studynatic

Short Answer Solution:- Trial balance is a statement prepared to check the arithmetical accuracy of transactions recorded in the journal, posted into the ledger and balanced in the ledger accounts. The balance of ledger account shows the difference between the…

Short Answers Ans. The need to prepare Bank Reconciliation Statement are given below: 2. What is a bank overdraft? Ans. Bank overdraft is a liability to an account holder. When the account holder withdraws excess amount over his/her available bank…

Short Answer Answer:- Transaction are recorded directly from source documents in the Cash book, so there is no need to record transactions in the Journal book. Further, on the basis of the cash transactions recorded in the Cash book, cash…

Source Documents:-  Source documents are the original records of business transactions. They are important because they prove, firs, that a transaction occurred, and they also serve as evidence of the details of that transaction should there ever be a discrepancy…