Skip to main content

Posts

Featured Post

Identification of Accounts of The Transaction

This is the second step to make a journal entry in a double-entry system of accounts easily because, if you want to understand making journal entries smoothly you need to follow the step must. So what is Account? Account means in a certain accounting period aggregating similar transactions are furnished in shortlist or format following Accounting Principles and procedures under the title of individual, concern, asset, liability, revenue, and income. For Example, Salaries Expense, Cash Account, Accounts Payable, Rahim & Traders Account, Commission revenue, and so on. Classification of Account: We can classify Account under the Traditional or British method and Modern or American System. If you want to realize Account inherently, I think you have to follow both methods of identifying accounts.   (A)  Traditional or British method: In this method, at first, Account can be segregated into two ways such as-         (1) Personal A...
Post a Comment
Read more
Recent posts

Identification of Transaction of Accounts

  Lots of events happen in a business organization but all events are not transactions. It is known to all, "All transactions are events but all events are not transactions." What is Event? Event is such a thing that happens in a business organization in a thousand times. But all events would not be important in respect to business life. In the viewpoint of recording transactions, only a little event will be considered as a transaction. Then what is the transaction? Generally, give and take of any goods or services in respect of money or money measurement will be considered as a transaction. But in modern terms events to be taken into account as transactions whenever it changes in the financial position of a person or an  organization and also changes in Asset, Liability, and Owner's Equity of a business Instution.      However, to identify  a business transaction, we have to follow the following three ways spontaneously.     ⇒ (1)Traditional Meth...
Post a Comment
Read more