Sitemap

# Blogger Sitemap created on Sun, 08 Aug 2021 14:11:06 GMT # Sitemap built with https://www.labnol.org/blogger/sitemap User-agent: * Disallow: /search Allow: / Sitemap: https://haritha367.blogspot.com/atom.xml?redirect=false&start-index=1&max-results=500

Comments

New comments are not allowed.

Popular posts from this blog

Distinction between profit and loss Account and balance sheet

Image
  Profit and loss Account:- 1) The main objective of preparing profit and loss Accounts to ascertain the Net profit or Net loss of the business during the year. 2) profit and loss Account contains only Nominal Accounts. 3) All Revenue receipts and Revenue expenditure are recorded in profit and loss Account. 4) it is an Account having ' Debit ' and ' Credit ' . 5) The balance figure of this account is either Net profit or Net loss. 6) Generally it is prepared for year ending. Balance Sheet:- 1) The main objective of preparing Balance Sheet is to ascertain the correct financial position of the business on a specific date. 2) Balance Sheet contains all  Real and personal accounts. 3) capital Receipts and capital expenditure are shown in the Balance Sheet. 4) It is a statement and hence ' T ' and ' By ' are not used. 5) Balance Sheet will not show any balancing figure. Assets are equal to liabilities. 8) Generally it is prepared for half - year ending or yea...
Read more

Need providing Depreciation

Image
  To know the true profits:-     We have seen that depreciation is an expense and becomes an important element of the cost of production.    Though it is not visible like other expenses and never paid to the outside party yet it is desirable to charge depreciation on fixed assets as these are used for earning purposes.   So their depreciation must be deducted out of the income earned from their use in order to calculate true net profit or loss. To show true financial position:-  Financial position can be studied from the balance sheet and for the preparation of the Balance Sheet fixed assets are required to be shown at their true value.    If Assets are shown in the Balance Sheet without any charge made for their use or depreciation, then their value must have been overstated in the Balance Sheet and will not reflect the true financial position of the business.   So for the purpose of reflecting true financial position, it is necessary t...
Read more

Distinguish between journal and ledger

      1) The journal is a book 📚 of original (i.e., first) entry whereas the ledger is the Book 📚 of second Entry. In other words, transactions recorded in the journal have to be further processed by doing posting from the journal to the ledger. 2) In the journal, transactions are recorded in the chronological order as and when they occur whereas the ledger is a book 📚 for analytical record. Transactions pertaining to a particular Account appear at one place. For example, there may be twenty transactions relating to Trade Expenses Account scattered at different places in the journal in order of their sequence of occurrence. These transactions will appear in trade expenses Account in the ledger at one place. 3) In case of disputes, the journal as a Book 📚 of source entry has greater weight as legal evidence than the ledger. However, for Accounting purposes, ledger is the main source of information. 4) The journal is a subsidiary book 📚 which helps in the preparation o...
Read more