Bank Overdraft & Cash Credit Bank overdraft and cash credit facilities are both forms of short-term borrowing provided by financial institutions to individuals and businesses. Here’s a detailed explanation of each: 1. Bank Overdraft: i. An overdraft is a financial arrangement where a bank allows an account holder to withdraw funds from their account even… Read More »
Bookkeeping accountant job description Website link Bookkeeping accountant job description A bookkeeping accountant, alternatively referred to as a bookkeeper or accounting clerk, assumes a vital position in upholding accurate financial records and verifying the precision of monetary transactions within an organization.. Here is a general job description for a bookkeeping accountant: Financial Record Keeping: Maintain… Read More »
Non-negotiable letter of credit A non-negotiable letter of credit is a financial instrument used in international trade to provide payment security for the seller or exporter. Unlike a negotiable letter of credit, which can be bought and sold on the secondary market, It cannot be transferred to a third party. It is only valid between… Read More »
Debtors vs creditors Creditors and Debtors are two fundamental concepts in accounting, representing parties involved in a financial transaction. Debtors Debtors are parties who owe money to a business for goods or services purchased on credit. In other words, a debtor is a customer who… Read More »
Investor and a Creditor Difference Between Investor and Creditor Website Link Investor and a creditor: Investor and a creditor are both entities that provide capital to a company, but there are distinctions between the two: Nature of investment: An investor offers equity capital, meaning they acquire ownership in the company in exchange for their investment.… Read More »
write-off affect net income and net account receivable A write-off is an accounting entry made to remove an asset or liability from the balance sheet, typically because it has become worthless or is unlikely to be recovered. In the case of a write-off of accounts receivable, the impact on net income and net accounts… Read More »
Elements of Bookkeeping Website Link Elements of bookkeeping system: It also known as the double-entry accounting system, is a method of documenting financial transactions that involves recording each transaction in two separate accounts. The system consists of four elements: Assets: Assets are resources owned or controlled by a business that hold monetary value. Examples include cash,… Read More »