Notes

Adjustments Adjusting entries are accounting journal entries that convert a company’s accounting records to theaccrual basis of accounting.An adjusting journal entry is typically made just prior to issuing a company’sfinancial statements. The Reasons Why the Life of a Business is…

Correction of Errors Wrong Entries Identify wrong entries An accounting error is a non-fraudulent discrepancy in financial documentation. The term is used in financial reporting. Types of accounting errors include: Accounting errors can occur in double entry bookkeeping for a…

General Journal The Purpose of General Journal Explain the purpose of the General journal You are an accounting student; you do not need to be told just how difficult accounting can be. Accountants analyze business transactions and record them in…

Sources of Government Funds and Expenditure Estimates Indentify sources of government funds and Expenditure Estimates Government revenue refer to the income generated by the government through various income sources inside and outside the particular government, As to any other person…

Meaning of Government Counting Terminology Meaning of the term Accounting Define the term accounting Accounting is the systematic and comprehensive recording of financial transactions pertaining to a business. Accounting also refers to the process of summarizing, analyzing and reporting these…

Bank Reconciliation Statement Meaning of Bank Reconciliation Statement Define Bank reconciliation Statement Bank reconciliation is the process of matching the balances in an entity’s accounting records for a cash account to the corresponding information on a bank statement. The goal…

Petty Cash and Impress System (Column Petty Cash Book): Petty cash book is a kind of cash book which records large number of small payments such as conveyance, cartage, postage, telegrams and other expenses under the imprest system. These expenses…

Elementary Balance Sheet The Balance Sheet Define the balance sheet The balance sheet, also called the statement of financial position, is the third general purpose financial statement prepared during the accounting cycle. It reports a company’s assets, liabilities, and equity…

Elementary Trading Profit and Loss Accounts Final accounts give a concise idea about the profitability and financial position of a business to its management, owners, and other interested parties. All business transactions are first recorded in a journal. They are then…