Category: Accountancy Class 11

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

Basic Terms in Accounting  Entity: It means a reality that has a definite individual presence or existence. Business entity implies an explicitly recognizable business enterprise

Objectives of Accounting: As an information framework system, the essential objective of accounting is to give useful data to the interested group of users, both

Meaning of Accounting: Accounting is the language of finance. It shows the financial position of the business or the firm to any individual who wants

Significance of Agreement of Trial Balance To prepare financial statements at the end of an accounting year, it is important that the trial balance should