Category Current Assets

The balance as per bank statement and the bank balance in the ledger accounts differ in most cases. That is why; there is a need to reconcile the difference between two sets of balances. There are plenty of reasons for…

In past, we have covered Bank Reconciliation Statement in great depth. Now, it is the time to practice this topic well so to avoid any pitfall in the examination hall. Problem: Fadi Chemical is a medium sized entity that provides various types…

The ownership or property of the negotiable instruments can be transferred by way of writing the name of the person in whose favor the said instrument is being transferred. Such writing can be done on the back or on the…

Cost of Sold or COGS is a cost of the inventories that business sells. In a manufacturing concern, the task of calculating COGS is not an easy task as the inventories exist in several forms such as raw materials, work…

Note receivable is quite different from account receivable accounting. So, first of all you should keep in mind the treatment for notes receivable in accounting is little bit different. Difference between Account receivable vs Notes Receivable in notes receivable, there is…

Check is a written unconditional instrument which is signed by the signatory of the bank account holder to order the issuance of the payment mentioned over the check. The bank is bound to pay the amount mentioned over the check…

A promissory note is a legal written document by which one party agrees to pay the other party at some future date or on demand. It is also called Pro-note, note payable or just note in accounting terminology. It is…

Bill of exchange Bill of Exchange is a written order usually issued by the buyer of the goods or services to the seller of the goods by properly signing it. The issuer of the bill is called Drawer while the…

It is method of recording accounting transactions only when expenses is actually paid and revenue amount is actually received. It is an opposite of accrual basis of accounting in which we record expenses and revenues when the transactions occurs no matter cash…

Prepaid Expenses are the prepayments that an entity makes to third parties on account of services or goods to be received in some future date within the next 12 months. It is also called Prepayments. An entity cannot record the…