Maintenance of proper books of accounts is necessary to safeguard the money of its members and general public from any kind of misuse or misappropriations. It is important to know the total receipts, total payments, and also to know financial status of an institution. Hence, the account opened and maintained for and by the organizations… Read More »
A ledger is a book containing accounts in which the classified and summarized information from the journals is posted as debits and credits. It is also called the second book of entry. The ledger contains the information that is required to prepare financial statements. It includes accounts for assets, liabilities, owners’ equity, revenues and expenses. This complete… Read More »
Set Up Your Company Maintaining your business transactions on a day-to-day basis is critical to your business. To keep a record of all your business transactions, you need to first create a company in TallyPrime. Through the company, you can also view and update all your transaction entries, as needed, and go through the financial… Read More »
Tally Prime Features: The ‘Go To’ search bar is made available at the top of the TallyPrime screen. You can easily access any part of Tally by typing in the search bar. You can access 90% of the options with it. With TallyPrime, you can interact with all the components of the system where the… Read More »
How to Record an Accounting Transaction? When an accounting transaction occurs, it can be recorded in the books of an organization in a number of ways. The following bullet points note the most common methods available: Journal entries. The most basic method used to record a transaction is the journal entry, where the accountant manually… Read More »
What are Accounting Transactions? Accounting transactions refer to any business activity that results in a direct effect on the financial status and financial statements of the business. Such transactions come in many forms, including: Sales in cash and credit to customers Receipt of cash from a customer by sending an invoice Purchase of fixed assets and movable assets Borrowing… Read More »
Financial statements refer to a specific set of reports produced in an entity’s accounting system. The objective of these reports is to provide information about the entity. A complete set of financial statements includes 5 components. 1. Statement of Comprehensive Income The Income Statement, also known as Profit and Loss Statement (P&L Statement), shows the results of… Read More »
Doing business without a solid understanding of relevant accounting information is like going on a new trip without a map: It’s not a good idea. Financial statements provide a road map of a business’s journey by distilling the accounting information needed to make an informed decision. However, just as a topographic map will not be… Read More »
What is double-entry accounting? Double-entry bookkeeping is an accounting method where you equally record a transaction in two or more accounts. A credit is made in at least one account, and a debit is made in at least one other account. The double-entry bookkeeping method is based on the idea that every business transaction has… Read More »
What is an Account? The account is nothing but an outline of the transactions undertaken by the business in respect of persons, their representatives, and things. For instance, when a business enters into transactions with suppliers or customers, both suppliers and customers act as separate accounts. Similarly, businesses purchasing tangible items like the plant, machinery,… Read More »