December 17, 2019
Charles Lutwidge
What are the Different Types of Accounting
What is the meaning of accounting? The fundamental concept of accountancy is the gathering of the financial data of records, analyzing, and classifying the firm’s operations. A comparison of the current data with the previous year’s activity to find the...
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December 17, 2019
Charles Lutwidge
Posting in Accounting
Businesses around the world make millions of payments every day. Every business that conducts business as a legal entity makes a large number of financial transactions that it has to keep under control. Therefore, the law requires all state and...
December 17, 2019
Charles Lutwidge
Sales Journal
Credit sales are very popular in the consumer market and quite common even in small businesses, often exceeding cash sales. This is because, with this method of trading, the buyer receives the goods immediately and pays for them for several...
December 05, 2019
Charles Lutwidge
Control Accounts
Use of Control Accounts A control account summarizes a set of subsidiary accounts. Large businesses use it to minimize the summary postings in the general ledger. Instead, enterprises record all the transaction details in a separate subsidiary ledger. Such actions...
December 05, 2019
Charles Lutwidge
Contra Expense Account
Businesses need to know what contra accounts are to keep accurate accounting records. They also allow us to follow the matching principle. Expense accounts have a normal debit balance, which means they increase with debit entries. A contra account reduces...
December 03, 2019
Charles Lutwidge
Accrual to Cash Conversion
Businesses manage their finances using either cash or accrual basis accounting. One of the most complicated concepts to understand in accounting is converting a set of accrual-based books for a cash basis tax return. Accrual accounting is the standard for...
December 03, 2019
Charles Lutwidge
What is Accounting Transaction Analysis
The accounting transaction analysis is the process of translating the business activities and events that have a measurable effect on the accounting equation into the accounting language and writing it in the accounting books. This is the first stage in the...
December 03, 2019
Charles Lutwidge
What is the accounting cycle?
An accounting cycle is a system of actions for identifying, summarizing, and submitting reports on economic events and operations. The stages of the accounting cycle include maintaining transaction records in the ledger, drawing up a trial balance, reconciling accounts, drawing...
