Commerce Aspirant

The basic meaning of trial balance is a summary of debit and credit balances of all the ledger accounts maintained by the organization. The major objective of preparing a trial balance is to check the arithmetical accuracy and correctness of ledgers. Trial Balance forms the basis for preparing the financial statements at the end of … Read more

Bank Reconciliation Statement Questions can be divided into the following four categories  : – There is a Debit  balance in the books of accounts, and a debit  balance as per the bank passbook There is a Debit  balance in the books of accounts, and a  credit balance as per the bank passbook There is a  credit balance in the books of accounts, and a … Read more

After recognizing the causes of difference in bank balance, the reconciliation might be done in the following two ways: (a) Preparing the bank reconciliation statement without adjusting the cash book balance. (b) Preparing the bank reconciliation statement after adjusting the cash book balance. It might be noticed in practice that the bank reconciliation statement is … Read more

What is Bank Reconciliation Statement ?  This question, is relevant for most of the accountants, who are responsible for managing the  bank statement of an organization. In simple language, a bank reconciliation statement, is a statement , which identifies the reasons for difference in balance of the bank as per the  books of accounts of the the business, and the balance which is as per the records … Read more

What is the Balancing of Accounts? We know that there are ledger accounts have debit side and credit side.  Both side has few entries. Sometimes one side may not have any entries. Following procedure is followed to balance the accounts. Add both sides of the account and find out the bigger side of the account. … Read more

Journal Proper is a book of original entry. It records the transactions which cannot be recorded in any special book. This book is also called as “General Journal”. Transactions are recorded in chronological order..i.e. date wise. Hence we can say that it records transactions for which no special journal is maintained. It also shows non … Read more

Customers might return the goods sold on to them for variety of reasons like defect in the goods, over supply, not right product etc. Sales return is also called as “Return Outward”. It records the return of goods which are sold on CREDIT. Sales return book should only record the return of goods sold and … Read more

Cash Sales Journal Entry and Credit Sales Journal Entry – Accounts Meaning of Sales Sales simply means to transfer something, whether goods or services , by receiving for it , either at the time when the goods are transferred or at a later date. Sales Journal Entry is the accounting entry made in the books of accounts, to record … Read more

When the purchases are made, it may happen that goods have to be returned to suppliers for various reasons. It is advisable to maintain a separate register or book to record these returns of purchases made. Such returns are also called “Return Outwards”. Books maintained for returns are the same as purchase books. Purchase return … Read more

Meaning of  Purchase Purchase means to acquire something from someone either by making the payment at that time itself or at a later date. To record the purchases made by the businesses during the year, a purchase (journal) book is maintained which records purchases arising from either of the two situations given below – Purchase … Read more