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The word “Journal” has been derived from the French word “Jour”. Jour means day. So Journal means daily. Transactions are recorded daily in journal and hence it has  been named so. It is a book of original entry to record chronologically (i.e. in order of date) and in detail the various transactions of a trader. It is also known “Day …

Accounting Equation  Short Questions and Answers Q.1      WHAT DO YOU MEAN BY ACCOUNTING CONCEPTS? Ans.    The term ‘Concepts’ includes those basic assumptions or conditions upon which accounting is based. The following important accounting concepts are as : Business Entity concept Going concern concept Money measurement concept Cost concept Duel Aspect concept Accounting period concept Matching concept Realization concept Q.2      …

Ledger & Trial Balance – MCQs with Answers FOR MCQs with Answers CLICK BELOW MCQS with Answers  LEDGER CALLED KING OF ALL BOOKS In ledger various accounts are posted from journal, so it is called king of all books. ADVANTAGES OF THE LEDGER Ledger provides better information, to management to increase income and decrease losses of the business. From it …

Accounting is a great subject now a days. Without Accounting, Modern business cant’ be run and no one can understand or run organizations smoothly without accounting. A lot of Job opportunities all over the world are open for those who have a great knowledge and understanding of Accounting Subject. We are started a series of Online Tests for those, who …

Introduction to Accounting Short Questions & Answers Q.1.     DEFINE BUSINESS? Ans.    Any legal activities in a country undertaken for earning profit is called business. Q.2.     WHAT ARE THE KINDS OF BUSINESS? Ans.    There are three kinds of business. Manufacturing ii. Merchandise Trading    iii. Service. Q.3.     DEFINE BUSINESS TRANSACTION? Ans.    Business transaction means dealing with two persons like acquiring …

Journal, Ledger & Trial Balance – Short Questions with Answers Q.1.     WHAT YOU MEAN BY JOURNAL? Ans.   Word journal is derived from French word “Jour” which means day. Business transactions are recorded in journal daily, that’s why it is called “Day Book”. Transactions are recorded Chronologically in Journal. It is Also Called “Book of Original Entry” or ” Book of …

 Question: What is income from business; explain scope and tax-ability of income from business? Answer:    Income from business-section-18 Income from business is a 3rd source of income and it is chargeable to tax under sectin-18 of income tax ordinance 2001. Let us define business and then income from business. Business: Business includes any trade, commerce, manufacture, profession, vocation or adventure or …

Single Entry Bookkeeping System also known as Single Entry Accounting System or Accounts form Incomplete Records. It is a method of bookkeeping relying on a one sided accounting entry to maintain financial information. Most businesses maintain a record of all transactions based on the double entry bookkeeping system. However, many small, simple businesses maintain only a single-entry system that records …

The word “ACCOUNTING” means “Language of Business“. As we know the main aim of Business is only to earn Profit. But how much profit is earned by business or is there any loss suffered by it. The real story about the operations of business can only tell Accounting. That’s why! we said that, “Accounting is the Language of Business.” The …

Financial Accounting is an important Branch of Accountancy. Financial Accounting is concerned with recording of business transactions and preparation of statements for the purpose of ascertaining profit or loss of the concern and preparation of balance sheet to know the financial position of the organisation. You can find your desired information from the followings. For Beginners: Chapter No. 1: Introduction …