History and how concept of accounting developed?

Accounting has a remarkable heritage. The history of accounting is as old as civilization. The seeds of accounting were most likely first sown in Babylonia and Egypt around 4000 B.C. who recorded transactions of payment of wages and taxes on clay tablets. Historical evidences reveal that Egyptians used some form of accounting for their treasuries […]

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What is a Contract Note in Share trading?

Contract Note is a confirmation of trades done on a particular day on behalf of the client by a trading member. It imposes a legally enforceable relationship between the client and the trading member with respect to purchase/sale and settlement of trades. It also helps to settle disputes/claims between the investor and the trading member. […]

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What is a Stock Swap?

First it is need to be known Who is an acquiree and acquirer. Acquiree is the company that is being acquired or purchased in a merger or acquisition process. Acquirer is the company that is purchasing another company in a process of merger or acquisition. Acquiring a business or company may be paid in various […]

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Why do companies need to issue shares to the public?

Stock Markets are important financial hub in modern world. Thousands of companies are established through stock exchanges. But why companies issue shares and use stock market to raise money. Most companies are usually started privately by their promoter(s). However, the promoters’ capital and the borrowings from banks and financial institutions may not be sufficient for […]

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What is Systematic Investment Plan (SIP)?

Through an SIP, an investor commits to invest a constant amount periodically. For instance, ₹ 5,000 per month. The investment is normally made in a mutual fund scheme or a gold fund of fund. As the market fluctuates, the scheme’s Net Asset Value (NAV) too will fluctuate. For the same investment of ₹ 5,000, when […]

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Golden Rules of Accounting

Accounts is all about understanding the Golden rules. From a journal entry the process of accounting starts and for this, it is basic necessary to understand the golden which is a handy formula for you. The rule is as follows: 1.Personal            Debit – The receiver            Credit – The giver 2. Real           Debit […]

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Some Basic Accounting Terms

One need to grasp the following common expressions always used in business accounting. Transaction: It means an event or a business activity which involves exchange of money or money’s worth between parties. Goods/Services: These are tangible article or commodity in which a business deals. These articles or commodities are either bought and sold or produced […]

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Various branches of Accounting

Financial Accounting It is commonly termed as Accounting. The American Institute of Certified Public Accountants defines Accounting as "an art of recoding, classifying and summarizing in a significant manner and in terms of money, transactions and events which are in part at least of a financial character, and interpreting the results thereof." Cost Accounting According […]

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Need of banks in a Country

We all have a bank account these days. Specially after demonetization and digital cash initiatives in India the number are increasing. But the question is why there is a need of Bank. A sound banking system is necessary to achieve the following objectives: 1. Savings and capital formation Bank plays a vital role in mobilizing […]

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Who use Accounting Information?

Accounting books gives us vital information about the company and in this post you will learn who make use of what information from a accounting book. The users are categorized in two types External and Internal. External users include Investors, Creditors, Customers, Suppliers, Employees, and Government organizations. Whereas Internal users includes Management and Managers of […]

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