The different types of accounting errors are as follows: Errors of commission Errors of omission Compensating errors Errors of principle... View Article
An error of omission occurs when an entry has not been recorded although a transaction has occurred during that period. In other words, errors... View Article
The example of complete omission can be as follows: Ram has taken a cash amount of Rs.2500 from the business for personal use and forgot to... View Article
Goods that are returned to the supplier may be recorded as a credit in the purchase returns book, but not posted as debit in the supplier... View Article
Capital expenses or expenditure is recorded as a fixed asset rather than an expense, it is then charged to expense using the methods of... View Article
A promissory note is valid for 3 years from the date of its execution. Post this period it will become invalid. Also read: Bill of Exchange... View Article
A promissory note will be accepted in a court of law only when the signature of the borrower and witness is present. Also, in some cases, the... View Article
There is no requirement of notarising a promissory note. The only requirement is that it must be signed by the two parties. Also read: Bill... View Article
No, a bank guarantee is not a type of bill of exchange. It is a guarantee that assures that the liabilities of a debtor are going to be paid by... View Article
A letter of credit is not a bill of exchange, it is different from the bill of exchange as a bill of exchange is an instrument of payment while... View Article
The importance of computers in accounting is as follows: Faster computing: A computer has the ability to calculate faster than a human being.... View Article
