BANK RECONCILATION

                                     Cash book to cash book

 Add:  

•   Standing order

•    Bank interest

•   Direct debt

•  Credited transfer entered into bank statement      

Less:

• Dishonoured cheque
• Bank charge 

                                           Bank to bank

• Balance as per as bank statement 

Add:

• Outstanding lodgement or deposit not credited or Cheques paid in but not credited 

Less:

• Unpresented cheque or outstanding cheque  

                                                Before bank reconcilation
                                              
                                                                  Cash book given
Add:

• Unpresented cheque
• Bank interest

Less:

• Outstanding lodgement
• Bank charge 

                                         Before bank reconcilation 
                                           Bank given
Add:

• Outstanding lodgement
• Bank charge

Less:

• Unpresented cheque
• Bank interest

                                                After bank reconcilation
                                                                 Bank given
Add:

• Outstanding lodgement

Less

• Unpresented cheque

                                                         After bank reconcilation 
                                                                     Cash book given
Add:

• Bank charge

Less:

• Bank interest

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INTANGIBLE ASSET

Intangible asset is an asset which you cannot touch.It is an intangible. You can not touch in your hand, can not see .Example of intangible assets are copyright,trademark,patent,domain name, brand name etc.

Sometimes intangible assets value is far grater than tangible assets value such as goodwill.It is shown on a company's balance sheet.

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DOUBLE ENTRY BOOK KEEPING

Double entry is a system where involve two account. One is debit and one is credit.For example a business got some money from his customer, the company's asset is incressed and decressed liability. we can explain it by-
                           cash---------------dr
                           recerivable-------cr

Under the double-entry system every business transaction is recorded in at least two accounts. One account will receive a "debit" entry, Another account will receive a "credit" entry.It is a foreign language.

Actually it has two effect. one is debt, meaning the amount will be entered left side and other is credit that will be enterde right sight.When debit & credit entry will be equal then account will be correct.For example- A business sell goods 500 on credit with 17% sales tax. Then accounting entry will be-
                  Receivable------------------------------------------dr  585
                       sales tax-------------------------------------------cr  85
                       sales-----------------------------------------------cr  500

We saw that every business transection effect two account.It is known as double entry book keeping.

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PRESENTATION OF FINANCIAL POSITION

PRESENTATION OF FINANCIAL POSITION:
IAS 1 incorporates the recommended formats for company published accounts. The following summaries are required:
1.statement of financial position
2.income statement
3.statement of comprehensive income
4.statement of changes in equity
5.notes to the account
6.statement of cash flow.

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