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Ask QuestionPosted by Bhuban Gogoi 5 years, 2 months ago
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Posted by Rajnish Sharma 5 years, 2 months ago
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Yogita Ingle 5 years, 2 months ago
The economic value of an obligation or debt that is payable by the enterprise to other establishment or individual is referred to liability. To put it in other words, liabilities are the obligations that are rising out of previous transactions, which is payable by the enterprise, through the assets possessed by the enterprise.
Posted by Riteah Paswan 5 years, 2 months ago
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Gaurav Seth 5 years, 2 months ago
Accounting is the process of recording financial transactions pertaining to a business. The accounting process includes summarizing, analyzing and reporting these transactions to oversight agencies, regulators and tax collection entities. The financial statements used in accounting are a concise summary of financial transactions over an accounting period, summarizing a company's operations, financial position and cash flows.
Posted by Mohd Tabis 5 years, 2 months ago
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Posted by Roshan Kumar 5 years, 2 months ago
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Gaurav Seth 5 years, 2 months ago
- Non-Economic Transactions are the transactions that cannot be measured in terms of money, i.e. do not involve receipt or payment.
- It is a non-economic activity because no sale/exchange of goods or services or money is involved. Just the order is placed.
Posted by S K 5 years, 2 months ago
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Posted by Sonu Aswani 5 years, 2 months ago
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Posted by Sham Singh 5 years, 2 months ago
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Posted by Tanya Tiwari 5 years, 2 months ago
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Posted by Tanya Tiwari 5 years, 2 months ago
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Yogita Ingle 5 years, 2 months ago
In the above statement it is the Principle of Business Entity which is implied. As per this principle, business is treated as distinct and a separate entity from its owners. In simple words, we can say that business and its owners are different. In fact, the business (firm) borrows money from the owners (which is regarded as capital) and in return, the business pays interest on this money so borrowed from the owner. Thus, in this manner, the capital invested is a liability for a business. Hence, in accounting sense, it means one separate entity (owner) is assumed to be giving money to another distinct entity (business unit).
Posted by Akshit Agrawal 5 years, 2 months ago
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Anjali Chauhan 5 years, 2 months ago
Posted by Ethan Abraham Mani 5 years, 2 months ago
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Posted by Shivshant Shukla 5 years, 3 months ago
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Posted by Frag Gaming 5 years, 3 months ago
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Posted by Tanya Tiwari 5 years, 3 months ago
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Yogita Ingle 5 years, 3 months ago
It may so happen that we may earn some incomes during the current accounting year but not receive them in the same year. Such income is accrued income.Thus, these incomes pertain to the current accounting year. Therefore, we need to record them as current year’s incomes.
The Accrued Income A/c appears on the assets side of the Balance Sheet. While preparing the Trading and Profit and Loss A/c we need to add the amount of accrued income to that particular income.
Posted by Tanya Tiwari 5 years, 3 months ago
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Posted by Manish Kumar 5 years, 3 months ago
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Posted by Arti Devi 5 years, 3 months ago
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Posted by Harshita Saini 5 years, 3 months ago
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Gaurav Seth 5 years, 3 months ago
Machinery a/c will be debited in this case as machinery is coming into the business. The Golden rule of real accounts says 'Debit what comes in, Credit what goes out'.
Cash a/c will be credited in this case as cash is going out of the business. The Golden rule of real accounts says 'Debit what comes in, Credit what goes out'.
Hence the journal entry will be-
Machinery a/c ……………….…Dr
To Cash a/c
(Being machinery purchased)
Note - If payment for machinery is made by cheque, Bank a/c will be credited instead of Cash a/ c.
Posted by Ronit Chourasia 5 years, 3 months ago
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Yogita Ingle 5 years, 3 months ago
Business Transaction :- It is an event involving some monetary value between two o r more entities , and is capable of changing the financial position of the enterprise
Characteristics
- It is concerned with money's worth of goods and services.
- It arrises out of the transfer or exchange of goods and services.
- It has an effect on the accounting equation of any business form
Posted by Sahil Choudhary 5 years, 3 months ago
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Gaurav Seth 5 years, 3 months ago
Examples of internal users are owners, managers, and employees. External users are people outside the business entity (organization) who use accounting information. Examples of external users are suppliers, banks, customers, investors, potential investors, and tax authorities.
Posted by Annu Sehrawat 5 years, 3 months ago
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Dev Gupta 5 years, 3 months ago
?? 5 years, 3 months ago
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