Methew Lu - Profile
Advantages of double entry system accounting
Double Entry system is acknowledged as the best method of accounting in the modern world. The following advantages are derived from it:. 
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Advantages of cash book
Generally cash transactions are numerous. What is credit transaction today will be transactions tomorrow.. Read
Treble or three column cash book
We know when cash is received from the debtors discount may be allowed to them.. Read
Sales returns journal book
A seller must expect in the course of business that some of his customers (buyers) will return as for sonic solid reasons (wrong color, wrong size.... Read
What is meant by reconciliation
If there is a dispute between two friends, or they fail to agree about some matter, the disagreement may temporarily end the friendship between them.. Read
Characteristics of journal entry
Journal is the first successful step of the Double Entry system. A transaction is recorded first of all in the Journal. So, Journal is called the book of Original Entry.. Read
How an account is opened with a bank
To open an account the depositor will have to apply to the bank in the prescribed form and deposit a sum of money.. Read
Sales journal book
When business supplies goods to a customer, an invoice of the type described earlier Is made out.. Read
Advantages of journal entries
Each transaction is recorded as soon as it takes place. So there is no possibility any transaction being omitted from the books of account.. Read
Advantages of opening an account with a bank
The following advantages are obtained by opening a bank account.
1. Money is kept safe--there is no risk of theft or dacoity.. Read
Single column cash book
It is a cash book in which only and only cash transactions are recorded.. Read
Double column cash book
At the beginning of this chapter, it has been discussed that Cash A/c and Bank Ale are two busiest accounts in ledger and they should be removed from the ledger to reduce its volume and size.. Read
Types of cash book
Cash Account and the Bank Account are two busiest accounts in a Ledger and it will be logical to remove these two accounts from the Ledger to reduce the volume of the Ledger.. Read
Simple entry and compound entry
Every transaction affects two accounts one account is debited and another account is credited.. Read
Features of ledger in accounting
It has two identical sides - left hand side (debit side) and right hand side (credit side).. Read
Types of bill of exchange
The bills of exchange are classified on two different basis: (1) On the basis of period. (2) On the basis of object.. Read
Opening an account with a bank
Usually all concerns except a few small ones, open an account with a bank.. Read
Is cash book a journal or a ledger
From the above discussion it appears that the Cash Book is the substitute for the Cash Account.. Read
Cash book and bank reconciliation statement
We already know that a Ledger is a register in which the different accounts are kept. At least one page in this register is fixed for one account i.e. a page for Purchase Ale, a page for Sales A/c, a page for Salary A/c, a page for Rent A/c, a page for Cash A/c, etc.. Read
First phase of accounting cycle
In the previous chapter, we have discussed in detail that how the business transactions are analyzed and how different accounts are debited and credited.. Read
