Accounting

Accounting Methods of Recording Hire Purchase Transactions Hire purchase is an agreement between two parties in which one party purchase any asset from other parties.…

Under the installment purchase system, there is an outright sale of goods with the buyer having the facility to pay the purchase price in a…

Concept of Installment System An installment system is just like a credit purchase and hires a purchase system of selling and buying goods. It is…

Both hire purchase and installment sales are popular methods of financing goods. There are 3 parties in Hire Purchase trade namely the seller, the financier,…

Methods of Recording Transactions under the Installment System In the installment system, there is an immediate sale, in which the price, instead of being paid…

Concept of Admission of New Partner A new partner may be admitted when the firm needs additional capital or managerial help. Admission of a new…

Impact of Admission of New Partner in the Profit Sharing Ratio of the Firm New Profit Sharing Ratio is the ratio at which the partners…

Impact of Admission of New Partner in the Value of Goodwill of the Firm A reputation built up by a firm has an impact on…

Re-arrangement of Reserve and Surplus and Accumulated Loss of the Firm at the Time of Admission of New Partner Reserves are the number of profits,…

Adjustment of Life Insurance Policy of Partners at the Time of Admission of New Partner The partners of a firm may decide to take a Joint…

Re-adjustment of Partners’ Capital Giving due Influence of New Admittance In your partnership, you may decide to add new partners. Sometimes, after the admission of…

Account Current It is a statement of transactions in a debit and credit form between a seller and his customer. It is a statement of transactions…