Book Keeping Section

Its function is to prepare (1) Balance Sheet (2) Statement of revenue and expenses (3) Cash flow (4) Statement of Charges in financial posting (5) Subsidiary ledger (6) Bank reconciliation statement.

  1. Balance Sheet : This is a statement of assets, liabilities and equity as of a particular date. This statement presents the financial position of the organization as on a certain date.
  2. Statement of Revenue and expenses : This statement summarizes the income earned and the expenses incurred as a result of operations during a period. The excess amount between revenues less expenses represent the net income or loss of the organization. This statement in commonly collect “Income Statement”.
  3. Cash Flow : This statement shows inflows and outflows of cash and bank, classified into operating, investing and financing activities for a certain period. This statement expenses the movements of cash and Bank balances in liquid assets.
  4. Statement of change in Financial posting : This statement presents the source of fund and its application for a certain period. The fund as defined in this statement means the fund generated from the operation of the corporation. disposal of fixed assets and capital receipts and the difference is represented by current assets less current liabilities which is termed as the working capital.
  5. Subsidiary Ledger : Subsidiary ledgers are set for major accounts with numerous components to provide more detailed information about the transactions.
  6. Bank Reconciliation Statement:  It is a statement which by to find out the difference between pass book bank balance and cash book bank balance.