Basics 3 min read
Valuation Of Inventory For Balance Sheet Purpose
In certain cases, it is not possible for the business to take inventory on the date of balance sheet. It…
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Basics 8 min read
Methods Of Valuation Of Inventories
The basic methods of valuation of inventories are as follows: (a) Historical cost-based method (b) Sale price-based method (c) Lower…
Basics 4 min read
Inventory Valuation Methods
Introduction The literary meaning of the word inventory is stock of goods. To the finance manager, inventory connotes the value…
Basics 3 min read
Conversion Method
We have seen under the net worth method in the preceding explanation that the method does not give details of…
Basics 5 min read
Calculation Of Profit Or Loss
In case of a business maintaining accounts according to single entry system, profit (or loss) made during the year are…
Basics 4 min read
Single Entry System
Introduction Single Entry System is an incomplete ‘double entry system’. In case of double entry system of book- keeping both…
Basics 8 min read
Reconciliation Of Bank Accounts
Introduction In modern business world, the major part of the business transactions is settled by cheques. For the purpose of…
Basics 5 min read
Promissory Note
Negotiable Instrument Act, 1881 defines a Promissory Note as “as instrument in writing (not being a bank note or a…
Basics 5 min read
Accounting Of Negotiable Instruments
Introduction Business transactions are either cash transactions or credit transactions. In cash transactions, goods are sold and transferred to the…
Basics 4 min read
Location Of Errors
The location of errors of omissions, compensations and principles are slightly difficult because of the fact that such errors do…