Methods of preparing Trial balance There are two common trial balance methods used for preparing trial balances: the Total Method and the Balance Method. Total Method: With the Total Method, the total of all debit balances and the total of all credit balances in each account can calculate separately. These totals then compare, and if… Read More »
Basic accounting terminologies Website link Basic accounting terminologies: Here are some basic accounting terminologies: 1.Assets: Resources owned by a business that has monetary value and are expected to provide future benefits. 2.Liabilities: Obligations of a business to pay debts or other financial obligations. 3.Equity: Equity refers to the ownership interest in a company or property,… Read More »
Books of Accounts and Financial Statements Books of accounts and financial statements are two different concepts in accounting. A books of account refer to the records maintained by a company or business to keep track of its financial transactions. These include records of all the financial transactions made by the business, such as sales… Read More »