Introduction In large businesses, companies often operate through multiple branches located in different cities or regions. Each branch maintains its own set of books, recording its daily transactions. At the end of the financial year, the balances of these branches must be incorporated into the Head Office books to prepare consolidated financial statements. This ensures […]
Why is Journal Sub-divided? The journal is the book of original entry where business transactions are first recorded. When a business grows, the number of transactions increases, and it becomes difficult to record every transaction in a single journal. To simplify and speed up the process, the journal is divided into smaller books based on
Items Recorded at Invoice Price in the Consignment Account In consignment accounting, goods are sent by the consignor to the consignee for the purpose of sale. These goods are often recorded at the invoice price rather than the actual cost price. The invoice price includes the cost plus a markup (known as loading) to ensure
BCOC-131 Financial Accounting – Assignment Answer Compilation Below are the links to all the answers for the BCOC-131 assignment: What are the qualitative characteristics in accounting information? Briefly Explain What do you mean by double entry system? Distinguish it from single entry system. What are Accounting standards? What is the need of issuing accounting standards?
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Introduction In the field of accounting and cost management, understanding the types of losses incurred during production or business activities is essential. Two key types of losses commonly identified are normal loss and abnormal loss. These losses have different characteristics, accounting treatments, and implications on business operations. Identifying and managing these losses helps businesses maintain
What is the difference between normal loss and abnormal loss? Give examples. Read More »
Introduction In a hire purchase agreement, the hirer gets the right to use an asset while paying for it in installments over a specified period. However, the ownership of the asset remains with the seller until all installments are paid. This financing method is widely used for acquiring consumer goods and capital equipment. Understanding the
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Introduction Indian Accounting Standards (Ind-AS) are a set of accounting standards that have been converged with International Financial Reporting Standards (IFRS). Ind-AS 101 is particularly important as it provides the guidelines for first-time adoption of these standards by Indian companies. This standard ensures that financial statements are comparable and transparent across international and domestic borders,
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Introduction Accounting is often referred to as the language of business. It involves the systematic recording, reporting, and analysis of financial transactions of a business. Its primary function is to provide accurate and timely financial information that supports decision-making, planning, and control within an organization. Main Body Functions of Accounting 1. Recording Transactions This is
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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 »
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