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How to Prepare a Bank Reconciliation Statement (BRS) A Bank Reconciliation Statement (BRS) is a statement prepared to reconcile the difference between the balance of cash at the bank as per the bank statement (Pass Book) and the balance of cash at the bank as ...

=== "Bank Reconciliation Statement Concept" === "Problem 1" === "Problem 2" === "Problem 3" These videos serve as references for preparing and solving Bank Reconciliation Statement questions, with the concepts clearly explained for better understanding. NO...

Journal in Accounting A journal is a record of financial transactions where transactions of a business are ordered by date. It is known as the book of original entry, as each transaction is first recorded here before being posted to the respective accounts. Jo...

Simple Journal Entries In double-entry bookkeeping, a simple journal entry is a type of accounting entry that involves only two accounts: one account is debited, and the corresponding account is credited. This ensures that for every transaction, the accounting...

Goods and Services Tax (GST) The Goods and Services Tax (GST) is a unified, indirect tax system that replaces multiple indirect taxes in India. It is a destination-based consumption tax, meaning it is charged at every stage where value is added to goods or ser...

Capital Expenditures (CapEx) and Revenue Expenditures (RevEx) In accounting, Capital Expenditures (CapEx) and Revenue Expenditures (RevEx) are two types of spending that businesses incur in the process of operating. Although both are essential for the function...

In accounting, capital receipts and revenue receipts are two categories used to classify the cash inflows received by a business. These classifications are essential for understanding the nature of the cash flow and how it impacts the financial statements. C...

Contingent Assets and Liabilities Contingent assets and liabilities are potential assets and liabilities that are not recognized in the financial statements because their existence depends on uncertain future events. They are only disclosed when certain condit...

Ledger A Ledger is a book that contains all the accounts used to record financial transactions, and it is prepared based on the entries made in the journal. Since ledger entries are made after journal entries, the ledger is referred to as a secondary book in a...

Preparation of Trial Balance A Trial Balance is a statement that lists all the general ledger accounts of a business at a specific date. The trial balance is prepared to verify that the total debits equal the total credits after posting all journal entries and...

Introduction to Tally Tally Solutions Pvt. Ltd., formerly known as Patronics Pvt. Ltd., is a company based in Bangalore, India. It was founded with a simple reason: to develop software. In 1986, the company started creating its own accounting package due to th...

Steps to Create a Company in Tally Prime 1. Launch Tally Prime Open the Tally Prime application. The Gateway of tally screen will be displayed, showing options such as creating a company, and more. 2. Select "Create Company" Option From the gateway of tall...

What is an Inventory Group? An Inventory Group in Tally Prime is used to categorize stock items based on their nature, type, or classification. Grouping inventory makes it easier to generate reports and manage stock efficiently. For example, a company dealing ...

1. What is a Voucher? A Voucher in accounting is a document that supports the entries made in the financial books of accounts. In Tally Prime, vouchers are used to record day-to-day transactions in a structured format. For example, if a company sells goods, a ...

1. Steps to Generate Trial Balance in Tally Prime Generating a Trial Balance in Tally Prime is simple and can be done in a few steps: Step 1: Open Tally Prime Launch Tally Prime and select the company for which you want to generate the Trial Balance. Step 2:...

1. Steps to Generate Income Statement in Tally Prime To generate an Income Statement in Tally Prime, follow the steps below: Step 1: Open Tally Prime Launch Tally Prime and select the company for which you want to generate the Income Statement (Profit & Loss ...

In accounting, errors may occur during the recording of financial transactions. These errors, if not corrected, can lead to inaccurate financial statements, misrepresentation of the company’s financial position, and other complications. Rectification of errors...

Errors in accounting are mistakes that occur during the process of recording, classifying, or summarizing financial transactions. These errors can affect the accuracy of financial statements and need to be identified and corrected. The types of errors can be b...

Rectification of financial accounts refers to the process of identifying and correcting errors or discrepancies in a company’s financial records. This process ensures the accuracy and reliability of financial statements, such as the balance sheet, income state...

In accounting, errors can occur at various stages, such as during journal entry, ledger posting, or the preparation of financial statements. Once these errors are detected, they need to be corrected through rectification entries. The rectification process invo...