Difference between Bad and Doubtful Debts

Credit Sales are a normal phenomenon in a business and with the credit sales, there are bound to be Debtors. Now the Debtors bring with them the component of risk factor...

Methods of Depreciation: Straight Line Method or Fixed Installment Method

In the field of accountancy, several methods of charging depreciation are adopted by different entities. However before beginning with the discussion I would like to clarify that the methods of charging...
Statement of Affairs

Statement of Affairs Method for Calculation of Profit or Loss under Single Entry System

A trader may keep his accounting records under the single entry system due to lack of resources or expertise. However he would be equally eager to calculate his profit or loss...
Single Entry System

Single Entry System: Accounting for Small Business from Incomplete Records:

Introduction to Single Entry System Who use the Single Entry System and Why? Single Entry System of Accounting, also known as Accounting from Incomplete Records, is a non-standard and non-scientific system of accounting....

Sum of Years Digit Method of Depreciation

The Sum of years digit method of depreciation is a revised form of Written down value or Reducing balance method of depreciation

Bank Reconciliation Statement (BRS)

What is Bank Reconciliation Statement?Bank Reconciliation Statement is a statement prepared to reconcile and explain the causes of disagreement between the bank balance as per cash book and the same as...

Written Down Value or Reducing/ Diminishing Balance Method of Depreciation

Depreciation is the process of allocation of cost of an asset over its estimated useful life. This allocation is done by means of charging depreciation on the value of the Asset...

Bills of Exchange: Discounting, Endorsement, Dishonour, Noting & Protest etc.

Discounting of Bills of Exchange Bills of Exchange are generally payable after a certain period which is called the tenure of the bill (i.e on maturity). However it may so happen that the...
SELF BALANCING LEDGER

What are Self Balancing Ledgers and Why are they used.

Many students I encounter tell me that they get confused with the concept of Self Balancing Ledger (also called the Self Balancing System). This fact astonishes me as the concept of...

Accounting for Depreciation

In this article we will discuss the alternative methods to account for depreciation in the books of accounts. If you want to read about the concept of depreciation and why it...

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