Learn Accounting Knowledge with Examples.

 Accrual Concept   The Accrual Concept is one of the Most Important Methods for Adjusting the Year-End Entry . It is the standard method for entering Transaction revenue and expenses incurred or earned. The Accrual Concept Split as four method , 1. outstanding expenses 2. Prepaid expenses 3. Accrued income 4. Deferred income             Before we know about the above concepts we should know about the open transaction and closing transaction to understand the accrual concept. Let us see the open transaction and closing transaction with examples, An open transaction is a transaction that is not completed within the financial year that transaction is called an open transaction. for example, a P2P (PROCURE TO PAY) transaction or an o2c (ORDER TO CASH) Transaction not completed in the one financial year, the sales completed but the amount not received in the financial year, or the purchase completed. Still, the payment not paid...

  The Basic Reason for Raising Debit Note And Credit Note, Applying By Modern Golden Rule. Modern Rules of Debit & Credit Particular Balance Increase Decrease Drawings & Dividend Debit Debit credit Expenses Debit Debit credit Asset Debit Debit credit Liability Credit Credit Debit Equity Credit Credit Debit Revenue Credit Credit Debit Debit Note: 1.            Good Purchased from KKR & Ltd ₹ 100000. ₹ 10000 is debited from the purchase amount for a Quality Defect. 2.            The Sales invoice Raised ₹ 280000 instead of ₹300000. Debit Note Raised Against MR Ravinthar ₹ 20000 S.No Par...