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...
