Accrual vs Cash Basis of Accounting

Accrual vs Cash Basis of Accounting

Introduction to Accrual vs Cash Basis of Accounting In the world of financial management, two fundamental methods stand out: the accrual basis of accounting and the cash basis of accounting. These two approaches play a pivotal role in how businesses recognize and record financial transactions. Accurate accounting is the cornerstone of informed decision-making, and choosing … Read more

Difference between cryptocurrency and digital currency

Difference between cryptocurrency and digital currency

DIGITAL CURRENCY Digital currency is essentially an electronic form of currency issued by the government while cryptocurrency is a repository of value, which is protected by encryption. Cryptocurrencies are called digital assets while digital currencies are not digital assets. The digital wallets that people started using, especially during the pandemic, may contain both digital currencies … Read more

Profitability Accounting Ratios

Profitability Accounting Ratios

What are Profitability Accounting Ratios? The profitability accounting ratios or fiscal performance are substantially summarized in the statement of profit and loss. Profitability rates are calculated to assay the earning capacity of the business which is the outgrowth of the utilization of coffers employed in the business. There’s a close relationship between the profit and … Read more

Accounting Ratios

Accounting Ratios

What is an Accounting Ratios? As stated before, Accounting Ratios are a pivotal tool of financial statements analysis. Accounting ratios are the fine numbers calculated as a reference to the relationship of two or further figures and may be expressed as a bit, proportion, chance, and several times. When the number is calculated by about … Read more

Bank Correspondence

Bank Correspondence

Meaning of Bank  The bank is a Financial Institution. The bank is one of the important aids to trade. The bank plays an important role in the economic development of the country by providing financial services. The primary functions of commercial banks include – Accepting deposits and lending funds. Bank Correspondence is essential for every … Read more

Dissolution of Partnership Firm

Dissolution of Partnership Firm

Dissolution of Partnership Firm, In such a situation, while the prevailing partnership is dissolved, the firm may continue under an equivalent name if the partners so decide. In other words, it’s the outcome of the dissolution of a partnership but not that of the firm. As stated by Section 39 of the Partnership Act 1932, … Read more

Accounts from Incomplete Records

Accounts from Incomplete Records

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 an … Read more

Admission of a Partner

Admission of a Partner

Admission of a Partner means that 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 if the prevailing partners unanimously comply with it. For … Read more

Partnership Account

Partnership Account

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 are close to establishing a business and sharing its profits. On many issues affecting the distribution of profits, there might not be any specific agreement between … Read more

Issue and Redemption of Debentures

Issue and Redemption of Debentures

Issue and Redemption of Debentures- A company raises its capital using an issue of shares. However 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