Opening capital can be determined by preparing the statement of affairs at the beginning of the accounting period. This can be done by preparing... View Article
The missing figures on a balance sheet can be determined by the following formula Assets = Liabilities + Owner’s equity Review each and... View Article
Profit is calculated from the fluctuations in the capital at the starting and end of the year and by adding the drawings and subtracting the... View Article
An increase in the closing inventory leads to a reduction in the value of the cost of goods sold, which results in an increase in the gross... View Article
A pure single entry system records all the personal accounts like sundry debtors and sundry creditors. In this system dual aspect of accounting... View Article
Current rate of CRR in Indian Economy is 4% (updated as on July 2021 as per RBI). Also read: Credit Creation by Commercial Bank Difference... View Article
CRR stands for Cash Reserve Ratio. It is a portion of the deposits that are required to be kept as a reserve by banks within the bank or with RBI... View Article
SLR stands for Statutory Liquidity Ratio. It refers to the minimum percentage or amount of deposits that a commercial bank needs to maintain in... View Article
Cash sales can be calculated from the incomplete records using the following formula Net Sales = Cash Sales + Credit Sales – Sales return... View Article
Creditors are shown under the current liabilities section of a balance sheet. Also read: What Is a Fixed Asset What Are Current Assets What... View Article
Yes, debtors are recorded as current assets in a balance sheet as payments are expected to be received from them in the current accounting... View Article
No, furniture is considered as a fixed asset in accounting as it provides value to the business in the long term. Also read: What Is a Fixed... View Article
Amount of credit sales are ascertained as a balancing figure of the total debtor’s account. Also read: Accounts From Incomplete Records... View Article
In a single entry system of accounting only cash and personal accounts are maintained, while ignoring real and nominal accounts. Also read:... View Article
The following steps need to be followed for preparing financial statements from incomplete records: Prepare an opening statement of affairs... View Article
An abnormal loss example can be said to be theft of goods from a business organisation. Also read: Abnormal Loss Balance Sheet Vs Profit... View Article
Abnormal loss is regarded as the loss that takes place in a business due to certain unexpected events such as natural calamities (earthquake,... View Article
