Bank Reconciliation: Why It Matters and How to Do It Right
A statement showing the difference between the bank book balance and the bank statement balance on a particular date is called bank reconciliation statement.
Methods of Preparing Trial Balance
All ledger accounts are recorded on a separate sheet under the debit and credit columns, and the totals are matched to preparing trial balance.
Trial Balance
A trial balance is a statement prepared for the purpose of verifying the mathematical correctness of the accounts with the debits n credits.
Business Transactions
A transaction is defined as an event that brings about a change in the financial position of an entity, can be measured in monetary terms, and occurs between two parties.
Balancing of Accounts
The difference between the total amount on the debit side and the credit side of an account is called the surplus of that account.
Accounting Ledger
The literal meaning of “ledger” is “shelf.” After journalize the recorded transactions are then summarized under separate headings according to their nature.
Accounting Journals
The book of accounts where transactions are first recorded is called a journal. Purpose of Journal entries is to keep the ledger accurate.
Generally Accepted Accounting Principles (GAAP)
The set of rules, principles, or standards established to bring uniformity to the practice of the accounting profession is known as GAAP.
Accounting Principles
Overall financial position of an organization is outlined through accounting. Accountants are tirelessly working to make this accounting highly dynamic.
Classification of Accounts
An account is an individual accounting record of increase and decrease in a specific asset, liability or owner’s equity items.