Items On A Balance Sheet

Posted by Ana Orwel on Monday, May 11, 2009

Balance sheet and items on a balance sheet provide a reflection of the financial status of a company on a given date giving a summary of the company’s assets, liabilities and equity.

Balance sheet is generally published once in a year and it records the assets, liabilities and owner’s equity on a given date. The balance sheet is also referred as a snapshot of the company on a given date.

Here you can find an example of balance sheet and more detailed explanations of the items on it.

Posting Journal Entries Tutorial

Posted by Ana Orwel on

Posting journal entries tutorial teaches you two things, i.e.:
1. how to record business transactions in the general journal, and
2. how to post those entries into the general ledger.

General journal or the book of original entry is the one where all the initial entries pertaining to the business transactions of a company are recorded. Here the entries are made in a chronological order according to dates on which they occurred. Each entry is called journal entry and refers to the unique business transaction. Debit and credit rules are followed while posting all the entries.

After journal entries are made, they must be posted into the general ledger, you can find here more details how to do it.

More information on how to post entries into the general journal can be found here. This information can serve as a posting journal entries tutorial. Good luck in your learning!

Journal Entries For Royalty Payments

Posted by Ana Orwel on

Journal entry is the first entry for every financial transactions occurring in a business firm. The entries that are made in the journal record all the transactions in a chronological order and maintain the details of the transactions along with the amounts that are to credited or debited.

Royalty is treated as an expense, so the journal entries for royalty payments are as follows:
Bank A/c D XXX
To Royalty A/c C XXX

Find more resources on accounting basic here

On-line Accounting Course

Posted by Ana Orwel on Thursday, April 30, 2009

A lot of people across the world require an understanding of accounting for various purposes. The students need to learn accounting in order to improve their grades, professionals need it to improve their accounting skills and businessmen need it to improve their understanding of a business.

To cater to the needs of all these people, there are various educational institutes and websites who offer on-line accounting course. These courses can be availed from any corner of the world, either for free or in lieu of a minimal cost. These courses are very popular among the professionals, students and businessmen because they do not require any special educational qualifications and are even divided according to the difficulty levels like basic, intermediate and advanced.

Start learning accounting basic today with our on-line accounting course.

Learn Accounting For Business

Posted by Ana Orwel on

Should you learn accounting for business? Even before one can get to know how to improve their business’s profitability, they have to be aware about the current status of their business. For e.g. if you are getting your business financed by a bank, then you should undrestand such concepts like gross profit, assets, liabilities, margin etc. which are related to your business. So these are the things that come along with accounting knowledge.

So, a businessman needs sufficiently  deep knowledge about these metrics of their business. You have to know how to use these metrics to generate reports and also analyze them. Until and unless you have a firm knowledge about these aspects, you cannot just get a complete grip of your business. This knowledge will also help to decide upon the future strategies for improving the company’s financial status.

Learn accounting for business today 

What Is The Accounting Equation?

Posted by Ana Orwel on Tuesday, April 28, 2009

What is the accounting equation? Accounting equation is regarded as the fundamental on which the entire accounting double entry system of accounting is based.

The equation which is accepted all over the world is:

Assets= Liabilities + Shareholder’s or Owner’s Equity.

This shows how the assets are financed by borrowing money from someone or from the funds which is in the hands of the shareholder’s. The shareholders are regarded as the owners of the company because they own a percentage of the profit or loss on behalf of the company. If both the sides of the Balance Sheet i.e. the Assets and Liabilities tally with each other then we may say that the entire record keeping process has satisfied the accounting equation.

More resources on the accounting equation here.

What Is General Ledger?

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What is general ledger? The general ledger or nominal ledger is the main records of all the transactions of a company that uses a double entry bookkeeping. A general ledger incorporates the accounts of entities like liabilities, fixed assets, current assets, revenue, expense, losses and gains. The most important financial statements of a company are supported by a collection of accounts (the general ledger). The general ledger is built by recording the transactions on sales daybook, cash daybook, purchase daybook, general journals daybook and sales daybook. The general ledger is supported by a group of subsidiary ledgers.

Learn more about general ledger here.

Purpose of The Accounting Equation

Posted by Ana Orwel on

The final book for checking all the accounting records are done correctly or not is the Balance Sheet. It has two sides the assets and the liabilities. If these two sides of the Balance Sheet tally in that case we can say that all the accounting records are done correctly.

In that case the accounting equation is also satisfied with all its conditions. The basic which says: Assets= Liabilities + Shareholder’s or Owner’s Equity is satisfied fully. If in any case the Balance Sheet does not tally then we can say that there is some discrepancy in the transactions which has been recorded in the original books of accounts.

The purpose of the accounting equation is to reflect what assets the business has and how these assets are being financed, i.e. by liabilities or equity.

More information on the accounting equation here.

Parts Of General Ledger

Posted by Ana Orwel on

General ledger is the book that contains all the financial accounts pertaining to a business. It is generally maintained by the companies who have a double entry bookkeeping system.

There are subsidiary ledgers that support the general ledger. In the general ledgers the ledger entries of the subsidiary ledgers are all entered under individual accounts. The parts of general ledger are:

• debit account,
• credit account and
• control account.

The sales daybook, purchase daybook, cash daybook etc. are used to construct the general ledger.

More on general ledger here….

Online Accounting Course

Posted by Ana Orwel on

You can find online accounting course, there is plenty of them available, but most of them were regular courses before the online accounting courses were launched. The online courses are very convenient because you can avail them from the comfort of your bed.

These courses are available in two segments, i.e. Basic and Advanced. Professionals as well as students both can avail the courses because of their flexible timings and admission criteria. These courses are really helpful, but one needs to select the online tutorials only after a proper research. This will enable one to make a prudent decision.

Start learning accounting basic today with our online accounting course.