Practical Questions 

Accounting Equation Rule: Assets= Capital + Liabilities Practical Questions            1.    Started business with cash and bank balance Rs. 1,00,000 and Rs. 50,000  respectively.            2.    Goods costing Rs. 10,000 sold for Rs. 12,000 on credit.            3.    Goods purchased on credit Rs. […]

Scopes of accounting 

1.    Business Accounting is widely applicable in the business sector. Today, in the modern world, most of the people are engaged in business sector and all businessmen follow Generally Accepted Accounting Principle (GAAP) to find out profit, loss and financial position of business firm. 2.    Government organizations Though, Government organizations do not follow Generally Accepted Accounting […]

Basic concepts of accounting 

Accounting concept refers to the basic assumptions and rules and principles which work as the basis of recording of business transactions and preparing accounts. There are eight basic concepts in accounting. 1.    Business entity Concept This concept assumes that, for accounting purposes, the business enterprise and its owners are two separate independent entities. Thus, the […]

Objectives or Functions of Accounting 

     1.    Maintenance of record of business transactions The maintenance of systematic record of all financial transaction in the book of account is the primary objective of accounting. Even the most brilliant manager or executive cannot remember all the various transaction carried out in the business firm such as purchases, sales, receipts etc. thus, […]

Accounting 

The meaning of accounting is broader than of book keeping. The book keeping is the first step of accounting. So, accounting hold book keeping in its fold. Accounting is the process of identifying, measuring, recording, classifying, summarizing, analyzing, interpreting the financial transaction and lastly, communicating to obtained result to is staffs.

Book Keeping 

Book keeping is an art of keeping systematic and permanent record of day to day financial transaction of business firm performed by them in a set of books in chronological order. It is a science of keeping systematic and regular records of business transactions so that they can be located whenever required. Definition of book […]