Under this chapter we learn following topics Statistics and its applications Data collection technique Distinction between primary and secondary data Presentation of data in textual and tabular Cumulative frequency and frequency distribution Graph using histogram, frequency polygon and pi chart Use of statistic : Statistic is used in all subjects like management, commerce, mathematics, social […]
Consignment It is a principal and agent relationship. Person who sends goods will be consignor. Person who receive the goods will be consignee. Performa invoice – consigner provides to consignee for the details of goods like quantity, price etc. Account sales – periodically consignee sends details of transaction to consignor. Risk of goods will be […]
Inventory Meaning : Held for sale in ordinary course of business. Used as a material in production Consumed in the production or maintenance -oil, Greece etc. It also includes loose tools , supplies and spare parts. Under construction project of builder is also a inventory. Standby equipment of Fixed asset is also fixed asset. At […]
BILL OF EXCHANGE There are various types of negotiable instruments like bill of exchange, promissory notes and cheque etc. Bill of exchange : A orders to B pay to C . A is drawer, B is drawee, acceptor and payer while c is payee. It is an unconditional order to pay a sum of money […]
Accounting for material cost Term material related to all commodities supplied to undertaking it can be direct or indirect Advantages Effective control in costly items Save time for non important items Optimum investment is possible Minimum total cost High inventory turn over Re order quantity or economic order quantity: No of units ordered is treated […]
Single entry Incomplete accounting records means at present it is not maintained on the basis of double entry system or records are lost due to fire, theft etc. Although all records are lost but bank statement, cross ledger from creditors And debtors will be available. Statement of affairs (balance sheet before adjustment) 1 Ascertain closing […]
Redemption of preference shares Redemption of preference shares Meaning Preference shares: priority in payment of dividend and capital at the time of liquidation. Redemption means repayment of capital Provisions of companies Act (section 55 ) for redemption of preference shares: Only fully paid up preference shares can be redeemed Redemption is possible out of free […]
dissolution of firm best summary notes Dissolution of firm Meaning Dissolution of relationships between partners along with termination of business. At the time of dissolution, all assets will be realized and liabilities should be repaid. For dissolution following accounts will be prepared. 1 realization account 2 partners capital account 3 cash/bank account 1 realization account […]
Redemption of debentures When it is issued : Bank account debit To debenture account But when it is redeemed Debenture account debit To bank account But at the time of redemption fund may not be sufficient. Hence sinking fund investment will be Used. Journal entries Appropriation : Profit and loss appropriation account debit To debenture […]
best summary notes It is contract of indemnity it covers two types of contract: Loss of stock Loss of profit Joint policy of stock and profit also allowed. Stock on the date of fire is required to calculate. For the calculation of stock memorandum trading account will be prepared. Average clause: When closing stock is […]
