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DEPARTMENTAL ACCOUNTS BCOM 1ST YEAR : Departmental accounting, meaning, features, objectives, advantages, allocation of expenses. QUESTION: What do you mean by departmental accounts? Explain its objectives. Briefly discuss the methods of departmental accounts. DEPARTMENTAL ACCOUNTING: Departmental Accounting refers to maintaining accounts for one or more departments of the company. Revenues and expenses of the department…
Consignment Accounts notes on meaning and features of consignment accounts, treatment of normal and abnormal loss and valuation of stock on consignment? QUESTION: What do you mean by Consignment? What are its salient features? CONSIGNMENT: Consignment is a specialized kind of transaction which involves the two parties i.e. Consignor and Consignee. In this the consignor…
Joint Venture notes on different methods of recording transactions relating to joint venture; difference between consignment and joint venture; difference between joint venture and partnership. QUESTION: Explain different methods of recording transactions relating to Joint Venture? JOINT VENTURE: The Joint venture may be defined as temporary partnership between two or more persons without the use of firm’s…
Voyage Account Notes on the topic of complete voyage and accounting for incomplete voyage. QUESTION: What is the meaning of Voyage Account? How is it prepared? VOYAGE ACCOUNT: Voyage Account is an account which is prepared by the shipping companies. This account is prepared to get a complete record of the profits earned and loss…
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Final Accounts of Sole trader covers the topic of Preparation of Profit and loss account and Balance sheet. QUESTION: Explain the Income statement under Sole Trader Concept. Income statement of sole trader consists the preparation of Trading account and Profit and Loss account. Income statement shows how much the sole trader has earned the profit…
CAPITAL AND REVENUE NOTES covers the topic of Difference between Capital and revenue expenditure and Difference between Capital and Revenue receipts. QUESTION: What do you understand by capital and revenue expenditure? Explain the difference between these two? OR QUESTION: “Capital expenditure is different from revenue expenditure.” Explain CAPITAL EXPENDITURE The expenditure incurred by the business…
QUESTION: Discuss important Accounting Concepts? 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 accounting concepts help in conveying the financial information in a same meaning to the various users of the accounting….
Question: Discuss the nature and scope of Financial Accounting? Accounting is art of recording, classifying, summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of financial character and interpreting the results thereof. The Nature of Accounting can be defined in two ways: Quantitative Attributes of…
OBJECTIVES OF BUSINESS A business is an organisation of human, material and other intangible resources. It is created to offer satisfaction to its customers, owners, employees, managers and other stakeholders. The function of business is to create, retain and satisfy profitable customers as a means of successfully achieving the desired ends of an enterprise. Although…
MEANING OF BUSINESS Business means the state of being busy. In essence, business concerns with buying and selling goods, manufacturing goods or providing services in order to earn profit. FEATURES OF BUSINESS 1. Entrepreneur: There must be someone to take initiative for establishing a business. The person who recognized the need for a product or…
