Accountancy Basics

Bank Reconciliation Statement – CA Foundation Accounts Question 1.Meaning of Bank Reconciliation StatementAnswer:Meaning of Bank Reconciliation Statement:A bank a/ c or bank book is maintained by us to record the transactions with bank. Similarly Bank maintains our a/c in their books. A copy of which is given to us known as Bank statement or passbook. […]

Accounting Process (Journal, Ledger, Trial Balance, Cash Book, Subsidiary Books) Question 1.Double Entry System.Answer:Double Entry System: This system was invented by an Italian merchant named Fra Luco Pacioli in 1494 A.D. According to this system, every transaction has got a two-fold aspect (dual aspect), i.e. one party giving the benefit and the other receiving the […]

Accounting as a Measurement Discipline-Valuation Principles, Accounting Estimates Question 1.Historical CostAnswer:Historical Cost: It means acquisition price. According to this base, assets are recorded at an amount of cash or cash equivalent paid or the fair value of consideration given at the time of acquisition. Liabilities are recorded at the amount of proceeds received in exchange […]