Author: commerceiets

DIFFERENCE BETWEEN ACCOUNTING CONCEPTS AND CONVENTIONS

July 31, 2019 commerceiets No Comments

Difference between Accounting Concepts and conventions Before understanding the Difference between Accounting Concepts and Conventions, the both concepts should be known. ACCOUNTING CONCEPTS The Accounting Concepts are the foundation of the accounting. These concepts are the assumptions which are generally accepted and followed while performing the recording of transactions and preparation of final accounts. The…

11 ACCOUNTANCY, FINANCIAL ACCOUNTING, KEY DIFFERENCES

DIFFERENCE BETWEEN CAPITAL AND REVENUE RECEIPT

July 31, 2019 commerceiets No Comments

Difference between capital and revenue receipt Before understanding the Difference between Capital and Revenue Receipt, the concept of capital receipt and revenue receipt must be known: CAPITAL RECEIPT Capital receipt is the amount received by the enterprise which is not revenue in nature and leads to an overall increase in the total capital of the…

11 ACCOUNTANCY, FINANCIAL ACCOUNTING, KEY DIFFERENCES

REVENUE RECEIPT

July 31, 2019 commerceiets No Comments

REVENUE RECEIPT Revenue receipt is the amount received by the business as a result of its core business activity. It leads to increase in the overall revenue of the business. These receipts refers to the sale proceeds of merchandise or fees received for services rendered, discount received, commission received, interest received, discount received on shares….

CAPITAL RECEIPT

July 31, 2019 commerceiets No Comments

MEANING Capital receipt is the amount received by the enterprise which is not revenue in nature and leads to an overall increase in the total capital or equity of the company. These generate out of the non-operating activities. It means these receipts do not arise out of the normal course of business. FEATURES OF CAPITAL…

CHANGE IN DEMAND

July 30, 2019 commerceiets No Comments

CHANGE IN DEMAND Change in demand which is also known as variations in demand means the change in the quantity demanded of the commodity due to the various factors like price of own commodity, price of related goods, income of consumer, taxation policy of government, tastes and preferences of the consumers etc. Change in Demand…

DEFERRED REVENUE EXPENDITURE

July 30, 2019 commerceiets No Comments

DEFERRED REVENUE EXPENDITURE Deferred Revenue Expenditure is the expenditure which is revenue in nature but the benefit of which is likely to be derived over a number of years. The benefit of these expenditures generally last from 3-7 years. That is why the full amount of deferred revenue expenditure is not debited to Profit and…

11 ACCOUNTANCY, FINANCIAL ACCOUNTING

ELASTICITY OF DEMAND

July 30, 2019 commerceiets No Comments

MEANING Elasticity of Demand measures the extent to which quantity demanded of a commodity increases or decreases in response to increase or decrease in its price, the price of related goods or a change in the income of consumer. ACCORDING TO PROF. DOOLEY “The elasticity of demand measures the responsiveness of quantity demanded of a…

GOLDEN RULES OF ACCOUNTING

July 30, 2019 commerceiets No Comments

The golden rules of Accounting are the foundation or base of the accounting which helps in posting the transactions correctly in the books of accounts.

11 ACCOUNTANCY, FINANCIAL ACCOUNTING

WHAT IS COMPANY

July 29, 2019 commerceiets 1 Comment

WHAT IS COMPANY Joint Stock Company is an artificial person created by the law for some common purpose where the capital is divisible into parts known as shares with perpetual succession and common seal. ACCORDING TO PROF. HANEY “A company is an artificial person created by law, having separate entity with the perpetual succession and…

ACCOUNTING EQUATION

July 29, 2019 commerceiets No Comments

ACCOUNTING EQUATION Accounting Equation signifies that the assets of a business are always equal to the total of capital and liabilities. A business transaction will result in the change in either of the assets, liabilities or capital of the firm and even after the change the assets will be again equal to the total of…