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Journals and Ledgers Explained

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In this tutorial we get to know about Journals and Ledgers which is a very important part of accounting. We prepare Journals and Ledgers to keep track of our company's transactions. Recording of transactions in a systematic manner comes under the process of Bookkeeping. So, lets find out what are these topics Journals and Ledgers meant to be. Table Of Contents Meaning of Journal Under the system of Double Entry Bookkeeping transactions are primarily recorded in the Journal, Journal is the primary book of accounts in which transactions are first recorded in the books of accounts in a chronological order(dates as they occur). In other words, a journal is a detailed account which records all the financial transactions of a business in a chronological order, it is a book of original entry in which transactions are written before they are posted in a ledger. Journal helps to review the effect of the transaction on the business which is shown for each trans...
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Accounting Equation- Concept, Meaning and Formulas

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Hello Guys, Today we discuss about Accounting Equation- Concept, Meaning and Formulas.  Accounting Equation  is the basis for Double Entry System of Book Keeping. Total assets of the business firm are provided by the lenders and the owners. Therefore, at any point of time, the total assets of a business are equal to its total liabilities. Liabilities or loans to the outsiders are known as "liabilities" but liability to the owners, in accounting is referred to as "capital". Accounting Equation We Learn- Meaning of Accounting Equation Transactions affecting two items Transactions affecting more than two items Meaning of Accounting Equation Accounting Equation also known as Balance Sheet Equation, which is a mathematical expression which shows the assets and liabilities of the firm are equal, here liabilities include owner's equity and claims from outsiders. It means total claims (claim of outsiders and claim of proprietors) will always equal to the total assets of...
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International Financial Reporting Standards(IFRS)- Concept, Meaning and Assumptions

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Hello Friends today we learn about  International Financial Reporting Standards(IFRS)  The international Accounting Standards Committee (IASC) found in 1973 which is replaced by International Accounting Standards Board (IASB) in the year 2001 which now issues International Financial Reporting Standards (IFRS) . The objective behind setting up the IASC and later IASB was to develop accounting standards that would be acceptable worldwide to produce and present financial information based on similar accounting standards and improve financial reporting internationally. Table Of Contents Meaning of International Financial Reporting Standards(IFRS) International Financial Reporting Standards(IFRS) are the set of Accounting Standards developed by International Accounting Standards Board (IASB) in the year 2001. IFRS are referred to as principles-based accounting standards because standards issued by IASB are based on sound and clearly stated principle...
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