Rectification of Incorrect Trial Balance
Incorrect Trial Balance means such trial balancewhose total of both the sides is equal yet its all items are not written on proper places. Some items which should be written in debit side are...
Category: Accounting for managers
Method of making trail balance
(1) Total method- In this method in the column of debit amount the total of debit of all accounts is written. In the same way in the column of credit amount the total of...
What About Trial Balance
“Each transaction has two aspects one is debited and other is credited. If a statement is prepared and the totals of debits and credits of all accounts of ledger are recorded then the totals...
Division of Journal
This thing has been convinced now that every transaction is written date wise in Journal first of all. The small business where the number of transactions are less in view of accounts, there whole...
Proforma of Ledger
The page of ledger is divided into two similar parts. Left side is kept for debit and right side is for credit. Each part of left and right side is divided into four columns...
What about ledger account
According to B.G. Bikari: “Ledger is the most important book of accounts. All the transactions are recorded in it in brief and form of classification. It is divided in different sections which are called...
Rules of Debit and Credit of Accounts
Each transaction has two aspects; one aspect is the receiving or the ‘debit’ aspect. Another aspect is giving or the ‘credit’ aspect. Debit and credit aspects of a transaction form the basis of double...
How to Use and Apply the Debit and Credit Rules:
Determine the type of account(s) the transactionsaffect-asset, liability, revenue, or expense account. Determine if the transaction increases or decreases the account’s balance. Apply the debit and credit rules based on the type of account...
What About Journal
Transactions of a business can be classified into the following three categories: Transactions relating to persons or individuals – Personal accounts; Transactions relating to property, assets or possessions Real accounts; Transactions relating to incomes...
Accounting method of General Principles
Principles relating to solve the general problems of business are known as General principles. The main General Principles are as under: (1) Principle of Clarity: According to this principle,all accounting work should be done...