(i) This method is also known as original cest method or fixed instalments method. It is known as original cost method as the depreciation is charged at a fixed percentage en the original cost of the asset.
(ii) It is known as fixed instalments method as the amount of depreciation remains equal in all the years throughout the life of an asset.

(i) The failure of the accountant to record a transaction in the books of accounts is known as an error of omission.
(ii) It can be complete omission or partial omission.

(i) A bank may send a statement at regular intervals to its customers. It shows all the deposits, withdrawals and the balance available in its customer's account, on a certain date.
(ii) In recent times, the copy of the records can be obtained by the customer electronically, which is called E-statement.

Cash column of cash book will always have a debit balance because actual cash payments cannot be more than the actual cash in hand.

Personal Accounts are further classified as :
(i) Natural Personal Account
(ii) Artificial Personal Account and
(iii) Representative Personal Account

(i) Opening entry is an entry which is passed in the beginning of each current year to record the closing balance of assets and liabilities of the previous year.
(ii) In this entry asset accounts are debited and liabilities and capital account are credited.

(i) The Accounting Cycle refers to the collective process of recording and processing the accounting information of an organisation.
(ii) The series of steps begin when a transaction occurs and end with its inclusion in the financial statements.

When goods meant for resale are sold, it is called sales