Imprest System of Petty Cash An imprest system of petty cash means that the general ledger account Petty Cash will remain dormant at a constant amount. ... (Replenishment means getting the total of the currency and coins back to the imprest amount.) The petty cash custodian will cash the check and add the amount to the other cash. #ImprestSystemofPettyCash

PETTY CASH BOOK Petty Cash Book is an accounting book used for recording expenses which are small and of little value, for example, stamps, postage and handling, stationery, carriage, daily wages, etc. These are expenses which are incurred day after day; usually, petty expenses are large in quantity but insignificant in value. #PETTYCASHBOOK

CASH BOOK AND ITS KINDS A cash book is a subsidiary to the general ledger in which all cash transactions during a period are recorded. The cash book is recorded in chronological order, and the balance is updated and verified on a continuous basis. There are three common types of cash books: single column, double column, and triple column #CASHBOOKANDITSKINDS

Advantages of subsidiary book It enables the division of work among accounting personnel by assigning with separate books and it increases efficiency of personnel as they perform same activities daily. It helps to save time and labor by recording similar type of transactions in a separate book. #AdvantagesofSubsidiaryBooks

SUBSIDIARY BOOKS Subsidiary Books are those books of original entry in which transactions of similar nature are recorded at one place and in chronological order. In a big concern, recording of all transactions in one Journal and posting them into various ledger accounts will be very difficult and involve a lot of clerical work. #SUBSIDIARYbOOKS

Short Note on Trial Balance Trial Balance is a list of closing balances of ledger accounts on a certain date and is the first step towards the preparation of financial statements. ... Asset and expense accounts appear on the debit side of the trial balance whereas liabilities, capital and income accounts appear on the credit side. #TrialBalance

LEDGER ACCOUNTS A ledger account contains a record of business transactions. It is a separate record within the general ledger that is assigned to a specific asset, liability, equity item, revenue type, or expense type. Examples of ledger accounts are: Cash. Accounts receivable #LEDGERACCOUNTS

TRADITIONAL CLASSIFICATION OF ACCOUNTS Traditional approach. According to traditional approach, the accounts are classified into four types – personal accounts, real accounts, nominal accounts, and valuation accounts. #TRADITIONALCLASSIFICATIONOFACCOUNTS

Basic Accounting procedures-journal Entries Examples of key journal entries Accounts payable entry. When recording an account payable, debit the asset or expense account to which a purchase relates and credit the accounts payable account. ... Payroll entry. ... Accrued expense entry. ... Depreciation entry. ... Petty cash entry. #BasicAccountingproceduresjournalEntries

What is JOURNAL A journal, from the Old French journal, may refer to several things. In its original meaning, it refers to a daily record of activities, but the term has evolved to mean any record of activities, #WhatisJOURNAL

VALUATION PRINCIPLES OF ACCOUNTING Valuation and Its Principles In finance, valuation is the process of an estimation of the worth of something. In other words, the process of determining the monetary worth of something is valuation. Valuation is an estimation that is especially done by a professional or a valuer. #VALUATIONPRINCIPLESOFACCOUNTING

ACCOUNTING POLICIES Accounting policies are the specific principles and procedures implemented by a company's management team that are used to prepare its financial statements. These include any accounting methods, measurement systems, and procedures for presenting disclosures. #ACCOUNTINGPOLICIES

INTERNATIONAL FINANCIAL REPORTING STANDARDS(IFRS) What are International Financial Reporting Standards (IFRS)? International Financial Reporting Standards (IFRS) set common rules so that financial statements can be consistent, transparent and comparable around the world. IFRS are issued by the International Accounting Standards Board (IASB) #INTERNATIONALFINANCIALREPORTINGSTANDARDS

About Accounting Standards An accounting standard is a common set of principles, standards and procedures that define the basis of financial accounting policies and practices. ... In the United States, the Generally Accepted Accounting Principles form the set of accounting standards widely accepted for preparing financial statements. #AccountingStandards

Qualitative Characteristics of financial statements The qualitative characteristics of financial statements. Understandability. The information must be readily understandable to users of the financial statements. Relevance. The information must be relevant to the needs of the users, which is the case when the information influences their economic decisions. #QualitativeCharacteristicsoffinancialStatements