Single Entry

Single Entry

A single entry system of accounting is a form of bookkeeping in which each of a company’s financial transactions are recorded as a single entry in a log. This process does not require formal training and is usually used by new small businesses because of its...
Profit Prior To Incorporation

Profit Prior To Incorporation

Profit prior to incorporation is the profit earned or loss suffered during the period before incorporation. It is a capital profit and not legally available for distribution as dividend because a company cannot earna profit before it comes into existence. Note –...
Cost Sheet

Cost Sheet

Cost Sheet is a statement, prepared at given intervals of time, which provides information regarding elements of cost incurred in production. It discloses the total cost as well as the cost per unit of the product manufactured during the given period. If it is desired...
Depreciation

Depreciation

In accounting terms, depreciation is defined as the reduction of recorded cost of a fixed asset in a systematic manner until the value of the asset becomes zero or negligible. An example of fixed assets are buildings, furniture, office equipment, machinery etc…...
Valuation of Stock

Valuation of Stock

Stock Valuation FIFO & Weighted Average Method FIFO METHOD: This method assume that the items received first are issued (Sold or consumed) first, So that the latest items are in Stock. In this method, an issue is valued at the oldest rate, while the closing stock...