Assets are everything of value that is owned by a person or 
company. It is a claim on the property your income of a 
borrower.
The two major asset classes are tangible assets and 
intangible assets.
Tangible assets including current assets and fixed 
assets.Intangible assets are nonphysical resources and 
rights that have a value to the firm because they give the 
firm some kind of advantage in the market place. For 
example goodwill, copyrights, trademarks, patents and 
computer programs.

Required minimum members to form the following
1.Sole trading-The names itself indicating as ONE
2.Partnership-Minimum-2,Maximum incase of banking firms-10 
incase of other firms-20
3.Private Ltd Co-Minimum-2maximum-50
4.Public Ltd Co-Minimum-7 and maximum---Unlimited

Accounts are brodly clasified into two
1.Personal accounts
2.Impersonal accounts
Personal accounts are subclasified into Three
1.Personal
2.Artificial
3.Representative
Impersonal accounts are subdevided into two
1.Real accounts
2.Nominal accounts

for soletrading-  UNLIMITED
for partnership-  Unlimited, Joint and several
for Company--     Limited to the extent of share

INCOME STATEMENT SHOWS THE NET INCOME OR NET LOSS OF THE
BUSINESS, WHERE AS BALANCE SHEET SHOWS THE FINANCIAL
POSITION OF THE COMPANY.

Income statement help us to know the net result of the 
business.
Balance sheet help us to know the fiancial position of 
business at agiven period

reconciliation means to check the balances of our records 
with the records of our client to find out the diffrences 
between the two. & also to check the balance of our cash 
book with the balance of our bank.

Word "reconciliation is a broad term.

It simply means to reconcile it two set of record and 
identifying deviation from it.

Professionals accounts must track and control thier 
reconcilation area for more effective and efficient 
transaction of company.


In finance we usuallly reconcile :

1.Bank book with bank statment
2.Physical records with inventory records.

Mortgage: The asset will be with you. there will not any 
change in the nomenclature of the asset. For eg. Building, 
car, etc., Term loan on fixed assets.

Pledge : The physical position will be with the person from 
whom loan has been taken. EG Jewel loan.

Hypothication : The item will be fixed. But individual 
items will vary from time to time. Eg stock, Debtors. OD 
from banks on hypothication of stock and detbtors

an asset is mortgaged to the bank for a loan.
securities and certificates are pledged (submitted) for loan.
a vehicle is Hypothecated to a bank which finances it.