It is a manual ledger document, which contains information of sales made by a person on a business day. It is also called a sales register.Management analyses the effective amount after reconciliation every month. Sales day book is a subsidiary book, which maintains the overall sales and updates the sales ... Read More

A company purchases for the month of April 2012 as follows, On 6th April − Bought 25 computers from Com co. Each computer cost Rs.25000/- with 8% trade discount.On 12th April − Bought 150 phones from PHO co. Each phone cost Rs.950/- on credit.On 17th April − Bought 400 televisions ... Read More

Accounts are divided into two types namely primary accounts and secondary accounts. In books of primary entry, there are special books called subsidiary books.Purchase day book is a type of subsidiary book. Its main purpose is to record all business credit purchases (meant for resale). This book does not record ... Read More

It is the form filled by taxpayers by the month of September of the assessment year. This audit report form consists of two variants, form 3CA and form 3CB. Form 3CA is the compulsory form filed by business persons or business professionals. Form 3CB filled by persons, who come under ... Read More

Books of accounts are the records, which maintain the day to day business operations of all the business establishments and taxpayers, to know results of their operations.Books of accounts should be registered annually. For certificates like certificate of registration (COR) with the Bureau of Internal Revenue (BIR), these books of ... Read More

There are two types of error rectifications while preparing the final balance. These are single side error and double side error respectively.Single side errorNominal accounts are preplaced by P&L (Profit & Loss) adjustment accounts.Example − Discount allowed of Rs.750 is not posted to a discount account.After trial balance, the error rectification ... Read More

There are two types of error rectifications while preparing trial balance. These are single side error and double side error respectively, if the error is detected after preparing trial balance.Single side errorErrors in particular accounts are rectified by applying a suspense account.Suspense account − To prepare final accounts, the difference ... Read More

Rectification of errors can be classified into two types, namely single side error and double side error, if the error is identified before preparing trial balance.Single side errorEntry is rectified by an appropriate posting in an affected account.Example − Entry in purchase account over casted by Rs. 15, 000/-Correction −Dr.Cr ... Read More

Let us understand the concepts of balance sheet and trial balance, before learning how to prepare a balance sheet from the trial balance.Balance sheetBalance sheet is one of the important fundamental financial statements for both accounting and financial modeling. This sheet consists of the company’s assets, liabilities and equity.Balance sheet ... Read More

Balance sheet is also called a position statement. It consists of assets, liabilities of owners and company. On the other hand, a profit and loss account is called an income statement. It shows the company's earned revenue and sustained expenses during the respective financial year.Both are part of a financial ... Read More