified Transactions and events in a common Measuring unit. 3. Recording the identified and measured transactions and events. 4. Classifying the recorded Transactions and events in ledger. 5. Summarizing the classified transactions and events in the form of income statement and position statement  6. Analyzing the summarized results. 7. Interpreting the analyzed results. 8. Communicating the interpreted information to the interested parties.       Book-keeping:-           Book-keeping is a part of Accounting and is concerned with record keeping or
Read more

Define Shares

-
Image
  Shares:     The  share capital of a company is divided into small units called shares.    Shares are offered to the public for subscription. The person who purchases a time is called share holder. The share capital of the company's meant for long term requirements because it need not be paid during life time of the company. Defination:     Share is defined by sec.2(46) of the companies Act as a share in the share capital of a company and includes stock except where a distinction is expressed or implied."     Share carries with it certain rights and liabilities. It secures to its owner the right to receive a proportionate part of the profits and a proportionate part of the profits and a proportionate part of the assets of and obligations.    A share is evidenced by a share certificate. Each share in a company having share capital is distinguished by its number. Different types of shares:    Types of shares:     Companies secure most of their capital by issuing shares to the p
Read more