Financial Accounting

Preparation of Financial Statements of Commercial Organisations   Question 1.Write short note on the following:Provision for Discount on Debtors (June 2019, 5 marks)Answer:Provision for Discount on Debtors:We know that cash discount is allowed by the suppliers to customers for prompt settlement of cash. Naturally a provision is created for this purpose. Thus, the provision which […]

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 […]