Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Accounting Entity - Accounting Principle
For accounting reasons it is suppose that business has separate existence and its entity is different from that of its owner(s). In simple term this means in which the liabilities and assets of the business are not the liabilities and assets of the owner of the business.
Accounting is completed for the business entities as distinguished is completed for the business entities as distinguished from the persons related with these entities; as such the transactions of the business and those of the owners should be accounted for and reported separately. A business enterprise is an economic unit separate and apart from the owners. Every transaction should be analysed from the point of view of a business enterprise and not that of persons who are associated with it. For example when the owner introduces cash in business, this cash is shown as Capital Liability of the business towards the owner. The introduction or withdrawal of cash does not affect the overall cash (personal plus business) position of the owner. This concept enables recording of transactions between business and its owner.
This concept ensures that accounting records reflect only the activities of the business and the expenses related to common resources used for business and personal use and apportioned on some equitable basis between business and its owners. This concept applies to all form of business enterprises e.g. sole proprietorship, partnership and joint stock companies. However, the separate existence of business entity is recognized by law only in case of corporate form of enterprise, for sole proprietorship and partnership firms the law does not distinguish the owners and business separately. Hence in legal sense the owners and business may not be different for some form of business enterprise, but for accounting purpose the business and the owners would be always treated separately.
Goodshape Company has currently, an ordinary share capital of Rs. 2.5 million, consisting of 25,000 shares of Rs. 100 each. The management is planning to raise another Rs. 2 milli
Assume you manage a $4.42 million fund that having of four stocks with the following investments: Stock Investment Beta A
VK Ltd a multi-product Company, furnishes you the following data relating to theyear 2000.First Half of the year Second Half of the yearSales Rs. 45,000 Rs. 50,000 Total Cost Rs. 4
Lakespring Retirement Village is home to senior citizens who are fairly independent but need assistance with basic health care and occasional meals. Jill Thompson, a licensed beaut
Journal articles review reviewed
I have a assignment of financial accounting Its a report on company Assignment length 2000 words
1. Which of the following statements concerning the cash flow production cycle is true? a) The profits reported in a given time period equal the cash flows generated. b) A company’
what business organization do you preffer ? service concern,trading concern or manufacturing concern
Q. Explain the three kind’s non-financial incentives? Non-Financial incentives: Incentives which cannot be offered in terms of money are known as non-¬financial incentives. Ind
Rights of Investors CERTIFICATES An investor is entitled to receive shares/unit certificates allotted to him within a period of 6 weeks from the date of closure of the sub
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd