Content Page On Basic Accounting Concepts, Principles and Regulatory Framework

Tweet Click to the respective topic: Content Page   Accounting Period Concept               Business Entity Concept      Consistency Concept                         Dual Aspect Concept   Full Disclosure Concept                     Going Concern Concept   Historical Cost Concept                      Matching Concept                 Materiality Concept                             Money Measurement Concept                      Prudence Or Conservative Concept    Substance Over Form More on Materiality concept Understand the […]

Explain briefly the steps in preparing Cash flow statements using the indirect method

Tweet Below are tabulated the various basic steps to prepare cash flow statement using the indirect method: Basic steps using indirect method to prepare cash flow statement:  Set out the proforma cash statement with the headings required by accounting standard. Leave plenty of space. Ideally use three or more sheets of paper, one for the […]

Basic Key Terms Used in Depreciation Accounting

Tweet In accordance with international  accounting standard, the following are the basic key terms used in depreciation accounting for fixed assets: DEPRECIATION is the allocation of the depreciable amount of an asset over its estimated useful life. Depreciation for the accounting period is charged over net profit or loss for the period either directly or […]

Basic Bookkeeping Treatment or Double Entry of Goodwill

Tweet Basic bookkeeping or double entry for taking up or writing off goodwill in the books of account of a business:When goodwill is ACQUIRED: Debit      Goodwill Account Credit     Capital Account When goodwill is WRITTEN OFF: Debit      Profit or loss or Capital Account Credit    Goodwill Account When will we need to value or evaluate goodwill? As […]

BASIC Programming Language

Tweet Append below some basic understanding of BASIC Programming language: 1.       BASIC (which is an acronym for Beginner’s All-Purpose Symbolic Introduction Code) was developed in 1963 by two Dartmouth students, John George Kennedy and Thomas Eugene Kurtz, as a way to provide access to computers for students that were not science majors. 2.       Developed as […]

Purchases Of Businesses By Limited Companies ( Part 1)

Tweet (A) Basic Principles when a limited company takes over another business (1) It can satisfies the purchase consideration by giving cash, shares or debentures assuming the trade liabilities any combination of cash, shares/debentures/assuming trade liabilities (2)  the assets acquired are often different from the values shown in the vendor business’s book ( example : […]