Bank Correspondence

Bank Correspondence

Contents1 I) Primary Functions1.1 1. Accepting Deposit:1.2 2. Lending Money2 II) Secondary Functions2.1 1) Agency Functions: 2.2 2) Utility Functions: 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 … 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 … Read more

Admission of a Partner

Admission of a Partner

Contents1 1. New profit sharing ratio2 2. Sacrificing ratio3 3. Valuation and adjustment of goodwill3.1 Meaning of Goodwill3.2 Factors Affecting the Value of Goodwill3.3 Need for Valuation of Goodwill3.4 Methods of Valuation of Goodwill3.5 (1) By Premium Method3.6 (2) By Revaluation Method Admission of a Partner means when a new partner could also be admitted … Read more

Issue and Redemption of Debentures

Issue and Redemption of Debentures

A company raises its capital by means of an issue of shares. But the funds raised by the difficulty of shares are seldom capable meet their 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 or by offering … Read more

Documents to Formation of a Company

Documents to Formation of a Company

Contents1 Contents of Articles of Association2 Contents of Prospectus3 Statutory Requirements in relation to Prospectus4 Penalty for non-compliance 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) … Read more

Types of Companies in Accounting

Types of Companies in Accounting

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

Sourcing of Accounting Software

Sourcing of Accounting Software

Contents1 (a) Able to Use2 (b) Customised3 (c) Tailored3.1 I) Flexibility3.2 II) Cost of Installation and Maintenance3.3 III) Size of the Organisation3.4 IV) Ease of Adaptation and Training needs3.5 V) Utilities/MIS Reports3.6 VI) Expected Level of Secrecy3.7 VII) Exporting/Importing Data Facility3.8 VIII) Vendors Reputation and Capability The sourcing of Accounting software is an integral part … Read more