The following are the advantages of double entry system: It helps the record of financial transaction in a systematic and scientific manner. It helps to prepare trail balance to check arithmetical accuracy of books of accounts. It facilitates for .....

The following are the objectives of double entry system: To maintain the systematic record of financial transactions. To solve the problems arises on financial matters. To provide financial information to the management for making financial plans .....

Book-keeping is an act of keeping permanent records of financial transactions of a business in systematic .....

The excess amount of expenditures over incomes is known as .....

The excess amount of incomes over expenditure is known as .....

A cheque is an unconditional order drawn upon a specified banker signed by the .....

Bank is financial institution, which accepts deposits from the public in different accounts and grants loans to individuals and corporations against their .....

The amount borrowed from the individual and financial institution is known as .....

Interest is an extra amount paid to a money lender against the use of his money for a given .....

Incomes earned but not yet received are called accrued incomes. Accrued incomes are current assets of the .....

The incomes, which are not earned but received in advance, are advanced incomes. Advance incomes are current liabilities of the .....

Expenses paid in advanced are called prepaid expenses. Prepaid expenses are current assets of the .....

Business entity concept states that the business and its owners are two separate and distinct entities. For accounting purpose, every business enterprises are treated as a separate entity which is distinct from its owner. The financial transactions .....

A business organization performs a large number of financial transactions on a regular basis. These financial transactions relate to buying, paying expenses, receiving incomes, acquiring assets, meeting liabilities and collecting dues. The .....

Accounting is broader than book keeping. Book keeping is a part of accounting. Book keeping is concerned only with the systematic record of financial transactions but accounting is concerned with the act of recording, classifying and summarizing the .....

The amount of cash remains in the business on any given point of time is called cash in .....

The amount of bill drawn by the creditor accepted by the business promising in writing for paying the amount of goods purchased on credit on a certain date is called bills .....

The amount payable to the suppliers against the goods purchased on credit are called .....

The amount receivable from the customers against the good sold on credit are called .....

The materials or goods which remain unsold at the end of an accounting year are known as closing .....

The assets which can be used or converted into cash within a period of time are called current assets. Cash in hand, cash at bank, bills receivable, debtors, marketable securities and stock are some of the examples of current .....

The assets which are purchased for generating income for long period of time are called fixed. Land building, plant and machinery, furniture are some of the .....

The members secretary should draft the decisions of the meeting in a minute book. Such decisions should be approved by every member presented members in the meeting. It becomes valid and authentic only when all the presented members in the meeting .....

The following are the basic guidelines while drafting a minute: Minute should record the type of meeting, its date, time and place. It should be written simply and clearly so that every one easily understands it. The name of the chairperson and .....

Nepal is an agriculture based economy. Most of the people are farmers who live in the rural areas. The income level of the country is very low. They are not getting the basic facilities of life like education, health, finance, housing facilities, .....

The following are the types of co-operatives: Consumers' co- operative: A consumers' co- operative is established for selling consumer goods to its members and outsider. It buys qualitative goods in bulk from a producer or wholesaler and sells them .....

The office resources which are purchased for generating income or revenue are called .....

The amount of money payable by the business to the outsiders normally within a period of one year is called short term .....

The amount of money payable by the business to the outsiders normally after a period of one year are called long term liabilities. Debentures, mortgage loans, long term loans, loans taken from bank and financial institutions are some of the examples .....

The following are the main characteristics of a co- operative organization are: Open membership: In a co- operative, membership is open to all adults without any distinction of caste, color or creed and religion. A person can join the society by .....

A meeting is a gathering or assembly of related members of an organization with specific objectives. It is the act of getting together in response to a pre- notice on a certain date, place and time to discuss and decide on specified matters or .....

A uni- lateral meeting is the one in which only the members of a particular organization get together to discuss on the specific issues and take decisions. A multi- lateral meeting is one in which the members of more than two organizations get .....

Board members are the governing body of any company. Such board member is nominated or elected by the shareholders. They have to meet time for various reasons and purposes. A meeting of all the board members is called board meeting. In this meeting, .....

Meeting is the rudder of any organization. It is essential function for all business organizations, government offices and social institutions for the successful execution of their duties and responsibilities. Autocratic and single- headed decision- .....

The assembly which is held once a year is called an annual general assembly. It is the assembly of shareholders. All the shareholders can participate in this assembly. This is a compulsory assembly. According to Nepal Act, 2053, to call this .....

The amount of money payable by the business to outsiders on a specific point of time is known as .....

The amount of money invested by an owner in the beginning or during the life of the business is known as .....

Single entry system is that type of accounting system which has no fixed set of rules and principles for recording the financial transaction. It does not follow the basic principles of .....

The disadvantages of single entry system are as follows: Single entry is an unscientific and unsystematic system because it does not follow any accounting rules and principles. It does not help to check the arithmetical accuracy of the books of .....

The advantages of single entry system are as follows: Single entry system is simple to understand and easy to maintain. Under it, no fixed rules and principles are followed to record the financial transactions. It is economical. It does not require .....

The following are the main characteristics of a public enterprise: State ownership: A public enterprise is owned by the government. The government holds total or least 51 percent shares of the enterprises. In most of the enterprises in Nepal, the .....

Public enterprise is a business organization established by the government holding more than 50% of the total share with the aim of producing and distributing goods and services at a reasonable price to the public. Public enterprises are established .....

The following are the features of single entry system: Single entry system has no fixed set of rules for recording the transactions. It has no fixed principles and rules for recording the transactions; therefore, there is variation on its .....

Realisation concept states that revenue is assumed to be earned when goods are sold or services rendered to the customers either on cash or credit. It is not compulsory that revenue must realize in cash at the time of selling goods and rendering .....

Dual concept states that every business transaction has two-fold effects. When the transaction is performed, its effect is made on two different accounts. If one account is debited; another account must be credited with the equal amount. This .....

Matching concept is a guideline for determining the profit or loss of a business. According to this concept, the revenue earned has to be compared with the expenses incurred in the same period to determine the true profit or loss of the business. If .....

Public enterprise is a business organization established by the government holding more than 50% of the total share with the aim of producing and distributing goods and services at a reasonable price to the public. Public enterprises are established .....

Neglect of a majority: In a joint stock company, all the major decisions are made by the shareholders holding a majority of shares. Hence, the voice of a minority of shareholders is neglected by the company. Inflexibility: A joint stock company is a .....

The following are the main advantages of a joint stock company: Huge capital: A joint stock company can raise a huge amount of capital by selling shares. Due to the unlimited membership, limited liability of the shareholders and transferable share, .....

Cost concept implies that when the fixed assets are purchased they are to be recorded in the books of accounts at their cost price. The valuation of the assets is not made on its market price. The balance sheet always shows the value of fixed assets .....