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Ask QuestionPosted by Tanya Tiwari 4 years, 2 months ago
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Yogita Ingle 4 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 4 years, 2 months ago
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Anjali Chauhan 4 years, 2 months ago
Posted by Ethan Abraham Mani 4 years, 2 months ago
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Posted by Tanya Tiwari 4 years, 2 months ago
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Yogita Ingle 4 years, 2 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 4 years, 2 months ago
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Posted by Manish Kumar 4 years, 2 months ago
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Posted by Arti Devi 4 years, 2 months ago
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Posted by Harshita Saini 4 years, 2 months ago
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Gaurav Seth 4 years, 2 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 4 years, 2 months ago
- 1 answers
Yogita Ingle 4 years, 2 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 4 years, 2 months ago
- 1 answers
Gaurav Seth 4 years, 2 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 4 years, 2 months ago
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Dev Gupta 4 years, 2 months ago
?? 4 years, 2 months ago
Posted by Tanya Tiwari 4 years, 2 months ago
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Posted by Aarti Pal 4 years, 2 months ago
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Posted by Tanya Tiwari 4 years, 1 month ago
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Dev Gupta 4 years, 2 months ago
Posted by Tanya Tiwari 4 years, 2 months ago
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Posted by Shubham Pal 4 years, 2 months ago
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Gaurav Seth 4 years, 2 months ago
Owner
- Internal users are people within a business organization who use financial information. 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 Tanya Tiwari 4 years, 2 months ago
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Posted by Sandhu Saab 4 years, 2 months ago
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Yogita Ingle 4 years, 2 months ago
The end product of financial accounting are Trading account, Profit and loss account and Balance sheet.
Posted by Tanya Tiwari 4 years, 2 months ago
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Tanya Tiwari 4 years, 2 months ago
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Adarsh Yagyasaini 4 years, 2 months ago
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