Interest on Drawings: Drawings The amount withdrawn by partners in cash or in kind from the firm out of their capital or against profit to meet their personal expense is called drawing. Drawing may be…
Basic Accounting Terms: Part 7: Difference Between Capital Expenditure…
Difference Between Capital Expenditure and Revenue Expenditure Capital ExpenditureRevenue ExpenditureExample Cost of MachineryCost of Building Cost of labour (Wages),Cost of Manager ( Salary)Rent of BuildingPurpose /NeedIt is incurred for the acquisition/acquiring or improving fixed assets of the…
Basic Accounting Terms: Part 6: Difference Between Deferred Revenue…
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Basic Accounting Terms: Part 5: T. S. Grewals’s
Q1. Mr. Prem commenced business of trading in electronic goods with an initial capital of ₹ 15,00,000. Out of the said ₹15,00,000, he paid ₹10,00,000 towards purchase of electronic goods. He further spent ₹2,00,000 on…
Basic Accounting Terms: Part 4: Goods, Purchases, Sales,…
Goods Goods are the products in which the firm is dealing or producing for sale purposes. Purchases The term 'Purchases' is used for the purchase of goods. In trading concerns, goods are purchased for resale…