Category: Business Accounts

  • What is Partnership Deed?

    What is Partnership Deed?

    A partnership deed is also called a partnership agreement between the partners of the firm which outlines the terms and conditions of the partnership between the partners. The purpose of a deed is to provide a clear understanding of the roles of each partner, which ensures the smooth running of the operations of the firm. […]

  • Different Types of Partners

    Different Types of Partners

    Types of Partners General Types of Business Partners Actual or Ostensible Partners: A partner who has by agreement become a partner and who takes an active part in the conduct of the partnership business is an actual or ostensible partner. He is the agent of the other partners for the business of the partnership. Sleeping […]

  • What is Accounting Equation?

    What is Accounting Equation?

    Accounting Equation equates a company’s assets to its liabilities and equity. This shows all company assets are acquired by either debt or equity financing. For example, when a company is started, its assets are first purchased with either cash the company received from loans or cash the company received from investors. Thus, all of the […]

  • What Is Trial Balance?

    What Is Trial Balance?

    A trial balance is a statement that accounts for all the balances of the Personal account, Real account, and Nominal account regardless of either Revenue or Capital A/c. It comprises 2 columns, debit, and credit. If the transactions are documented systematically by providing a dual-sided effect and later posted methodically, then the total of both […]

  • Computerized Accounting

    Computerized Accounting

    Computerized Accounting means the process of recording business transactions in a journal, classifying them, posting inappropriate ledger, and preparing the trial balance and financial statement with the help of a computer is known as the ‘Computerised system of accounting’. Advantages of Computerized Accounting Speed and accuracy: Man has limited memory. He cannot process large accounting […]

  • What is Journal?

    A journal may be defined as the book of original or prime entry containing a chronological record of the transactions from which posting is done to the ledger. The transactions are recorded first in the journal in the order in which they occur. The process of recording the transactions in a journal is called journalizing. Format […]

  • Types of Shares

    Types of Shares

    Definition of Share The companies act defines a share as “share in the share capital of a company and includes stock except where a distinction between stock and share is expressed or implied.“[sec.2(42)]. According to J. Farwell___” a share is “the interest of a shareholder in the company measured by a sum of money, for […]

  • Double Entry and Single Entry System

    Double Entry and Single Entry System

    Single Entry System: It is an incomplete form of recording financial transactions. It is the system, which does not record two aspects or accounts of all the financial transactions. A single entry system records only one aspect of the transaction. Thus, a single entry system is not a proper system for recording financial transactions. Double-Entry […]

  • Systems Of Bookkeeping

    Systems Of Bookkeeping

    What is Bookkeeping System A bookkeeping system can be divided into two types they are namely (1). Single entry system. (2). Double-entry system. Systems Of Bookkeeping 1. Single Entry System It may be defined as “any system which is not exactly the double-entry system”. A business is said to be using a single entry system […]