Is sole proprietorship a legal entity?
No, sole proprietorship is not a legal entity. Also read: Sole Proprietorship Difference Between LLP and Partnership Difference Between Sole... View Article
Latest Posts
What is sole proprietorship in business?
Sole proprietorship is a form of business organisation where there is only one owner. It is regarded as the most... View Article
How do you record abnormal losses?
Abnormal loss is regarded as an expense for the business. Therefore, it should be recorded as an expense and should... View Article
What type of account is sales return?
Sales return is considered a contra revenue account as it has an opposite effect on the net income. In other... View Article
Is sales book a part of the ledger?
Sales book is not considered a part of the ledger as it does not have two separate columns for credit... View Article
What is the effect of sales return?
Sales return leads to reduction in the net income as they are directly deducted from the sales made by the... View Article
Is sales return an income or expense?
Sales returns are known as a contra revenue account and they have a direct effect on the net income, thereby... View Article
What is recorded in the cash book?
A cash book records all kinds of transactions involving cash receipts and payments, this includes bank deposits and withdrawals. Also... View Article
Which document serves as the source document for entries in the sales returns book?
The credit note serves as the source document for entries in the sales returns book. Also read: Cash Book Purchase... View Article
Which sales are not recorded in the sales book?
Sales of fixed assets and sales of goods for cash are not recorded in the sales book, as the sales... View Article
On which side of the balance sheet reserves are shown?
Reserves are shown on the liabilities side of the balance sheet. Also read: Difference Between Reserve and Provision What Are... View Article
What are the kinds of reserves?
The kinds of reserves are: Capital reserve Revenue reserve Also read: Difference Between Reserve and Provision What Are Reserves in... View Article
Are reserve and provision the same?
Reserve and provision are different as reserve is used for strengthening the financial position of a company while provision is... View Article
What are some types of provisions in accounting?
Some examples of provisions in accounting are: Restructuring liabilities Provision for doubtful debts Accumulated depreciation Guarantees Also read: Difference Between... View Article
Is provision for depreciation a reserve?
Provision for depreciation is considered as a provision and not a reserve. Also read: Difference Between Reserve and Provision What... View Article
What is the difference between provision for bad debts and reserve for bad debts?
The difference between provision for bad debts and reserve for bad debts is that provision for bad debts is a... View Article
What is a secret reserve?
A secret reserve is referred to as that reserve amount using which the assets are understated and the liabilities are... View Article
What are the errors of trial balance?
The errors of the trial balance can be as follows: Entries that are recorded twice Entries that are not recorded... View Article
What are the errors that do not affect trial balance?
The errors that do not affect the trial balance are as follows: Errors of omission Errors of commission Errors of... View Article
What does reserve mean?
Reserves are part of profit that has been set aside for a specific purpose in a business. Also read: What... View Article
