Question { 10822 }

define depreciation?

Answer

The gradual and permanent decrease in the value of the assets is known as depreciation. it is the loss to the business.

Question { EDS, 7051 }

What is Debit Note & Credit Note?

Answer

Debit Note -  this note is prepared in order to debit a creditor.

Credit Note -  this note is prepared in order to credit a debtor.

Question { EXL, 37690 }

Where is Profit and Loss posted in a balance sheet?

Answer

If the company earns profit then P&L A/c will appear in the liability side of the Balance sheet under the heading Reserves & Surplus. 

if the company incurs loss the P&L A/c will appear in the Assets side of the Balance sheet under the last heading Miscellaneous expenditure.

Question { 7615 }

what is Real a/c

Answer

Those accounts which are visible to us and touchable by us and recognize them are falling under the Real account.
for example. Cash account. we can able to see (visibility) and we can able to touch it and we can able to feel it also. so cash account is a real account.

Question { 3001 }

.........method of stock valuation considered the purchase
price of stock which intered the godown last.
1)fifo
2)lifo
3)weight average
4)all the above methoed
chose the correct answer?

Answer

Fifo

Question { ABC, 3853 }

what is the reserve & surplus ?

Answer

whatever the profit earn by the company or excess of income over expenditure is known as surplus. 

keeping a portion of profit in anticipation of huge expenses and losses in future is known as reserve

Question { 10199 }

what is Credit?

Answer

Debit and credit both are accounting terminologies which is used to record the transactions of the business.

Question { Mphasis, 6469 }

What is mean by authorized capital of company.?

Answer

It is the maximum amount of capital that the company may raise. in short it is the total share capital of the company.

Question { TCS, 5283 }

What is the difference between the service organisation and
trading organisation

Answer

Trading organisation -  it is the organisation which is doing some trade or business and profit is the main motive of this type of organisation.

Service organisation - it is the organisation which is doing some services for the welfare of the people. these are also known as Non-trading concerns or non-profit organisations. 

Question { 4006 }

WHAT IS THE DIFFERENCE BETWEEN BANK BALANCE SHEET AND
INSURANCE BALANCE SHEET.

Answer

Schedules are different.

Question { Chartered Accountant, 9315 }

Where will loss appear in Balance Sheet?

Answer

Loss will appear in the Assets side of the Balance sheet under the last heading Miscellaneous Expenditure.

Question { 6640 }

what is the meaning of debit and credit

Answer

Debit and Credit both are accounting terminologies which is used to record the transactions of the business.

Question { 11369 }

Why loss shown in as Assets in Balance Sheet?

Answer

AS per Business entity assumption owner and his business are consider to be two different persons.

Asset means anything which will do favour to the business in future. in the same manner liability means anything which will do unfavour to the business in future.

If the business is in the position of Loss means it is the duty of the owner to compensate it. it will do favour to the business in future so Loss is shown under the asset side of the balance sheet.

if the business is in the position of profit means it is the duty of the company to give the return on capital. it will do unfavour to the company so profit is shown under the liability side of the balance sheet.

Question { CS Engineering, 10151 }

what comes under real account?

Answer

The accounts which can be visible to us and touchable by us and recognize them all are comes under real account. for example. 1. CASH- we can see it, touch it and feel it. 2. Goods (purchases, sales, opening stock, closing stock, purchases returns and sales returns). 3. fixed assets like land & Building, Plant and machinery, furniture and fittings, motor vehicles etc.

apart from the above there are some intangible Real Asset. they are, goodwill, copy right, patent right, trade mark. All intangible goods are intangible asset to the company