Source Documents

What are the source documents in accounting? In order to complete the accounting records, a bookkeeper needs to have source documents to work from which show what the financial effect of the transactions is. Types of Source Documents The source documents themselves are introduced here. They come in many different shapes and sizes, but they … Read more

Which is better, a Master’s In Accounting or ACCA?

While your penchant for numbers and accounting would have inspired you to pursue a degree in commerce or economics, the next question that arises is with respect to the higher studies to be undertaken. Given the numerous choices, one of the dilemmas students pursuing a degree in accounting or finance face is whether to pursue … Read more

Cash-Basis vs Accrual Accounting

Cash-Basis v/s Accrual Accounting – Essential Aspects To Consider Before Choosing Accounting is an essential aspect of any business. There are primarily three methods of accounting – Cash basis, accrual accounting and modified cash-basis, and each method has its pros and cons in application. The two accounting methods that have a major difference in their … Read more

Statement of Affairs

What is Statement Affairs? – Definition A statement of Affairs like Balance Sheet is a statement of assets and liabilities, prepared to find out capital under single entry system. However, while calculating profit or loss under this method, the following things may also be kept under consideration: Fresh Capital or Additional Capital If fresh or … Read more

Fundamentals of Financial Accounting for Dummies 2019

When starting a business, whether online or traditional, it is imperative to learn the fundamentals of financial accounting. You cannot expect your business to grow if you don’t know how to read the numbers or metrics and how to interpret these. Yes, there are automated tools you can use to keep track of your business’ … Read more

Single Entry System in Accounting

What is Single Entry System? Single entry system is a system under which sometimes both aspects of a transaction are recorded, sometimes only one aspect of a transaction is recorded and sometimes complete transaction is not recorded. Introduction to Single Entry System in Accounting In small businesses, there is a major problem that due to … Read more

Difference between Finance and Accounting

Introduction Finance and Accounting might sound like similar words but they are actually two different terms. These both have interesting career opportunities for youngsters and university graduates. Well if you are an undergraduate student or curious to know about these terms then this article will help you to increase your knowledge on the two topics. … Read more

Limitations of financial accounting

What is Financial Accounting? Financial accounting, which is historical in nature, is mainly concerned with the recording of day-to-day business transactions. It is simply a post-mortem of the past events. Under financial accounting, business transactions are first recorded in the books of original entry, then classified into ledger and finally summarised by preparing Trial Balance. … Read more

Advantages and disadvantages of double entry bookkeeping

Advantages of the double entry system of accounting The advantages of the double entry bookkeeping may be summed up as under: Under this system, each transaction is recorded with its twofold aspect, so the total of one side must be equal to the total of other side. This helps in proving the accuracy of records. Maximum … Read more