What is Accounting Ledger?
Ledger account sorts transactions of journal and permanently records them for keeping proper balance of each accounts in a business.
5 Simple Steps to Write and Prepare Ledger Account
5 simple steps to write and prepare ledger account for posting business transactions from journal to ledger permanently under different accounts.
Mechanized Accounting System
Mechanized accounting system is bookkeeping system that is implemented without human intervention, a machine which is more powerful, capable and complex in comparison to bookkeeping machine is used for data processing in a computer.
4 Steps of Developing Accounting System for Businesses
There are 4 steps of developing accounting system for collecting and processes financial information of any business in an efficient way.
Lower of Cost or Market Rule (LCM Definition, Examples, Formula)
We apply the conservatism principle and use Lower of Cost or Market Rule(LCM) to reduce inventory to a more realistic value and, at the same time, recognize the loss in value that has incurred. The basic assumption of the LCM method is that if the purchase price of an item falls, its selling price also falls or will fall. The LCM has long been accepted in accounting globally Under LCM, inventory items are written down to market value when the market value, is less than the cost of the items.
3 Types of Discount in Accounting
3 types of discount are trade discount, quantity discount, and cash discount that are used in business, trade, and sales of all kinds.
Users of Accounting Information (Internal and External Users Explained)
Users of accounting information are internal and external. External users are creditors, investors, government, trading partners, regulatory agencies, international standardization agencies, journalists and internal users are owners, directors, managers, employees of the company.
Subsidiary Ledger: Meaning, Types of Subsidiary Ledgers
A subsidiary ledger is an addition of general ledger used for recording each accounts receivables and accounts payable in detail separately. 2 types of subsidiary ledger accounts receivable and accounts payable.
Debit and Credit in Accounting Double Entry System
In double entry system, debit and credit of each account properly determined by golden rules and accounting equation method. Methods of determining debit and credit in accounting are; golden rules and equation method or modem method.
What is Accounting? Definition and Meaning of Accounting
Accounting is a process of identifying and measuring quantitative financial activities and communicates these financial reports to the decision-makers. Man is a social being. He cannot live in society. Because all individuals have got their limitations, they are to depend on society as a whole for their necessary goods and services. So, the exchange of…