Classification of Accounts in Bookkeeping
Bookkeeping is the basis of financial management. All business transactions must be systematically recorded and categorized in bookkeeping. Classification of accounts is one of the most important part of bookkeeping which facilitates the organization of financial data for reporting and analysis. Proper classification does not only simplify financial tracking but also enhances decision-making through the […]
How to Prepare Profit and Loss Account?
A profit and loss account, also known as the income statement or statement of revenues and expenses, is prepared to ascertain the profit earned or losses suffered by the business entity. We have already discussed the theoretical concepts of profit and loss accounts. Now here we shall discuss only practical aspects only. The profit and Loss […]