Category: Accounting

Depreciation Accounting & Methods

Depreciation is a gradual change in the cost of an asset into revenue expense to be accounted for in the accounts of a particular accounting period. Accounting Standard– 6 has made it mandatory for all commercial organizations. Depreciation should be…

Accounting Process & Stages of Accounting Process

Accounting process refers to the process of identifying, measuring, classifying ,recording, summarising, analysing , interpreting and reporting the financial performance and financial position of the enterprise through financial statements. Stages of accounting process include journalizing transactions, ledger posting, balancing ledger;…

Accounting Concepts, Principles and Convention

Generally accepted accounting principles refers to the rules or guidelines adopted for recording and reporting of business transaction in order to bring uniformity in the preparation and presentation of financial statements . These principles are referred to as concepts and…

Keeping the Books Balanced with Professional Guidance

When you run your own business, you have a lot of duties that you may not have time for on a regular basis. If your primary focus is on serving your customers, managing your employees, and making sure you have…

Difference between Bin Card & Stores Ledger

Bin Card A bin card is a quantitative type of record of receipts, issues and closing balances of items of stores. Each item is attended by a separate bin card. The bin card is posted when a transaction takes place.…

Advantages & Limitations of Accounting

Advantages of Accounting: Accounting helps to maintain the business records in a systematic manner. It helps in the preparation of financial statements. Accounting information is also used to compare the result of current year with the previous year to analyze…

Meaning of Accounting | Users & Characteristics of Accounting Information

Meaning of Accounting: According to American Institute of Certified Public Accountants meaning (Definition) of accounting is as follows: “Accounting is the art of recording, classifying and summarizing in a significant manner and in terms of money, transaction and events which…

What is the Difference between Bookkeeping and Accounting?

What do you mean by Bookkeeping and Accounting? Book-keeping and accounting are often used interchangeably but they are different from each other. Book-keeping provides the basics of accounting whereas accounting is a broader subject. Accounting includes design of accounting system,…

Turnover Ratio or Activity Ratio

Accounting ratios are useful tool to provide information about the financial soundness, strength, position and status of an organization. Functional Classification of Accounting Ratios: The classification of ratios according to the purpose of its computation is known as functional classification.…

Profitability Ratios Definition – formula and Use of Profitability Ratios

Accounting ratios are very useful tool to provide information about the financial soundness, strength, position and status of an organization. Functional Classification of Accounting Ratios: The classification of ratios according to the purpose of its computation is known as functional…