Differences between various accounting terms explained in a very simple way with the examples.
Bills of Exchange and Promissory Note both are the type of negotiable instruments. These both are governed by the Negotiable Instruments Act, 1881. But there is some difference in these types of Negotiable instruments. To explain the difference we have Read More …
To know the actual cost of production we classified expenses into two subcategories these are Direct and Indirect expenses or cost. and to measure the gross profit on the sale of goods and services. All expenses incurred on the purchase of Read More …
Difference Between capital and revenue expenditures: – To know the meaning of Capital and Revenue Expenditures, first of all, we have to know the meaning of the expenditure. Expenditure meaning spends or will be spent some amount on purchase of Read More …
Difference between the Profit and Loss account and Balance Sheet:- The Profit and Loss account is the statement of income and expenses which showing the net profit and loss for the particular period while balance sheet is the statement of Read More …
Difference between the Trial Balance and Balance Sheet:- Trial Balance shows the total closing balance of all the ledger accounts for the specific period i.e. for a month, for a quarter, for a six month, and for a whole year. Read More …
Every investor invests his money in the business to earn profit from it. The profit is work as an incentive to the investors in taking the risk and blocking their resources. The Profit can be classified as gross profit and Read More …
Difference Between Cash Book and Cash Account: – The Cash Book and Cash account are maintained for the same purpose i. e. recording all business cash transactions in the books of accounts, but there is a difference in the process of Read More …
Difference between Journal and Ledger: – Difference between Journal and Ledger is that the journal is the first step of bookkeeping and ledger is followed by the journal. Because the bookkeeping involved the predefined/Standard process of recording all the business Read More …
Debit and Credit: – The Debit and Credit are two aspects of the double entry system, which is invented by “Luca Pacioli” the father of bookkeeping. According to the double entry system, Every business transaction has impacted at least two accounts and Read More …
Difference Between Bookkeeping and Accounting: – The Bookkeeping and Accounting both are playing a very important role in the business. But the difference between bookkeeping and accounting is that in bookkeeping, we record all the financial transaction in the books of accounts Read More …