What is capital reserve?

The term capital reserve is sometimes used for the capital buffers that banks have to establish to meet regulatory requirements which are different from cash reserves that banks to maintain as per Central Bank (RBI) regulations. In general terms, a capital reserve is an account on the balance sheet of a company that can be…

What are accounting errors?

Types of accounting errors include  ‘Error of principle’,’ Error of Omission in accounting’, ‘Error of commission’,  ‘Compensating Error’,  ‘Error of original entry’,  ‘Complete reversal of entries’. Error of principle in accounting: When correct amount is posted to wrong type of account, such error is called error of principle. Suppose machinery installation charges is debited to…