STUDY TO ENLIGHTEN YOURSELF
TRANSACTIONS Transactions refer to any exchange of goods and services on cash or credit basis by the business with the outside parties i.e. other business or customer. Transaction is an economic activity. It has an effect on the net worth or financial position of the business. FEATURES OF TRANSACTION The following are the features of…
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…
Read More “USERS OF ACCOUNTING” »
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…
Read More “WORKMEN’S COMPENSATION ACT 1923” »
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…
Read More “GARNER VS MURRAY RULE” »
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…
Read More “DIFFERENCE BETWEEN HIRE PURCHASE AND INSTALMENT” »
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:…
Read More “DIFFERENCE BETWEEN PROVISIONS AND RESERVES” »
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…
Read More “FINAL ACCOUNTS OF GENERAL INSURANCE COMPANIES” »
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…
Read More “FINANCIAL STATEMENTS OF LIFE INSURANCE COMPANIES” »
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…
Read More “VALUATION BALANCE SHEET” »
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…