Archive about 'Accounting Equation & Double Entry System'

Content Page on Double Entry System and Accounting Equation

Tweet This Content Page helps you to navigate to all articles relating to the DOUBLE ENTRY SYSTEM AND ACCOUNTING EQUATION. From each topic, you can return to this Content Page. Click to the respective topic: Content Page Learn the rules of double entry bookkeeping system What is the double entry system or dual aspect accounting […]

Learn what are the Rules of Double Entry Bookkeeping

Tweet Tabulated below are the rules of double entry bookkeeping: Note the basic rule of double entry bookkeeping: every financial transaction gives rise to two accounting entries,one a debit and the other a credit. The total value of debit entries in the nominal ledger is always equal at any time to the total value of […]

Pictorial Diagram Of Classification of Accounts

Tweet { Print this article in pdf.format} DOUBLE ENTRY RULE: ACCOUNTS DEBIT CREDIT Personal accounts Receiver Giver Real accounts What comes In What goes Out Nominal accounts All expenses All incomes Read more details on personal and impersonal accounts Read more details on real and nominal accounts

What are Real Accounts & Nominal Accounts

Tweet Accounts are broadly classified into two (2) category namely: Personal Accounts and Impersonal Accounts ( see earlier article). For  Impersonal accounts, they can be sub-divided into (a) Real Accounts & (b) Nominal Accounts. Below explain: Real Accounts: Related to assets or properties which are either: Tangible real accounts-assets that can be touched, felt, measured, […]

Accounting Equation and Double Entry system or concept

Tweet (You can print this article in pdf format) Every accounting student needs to really understand the most basic accounting concept or principle which is the system of double entry and the accounting equation  Below are some guidelines and simple snapshots for students to take note of what accountant means by double entry system and […]

Explain what is Impersonal and Personal accounts?

Tweet IMPERSONAL ACCOUNT:In the accounts of the nominal ledger, we have different types of expenses for different purposes like rent, insurance, telephone and others. As these expenses are related NOT to the person to whom the money is paid and more concerned towards the reason for payment these are known as IMPERSONAL accounts. PERSONAL ACCOUNT: […]

Explain what is nominal ledger?

Tweet Nominal Ledger: The nominal ledger is an accounting record which summarizes the financial affairs of a business. It contains details of assets, liabilities and capital, income and expenditure and so profit and loss. It consists of a large number of different accounts, each account having its own purpose or “name” and an identity or […]

Accounting Quiz On Assets, Liabilities and The Accounting Equation

Tweet Refresh or test your accounting knowledge by answering the following questions on Assets, Liabilities and The Accounting Equation:- QUESTIONS: 1.0  What is an asset? Give three examples 2.0   What is a liability? Give three examples 3.0  What is the accounting equation? 4.0  What are drawings? 5.0  What is the business equation? 6.0   Distinguish between […]

In Accounting, what are credit entries and also explain what does an entry on the CREDIT SIDE means. Is Credit side and Credit Balance the same?

Tweet Credit Entries: Credit entries are the entries found on the right-hand side of any ledger account. An entry on the CREDIT side indicates:- A decrease in ASSETS; A decrease in EXPENSES An increase in LIABILITIES An increase in REVENUE or An increase in CAPITAL   The credit side and credit balance is not the […]

Questions (with Answers) On True Or False On Accounting Concepts & Double Entry System

Tweet   QUESTIONS ( click here for ANSWER) True False 1. Accounting Principle is general law or rule followed in the preparation of financial statements     2. Usefulness, objectivity and feasibility are the three basic norms generally found in accounting principles     3. The entity concept considers the business and the proprietor as […]