Accounting

As and when a transaction takes place, a certain document evidencing the same is created, which is called a source document, and one such source document is a ‘Voucher’. It is the written proof that the financial transaction has occurred and these are used to support the entries reported in the account books. Types of […]

What is Deferred Revenue Expenditure? Deferred Revenue Expenditure implies the expenditure incurred in the course of business during the current accounting period but the benefits arising out of it can be enjoyed over the years in the future. That is why, the total expenditure is written off in the subsequent number of years for which […]

What is Voucher? A voucher implies a source document, generally prepared for the purpose of future reference that keeps a record of the ground on which the transaction took place. Hence, it acts as documentary evidence of that transaction as it backs the entries recorded in the journal. It must be noted that a transaction […]

What is Fund-Based Accounting? Fund-based accounting refers to a method in which all long term and short term sources of revenue are classified into different funds. Once the classification is complete, then different transactions associated with the fund are recorded in its fund account. This facilitates tracking of the revenues and expenses of any particular […]