Sales of fixed assets and sales of goods for cash are not recorded in the sales book, as the sales book is only for the purpose of recording... View Article
Reserves are shown on the liabilities side of the balance sheet. Also read: Difference Between Reserve and Provision What Are Reserves in... View Article
Reserve and provision are different as reserve is used for strengthening the financial position of a company while provision is set aside for... View Article
Some examples of provisions in accounting are: Restructuring liabilities Provision for doubtful debts Accumulated depreciation Guarantees... View Article
Provision for depreciation is considered as a provision and not a reserve. Also read: Difference Between Reserve and Provision What Are... View Article
The difference between provision for bad debts and reserve for bad debts is that provision for bad debts is a value that is set aside for meeting... View Article
A secret reserve is referred to as that reserve amount using which the assets are understated and the liabilities are overstated. This is done... View Article
The errors of the trial balance can be as follows: Entries that are recorded twice Entries that are not recorded at all Entries made to the... View Article
The errors that do not affect the trial balance are as follows: Errors of omission Errors of commission Errors of principle Compensating... View Article
Reserves are part of profit that has been set aside for a specific purpose in a business. Also read: What Are Reserves in Accounting What Is... View Article
Double entry bookkeeping system was developed by an Italian mathematician named Luca Pacioli. Also read: Rectification of Errors How to... View Article
Rectification of errors is necessary as it will result in the accounts reflecting the correct view of the business and its true financial... View Article
If a trial balance is not tallied, the value of the credit and the debit balances are not equal, then it indicates that there is something wrong... View Article
If the value of the debit side equals the value of the credit side in a trial balance then we can say that the trial balance is correct. Also... View Article
Trial balance contains a total of all general ledger accounts. Also read: Cash Book Purchase Book Sales Book and Sales Return Book Cash... View Article
Sales return cannot be considered as an expense, but it definitely results in loss for the company or the business. Also read: Cash Book... View Article
Sales returns are considered a contra revenue account as sales returns reduce the revenue of the business. Also read: Cash Book Purchase... View Article
