Tag Archives: transactions

What is meant by balance of payments (BOP)?

What is meant by balance of payments (BOP)? A system of recording all of a country’s economic transactions with the rest of the world over a period of one year Or Set of accounts that record a country’s international transactions, and which (because double entry bookkeeping is used) always balance out with no surplus or deficit shown on the overall …

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Financial Accounting Notes

Financial Accounting Notes Click on your required topic: Basic concepts of accounting Record keeping and some basic concepts Systems of accounting and some basic terminologies Single and double entry record keeping Classification of accounts Flow of transactions Basic books of accounts Introduction to financial statements The accounting equation Vouchers and posting to ledgers accounts Posting to ledgers and recording of …

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Bill of Exchange Important Question 6 for I.Com Part 1

Bill of Exchange Important Question 6 for I.Com Part 1 Karim sold goods to Bashir for Rs. 5,000 and drew a bill upon him for three months for the amount. Bashir accepted and returned it to Karim, who discounted the bill with his banker at 6% per annum. On the due date bill was honored. Solution KARIM’S JOURNAL Bashir account                                   …

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Why journal is called the book of original entry

Why journal is called the book of original entry The word journal has been derived from the French word “Jour” Jour means day. So, journal means daily. Transactions are recorded daily in journal and hence it has named so. As soon as a transaction takes place its debit and credit aspects are analyze and first of all recorded chronologically (in …

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Define bills of exchange

Define bills of exchange A written order to pay a sum of money on a given date to the drawer or to a named payee; a promissory note Or A written, unconditional order by one party (the drawer) to another (the drawee) to pay a certain sum, either immediately (a sight bill) or on a fixed date (a term bill), …

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What is Current Account?

What is Current Account? That part of the balance of payments recording a nation’s exports and imports of goods and services and transfer payments. Or The difference between a nation’s total exports of goods, services and transfers, and its total imports of them. Current account balance calculations exclude transactions in financial assets and liabilities. Source: http://www.investopedia.com/terms/c/currentaccount.asp

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Define Book Keeping

Define Book Keeping Bookkeeping involves organizing and managing all business transactions in a company. Source: http://www.e-conomic.co.uk/accountingsystem/glossary/bookkeeping Or The systematic recording of a company’s financial transactions. The two most common bookkeeping methods are single-entry and double-entry. Source: http://www.investorwords.com/541/bookkeeping.html#ixzz2XFhMvYcP Or Bookkeeping is an indispensable subset of accounting. Bookkeeping refers to the process of accumulating, organizing, storing, and accessing the financial information base …

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Objective Type Questions for Principle of Accounting I.Com Part 1 (c)

Objective Type Questions for Principle of Accounting I.Com Part 1 Test 3

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