Following are the main differences between government accounting and commercial accounting:1. MeaningThe accounting system maintained by the government offices is known as government accounting. The accounting system maintained by business organizations is known as commercial accounting.2. ObjectiveGovernment accounting is maintained by the government offices to know the position of public fund. Commercial accounting is maintained by business organizations to know the profit or loss and the financial position of the business.3. BudgetGovernment...
Thursday, 30 September 2010
Objectives Of Government Accounting
Posted on 19:16 by Unknown
The following are the main objectives of government accounting:* To record financial transactions of revenues and expenditures related to the government organizations.* To avoid the excess expenditures beyond the limit of the budget approved by the government.* To make expenditures according to the appropriate act, rules and legal provisions of the government.* To provide reliable financial data and information about the operation of public fund.* To prevent misappropriation of government properties by maintaining the systematic records of cash...
Wednesday, 29 September 2010
Features Of Government Accounting
Posted on 20:52 by Unknown
The following are the main features of government accounting.1. Profit And LossSince government is a public institution, its main objective is to maintain law and order in the country. Therefore, the accounting system used by an institution is not supposed to reveal its profit and loss, but to reveal how public funds and properties have been used for that purpose.2. Government RegulationsGovernment accounting is maintained according to government rules and regulations. The financial policies, rules and regulations determine the system of government...
Meaning Of Government Accounting
Posted on 20:36 by Unknown
Accounting is concerned with the processing of financial transactions of an entity. It generates and communicates necessary financial information to its users. It is, therefore, a process of recording, classifying and summarizing the financial transactions and communicating the results of its operations.There are different branches of accounting. One of its branches is government accounting. Government accounting is that branch of accounting, which is used in government institution. The government accounting is different from other branches of...
Thursday, 23 September 2010
Differences Between Balance Sheet And Statement Of Affairs
Posted on 20:49 by Unknown
Following are the main differences between balance sheet and statement of affairs:1.BasisBalance sheet is prepared on the basis of double entry system of book keeping. Statement of affairs is prepared on the basis of incomplete records.2. PurposeBalance sheet is prepared to present financial position of the business. Statement of affairs is prepared to find out either the amount of opening capital or closing capital.3. Financial PositionBalance sheet shows the true financial position of the business. Statement of affairs does not show the true...
Concept Of Statement Of Affairs And Its Preparation
Posted on 20:36 by Unknown
Statement of affairs is a statement of capital, liabilities and assets. Statement of affairs is prepared under the single entry system in order to find out the amount of opening or closing capital of the business. For the purpose of determining the amount of opening capital, the statement of affairs is prepared on the opening date. The statement of affairs is prepared on the closing date for the purpose of determining the amount of closing capital. It is also known as the balance sheet of single entry system.Preparation Of Statement Of AffairsStatement...
Calculation Of Profit Or Loss Under Single Entry System
Posted on 20:23 by Unknown
The following method is used for the calculation of profit or loss under single entry system.Net Worth MethodNet worth method is also called statement of affairs method or capital comparison method. According to this method profit or loss of the business is determined by making comparison between the capital of two dates of a period. For example,Capital as on 1st January 2009 = $ 150000Capital as on 31st December 2009 = $ 200000Profit for the year 2009 = Closing capital -Opening capital = $200000-$150000 = $50000.If there are other capital related...
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