Accountancy

When there is a death of the partner, the partnership comes to an end right away, though the firm will continue to work. But the firm or business may continue with the remaining partner(s). However, this does not refrain the deceased partner from getting the share. However, the partnership is formed with two or more […]

Contingent assets are an accounting tool used to account for uncertain future events. A contingent asset is a financial item with a value that does not exist until its actual receipt of payment has occurred. It is created only when the event it represents comes about and matures into cash or some other kind. In

Introduction Consignment in accountancy is related to goods that are kept with an authorized third party who is called a consignee. This consignee is responsible for selling the goods on the behalf of the consignor. While the consignee sells the good in consignment, the ownership of the goods is retained by the consignor. There is

An Overview: Depreciation  Before diving deep into a change in the depreciation methods, it is essential to know about what depreciation actually is, its formula, and multiple methods of calculation. What is meant by Depreciation? The term “depreciation” refers to the annual depletion of assets due to usage or wear and tear, which is the

Introduction Capital receipts are given when a company makes an asset. Revenue receipts are given to you every year as a tax statement. This article explains the difference between capital receipts and revenue receipts. It talks about those receipts that are a part of revenue such as income from taxes, public borrowing, fees charges collected

Introduction Capital Expenditure is the amount of money that a company spends on acquiring new assets. Capital expenditure is the amount a company pays to acquire or upgrade long-term assets such as property, plant and equipment. The cash spent on purchasing these assets is recorded as an expense in the incurred period. Capital expenditures are

Introduction Profitability is important to the success of both products- and service-based organisations. Companies frequently analyse if their manufacturing expenses are less than the price of each product unit they sell to determine if their firm is successful. You may alter product prices and accomplish your sales targets by understanding how to use the cost

A company’s most frequent transactions involve the receipt and payment of money, the sale of goods, or both. Keeping separate registers for each of them is a practical solution. Books of  Accounts is a record of this kind and is the most important document for performing further accounting procedures. Assets, liabilities, incomes and expenses are

Inventory valuation is the process of determining the value of an inventory. It involves estimating the cost of goods sold and related expenses to determine how much profit can be made from stock. Inventory is the number of goods and materials a company has in its possession. It is also known as stock.  Importance of

What are Accounting Ratios? Accounting ratios are the ratios that tell about the performance of a company by comparison of various figures in the financial statements- Balance Sheet, Profit and loss account/ income statement, and cash flow statement.  The accounting ratios also help in comparing the performance of the company over the last periods and