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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the same, when he withdraws cash from the business for his personal utilize, he is to be debited along with the amount withdrawn through him.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
procedure followed in govt.system of accounting in india
#questionThe book of Deven Verma could not be tallied. The accountant transferred the difference of Rs. 1,270 in the suspense account on the debit side. The following mistakes were
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Q. Define Economic and financial decisions? You most likely will find that of all the business knowledge you have acquired or will learn the study of accounting will be the mos
Trading account is ready to ascertain the Gross Profit and Loss of a firm; here Gross Profit is the excess of total revenue over cost of goods sold as the credit side of the tradin
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i need guidance note, expert advisory help or contoveries on AS 13
Standards at International Level: In view of the development of international trade and multinational enterprises, the requirement for standardization at the international level w
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