Elementary Balance Sheet The Balance Sheet Define the balance sheet The balance sheet, also called the statement of financial position, is the third general purpose financial statement prepared during the accounting cycle. It reports a company’s assets, liabilities, and equity at a single moment in time. You can think of…

Stock Difference between Stock at Start and Stock at Close Distinguish between stock at start and stock at close Stock is the value of the goods that you have on hand to sell to your customers. If you sell services rather than goods, you won’t have any stock. Stock might…

Trial Balance You learn about general journals and general ledger on the first topic. In this topic we’re going to explore the next process of an accounting cycle which is trial balance. You are going to explore what it is and understand how to prepare it.Lets remind ourselves of an…

CLASSIFICATION OF ACCOUNTS Classification of Accounts It is necessary to know the classification of accounts and their treatment in double entry system of accounts. Broadly, the accounts are classified into three categories: Personal accounts Impersonal Real accounts Tangible accounts Intangible accounts Let us go through them each of them one…

Principles of Double Entry System In these concept, you are going to explore more about business transactions. It is very important that, you understand about the basic principles of double entry system. Please watch the following video and remember to share your ideas on the discussion forum. Please use a regular…

SUBJECT MATTER OF BOOK KEEPING Subject Matter of Book Keeping The Meaning of Book Keeping Define book keeping Book-keeping is an art of recording financial business transaction in a set of books in terms of money or money worth. Bookkeeping involves the recording, storing and retrieving of financial transactions for…