Shares – Meaning and Types
Share is the smallest unit into which the total capital of the company is divided. For example, when…
Sources of Business Finance
Fundamentals of Partnership Accounting
Capital Ratio – Ratio of Effective Capitals
Sometimes the Profit-sharing ratio is based on partners’ capitals which keep on changing with …
Fundamentals of Partnership Accounting
Interest on Partner’s Loan to the Firm
For the purpose of recording the amount lent by any partner to the firm over and above …
Sources of Business Finance
Bank Credit
When a certain amount of money is advanced by a bank usually against security of assets, repayable…
Fundamentals of Partnership Accounting
Calculation of Partner’s Commission
A partner is entitled to receive Commission or any other remuneration only if provided in Partnership Deed.
Fundamentals of Partnership Accounting
Interest on Drawings by Partner
Interest on Partner’s Drawings is not to be charged in the absence of provision regarding this in the partnership deed.
Sources of Business Finance
Trade Credit as Source of Finance
Trade credit means credit granted to manufacturers and traders by the suppliers of raw material…
Fundamentals of Partnership Accounting
Interest on Partner’s Capital
Interest on Capital contributed by a partner to the firm is to be allowed only if it is provided in the Partnership Deed.
Sources of Business Finance
Types of Business Finance
Owner’s funds are the funds provided by the owners of an enterprise, which may be a sole trader…
Fundamentals of Partnership Accounting
Fixed and Fluctuating Capital Accounts of the Partners
If partners decide to keep their capitals intact and same throughout the accounting year they prepare …