Foreign Educator Teaching System

Category: Accounting

  • What is trial balance?

    What is trial balance? Trial balance is an internal worksheet produced by the accounting staff of the company. Trial balance has two sides. One side consists of the credit balances and the other side consists of the debit balances. Both the sides of the trial balance should be equal. If they are not equal then…

  • Double entry bookkeeping in accounting

    Double entry bookkeeping in accounting The day to day transactions are recorded using the double entry bookkeeping system. It is impossible for the accountant to prepare a balance after each transaction so the accountant records the accounting transactions using the double entry bookkeeping system.

  • Transaction’s effect on the accounting equation

    Transaction’s effect on the accounting equation Each accounting transaction will have an effect on the accounting equation. The transaction will do some alteration, but in the end assets will always be equal to the sum of liabilities and capital

  • Accounting equation

    Accounting equation This equation is the basis of the accounting subject. Students should learn this formula and learn to apply it ASSETS= CAPITAL + LIABILIITES I have written all the words in capital letters because I wanted to signify the importance of this accounting equation.

  • Assets, Liabilities and Capital

    Assets, Liabilities and Capital Assets are the things owned by the business Liabilities are things owed by the business Capital is the money provided by the owner to the business Many people think that the money provided by the owner is not capital, but it is wrong. Money provided by the owner id considered as…

  • Balance Sheet in accounting

    Balance Sheet in accounting Balance sheets show the financial position of a business in a specific point in time. The balance sheet shows the assets, liabilities and shareholder’s equity.

  • Profit and loss account

    Profit and loss account Profit and loss account is a very common type financial statement produced by the business. Most of the accounting students are required to draw up trading, profit and loss account. The profit and loss account is also referred to as the income statement. This Profit and loss account tells the business…

  • Balance Sheet in accounting

    Balance Sheet in accounting Balance sheets show the financial position of a business in a specific point in time. The balance sheet shows the assets, liabilities and shareholder’s equity.

  • Bookkeeping and accounting

    Bookkeeping and accounting Bookkeeping Bookkeeping is a process by which a detailed record of all the transactions in kept. It is very important for a business to keep a detailed record of its financial transactions. These financial records are kept on the basis on double entry bookkeeping system. Accounting Accounting uses the help of bookkeeping…

  • Difference between Capital and Revenue expenditure

    Capital expenditure is the money spent to gain long term benefits. The money is spent to buy the things which will produce current assets. A good example would be buying a machinery to produce more goods.   Money spent on a thing which will give benefit for more than 1 year is called capital expenditure…