what is ledger?
The book in which all the transactions of a business concern are finally recorded in the concerned accounts in a summarized and classified form is called ledger.
Why is the ledger called ""king of all books""?
The ledger is called the king of all books of accounts becuse all the entries from the books of original entry must be posted to the various accounts in the ledger.
explain the term balance.?
The balance is an accounting term which means the difference between the two side of an account.
Explain the term blance.?
The process of equalizing the two sides of an acoount is known as balancing.
what are kind of ledger?
generally the following three kinds of ledger are maintained by organizations
Debtor ledger
creditors ledger
Define the term Bank?
A bank may be defined as an insitution which purchases and sells money,and transacts others financial business of like nature.
What are the Primary functions of a bank?
The primary functions of a bank are yo borrow money and to lend it bank borrow money in the shape of desposits and lend it in various ways.
define cheque?
A cheque is an unconditional order in writing ,drawn by a customer on his bank ,requesting to pay on demand a certain sum of money,to a person named in the cheque .
what is crossed cheque?
When two parallel lines are drawn across the face of a cheque it is to be a crossed cheque.
When a cheque will be dishonoured?
when rhe cheque is not paid by the drawee bank,it is said to be dishnoured.
Define the term endorsement?
it is a act of signing on the back of the cheque in order to tranfer it to someone else who is called endorsee.
What is a bank -draft?
bank draft is one of the means of transferring money from one place to another.
what is a hundis?
A hundi is exactly like a bank draft.it is drawn by one trading firm upon its branches.
Explain the postal order?
postal order like cheque are also written orders made by one post office on another .whenever the amount of money to be sent by one person to another is small postal orders serve the same purpose as bank draft.
define the bill of exchane ?
Bill of exchange:
A bill of exchange is an instrument in writting containing an unconditional order signed by maker of a certain person or to athe bearer of the instrument.
What are the main features of a bill of exchange?
1 it must be in writtting
2 it must be sign by the maker
3 it must be unconditional order to pay.
4 The maker must direct a certain person to pay a certain sum of money.
Define drawer?
The creditors who writes out the bill of exchange, is called the drawer.
Define drawee :
the debtors the persons a whom the bill is drawn who accepts the bill of exchange , is called the drawee.
payee:
The payee the person to whom the money is payable when bill of exchange is used as mean of settlement of two parties.
define promissory note?
an instrument in writting containing unconditional undertaking sign by the maker to pay a certain sum of money only to the order of a certain person or to the bearer of the instrument.
Parties involve in promissory note?
The maker?
who signs the note and agrees to pay the amount on due date
The payee to whom the amount is payable.\
Define the Subsidiary books?
The journal is sub-divided into different journals known as the subsidiary books ,which are recorded the details of transactions as they take place from day to day , in a classified manner?
What is cash book?
The cash book is a sub-division of the book of original entry recording transactions involving receipts or payment of cash.
define voucher:
voucher are documents containing evidences of payment and receipts.
Single column cash book.
The single column cash book makes a record of only cash transactions and it is just like ant other cash account. in the cash book , all cash receipt recorded on the left hand side and all cash payments on the right hand side.
double column cash book:
The cash book which cash and bank transactions involving receipt and payments cheques
Define the contra entry:
A transactions in which cash a/c and bank a/c are involved is recorded on both the sides of double column cash book it is called contra entry.
What is a bank reconciliation statement?
Bank reconciliation statement is a statement balances as per the cash book and bank statement.
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