Accounting

Concept of Partnership Business A partnership is a formal arrangement by two or more parties to manage and operate a business and share its profits.…

Depreciation is a reduction in the value of an asset over time, due in particular to wear and tear. It is the gradual and permanent…

Fluctuating Capital Account of Partners Fluctuate means anything having unpredictable ups and downs. Under this method of keeping partners’ capital account, only one capital account of…

Fixed Capital Account of Partners Under the fixed nature of capital, the capital of each partner remains constant from the start of partnership till at…

Accounting Treatment for Partner’s Salary and Commission It is well known to all that no partner can entertain any salary or commission unless it is…

Accounting Treatment for Partners’ Interest on Capitals As it is a business, the partners seek to generate a profit. It is good practice to set…

Debit Note is a document that reflects that a debit is made to the other party’s account. It is a statement sent by the seller…

Partners’ Drawing Accounts with Interest on Drawing A partnership draw is a money or property taken out of a business by one of its partners.…

The poor management of cash flow is the main reason for the Failure of Liquidation. It is possible to have a paper profit but still have…

Partners’ Loan Account with Interest Thereon At the time of retirement of a partner, the partners after calculating the final payment to the retiring partner…

Concept of Liquidation Liquidation is a process through which a company that is running is shut down and its existence comes to an end. In…

The final Statement of Accounts is the final result of all financial activities in a nutshell. A liquidator is a person or entity that liquidates…