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FINANCIAL ACCOUNTING
Financial Accounting contains the topics of partnership accounts, company accounts, non-profit organizations, ratio analysis, cash flow statement, analysis of financial statements.
ACCOUNTING FOR PARTNERSHIP FIRMS-RECONSTITUTION AND DISSOLUTION
Change in the profit sharing ratio among the existing partners- sacrificing ratio, gaining ratio, accounting for revaluation of assets and reassessment of liabilities and treatment of reserves and accumulated profits, preparation of revaluation account and balance sheet.
Admission of a partner- effect of admission of a partner or change in the profit sharing ratio, treatment of goodwill, treatment for revaluation of assets and reassessment of liabilities, treatment of reserves and accumulates profits, adjustment of capital accounts and preparation of balance sheet.
Retirement and death of a partner: effect of retirement/ death of a partner on change in profit sharing ratio, treatment of goodwill, treatment of revaluation of assets and reassessment of liabilities, adjustment of accumulated profits, adjustment of capital accounts and preparation of balance sheet. Preparation of loss account of retiring partners.
Calculation of deceased partner’s share of profit till the date of death. Preparation of deceased partner’s capital account and his executor’s account.
Dissolution of a partnership firm: meaning of dissolution of partnership and partnership firm, types of dissolution of a firm. Settlement of accounts- preparation of realization account and other related accounts, capital accounts, capital accounts of partners and cash/ bank account.
COMPANY ACCOUNTS
Share capital meaning, types of share capital, authorized share capital, issued share capital, subscribed share capital, paid up share capital, called up share capital, meaning of company, features of company, advantages of company, limitations of company form of business, accounting treatment of share capital, issue of shares at par, issue of shares at premium, stock vs. shares, forfeiture of shares, prorate allotment, under subscription, over subscription.
Financial Statements Meaning Financial Statements Pdf FINANCIAL STATEMENTS OF A COMPANY The financial statements are the end-products of financial accounting. These are prepared for the purpose of presenting a periodical review or report on the progress made by the management. Balance Sheet and Profit and Loss Account are the two most important elements of financial…
In this post you will study Difference between Financial Accounting Management Accounting and Cost accounting. Study and make the proper notes grabbing full understanding of this topic. MANAGEMENT ACCOUNTING Management Accounting is the Identification, Measurement, Accumulation, Analyses, Preparation, Interpretation and Communication of information that assists managers in fulfilling organizational objectives. Management accounting is all about…
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LIQUIDITY RATIOS TYPES The liquidity ratios are used to assess the short term financial position of the firm. Liquidity refers to the ability of the firm to meet its current liabilities. That is why these ratios are also known as ‘short-term solvency ratios’. These ratios indicate the firm’s ability to meet its current obligations out…
LIQUIDITY RATIOS FORMULA The liquidity ratios are used to assess the short term financial position of the firm. Liquidity refers to the ability of the firm to meet its current liabilities. That is why these ratios are also known as ‘short-term solvency ratios’. These ratios indicate the firm’s ability to meet its current obligations out…
LIQUIDITY RATIOS The liquidity ratios are used to assess the short term financial position of the firm. Liquidity refers to the ability of the firm to meet its current liabilities. That is why these ratios are also known as ‘short-term solvency ratios’. These ratios indicate the firm’s ability to meet its current obligations out of…
LIQUIDITY RATIO ANALYSIS The liquidity ratio analysis is used to assess the short term financial position of the firm. Liquidity refers to the ability of the firm to meet its current liabilities. That is why these ratios are also known as ‘short-term solvency ratios’. These ratios indicate the firm’s ability to meet its current obligations…
CASH RATIO Cash Ratio is a type of liquidity ratio that is calculated to analyze the short term solvency or financial position of the firm. It is calculated to exclude the receivables from the current and liquid assets and to know about the Cash assets. Although receivables, debtors and bills receivables are generally more liquid…
ACID TEST RATIO FORMULA Acid Test Ratio, a type of liquidity ratio, may be defined as the relationship between Acid Test or Acid Test assets and current liabilities. An asset is said to be Acid Test if can be converted into cash within a short period without loss of value. The Acid Test ratio is…
QUICK RATIO AND CURRENT RATIO The difference between Quick Ratio and Current Ratio is as follows: BASIS OF DIFFERENCE QUICK RATIO CURRENT RATIO RELATIONSHIP It establishes the relationship between Liquid assets and current liabilities. It establishes the relationship between current assets and current liabilities. ASSESSMENT It assesses the ability to meet current liabilities immediately. It…
QUICK RATIO FORMULA Quick Ratio, a type of liquidity ratio, may be defined as the relationship between quick or quick assets and current liabilities. An asset is said to be quick if can be converted into cash within a short period without loss of value. The quick ratio is also known as liquid ratio or…
