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If you're new to accounting or bookkeeping, you may wonder whether a cheque (check) and a cheque copy are the same thing. Although they are related, they serve very different purposes. Understanding the difference is important for maintaining accurate accounting records, supporting audits, and ensuring proper financial documentation. What Is a Cheque (Check)? A cheque (check) is an original, legally valid payment instrument issued by a bank account holder (the drawer ). It instructs the bank to pay a specified amount of money to the person or organization named on the cheque (the payee ) or, in some cases, to the bearer. A cheque typically includes: The name of the payee The payment amount The date The drawer's signature Bank account details Once the original cheque is presented to the bank and verified, the bank processes the payment and transfers the funds to the payee. Key Characteristics of a Cheque It is the original signed payment document . It is legally valid f...

When two or more errors or the sum of more than one error cancels the accounting effect of each other, it is called a compensating error as the effect of wrong amount of debit and the same wrong amount of credit cancels each other effects and hence Trial Balance agrees. For example, if sales of $1000 to Mr. A on account is entered in Mr. A (debit) as $100 and purchases of $1000 to Mr. B is entered in Mr. A (credit) as $100. In this case, the posting of wrong amounts to debit and credit side in the ledger’s accounts cancel the effects of each other and as a result the trial balance agrees but there is a compensating error. On the debit side there is a shortage of $900 ($1000 - $100) which is compensating by another shortage of credit of $900.

Computer consumables (CC) are computer-based products which are consumed up on regular basis such as CDs & DVSs, USB cables, ink cartridges, power adaptors, etc., which are necessary to perform various computer tasks such as storing data, printing documents, screen wiping / screen cleaning, using of camera, network cables and routers, etc. When a business incurred expenses for CC, then in Income Statement such expenses are categorized as computer consumables expenses in general administrator expenses. When these expenses are incurred only for business purposes, we debit computer consumables account and when these are closed to Income Summary Account , we credit these types of expenses in the books of accounts. To show these kinds of expenses in books of accounts, computer consumable account is created.