Business financial problem.how manage.

You have any problem in your business :

First problem in your business.will be way of Finance business. 
There are basically 2 ways to finance a business: the capital can be invested in the form of debt or in the form of equity.
we will discuss both forms of investment capital.
debt or equity, the most important determinant of whether the capital will be provided is the entrepreneur and his management team.

0 balance Account

We have  an  project for 0 balance Account

If you want to work with us or you want to open your rbl 0 balance Account.

• Contact for more details only whatsapp.  8929050525.

Suspense Account

Suspense Account:

In such case , two sided errors will be rectified in the same manner by passing journal entries.

When one sided errors are located after the preparation of trial balance , rectifications are carried out by passing journal entries. As only one Account is to be debited or credited for the rectification of one sided errors, suspense's Account used to complete the double entry.

How to rectify the error

We are discuss about how to rectify the error:

Error should never be corrected by overwrite or erasing it reduce the authenticity of accounting records and give the impression that something is being concealed.

Method.of rectification depends on the stage at which the error are rectified.if an error is located in the books of original entry before its posting to the ledger it may be corrected by neatly crossing out the wrong figure by a single line and. Writing the correct figure above the crossed figure.if a wrong figure has been posted to the correct ledger account it may also.be corrected in the same manner.

Error those effect on Trial balance

2. Error which affect the agreement of the trial balance.

If the trial balance does not tally it will indicate that certain errors have been committed which have affected the agreement of the trial balance.the accountant will then proceed to find out the errors ultimately the errors will be located.such errors are called ' error disclosed by trail balance .

Some example:

1. Wrong Costing.

2. Posting to the wrong side.

3. Posting of wrong amount.

4. Omission of posting of one side of an entry.

Error do not effect of trial balance.

1. Errors which do not effect the agreement of the trial balance.

Main object of preparing a trial balance is to check the accuracy of the accounts.the equality of debits and credits of the trial balance does not mean that there are absolutely no errors in the books of accounts.there may be a number of error which may remain undetected in spite of the agreement of a trial balance. As such it is true to say that ' trial balance is not a conclusive proof of the accuracy of the books of account '

1. Errors of omission.

2.Error of commission.

3.Compensating Error.

4. Error of principal.

A. When a  capital expenditure is treated as a revenue expenditure.

B. When revenue expenditure is treated as a capital expenditure.

Types of error

Types of error :

1. Error which do not effect the agreement of the trial balance.

2. Errors which affect the agreement of the trial balance.

To be continue....

Rectification of error

Rectification of error :

Every concern is interested in ascertaining its true profile and financial position at the close of the trading year. But in spite of best efforts of an accountant, certain transaction do get entered wrongly in the books of accounts.such errors may be committed while recording the transaction in the journal or subsidiary books, posting them to ledger or in preparing the trial balance it self . it is necessary to locate these errors and rectify them. Otherwise profile and loss account not give the correct profit or loss figure and the balance sheet will not present a true and fair view of the financial position of the business.

Business tips

Business tips :

We are provide all accounting services

Method to prepare trial balance

Methods to prepare trial balance  :

1. Balance Method

In this methods in the trial balance, only the net balance of every ledger account is placed or we can say that only after balancing of all ledgers accounts.we can prepare this type of trial balance.in this each account will have either debit balance or credit balance.


2. Total method :in this type of trial balance there is no need to take balance of account while preparing the ledger as in this trial balance there are two column for each account namely  debit or credit,in last each.column is totaled ,and if they equal that means that there is no arithmetical mistake in the accounts.