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what is the meaning of rates in(rent,rates and tax)
what is the meaning of contribution in margin of safety.
what is the equity? and what single entry system?
i want heavy explanation regarding these questions. thank
you in advance reply soon bye!
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Answer Posted / amjad
EQUITY
Equity is the capital or fund raised by the company through
public for it finincal need because at the bigger level all
of fund cannot be taken as a loan due to heavy interest
rate which bank charges so company goes for a public
offering by issuing shares in the market with the
guidelines giving by sebi ( security and exchage board of
india )a company cannot raised fund in excess of paid up
capital specified in the memorandam and article of
association.
Single Entry
Single entry system of accounting is that system of
accounting where an entry as single effect only unlike
double entry system having double effect it use by small
business because details are not required, the primary
bookkeeping record in single entry is cash book in which
only income and exp are recorded in short it does not serve
the purpose of accounting
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