Accounts

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Liquidation of Company

When any company is running a business on loss from many days, there is no improvement in his/her financial position then then in such condition company is brought to an end. On the liquidation of the company, the assets and property of the company are sold under supervision of the government. Amount realized by sale […]

August 1, 2011 0
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Insolvency

Insolvency When any person has more debts due to various circumstances,   it is not possible for him to pay debts fully.  Then he takes shelter of government to get rid of his debts.  His property is sold under the supervision of government. The amount realized by sale of his property is distributed amongst his creditors […]

July 26, 2011 0
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Final Account | How to Prepare Financial Statement

Transactions which are being done by Business men , It  writes in journal.  Then  after  we prepare the ledger .then after we prepare trial balance.  With the help of trial balance we prepare final account. Business man after making final account analyzing profit and loss. Profit and loss can be measured annually, semi annually, quarterly […]

July 24, 2011 0
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Trial Balance

          A Trial balance is a statement showing the balances or total of debits and credits of all the accounts with a view to verify the arithmetical accuracy of the posting in to the ledger.     This  is  based on double entry. Therefore the equality of Debits and credits posted in ledger should be verified at […]

July 22, 2011 1
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How to prepare Ledger

A Ledger contains a classified summary of a business transactions pertaining to given period. Posting is the process of transferring the entries from the books of original entries to the ledger. Separate accounts are opened in it.    Debit side is greater than credit side than in this case credit side will be written as balance […]

July 20, 2011 1
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How to Prepare Journal Entry

The book in which transactions are written systematically for the first time is known as journal . The process of recording transactions in journal is treated to be as journalizing.  There are five columns in journal entries as follows: Date, Particulars, Lf, Dr Amount , CR Amount .  Lf stands for ledger  folio.  DR- WITHDRAWL […]

July 17, 2011 0
Golden rules of Debit credit – second rules
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Golden rules of Debit credit – second rules

In simple word, Debit means the amount reduce from your account and Credit means the amounts credited in your account. For example- when A Person gives loan to another person,the loan given is  an asset to the giver because it generate income for  him. So it has to be debited and  cash account has to […]

March 7, 2011 0
Golden rules of Debit Credit And Entry
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Golden rules of Debit Credit And Entry

The two words have been derived from French and latin languages. Here debet , a middle French word and debitum ,a latin word which mean to owe or that which is owed because debit  which we abbreviate  as Dr . Same is the story of credit or creditum which mean that which is entrusted or […]

February 25, 2011 2
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