Business

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…

Deferred Ordinary Shares Deferred Ordinary Shares are those shares, holders of which are usually the residual claimants to the dividend i.e., these shareholders receive the…

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.…

Dead Freight is payable on cargo agreed by charterers to be shipped but not actually shipped. It is the freight, which is paid by the…

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…

Days of Grace means, days permitted by custom for payment of a promissory note, bill of exchange, etc, after it falls due. These are the…

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…

Customs Duty is levied when goods are transported across borders between countries. It refers to the tax imposed on goods when they are transported across international…

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…