Tag Archives: #BookkeepingPrinciples

What are the key principles and steps involved in bookkeeping that contribute to the accurate and organized process of account finalization?

Organized Accounting Process Organized Accounting Process, Bookkeeping is a fundamental aspect of maintaining accurate financial records for any business or individual. It involves systematically recording financial transactions and organizing them in a way that facilitates the process of account finalization. There are several key principles and steps that contribute to the accuracy and organization of… Read More »

How to learn bookkeeping and accounting?

Learning Bookkeeping and Accounting Here are some steps for Learning Bookkeeping and Accounting wich you can follow: 1. Study Relevant Resources: Start by gathering educational resources on learning bookkeeping and accounting. This can include textbooks, online courses, tutorials, and articles. Look for resources that cover the fundamentals of accounting principles, financial statements, bookkeeping methods,… Read More »

Daybook Accounting:What is a “daybook” in Accounting?

Daybook Accounting Daybook Accounting: In accounting, a daybook (also known as a journal) is a primary record where daily transactions are initially recorded. It serves as the first step in systematically documenting accounting transactions. The daybook serves as the initial recording location for transactions before they are transferred to the general ledger or subsidiary… Read More »

What is a debit entry in cash book journal?

A debit entry in cash book journal For instance, when a company uses cash to acquire office supplies, it would record a debit entry in the cash book journal to decrease the cash account (an asset) and reflect the expense incurred. It is a mandatory entries for making balance sheet. For instance, when a company… Read More »

Journal vs. General Ledger: How is a journal different from a general ledger in accounting ?

Journal vs. General Ledger Website link Journal vs. General Ledger: A journal and a general ledger are two essential components of the accounting process, each serving a distinct purpose. The primary difference between them lies in the level of detail and organization they provide. A journal is the initial recording tool where transactions are first… Read More »

Prepaid exp. vs. Accounts Receivable: What is the difference between prepaid expenses and accounts receivable?

Prepaid exp. vs. Accounts Receivable Prepaid expenses and accounts receivable are both important financial concepts in accounting, but they represent different types of transactions. Prepaids expenses It refers to payments that a company makes in advance for goods or services that it expects to receive in the future. For example, if a company pays… Read More »

What is the journal entry accrued interest?

The journal entry accrued interest The journal entry for accrued interest will depend on the specific circumstances of the transaction. However, in general, the journal entries for accrued interest is: Debit: Interest Expense Credit: Interest Payable To visit https://www.mca.gov.in This journal entry records the interest expense that has been incurred by the company but has… Read More »

What are the Bookkeeping principles?

The principles of bookkeeping Double-entry system: All transactions are recorded using the double-entry system, which means that every transaction is recorded in at least two accounts – one account is debited (increased) and another account is credited (decreased) by an equal amount. Insertion of new section 44A Entity concept: The financial affairs of a… Read More »