Accounting

Today, we’ll be discussing a small but important accounting concept called ‘Accrual Concept’, which helps us record unpaid expenses and future incomes.

The earlier Special Entries post focused on goods whereas, Special Entries Two will focus more on incomes / gains and expenses / losses.

Today, we will pick up with the concept of Depreciation, which refers to a gradual decrease in the value of our assets as we use them over the years.

Till now, we’ve explored most journal entries. Here, let us put our understanding to a test through this small journal practical.

‘Chintan Shivir’ means a gathering where people think upon & hopefully, improve on their shortcomings in a particular task.

In here, we’ll learn what the term ‘account’ actually stands for now that we are acquainted with Ledger.

The process of transferring entries from journal to the T-shaped accounts in ledger what we call posting.

Put simply, balance is the excess of one tag over the other in a particular account.

Here, we’ll discuss how to include the balance figure in the account space. The answer lies in a single word: Doppelganger.

After journal, we’ve now learnt Ledger. But there are a few more questions we’ll address in this chintan shivir 02.