Bills Payable As explained in Part 1, 1. The bill of exchange after it is accepted is known as bill receivable to the drawer and payable to the acceptor [ When a drawee accepts the bill and signs he/she is known as the acceptor. The acceptor is primarily liable on a bill to the drawer … Read more
Bills Receivable As explained in Part 1, 1. The bill of exchange after it is accepted is known as bill receivable to the drawer and bill payable to the acceptor [ When a drawee accepts the bill and signs he/she is known as the acceptor. The acceptor is primarily liable on a bill to the … Read more
Basics: 1. Definition of a Bill of exchange: “is an unconditional order in writing, addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand, or at a fixed or determinable future date, a sum certain in money to or to the … Read more
How to compute Loss On Stock Claims 1. Draw up an estimated Trading Account for the period2. The average gross profit % on turnover for the past years will be ascertained and this rate is use to calculate the estimated gross profit on the sales for the period under review.3. The balance on the Trading Account … Read more
SUMMARY OF FINANCIAL ACCOUNTING RATIO PROFITABILITY RATIO: Financial Ratio Formula Measurements Return on Total Assets Operating profit before income tax + interest expense/ Average total assets Measures rate of return earned through operating total assets provided by both creditors and owners Return on ordinary shareholders’ equity Operating profit & extraordinary items after income tax minus … Read more
A key skill in accounting is the ability to clearly communicate information to management. Hence, the examiners will expect candidates to demonstrate such communication skills in answering examination questions. In examinations there may well be specific marks within the marking scheme for careful presentation of answers in the required format. The following formats have being … Read more
Below topic discuss on the accounting on VAT pertaining to the different rates applied in VAT ,VAT impact to income statement and balance sheet and how we show VAT in the books of accounts: Accounting for VAT ( A ) RATES APPLICABLE TO VAT:Rates Used for Standard, zero-rated and exempt supplies:Supplies are categorized into either … Read more
Introduction, Basic Principles & Scope Of VAT Introduction:· Value added tax is a form of indirect taxation levied throughout the European Union. · It was introduced in the UK in the early 1970s when it replaced another indirect tax, ‘purchase tax’. VAT is administered by HM Customs and Excise. The legal basis is found in the Value … Read more
Question On Computerized Accounting: You started work in ABC Company Ltd. The Management is asking you to implement a computerized accounting system. The following questions were posed to you:- (a) “What benefits will a computerised accounting system bring your company?” State up to five possible benefits. (b) “There are so many different packages on the … Read more
What is interlocking accounts? Also refer as non-integrated accounts When a business keeps its cost accounts separate from the financial accounts such system is called interlocking accounts Common features of Interlocking accounting/non-integrated accounting In the interlocking accounts, there is no double entry connection between the cost and financial accounts The cost and financial … Read more