Accounting Questions and Answers

Current liabilities are amounts due to be paid to creditors within twelve months. 

The following are common examples of current liabilities:

• Accounts payable. These are the trade payables due to suppliers, usually as evidenced by supplier invoices.
• Sales taxes payable. 
• Payroll taxes payable.
• Income taxes payable.
• Interest payable.
• Bank account overdrafts.
• Accrued expenses. 
• Customer deposits.

Purchase are goods or stocks bought for the purpose of resselling.

Dual Aspect Concept, also known as Duality Principle, is a fundamental convention of accounting that necessitates the recognition of all aspects of an accounting transaction. Dual aspect concept is the underlying basis for double entry accounting system.

Carriage refers to the cost of transporting goods into a business from a supplier, as well as the cost of transporting goods from a business to its customers. Carriage outwards is the shipping and handling costs incurred by a company that is shipping goods to a customer.

A bank reconciliation is used to compare your records to those of your bank, to see if there are any differences between these two sets of records for your cash transactions. The ending balance of your version of the cash records is known as the book balance, while the bank's version is called the bank balance.