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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:…
The difference between Departmental and Branch Accounting is as follows: DEPARTMENTAL ACCOUNTING Departmental Accounting refers to maintaining accounts for one or more departments of the company. Revenues and expenses of the department are recorded and reported separately. The departments are then consolidated into the accounts of the head office to prepare the financial statements of…
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DIFFERENCE BETWEEN JOINT VENTURE AND CONSIGNMENT The Difference between Joint Venture and Consignment is as follows: JOINT VENTURE Joint venture may be defined as temporary partnership between two or more persons without the use of firm’s name for a specific purpose and limited time period. In other words, two or more persons agree to undertake…
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The Difference between Normal and Abnormal loss is as follows: NORMAL LOSS Normal loss is the loss that occurs due to the nature of the goods consigned. Its nature is as follows: It occurs due to unavoidable reasons. It is due to natural causes such as losses due to evaporation, normal leakage, spoilage, breakdown, drying…
The Difference between Consignment and Sale is as follows: CONSIGNMENT Consignment is a specialized kind of transaction which involves the two parties i.e. Consignor and Consignee. In this the consignor dispatches the goods to the consignee and consignee is required to sell those goods. For this, the consignee gets a commission. Consignment is a nature…
Difference Between Joint Venture and Partnership is as follows: PARTNERSHIP Partnership business is a business where two or more persons agree to carry on commercial activity to earn profits. From legal point of view, partnership firm is not a separate legal entity. In other words, it has no existence separate from its partners. It means…
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EQUITY SHARES Equity Shares are those shares which are paid dividends only when profits are left after the preference shareholders have been paid fixed rate of dividends. In other words, there will be no fixed rate of dividend on the equity shares. Equity shareholders have voting rights and control of the affairs of the company….
The brief description of Capital Reserve and Reserve Capital is as follows: RESERVE CAPITAL It is a part of the subscribed capital remaining uncalled that a company resolves, by a Special Resolution, not to call except in the event of winding up of the company. Where a company has passed a resolution for Reserves Capital,…
The description of stock and shares is as follows: SHARE The total capital of the company is divided into units of small denominations. Each such unit is called ‘share.’ Shares are numbered so that they can be identified. EXAMPLE If the total capital of the company is ₹10,00,000 divided into 1,00,000 units of ₹10 each,…
