Meaning : It is the aggregate of indirect material,indirect labour and indirect expenses which cannot be identified with particular job, product or cost centre. Classification of overheads By function Production overheads Administration overheads Selling overheads Distribution overheads By behavour Fixed…
Accounting for labour cost Labour is a essential factor used in the process of production arise from human resources. It can be classified in two parts Direct and indirect Tailor, carpenter etc it is a part of prime cost Indirect…
income under head salary Free domestic servant provided by employer : Watchman, sweeper or Gardner provided by employer – cost incurred by employer will be vlue of perquisite. Gas, electricity and water supply provided by employer owned by employer-…
It is contract between a company and other party, if public will not subscribe issued shares or debentures, underwriters will purchase. They can charge commission in case of debentures up to 2.5% and shares 5%. Marked applications: If name of…
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…
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…
Bonus shares: Shares issued by company free off, it means without consideration to existing shareholders. It is a capitalization of free reserves. Free reserve means not for specific purpose, profit available for dividend, like profit and loss account, general reserve…
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:…
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…
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…