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Category Archives: Accountancy

Businesses choose different methods for calculating depreciation according to their need. One of the most prominent methods for calculating depreciation is the Straight Line Method.… Read More
After the admission of a new partner or retirement or death of old partners in a partnership business, the new profit sharing ratio is calculated… Read More
Businesses choose different methods for calculating depreciation according to their need. One of the most prominent methods for calculating depreciation is the Written Down Value… Read More
Depreciation refers to the decrease in the value of assets of the company over the time period due to use, wear and tear, and obsolescence.… Read More
When the firm is reconstituted all the accumulated profit, reserves and losses are transferred to Partner’s Capital Accounts (if capitals are fluctuating) or Current Accounts… Read More
Profit and Loss Appropriation Account is prepared by a partnership firm to appropriate the net profit of the accounting year among the partners. Profit and… Read More
Partner’s Loan: Partner’s Loan is created to Partner’s Loan Account and not to Partner’s Capital A/c. A Loan advanced by any partner is a charge… Read More
A computerised accounting system is an accounting information system that records and analyses financial transactions and events as per Generally Accepted Accounting Principles (GAAP) to… Read More
Goodwill is the intangible asset of the business. An enterprise earns more profit than the normal profit because of Goodwill. Goodwill can be defined as… Read More
Life-blood of any business is finance. Sufficient finance for the company helps to grow and expand the company. The financial needs of any business are… Read More
The Partner’s Capital Account is an account that records all the transactions between the Partnership firm and the partners. The Capital Account is prepared to… Read More
1. Admission or Entrance Fees:  Admission or Entrance Fees is an amount that a Not- For- Profit Organisation charges from a new member apart from… Read More
Guarantee of Minimum Profit to a Partner means that a partner has been assured to receive a minimum amount of profit (Guaranteed Amount). This further… Read More
The Balance Sheet is the statement showing the business’s financial position at a given time. It is the statement showing the value of assets and… Read More
The Basis of Accounting describes the method by which the financial transactions and activities are accounted for and reported in the books of accounts to… Read More

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