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Ask QuestionPosted by Kashmir Sama 5 years, 6 months ago
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Posted by Stuti Agarwal 5 years, 6 months ago
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Posted by Akshat Jain 5 years, 6 months ago
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Gaurav Seth 5 years, 6 months ago
Use the formula:
additional capital= closing capital + drawings + loss - profit - Opening capital
Posted by Namya Jain 5 years, 6 months ago
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Posted by Amit Singh 5 years, 6 months ago
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Yogita Ingle 5 years, 6 months ago
Following attributes or characteristics can be drawn from the definition of Accounting:
(1) Identifying financial transactions and events
- Accounting records only those transactions and events which are of financial nature.
- So, first of all, such transactions and events are identified.
(2) Measuring the transactions
- Accounting measures the transactions and events in terms of money which are considered as a common unit.
(3) Recording of transactions
- Accounting involves recording the financial transactions inappropriate book of accounts such as Journal or Subsidiary Books.
(4) Classifying the transactions
- Transactions recorded in the books of original entry – Journal or Subsidiary books are classified and grouped according to nature and posted in separate accounts known as ‘Ledger Accounts’.
(5) Summarising the transactions
- It involves presenting the classified data in a manner and in the form of statements, which are understandable by the users.
- It includes Trial balance, Trading Account, Profit and Loss Account and Balance Sheet.
Posted by Gugi Jalal 5 years, 6 months ago
- 2 answers
Sheetal Kaushik 5 years, 5 months ago
Yogita Ingle 5 years, 6 months ago
Money Measurement Concept states that only those events that can be expressed in monetary terms are recorded in the books of accounts. For example, 12 television sets of Rs10,000 each are purchased and this event is recorded in the books with a total amount of Rs 1,20,000. Money acts a common denomination for all the transactions and helps in expressing different measurement units into a common unit, for example rupees. Thus, money measurement concept enables consistency in maintaining accounting records. But on the other hand, the adherence to the money measurement concept makes it difficult to compare the monetary values of one period with that of another. It is because of the fact that the money measurement concept ignores the changes in the purchasing power of the money, i.e. only the nominal value of money is concerned with and not the real value. What Rs 1 could buy 10 years back cannot buy today; hence, the nominal value of money makes comparison difficult. In fact, the real value of money would be a more appropriate measure as it considers the price level (inflation), which depicts the changes in profits, expenses, incomes, assets and liabilities of the business.
Posted by Ajaib Singh 5 years, 6 months ago
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Posted by Sujal Kumar 5 years, 6 months ago
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Posted by Nidhi Sonkar 5 years, 6 months ago
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Posted by Nishu Aggarwal 5 years, 6 months ago
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Nishu Aggarwal 5 years, 6 months ago
Posted by Rijul Pathak 5 years, 6 months ago
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Meghna Thapar 5 years, 6 months ago
The history of accounting is as old as civilization, key to important phases of history, among the most important professions in economics and business, and fascinating. ... Industrial Revolution firms required accountants to provide the information necessary to avoid bankruptcy and their role developed into a profession. The primary function of accounting relates to recording, classification and summary of financial transactions—journalisation, posting, and preparation of final statements. These facilitate to know operating results and financial positions.
Posted by Gurleen Kaur 5 years, 6 months ago
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Posted by Amit Singh 5 years, 6 months ago
- 5 answers
Amit Kumar 5 years, 6 months ago
Vaishnavi Gupta 5 years, 6 months ago
Aditya Nanda 5 years, 6 months ago
Yogita Ingle 5 years, 6 months ago
(i) Goods are purchased for resale whereas assets are held for continued use in the business.
(ii) Goods are alwasys tangible i.e., they can be seen and touched whereas assets may be both tangible and intangible.
Posted by Amritpal Pal Singh 5 years, 6 months ago
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Prachi Chopra 5 years, 6 months ago
Posted by Madhan Gopal 5 years, 6 months ago
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Gaurav Seth 5 years, 6 months ago
Entity: Entity means a reality that has a definite individual existence.
Business entity: It means a specifically identifiable business enterprise like Super Bazaar, Hira Jewellers, ITC Limited, etc. An accounting system is always devised for a specific business entity (also called accounting entity).
Posted by 16 Gurjotvir Grewal 5 years, 6 months ago
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Posted by Aman Verma 5 years, 6 months ago
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Yogita Ingle 5 years, 6 months ago
- Assets and expenses are very different elements of the financial statements of an entity. Assets are any resource that is owned or controlled by an entity and gives value to the entity either by aiding production of goods/services or by having a fixed monetary realization . Also most assets appear in the Balance sheets for a comparatively longer period.They also suffer diminution in value (except certain assets) Eg. Building, Debtors.
- Expenses on the other hand are usually outflows of cash of an enterprise in order to obtain an asset or settle a liability. Expenses mostly appear in the Financial Statements in the year they're incurred (except capital expenditure and deferred revenue expenditure).It can also be defined as the cost of doing business.
Posted by Cartoon Express 5 years, 6 months ago
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Yoganshi Verma 5 years, 6 months ago
Posted by Nutan Singh 5 years, 6 months ago
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Meghna Thapar 5 years, 6 months ago
Inventory (American English) or stock (British English) is the goods and materials that a business holds for the ultimate goal of resale (or repair). In the context of services, inventory refers to all work done prior to sale, including partially process information. Inventory is the collection of unsold products waiting to be sold. Inventory is listed as a current asset on a company's balance sheet.
Posted by Karanveer Brar 5 years, 6 months ago
- 2 answers
Amit Kumar 5 years, 6 months ago
Amit Singh 5 years, 6 months ago
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