Accounting Terms

General Ledger Definition: In a financial accounting, super set of accounts that summarize records of transactions occurred during a specified period for a business or an organization is called as General Ledger Account. All the credit and debit balances of ledger account should be equal. This information is then used to prepare financial statement of […]

In accounting system, Journal entry consists of transactions which are either a credit or debit transactions. Total of debit and credit journal entry transactions are unbalanced.  Journal entry can record unique or recurring transactions. Therefore, Journal entry transactions directly affect the balances of general ledger accounts. “Journal entry is a method of posting transactions into

The accounting process, to some extent, is also known as the accounting cycle. Today’s accounting software has transformed traditional accounting methods. But still process of accounting and accounting cycle remains the same irrespective of traditional or modern accounting methods. In this topic we will initially understand what is accounting cycle followed by the three steps

Double Entry System Definition: In accounting, double entry system means every transaction requires corresponding opposite entry into another account. For example: Mr. David received Rs.5,000/- as income. In this scenario, two journal entries would look like this: debit Rs.5,000/- into cash a/c and credit Rs.5,000/- into income’s a/c. Debit and credit of journal entries are