The accounting system is the series of tasks and records of an entity by which transactions are processed as a means of maintaining financial records. Such systems identify, assemble, analyse, calculate, classify, record, summarise, and report transactions and other events.
financial accounting notes
Chart of accounts is an index to the accounts in the general and subsidiary ledgers. Ledger account are classified into five group of account. Chart of accounts is an index to place these five group of of accounts into an order, to assist into locating ledger accounts which allow for the accounts to be easily accessed.
In the United States, Generally Accepted Accounting Principles (GAAP) is the name for the framework of accounting rules used in the preparation of financial statements. GAAP is created by the Financial Accounting Standards Board (FASB).
IFRS 8 operating segments seeks to assist the user of financial statement gain clearer understanding of the performance of the business by requiring the dis-aggregation of the reported financial information into segments.
Information to be reported
- The IFRS requires an entity to report a measure of operating segment profit or loss and of segment assets.
- It also require an entity
Accruals are expenses that have not been included in expenses in the current period as they have not been paid for in the current period but which must be included as they have been incurred in the current period as per the accrual concept.
Examples of accruals could include wages owing at the end of the period, light and light … Read the rest
The buyer normally issues debit note to a supplier to request for credit note. The buyer may not debit the account of the supplier until his request is approved by him evidenced by the issue of credit note to the buyer.
A debit note is also prepared whenever it becomes necessary for one reason or the other to increase … Read the rest