Category: Accounting
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Is petty cash book, book of primary entry or ledger?
Is petty cash book, book of primary entry or ledger? Petty cash book is both: book of primary entry and ledger.
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Petty cash book and imprest system
Petty cash book and imprest system Petty cash book are maintained under the imprest system that means that the petty cashier starts each period with same amount of money. That means that if the petty cashier was given $100 for one week and at the end of the week he spent $ 70 then the…
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Main aim of petty cash book?
Main aim of petty cash book? Main aim of the petty cash book is to reduce number of transactions which have to be recorded in the books.
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What expenses are included in petty cash book?
What expenses are included in petty cash book? Petty cash book includes stationary and travelling expenses. The person who is asked to maintain the petty cash should be given amount of cash because it increases the chances of fraud.
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What are the uses of petty cash book?
What are the uses of petty cash book? Every business makes large and small payments. The large payments are recorded in the books of account whereas the small payments are recorded in the petty cash book.
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What is petty cash book?
What is petty cash book? Petty cash book is maintained to record low cash payments. This is normally maintained by the junior member of the staff.
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Errors in the trial balance which still keep the trial balance balanced
Errors in the trial balance which still keeps the trial balance balanced Error of omission Error of commission Error if original entry Error of principle Compensating error
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Types of errors in the trial balance
Types of errors in the trial balance There are two types of errors in the trial balance. Error# 1 There is a balance in the trial balance that means that both sides in the trial balance are equal. Error# 2 The trial balance does not balance; sum of the two sides is not equal. …
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Ledger accounts
Ledger accounts Businesses do not make a new balance sheet after every transaction, instead of that the business records the transactions on the ledgers. The information which is in the ledgers comes from the journals. The information is transferred from the journal to the ledger. The businesses make the following ledger accounts: Ledger accounts for…
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Ledger in accounting
Ledger in accounting May new learners of the accounting subject find it very difficult to understand the ledger. These accounting students fail to understand the effect which each transaction has on their respective ledgers. They miss or forget that each accounting transaction affects two ledger accounts. In simple words we can say that each transaction…