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USERS OF ACCOUNTING Accounting provides the information to the users of the business. Various users are interested to know about the financial position of the business, which they get from the accounting records kept by the business and provided to them by way of publishing final accounts. The users of accounting are as follows: INTERNAL…
WORKMEN’S COMPENSATION ACT 1923 The Workmen’s Compensation Act 1923 was introduced in India in 1923 as first social security of workmen and to protect the interests of the workmen. This Act is based on the theory that: “The cost of Product should bear the blood of the workmen.” SCOPE AND APPLICATION OF WORKMEN’S COMPENSATION ACT…
GARNER VS MURRAY RULE Dissolution of Partnership Firm means the firm closes down its operations and comes to an end. On the dissolution of the firm, the assets of the firm are sold and liabilities are paid off. The balance, if any, is paid to the partners in settlement of their accounts. If there is…
DIFFERENCE BETWEEN HIRE PURCHASE AND INSTALMENT Before understanding the difference between Hire purchase and Instalment, both concepts must be understood: HIRE PURCHASE SYSTEM Hire Purchase system is a system in which the goods are delivered to the purchaser at the time of agreement before the payment of instalments but the title of the goods is…
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DIFFERENCE BETWEEN PROVISIONS AND RESERVES Before understanding the difference between Provisions and Reserves, the two concepts must be understood: PROVISIONS Provisions meaning states the amount set aside by charging to the Profit and Loss Account, to provide for any known liability, the amount of which cannot be determined with accuracy. ACCORDING TO COMPANIES ACT 2013:…
FINAL ACCOUNTS OF GENERAL INSURANCE COMPANIES All the insurances other than the life insurance is covered under General Insurance. It includes fire insurance, marine insurance, cargo insurance, mobile insurance etc. The General insurance Corporation of India is the apex general insurance institution of India. The Final Accounts of General Insurance Companies include Revenue Account, Profit…
FINANCIAL STATEMENTS OF LIFE INSURANCE COMPANIES Financial Statements of Life Insurance Companies include preparation of Revenue account, profit and loss account and balance sheet. The formats of preparing these are provided by the Insurance Regulatory & Development Authority Regulations, 2002. The performa of these statements are as follows: REVENUE ACCOUNT FORM A- RA Name of…
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VALUATION BALANCE SHEET In accounting, a valuation account is usually a balance sheet account that is used in combination with another balance sheet account in order to report the carrying amount of an asset or liability. An example of a valuation account that is associated with an asset is the Allowance for Doubtful Accounts. In…
LIFE INSURANCE Life insurance is simply a contract between the policyholder and the insurance company. The policyholder pays a premium to the insurance company for a specific number of years (or for life), and in return the insurer promises to pay a sum assured to the nominee upon the death of the policyholder. For some…
ADVANCES IN BANKING COMPANY Banking company is a company that deals in cash, money and credit. It accepts deposits and extends loans and advances to the needy persons. ACCORDING TO BANKING REGULATION ACT, 1949 “Banking refers to the acceptance for the purpose of lending or investment of deposits of money from the public repayable of…
