The following journal entry needs to be passed for provision for bad debts Profit and loss A/c Dr. Provision for bad debts A/c Cr. Also read:... View Article
The six steps for recording a business transaction are: Analysing the transactions. Recording the transaction in journal Posting of debit... View Article
The process of recording business transactions is called journalising. Also read: Cash Book Purchase Book Sales Book and Sales Return Book... View Article
The tax advantages of the sole proprietorship form of business is that in a sole proprietorship business, the owner has to pay tax only once;... View Article
The disadvantages of a sole proprietorship business is: Unlimited personal liability It is difficult to raise money Less efficient and time... View Article
The 3 advantages of sole proprietorship are as follows: Very easy to set up with minimum requirements. It is possible to hire many employees.... View Article
No, a sole proprietorship owner has unlimited liability towards the business. Also read: Sole Proprietorship Difference Between LLP and... View Article
No, sole proprietorship is not a legal entity. Also read: Sole Proprietorship Difference Between LLP and Partnership Difference Between... View Article
Sole proprietorship is a form of business organisation where there is only one owner. It is regarded as the most simplest form of business... View Article
Abnormal loss is regarded as an expense for the business. Therefore, it should be recorded as an expense and should reflect on the income... View Article
Sales return is considered a contra revenue account as it has an opposite effect on the net income. In other words, it reduces the net income.... View Article
Sales return leads to reduction in the net income as they are directly deducted from the sales made by the business. Also read: Cash Book... View Article
Sales returns are known as a contra revenue account and they have a direct effect on the net income, thereby reducing the income. They cannot be... View Article
A cash book records all kinds of transactions involving cash receipts and payments, this includes bank deposits and withdrawals. Also read:... View Article
