Tag Archives | Accounting

Format of Cash Book | Accounting

After reading this article you will learn about the format of preparing cash book. A day book-cum-ledger kept for making entry of the cash transactions as well as posting to the cash and bank accounts is called Cash Book. It is a unique book of account that combines journal and ledger. Cash Book is a […]

Format of Income Statement | Accounting

After reading this article you will learn about the format of income statement. Introduction to Income Statement: An important component of financial statements of an entity is Statement of Comprehensive Income. The main purpose of this statement is performance measurement. For a business entity performance is measured in terms of profit. There are different concepts […]

Format of Balance Sheet | Accounting

After reading this article you will learn about the format of balance sheet. Balance sheet reflects financial position of an entity. IAS 1 has used the term Statement of Financial Position in place of Balance Sheet. IFRSs format focuses on classified balance sheet based on current non-current classification. Balance sheet presents assets, liabilities and equity […]

Why Should We Study Accounting?

Get the answer of: Why Should We Study Accounting? Introduction to Double Entry Book-Keeping: Every person performs some economic activities; the word ‘person’ is used here to mean individual, a family, commercial or non-commercial organisations, Central Government or State Governments or Local Self-Governments and any other body engaged in economic activities. Accounting is a language […]

Why do we Need to Prepare Financial Statements?

Get the answer of: Why do we Need to Prepare Financial Statements? Financial Reporting Standards: Having discussed various stakeholders group of an entity, let us now turn to financial reporting system which facilitates the preparation and presentation of general purpose financial statements. International Financial Reporting Standards (IFRSs) have recently emerged as global financial reporting standards […]

Difference between Stakeholders and Shareholders | Financial Accounting

This article will help you to learn about the differences between stakeholders and shareholders. Shareholders are definitely the important stakeholders of a company; nevertheless they are not the only group who are interested in the company’s activities, its financial performance, financial position and cash flows. Of course, the shareholders in addition would be interested to […]

Basic Accounting Equation

The fundamental accounting equation is: This is basis of double entry book keeping as well. Income – Expense = Profit; when income is more than expenses the difference is termed as profit. Expense – Income = Loss; when income is less than expenses the difference is termed as loss. Both profit and loss are equity […]

Shareholding Pattern of Reliance Industries | India

After reading this article you will learn about the shareholding pattern of reliance industries in India. A public company is usually characterised by a large body of equity shareholders. You should be aware of that equity shareholders are the provider of capital to the company and bear the business risk just like the owner(s) of […]

Top 5 Elements of Financial Statements | Accounting

This article throws light upon the top five elements of financial statements. They are: 1. Assets 2. Liabilities 3. Equity 4. Income 5. Expense. Element # 1. Assets: Features of an asset: i. The future economic benefit embodied in an asset is the potential to contribute, directly or indirectly, to the flow of cash and […]

Purpose of Statement of Changes in Equity | Accounting

This statement is meant for displaying the movement in equity during the accounting period. Examples equity components are: i. Equity share capital. ii. Retained earnings: This an account of undistributed profit presented in the Statement of Income in earlier accounting years and profit during the year other than the portions which are set aside under […]

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