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You have learned about the business and its proprietor is reacted as separate entities. It implies that separate accounts must be kept in the ledger for recording transactions among the proprietor and the business. Generally, two accounts that are: Capital Account and Drawings Account are kept for this purpose. Anything the proprietor brings in the business is termed as his capital and credited to his Capital Account. As the same, when he withdraws cash from the business for his personal utilize, he is to be debited along with the amount withdrawn through him. That debit is specified to his Drawings Account. Drawings Account is also debited while the proprietor acquires goods from business for domestic utilize. Note here the proprietor can be charged only through the cost of goods taken and not its selling price. In the cost of these goods are credited to the Purchases Account as this is which it was purchased for him and should therefore be excluded from the purchases for the business
In previous section you learnt about the accounting involves four stages: (i) recording the transactions, (ii) classifying-the transactions, (iii) summarising the trans
Accounting like a field of study in its developmental process has evolved a theoretical framework consisting of concepts or principles over period of time. Such concepts enjoy a wi
QUESTION The recognition of human capital by modern businesses has led to the development of Human Resource Accounting (HRA) Required- (a) Explain the following terms-
describe why a high stock turnover is considered to be a good thing
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Comprising examined the conceptual origin of the balance sheet we will here try to study the balance sheet by itself. We have observed that every transaction influences the financi
#question STATEMENT OF COMPERIHENSIVE INCOME
Along with a view to harmonise varying accounting policies and practices recently utilize in India, the Institute of Chartered Accountants of India (ICAI) created the Accounting St
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