Showing posts from May, 2017
Section 92 of the Negotiable Instruments Act states that: “A promissory note, bill of exchange or cheque is said to be dishonored by non-payment when the maker of the note and acceptor of the bill makes default in payment.” Dish…
The distinctive features of these two types of negotiable instruments are tabulated below: Promissory Note 1. It contains a promise to pay. 2. The liability of the maker of a note is primary and absolute (S.3 3. It is presented f…
Promissory Notes: Promissory Note is a written, dated and signed two-party instrument containing an unconditional promise by the maker to pay a definite sum of money to a payee on demand or at a specified future date. Essentials…
The term bill of exchange has been defined under Section 5 of the Negotiable Instruments Act. A "bill of exchange" is an instrument in writing containing an unconditional order, signed by the maker, directing a certain…
Rules: 1. In the Books of Trader (Cash Book/Bank Column) Increase in Bank Balance = Debit (Receipt Side) Decrease in Bank Balance = Credit (Payment Side) 2. In the Books of Bank (Pass Book/Bank Statement) Increase in Bank Balanc…
The traders record all the amounts or cheques deposited in the bank in the debit side of his Cash Book in bank column and whatever amount he withdraws from bank in cash or pays through cheque to other parties, he records them in …
Bank Reconciliation statement is the basic document of the accounting. Preparation of it is not legally compulsory but by making it, following objects/advantages/importance are derived and is needed due to following causes: 1.…
The word " reconcile " means 'to make compatible. It frequently happens in business that two'sets of figures which should agree, for some reason do not. For example, we might estimate that a certain profit shoul…
Provisions: Provisions mean providing for possible losses or liabilities. The amount of which cannot be determined exactly. It is create to meet specific losses or liabilities which may be expected but not yet incurred. Provisio…
Sinking F und: A sinking fund is a fund which created for the purpose of repayment of liabilities (redemption of debentures) and replacing fixed assets. Every year a fixed amount either charged against profit or loss account or …
Retained Earnings or Ploughing Back of Profit: Retained earnings are an internal sources of finance for any company. Actually is not a method of raising finance, but it is called as accumulation of profits by a company for its e…
Mobile Handsets Market in India Nokia is leading handset vendor in H110, but its share has fallen significantly since 2007, as local vendors such as Micromax grow stronger Nokia responds to local vendor advance with the release …
Company Overview: Bharat Sanchar Nigam Ltd (BSNL) was established in October 2000 when the Department of Telecommunications incorporated its network operations outside of Delhi and Mumbai. A state-owned operator, BSNL has a mobi…
Bharti Airtel is the world’s third largest mobile service provider by subscribers after China Mobile and Vodafone with over 270 million global customers. It is also India’s biggest wireless telecom operator both by subscribers an…
Ist Rule All expenses which are done for getting any fixed asset must be capital expenditure. For example, expenses of carriage and freight for getting fixed assets are also capital expenditure and will include in the total cost …
Reserves: Reserves are accounting terms. In general, it is saving of money, but in accounting terminology , it has different meaning. According to accounting technician , “ Reserves are that funds which withdraw from general or …
Provision of depreciation is the collected value of all depreciation .With making of this account we are not credited depreciation in asset account. But transfer every year depreciation to provision of depreciation account. Every…
To find out the depreciation of assets or any kind of property, there are different forms or kinds of methods are available. The different kinds of depreciation methods are as follows: 1. Fixed Installment or Straight line metho…
It is almost impossible to calculate the actual and accurate amount of depreciation. However, to estimate the amount of depreciation following factors are considered: 1. Original Cost of the Assets: Original cost includes the pu…
Depreciation It is a gradual deterioration or decrease in the value of asset after using that asset in our day to day work or after spending of time. In this world, everything is perishable, so making true profit and calculates …
Depreciation The non-trading fixed assets of a business like land, building, machinery, furniture etc. may be get depreciated in value due to various reasons. In other words, the value of such assets reduces each year due to use…
Compounding in literal term means: "The act of combining things to form a new whole" Now in terms of Investment, Compounding is earning interest on earned Interest. Prime example of Compounding is the interest earned on…
Suspense Account The account opened to rectify the previous year's one-sided errors is called suspense account. Suspense account is opened for a temporarily period only. Suspense account shows no balance after rectification …
