WHAT IS ACCOUNTS

In our business there are different transactions which we have to record in systematic manner by classifying and analysing them so that at the year ending we can get the financial results, it is accounts in simple terms.

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LEDGER AND ITS FEATURES, DIFFERENCE BETWEEN JOURNAL AND LEDGER.

  What is a Ledger? A Ledger is a principal book of accounts, and its primary purpose is to transfer transactions from a journal and then classify them into separate accounts. Ledger is also known as the book of final entry as it helps businesses prepare accounting statements like the Trial Balance. All the items from the journal are recorded in Ledger Accounts and this process is known as posting entries from Journal to Ledger Accounts. What are its features? The features of a ledger are as follows: 1.Two Sides : Every Ledger has two sides – Debit and Credit. The debit entries come on the left side of a ledger, while the credit entries come on the right side. 2.Transaction : Every transaction impacts two or more ledger accounts, and it is because the transaction is related to a particular person, asset, expense or income. 3.Balancing the ledger : The total debit and credit sides of a ledger must always be the same. But that is not always the case since the debit side could be mor...
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ACCOUNTS QUESTIONS / IMPORTANT QUESTIONS OF ACCOUNTING

 1. What do you mean by carriage inward? 2. Where do we post return inward in final accounts? What is the other name of return inward? 3. What is prepaid expenses? 4. What is outstanding liabilities? 5. When Discount is recorded in trial balance ? Why? 6. When commission is written in debit column of trial balance, What does it signify? 7.How is interest on loan treated in Profit and loss Account and Balance Sheet? 8.What are the two branches in accounting ? 9.Is accounting is science or arts ? 10. Name four accounting concepts. 11. Name four accounting conventions. 12. What are the three different types of accounts ? 13. Where do we book purchase in Final Account? 14. Name 2 fixed assets. 15. In final accounts where do we post cash in hand? 16. In final accounts where do we record sales account ? 17. In final Account where do we record creditors ? 18. Name two fixed cost and variable cost . 19. What is the formula for calculating contribution ? 20. What is margin of safety?  ...
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