A ledger is an account that accumulates all the information about changes in specific account balances It is also known as the T account since it looks like a T with debit on the left side and credit on the right side Having issues with your accounting module? SMS us at +65 9758-7925 or email: enquiry@starcresto.com
1. Single entry error Concept of duality must be applied to every transaction Worksheet will not balance if only one part of transaction is entered 2. Transposition error Occurs when 2 of the digits are transposed e.g. Payment of $5340 cash is recorded as $5430 decrease in profit – difference of $90 A transposition …
Every business transaction has a dual effect (Debit and credit) Business transactions are analysed by examining the dual effect of each business transaction the accounting equation must always balance ** This requires a fair bit of practices. Having issues with your accounting module? SMS us at +65 9758-7925 or email: enquiry@starcresto.com
A = L + OE Expresses the relationship between assets of an entity and how those assets are financed Assets are resources controlled by an entity They can financed in two ways: By outside fund providers or liabilities By inside funds or equity Liabilities and equity represent the claims against the entity’s assets For instance, …
Business transactions are occurrences that affect the assets, liabilities and equity items in an entity A business transaction is recorded when It can be reliably measured in monetary terms It occurs at arm’s length Under the entity concept, every entity must keep records of its business transactions separate from any personal transactions of the owners …
Sole Trader Partnership Private Company Public Company Having issues with your accounting module? SMS us at +65 9758-7925 or email: enquiry@starcresto.com
Owners of a company are known as shareholders Independent legal entity (i.e. separate from the people who own, control and manage it) Shareholders have limited liability – for the purchase price of their shares only (not company debts) A company has unlimited life – not dissolved when owners die or change They can be limited …
An association between two or more persons who carry on a business as partners share profits or losses according to partnership agreement Enables sharing of ideas, skills and resources Easy and cheap to establish Includes details of the partnership Name of partnership Partner contributions of cash and other assets Profit and loss sharing ratios Entry …
A sole trader is an individual who controls and manages a business The business is not a separate legal entity The individual is fully liable for all debts What are the advantages of sole trader? Quick, inexpensive and easy to establish Inexpensive to wind down Not subject to company regulation Owner has total autonomy over …
The major business organization forms are: Sole trader Partnership Limited Liability Company Company They differ in terms of owner liability, equity structure, funding opportunities, decision making responsibilities and taxation Read up more about their advantages and disadvantages of : sole proprietor, partnership and companies Having issues with your accounting module? SMS us at +65 97587925 …