Introduction Tally is a widely used accounting software in India and abroad, known for its simplicity, flexibility, and robust functionality. It helps businesses manage accounts, inventory, payroll, taxation, and more. Understanding its key components is essential for efficient usage in financial record-keeping and decision-making. Main Body Key Components of Tally 1. Gateway of Tally This […]
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Introduction A joint venture is a temporary business arrangement where two or more parties come together to undertake a specific project or business activity. Each party contributes resources and shares profits and losses in an agreed ratio. Though often confused with consignment, a joint venture has distinct characteristics and legal implications. Main Body Salient Features
State the salient features of joint venture. Distinguish it from consignment. Read More »
Introduction In accounting, particularly in consignment and branch accounts, the term “loading” refers to the difference between the cost price and the invoice price (or selling price) of goods. It represents the profit margin or markup added to the cost by the consignor or head office. Understanding and computing loading is crucial for accurate accounting
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Introduction The terms “consignment” and “sale” are often used interchangeably in everyday language. However, in accounting and commerce, they have distinct meanings and legal implications. While both involve the transfer of goods, the ownership, risk, and accounting treatment differ significantly. This article explains the differences and clarifies why consignment is not the same as a
“Consignment is the same thing as sale”. Discuss. Read More »
Introduction A hire purchase agreement is a financial arrangement in which a buyer agrees to purchase goods through installment payments. Ownership of the asset is transferred only after the final payment is made. This system is commonly used for acquiring expensive goods such as vehicles, machinery, or electronics, particularly by businesses and individuals who prefer
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Introduction Errors are common in accounting and can occur due to mistakes in recording or posting entries. When errors affect the trial balance, a Suspense Account is temporarily used to balance the accounts until the errors are corrected. This post addresses how to rectify various accounting errors assuming a Suspense Account was opened. Main Body
Rectify the following errors assuming that a Suspense Accounting was opened. Read More »
Introduction Journal entries are the foundation of the accounting process. They are used to record all financial transactions in chronological order, ensuring that every debit has a corresponding credit. The following are journal entries for the given transactions, based on generally accepted accounting principles. Main Body Journal Entries for June 2018 Date Particulars Debit (Rs.)
Introduction Accounting standards are formal guidelines and principles that govern the preparation and presentation of financial statements. They ensure consistency, transparency, and comparability across financial reports. Issued by recognized bodies like the Institute of Chartered Accountants of India (ICAI) or the International Accounting Standards Board (IASB), these standards bring uniformity to financial reporting. Main Body
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Introduction The double entry system is the cornerstone of modern accounting. It is a scientific method of recording financial transactions, ensuring that the accounting equation (Assets = Liabilities + Equity) remains balanced. Unlike the single entry system, which is simpler and often used by small businesses, the double entry system provides a complete view of
What do you mean by double entry system? Distinguish it from single entry system. Read More »
Introduction Accounting information is vital for decision-making by various stakeholders including investors, creditors, regulators, and management. To be useful, this information must possess certain qualitative characteristics that enhance its relevance and reliability. These characteristics ensure that financial reports communicate the financial position and performance of a business accurately and effectively. Main Body 1. Relevance Information
What are the qualitative characteristics in accounting information? Briefly Explain. Read More »
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