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Accounting and Finance for Bankers

Trial Balance in detail

After all transactions have been posted from the journal to the ledger, a Trial Balance is prepared to check the arithmetical accuracy of the ledger...

Sales Return Book

Sales return book is also called “return inwards book”. Sometimes, the goods which are sold by a business tend to be defective or of poor quality,...

Profit & Loss Account Components

WHAT IS A PROFIT/LOSS ACCOUNT ? Income Statement, also known as Profit & Loss Account, is a report of income, expenses and the resulting profit or...

What is Cash Discount ?

A cash discount also called as early payment discount, is a deduction allowed by some sellers of goods or by some providers of services...

Cash Memo in detail

Cash Memo is equivalent to Invoice copy and a legal document. When the goods are purchased or sold in cash, in that case the cash...

Subsidiary Books in detail

The sub-division of the journal into various books for recording transactions of similar nature are called subsidiary books. Every business company records its day to...

What is Balance Sheet Equation ?

The Balance Sheet equation also known as Accounting equation is the fundamental principle of accounting. It shows what a company owns, what a company...

Journal Entries in detail

Journal entries are the first step in the accounting cycle and are used to record all business transactions and events in the accounting system.  In this step,...

Contra Entries in detail

Contra entry refers to transaction which affects both Cash and Bank simultaneously, i.e. where debit and credit are Cash or Bank A/c. The word...

Capital and Revenue Items

The proper allocation of capital items and revenue items are important for the fundamental principles of correct accounting. The wrong classification of items would...

Inward Carriage vs Outward Carriage

"Carriage" simply means transport or shipping costs. For example, the cost of transporting goods by ship or by train. WHAT IS CARRIAGE INWARD ? Carriage inwards is an expense...

Accounting Standards in detail

Accounting standards are rules and guidelines set up by governing bodies, like (FASB) Financial accounting standards board and (IASB) International Accounting Standards Board, to keep accounting practices...

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