Accounting records, which aren’t strictly kept consistent with the double-entry bookkeeping system are referred to as Accounts from incomplete records. Many authors describe it as a single entry system. However, a single-entry bookkeeping system may be a misnomer because there’s no such system for maintaining accounting records. It is also not a ‘shortcut’ method as … Read more
Admission of a Partner means when a new partner could also be admitted when the firm needs additional capital or managerial help. According to the provisions of the Partnership Act 1932 unless it’s otherwise provided within the partnership deed a replacement partner is often admitted only the prevailing partners unanimously comply with it. For example, … Read more
Partnership Account, As the business expands, one needs more capital and a bigger number of individuals to manage the business and share its risks. when two or more persons close to establishing business and share its profits. On many issues affecting the distribution of profits, there might not be any specific agreement between the partners. … Read more
issue and Redemption of debentures- A company raises its capital using an issue of shares. But the funds raised by the difficulty of shares are seldom capable meet the future financial needs of a corporation. Hence, most companies address raising long-term funds also through debentures which are issued either through the route of personal placement … Read more
At the time of Incorporation of a company, the following documents of Formation of a Company have to be submitted to the Registrar of Companies : I) Memorandum of Association II) Articles of Association III) Prospectus IV) Distinction A public company, if it is collecting capital from the public must issue a prospectus to invite … Read more
A company is an artificial legal person i.e. it is a creation of law. It comes into existence when it is registered by following the procedures laid down by the Companies Act, 2013. Formation of a Company means registering or incorporating a company with the Registrar of companies in the state where the company’s registered … Read more
There are five types of companies in accounting and each one have different categories. Now we explain all separately as under the following: 1. On the basis of incorporation a) Statutory company b) Registered company 2. On the basis of the number of members a) Private company b) Public company c) One person company 3. … Read more
The sourcing of Accounting software is an integral part of the computerised accounting system. An important factor to be considered before acquiring accounting software is the accounting expertise of people responsible in the organisation for accounting work. People, not computers, are responsible for accounting. The need for accounting software arises in two situations : (a) … Read more
Management and Accounting Information system- In order to remain competitive, organisations depend heavily on Information Systems. Management Information System (MIS) is used as the most common form of information system. A management information system (MIS) is a system that provides the information necessary to make decisions and manage an organisation effectively. Accounting Information System (AIS) … Read more
What is Computerised Accounting- A computer is a device, which is capable of performing a spread of operations as directed by a group of instructions. This set of instructions has named a program. Computer technology and its usage have registered a significant development during the last three decades. Historically, computers have been used effectively in … Read more
