what is modern approach? and types of modern approach?and it's rule
Answers
Answer:
Modern Approach to Accounting
Under the Modern Approach, the accounts are not debited and credited. Hence, the Accounting Equation is used to debit or credit an account. Thus, it is also known as the Accounting Equation Approach. The Basic Accounting Equation is: Assets = Liabilities + Capital (Owner's Equity)
One is the Traditional Approach and another one is the Modern Approach. Traditional Approach is also known as the British Approach.
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Rules of Debit and Credit under the Modern Approach.
Explanation:
The modern approach views finance function in broader sense. It includes both rising of funds as well as their effective utilisation under the purview of finance. The finance function does not stop only by finding out sources of raising enough funds; their proper utilisation is also to be considered
Answer:
Modern approach. According to modern approach, the accounts are classified as asset accounts, liability accounts, capital or owner's equity accounts, withdrawal accounts, revenue/income accounts and expense accounts.