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these should be distinguished from estimated liabilities estimated liabilities are identified liabilities where the amount is uncertain contingent
where the liabilities are identified but the amounts cannot be precisely found we estimate the liability and give for it as a liability a common
accrued liabilities show expenses or obligations incurred in the earlier accounting period but the payment for similar will be made in the subsequent
accounts payable or sundry creditors are generally unsecured debts owed through the firm these are also considered to as payables on open accounts
does manufacturing overhead include the following1material handling - labour for purchasing material shipping inbound for raw materials and outbound
current liabilitieswe have studied about liabilities are claims of outsiders against the business conversely these are amounts owed through the
these are assets or things of value without physical dimensions they cannot be touched they representing intrinsic value without material being and
fixed assetsthese are tangible relatively long-lived items owned through the business the benefit of these assets is obtainable not only in the
prepaid expensesin many conditions like a custom some of the item of expenses is generally paid in advance such as rent taxes insurance and
inventorywithin a trading firm inventory is merchandise held for sale to customers into the ordinary course of business in condition of manufacturing
these are amounts owed to the company through debtors this is the purpose why we also utilize the term sundry debtors to indicate the amounts owed to
it is generally taken to include currency or legal tender cheques or any other document which circulates as cash it is generally classified like a
current assetsthese are assets that will normally be converted in cash within a year or inside the operating cycle the operating cycle is the
the balance sheet lists assets capital and liabilities separately this is an accepted convention about the assets and liabilities are demonstrated in
accounting concepts the dual aspect principle has specific relevance to balance sheet according to this principal every transaction is concerned as
comprising examined the conceptual origin of the balance sheet we will here try to study the balance sheet by itself we have observed that every
currently i can represent my financial position in the subsequent
balance sheet is related along with reporting the financial position of an entity on a specific point in time such position is conveyed in terms of
1 list every item debited or credited in the profit and loss account2 illustrates the difference among trading account and profit and
1 trading account is prepared so as to calculate gross profit or loss whereas the function of the profit and loss account is to disclose net profit
the subsequent items are debited in the profit and loss account as1 administrative expenses comprising office salaries office lighting office rent
loss and profit account is prepared so as to discern whether the firm has made net profit or suffered net loss for a specified accounting period such
prepare the trading account from the subsequent figuresopening stock40000power6000purchases180000octroi11000carriage
organize the trading account from the subsequent detailsoffice rent rs 5000purchases rs 80100 opening stock rs25 000 stock at the end rs 15000
direct expenses comprise all those expenses incurred in bringing the goods to the place of business or trade or in-production process till the goods