Tag Archives: LEARNERS-POINT

 Need and Importance of Accounting In this lecture, you will learn about the Need and Importance of Accounting. After taking this lecture, you will be able to understand, why Accounting is necessary and why Investors, managers and other stake-holders want to know about financial information and how Accounting help them. Now watch this lecture and share your views in comment.

FINANCIAL ACCOUNTING –  COURSE OVERVIEW

HOW A BILL OF EXCHANGE WORKS?       How a bill of exchange operates, is illustrated in Figure 1 and Figure 2, but first we should read the following points. (1) A person, who wants to purchase goods but has no money, may agree to accept a bill of exchange drawn upon him at some future date for the value …

Definition of Accounting Many authors have defined the term “Accounting” in different ways. There is difference of opinion among the authors as to its precise definition as the term accounting is so broad that it is difficult to give a precise definition. However, several possible definitions are given below: 1. “The act of collecting,   processing, reporting, analyzing, interpreting   and projecting   financial information”. 2.“The system …

ACCOUNTING: A BUSINESS LANGUAGE Accounting is a language, a system that communicates information.  It is often referred to as the language of the business, although it is just as important in the operation of government agencies, clubs, colleges and other kinds of organizations. You probably have some idea already of what the term accounting means. It is frequently used in   …

WHAT IS THE NEED AND IMPORTANCE OF ACCOUNTING? We live in a world where people need things from the day they are born to the day that they die. Some of these ‘needs’ are physical needs, a need for goods of various sorts, food, clothing, shelter, and so on. Some of them are emotional ‘wants’, a need for education, entertainment, …

Accounting For Bills of Exchange Learning Objectives: Learn Definition  and explanation bills of exchange. What are advantages of Bills of Exchange (B/E)? What is difference between Bills of Exchange and promissory note? How a bill of exchange functions? What are the accounting treatments of drawing, accepting, discounting, paying, dishonoring, Retiring  a bill. Now-a-days,  business transactions are usually conducted on credit …

Q. Define Depreciation and Discuss types of Depreciation methods. Ans. : DEPRECIATION:      The reduction in value of a tangible fixed asset due to normal usage, wear and tear, new technology or unfavorable market conditions is called Depreciation. Assets, such as plants and machinery, buildings, vehicles, etc., which are expected to last more than one year, but not for infinity, are subject to …

ADJUSTMENT ENTRIES The preparation of income statement or Trading, Profit and Loss Account and Balance Sheet is the last stage of accounting process. According to the principles of double entry system of accounting all the expenses and incomes relating to a particular period whether incurred or not should be taken into account. In order to give the true and fair …

Preparation of final account is the last stage of the Accounting Cycle. The basic objective of every concern maintaining the book of accounts is to find out the profit or loss in their business at the end of the year.  Every businessman wishes to ascertain the financial position of his business firm as a whole during the particular period. In …