This is one of the introductory chapters at the graduation level as well as in professional exams. The brief notes on methods and calculation of goodwill in easy steps are presented below: Methods of...
Provisions:There are some expenses and losses which are specific to incur, but their amount cannot be known with certainty as they are not yet incurred. It is necessary to make provision for such certain...
Accruals in Accounting are the expenses or revenues that have been recorded by the firm but not yet realised. In simple terms, they are the financial transactions already estimated in the current accounting...
Personal a/c : " Debit the receiver, Credit the giver." Real a/c : " Debit what comes in, Credit what goes out." Nominal a/c : " Debit all expenses & losses, Credit all incomes & gains."
Throughout the year, a number of Business Transactions take place. At the end of the year, any businessman would want to know whether he has made any profit during the year, and if so, what is the amount...