What is Private ledger?
Private ledger is basically such book of accounts in which such accounts are maintained which are maintained to be confidential. Therefore, any such account which might cause some privacy issues or the one that is crucial for the owners’ of the business than such account is maintained under Private ledger. It cannot be treated as […]
Why capital account is not debited to record drawings?
When owner of the business withdraw funds or goods from the business, we do not debit capital account instead we open record these withdrawals in another account which is usually named as Drawings account. So, we record such transactions without disturbing capital account in drawings account. Drawings account is also a capital account as this […]
What is nominal ledger?
First of all students must not confuse the accounts with ledgers. These are two totally different things. Even though these terms are loosely used for each other but they are certainly not the same. Ledgers can be regarded as big registers where we write up and update different accounts. So, it means accounts are specific […]
What is the difference between “Selling costs” and “Cost of Sales”?
“Cost of sales” if said in a phrase then it basically is, manufacturing cost of units sold in a particular period or simply cost. On the other hand “selling costs” include such costs that are incurred to make things available for sale. Important thing to understand here is that even after incurring cost of sales, […]
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FREE CAT T1 mock exam according to computer based examination style is now available. This unique style of mock exam will let you experience how the real CBE examination will be. More questions will be added to this mock exam. You can provide us your valuable suggestion regarding the topics we should include next time […]
