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Explanation

Benefits of preparing Bank Reconciliation Statement includes bringing out any errors committed in preparation of Cash book/Bank Pass Book, Highlighting under delay in clearance of cheques deposited but not credited and helps knowing actual bank balance.

Explanation

Cash received from debtors is considered an inflow of funds, representing payments made by customers who owed money to the business.

Explanation

Postage stamps on hand are considered as Prepaid expenses. Prepaid are any expense the business pays for in advance, such as rent, insurance, office supplies, postage, travel expense, or advances to employees.

Explanation

Error which affect only one account can be Error of posting. An error in which amount is posted to the wrong side of the same account is known as error of posting.

For example, goods sold to X wrongly credited to his account.

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Debit increases the capital account balance statements is incorrect regarding capital account. It decreases the capital account balance.

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Identifying an economic event or transaction is the first phase of accounting cycle, which includes any transaction involving the use or exchange of a company's assets.

Explanation

Credit note is the basis for recording a transaction in Sales return journal. A credit note or credit memo is a commercial document issued by a seller to a buyer.