GOLDEN RULES OF ACCOUNTING
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.
WHAT IS COMPANY
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
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…
DIFFERENCE BETWEEN CAPITAL EXPENDITURE AND REVENUE EXPENDITURE
DIFFERENCE BETWEEN CAPITAL EXPENDITURE AND REVENUE EXPENDITURE To understand the difference between capital expenditure and revenue expenditure, the concepts of capital expenditure and revenue expenditure are as follows: CAPITAL EXPENDITURE The expenditure incurred by the business enterprise for the purchase of fixed assets or to repay the loan is known as Capital expenditure. This is…
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REVENUE EXPENDITURE
REVENUE EXPENDITURE The amount spent to conduct the regular business activities is known as Revenue Expenditure. The benefit of this expenditure is received fully during an accounting period. All the revenue expenditures are debited to Trading and Profit and Loss account. These expenditures do not result in increasing the earning capacity of the business but…
CAPITAL EXPENDITURE
CAPITAL EXPENDITURE The expenditure incurred by the business enterprise for the purchase of fixed assets or to repay the loan is known as Capital Expenditure. This is the expenditure, the benefit of which accrues to the firm for the long time. This expenditure is also done to increase the capacity, efficiency, life span or economy…
EXCEPTIONS OF LAW OF DEMAND
EXCEPTIONS OF LAW OF DEMAND Demand is that specific quantity of a commodity which the consumer purchases at a specific price during a specified time period. ACCORDING TO FERGUSON “Demand refers to the quantities of commodity that the consumers are able and willing to purchase at each possible price during a period of time, other…
LAW OF DEMAND
LAW OF DEMAND Law of demand explains the relationship between price of the commodity and its demand. The law states that there is inverse or negative relationship between the demand and price of the commodity, ceteris paribus i.e. other things being constant. It means if the price of the commodity increases, the demand for commodity…
SCOPE OF ACCOUNTING
SCOPE OF ACCOUNTING The scope of accounting is wide and extends in business, trade, government, financial institutions, individuals and families and every other avenues. ACCORDING TO RJ BULL The scope is as follows: The above diagram makes it clear that accounting data is prepared and processed by using various methods of accounts. In a later…
DEMAND FUNCTION
DEMAND FUNCTION OR FACTORS AFFECTING DEMAND OR DETERMINANTS OF DEMAND Demand function expresses the functional relationship between demand of the commodity and various factors affecting it. In other words, demand function describes the relationship between quantities of the commodity which consumers demand during a specified period and the factor which influence the demand. It is…