When a new partner is admitted in a running business due to the requirement of more capital or may be to take advantage of the experience and competence the newly admitted partner or any other reason, it is called admission of a part in...
Retirement of a partner means ceasing to be partner of the firm. A partner may retire (i) of there is agreement of this effect (ii) all partners give consent (iii) At will by giving written notice
Dissolution of a firm : As per Indian Partnership Act, 1932 : "Dissolution firm means termination of partnership among all the partners of the firm". When a firm is dissolved, the business of the firm terminates. All the assets the firm are...
The certificate of incorporation of a company is issued by registrar of companies as per procedure/guidelines given in the Companies Act, 2013. The law considers a company as an artificial legal person. A Company is a separate legal entity from...
Debenture : It is a document issued by a company under its common seal acknowledging the debt and it also contains the terms of repayment of debt and payment of interest at a specified rate. Debenture : It is a document issued by a company under...
Financial statements are the basic and formal annual reports through which the corporate management communicates financial information to its owners and various other external parties which include investors, tax authorities, government,...
Accounting Ratio : It is an arithmetical relationship between two accounting variables. Ratio Analysis : It is a technique of analysis of financial statements to conduct a quantitative analysis of information in a company's financial statements....
Meaning: It is a statement that shows flow (Inflow or outflow) of cash and cash equivalents during a given period of time. As per Accounting Standard-3 (Revised) the changes resulting in the flow of cash & cash equivalent arises on account of...
When partners carry on business with their firm for a long time, they earn a reputation for it. This reputation translates in monetary terms into expected future profits above normal profits. We commonly refer to this excess profit as the firm’s...
Nonprofit organizations operate in the same manner as for-profit businesses when it comes to finances. Both spend money to operate efficiently and have streams of income to keep the products, programs and services operational. The main difference...
Financial Statements analysis is a systematic process of studying the relationship among the various financial factors contained in the financial statements to have a better understanding of the working and the financial position of a business.In...
According to Indian Partnership Act, 1932, partnership as "the relationship between persons who have agreed to share the profits of a business carried on by all or any of them acting for all. Ans: A partnership is formed by an agreement. This...
Goodwill in accounting is an intangible asset that arises when a buyer acquires an existing business. Goodwill represents assets that are not separately identifiable. Goodwill does not include identifiable assets that are capable of being...
partner also leads to reconstitution of a partnership firm. On the retirement or death of a partner, the existing partnership deed comes to an end, and in its place, a new partnership deed needs to be framed whereby, the remaining partners...
Issue of SharesProblems on issue of shares.
Issue of shares at par and premium under Companies Act, 2013.
Issue of shares for considerations other than cash:
To promoters (can be considered either through Goodwill account or...
A debenture is one of the capital market instruments which is used to raise medium or long term funds from public. A debenture is essentially a debt instrument that acknowledges a loan to the company and is executed under the common seal of the...
Redemption of debentures means payment of the amount of debentures by the company. When debentures are redeemed, liability on account of debentures is discharged. Amount of funds required for redemption of debentures is quite large and,...
Trading account is the first step in the preparation of final account. All expenses relating to purchase and manufacturing of the product are shown on the debit side and a number of sales is shown in the credit side of trading account. Since, all...
Ratio analysis is an important tool that is used in inter-business and intra-business comparison.
For a quick indication of a business’s financial health in key areas, ratio analysis comes handy. Ratio analysis is broadly classified into four...
Comparative Statements and Common Size Statements.Meaning, significance and limitations of Comparative Statements and Common Size Statements.Preparation of Comparative Balance Sheet and Statement of Profit and Loss (inter-firm and intra firm)...
In financial accounting, a cash flow statement, also known as statement of cash flows, is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, and breaks the analysis down to...
An understanding of basic features of electronic spreadsheets such as: Creating worksheet, entering data into worksheet, heading information, data, text, dates, alphanumeric values, saving & quitting worksheet. Opening and moving around in an...
A conceptual understanding of the basic features of Data Base Management System (DBMS), i.e. data update and retrieval using basic functions and commands of SQL.Basic Commands: Select, Where, And, Or, Update, Delete and Basic Functions: Avg,...
