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, 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
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 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, 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- 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
Documents to Formation of a Company, The journey from an entrepreneurial idea to a fully-fledged company involves a meticulous process of legal and administrative steps. One crucial aspect is the preparation and submission of various documents that pave the way for the formal establishment of the company. In this comprehensive guide, we delve into the … 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, of 2013. Formation of a Company means registering or incorporating a company with the Registrar of Companies in the state where the company’s … Read more
There are five types of companies in accounting and each one has different categories. Now we explain all separately 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. On the … Read more
The sourcing of Accounting software is an integral part of the computerized accounting system. An important factor to be considered before acquiring accounting software is the accounting expertise of people responsible in the organization for accounting work. People, not computers, are responsible for accounting. The need for accounting software arises in two situations : (a) … Read more