Reserves Any amount set aside from the profits of a business is known as reserve. The amount so kept separate is retained in the business

Provisions The books of accounts of an organisation are generally based on accrual basis of accounting, which is also known as the mercantile system of

Methods of calculating depreciation amount There are two methods of calculating depreciation amount which are mandated by the law and implemented by professional accounting practice

Disposal of Asset Due to reasons like obsolescence or inefficiency or any other abnormal factor, a business organisation may dispose off an asset. The disposal

Methods of Recording Depreciation For recording depreciation on fixed assets there are two types of arrangements: Charging depreciation to the asset account or, Creating Provision

Every organisation carrying on a business, profession or any other operation faces the need to charge depreciation on its fixed asset to present a true

The initial step while preparing the final accounts is the preparation of trial balance. So therefore it is absolutely necessary that we prepare the trial

After recognizing the causes of difference in bank balance, the reconciliation might be done in the following two ways: (a) Preparing the bank reconciliation statement