Understanding Bookkeeping

Earlier articles have discussed almost all concepts/principles, however there is yet another very important one which is Substance Over Form concept which basically is to ensure that the financial statements reflects the complete, relevant and accurate picture of the transactions and events.

So why do we need to appreciate/understand this Substance Over Form Concept? (more…)

Along the way, when we keep the books of account, there is a certain bookkeeping term called Contra account. Do we know what is this? In simple term, contra account is actually an opposite account to another account.

The following are some of the examples of using a contra account: (more…)

In the Balance Sheet, one key category is the Share Capital. At times, we might get confuse with the various classification of share capital. (more…)

We alway think that as financial statements have recorded all the actual transaction of a business hence, this will be the most ideal/appropriate reports whether for external and internal users. (more…)

Let understand what’s reserves:-

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If you refer to below accounting equation, owner’s equity form one of the three key elements of a Balance Sheet.

Let understand &/define Owner’s Equity: (more…)

In this Part 3, let’s look at what are really long term liabilities in a typical Balance Sheet: (more…)

In this Part 2, let’s understand what are current liabilities: (more…)

This Part 1 explains what’s liabilities the component of the total liabilities side of a typical Balance Sheet: (more…)

This last part of the article deals with non-current assets of a Balance Sheet. They consists of the Fixed Assets and Long Term Investments.

Let understand the following: (more…)