Important Bookkeeping Terms: Before attempting to learn the art or science of bookkeeping it will be better to clarify some of the terms that will have to be used again and again. Transaction: Any dealing between two persons or things in a transaction. It
Bookkeeping Versus Accounting: Learning Objectives: What is the difference between bookkeeping and accounting? There is some confusion over the difference between bookkeeping and accounting. This is due to the fact that two are related and there is no universal accepted line of demarcation between
Bookkeeping: After studying this chapter you should be able to: Introduction: The need for a system by which man might keep a record of his business transactions with his fellowmen was felt early in the history of civilization. Many and varied methods were used
Bills Receivable Book: Learning Objectives: Define and explain bills receivable book. Prepare a bills receivable book and post into ledger. Definition and Explanation: Bills receivable book is used to record the bills received from debtors. When a bill is received, details of it are
Bills Payable Book: Learning Objectives: Define and explain bills payable book. Prepare a bills payable book and post into ledger. Definition and Explanation: Bills payable book is used to record bill accepted by us. When a bill drawn by our creditor is accepted particulars
Bill of Exchange for Collection: Learning Objectives: Make journal entries in the books of creditor, debtor, and that of bank when a bill of exchange is sent to the bank for collection. When a person receives a bill, he may keep it till the
Bill of materials Definition: Bill of materials is a document that shows the type and quantity of each major item of materials required to make a product.
Accounting For Bills of Exchange: Learning Objectives: Define and explain bills of exchange. What are its advantages? How does a bill differ from a promissory note? How a bill of exchange functions? What are the accounting treatments of drawing, accepting, discounting, and paying a
Benchmarking Definition: Benchmarking is the study of organizations that are among the best in the world at performing a particular task. The idea is to study and analyze the reasons of the success of the most successful organizations in a particular field all over
Batch Level Activities Definition: Activities that are performed each time a batch of goods is handled or processed, regardless of how many units are in a batch. The amount of resource consumed depends on the number of batches run rather than on the number
Basis of Use System of Depreciation: Learning Objectives: Define and explain the basis of use system of depreciation. One of the chief factors causing depreciation is use. For example in the case of plant and machinery, it is the total number of hours for
Review Problem 1: Basic Present Value Computations: For each of the following situations is independent. Workout your own solution to each situation, and then check it against the solution: Situation 1: John has reached age 58. In 12 years, he plans to retire. Upon
Bank Reconciliation Statement: Learning Objectives: Define and explain bank reconciliation statement. What are the reasons of disagreement of the balances of cash book and bank statement. Prepare the format of the statement. Prepare bank reconciliation statement. Definition and explanation Causes of disagreement between cash
An integrated set of performance measures that is derived from and supports the organization’s strategy.
Balance Sheet: Learning Objectives: Define and explain balance sheet. How is a balance sheet prepared? What are the objectives of preparing a balance sheet? Definition and Explanation: A balance sheet is a statement drawn up at the end of each trading period stating therein