What is double entry accounting? Double entry accounting is a method of accounting. Every entry that is entered into an account requires a similar and opposite entry to a different account. These accounts must be relevant to the entry that is made. Every transaction, the debits must be equaled to the credit. In this sens,… Read More

What is a trial balance? A trial balance is a list of all the General ledger account contained in the ledger of a business. This list will contain the name of the ledger account and the value of that account. The value of the ledger will hold either a debit balance value or a credit… Read More

What is a bank reconciliation statement? A Bank reconciliation statement is a report which compares the bank balance as according to the company’s accounting records with the balance shown on the bank statement. Why is bank reconciliation necessary? It is normal for a company’s bank balance according to its accounting records to differ from the… Read More