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...
Bills Of Exchange

Bills Of Exchange

A bill of exchange is a written order binding one party to pay a fixed sum of money to another party on demand or at some point in the future. A bill of exchange often includes three parties—the drawee is the party that pays the sum, the payee receives that sum, and...
Admission of Partnership

Admission of Partnership

The reconstitution /Admission of partnership primarily involves change in the form of partnership. There is change in agreement among the partners which leads to change in the relationship between the partners and change in share of the profit/losses of the partners...