Tally mcq questions With Answer | Accounting ERP Question | Computer Fundamental

Transactions are always recorded firstly in journal. Journal is that book of accounts in which transactions are recorded first and then posted in ledger.
Journal is the day to day book it records daily basis transactions in systematic transactions. It is also called primary book as records transactions very firstly in systematic manner. After the journal, ledger is prepared

Trial balance is a list of ledger accounts balances, showing debit balances and credit balances, separately on a certain date. Trial balance is only a statement not an account. Every transaction has equal debit and credit aspects so that the trial balance possesses equal debit and credit balances. Preparing trial balances periodically will help you to fix errors as soon as it happens.

The Separate Entity Principle is a fundamental principle of Company Law applied on a global basis. Pursuant to this principle, a company is treated as a distinct entity from its members. The separate entity rule pervades company law and has had wide reaching implications on theoretical and practical company law.
Now as we know that Owners (Members/Promoters/Founders/Shareholders/Sponsors) are different legal entities in compare to the Company, Hence when they start or fund the company via investing in it, that Amount becomes the liability for company (As Company is different Legal Entity) in-order to pay them back in form of profit reruns (dividend/interest/share price increase due to good performance. So capital a liability.

Fixed Liabilities are mostly called non- current or long -term liabilities. These refer to the liabilities which are payable after one year. Example may include term loan, bonds, etc.

Fixed Liabilities are mostly called non- current or long -term liabilities. These refer to the liabilities which are payable after one year. Example may include term loan, bonds, debenture etc.

Ledger is the most important part of your company financial records. It constitutes the records of each transaction, such as withdrawal or deposit of money through vouchers.

Journal is the book of original entry. Journal is that book of accounts in which transactions are recorded first (original) and then posted in ledger.
Journal is the day to day book it records daily basis transactions in systematic transactions. It is also called primary book as records transactions very firstly in systematic manner. After the journal, ledger is prepared

The process of ascertaining the balance of a particular account on a given date is called Balancing.
Balancing of an account is to total both debit and credit sides of an account and putting the difference on that side which is shorter. All ledger accounts are usually closed and balanced at the end of an accounting period. The main reason for balancing is to ascertain the precise position of a business enterprise at a particular period of time. It is worth mentioning here that only permanent accounts are balanced and carried forward to the balance sheet.

Outstanding expenses are those expenses which have been incurred during the current accounting period and are due to be paid, however, the payment is not made. Such an item is to be treated as a payable for the business.

A tangible asset is an asset that has a finite monetary value and usually a physical form. Tangible assets include land, equipment, furniture, vehicles, cash, inventory etc.