Inventories are assets that are held in ordinary course of business for sale or use in the production of items for sale. Types of Inventory Raw material (items which are
Category: ACCOUNTING TOPICS
Trade Debts/ReceivablesTrade Debts/Receivables
Trade debts/ receivables represent amounts receivable from customers against the sale of goods or rendering of services in the ordinary course of business. Example:A business sold goods worth USD 10,000
Provision for Doubtful DebtsProvision for Doubtful Debts
Wherever goods are sold on credit basis there are chances that some amounts would not be recoverable.The trade debts where there are doubts as to whether those will be recovered
PrepaymentsPrepayments
Prepayments represent the advance payments to vendors and third parties against receipt of goods/ services expected to be received in future. Prepayments are expensed out evenly or as per the
Cash and bank balancesCash and bank balances
Cash and bank balances heading generally includes following: Cash in hand Balances available with banks Demand deposits (funds kept in bank account which can be withdrawn at any time without
Why & How the Bank Reconciliation Statement (BRS)?Why & How the Bank Reconciliation Statement (BRS)?
The balance appearing in company’s bank ledger is of DEBIT nature as it represent company’s assets that is recoverable from bank. On the other hand, same balance appears as CREDIT
Petty cash managementPetty cash management
Petty cash management is referred to as the system of keeping records in order to track issuance and use of petty cash funds. In order to smoothly run day to
Share Capital Vs Common StockShare Capital Vs Common Stock
This represents the amount of capital that has been invested in the company by the shareholders. 1: Types of Shares Ordinary shares/ common stock Ordinary shares/ common stock is the
Preference Shares or Preferred StockPreference Shares or Preferred Stock
Preference shares also called preferred stock are a mode of raising capital through existing shareholders or the general public without affecting the shareholding structure. As discussed earlier, preference shares have
What Are Reserves? | Two Types of ReservesWhat Are Reserves? | Two Types of Reserves
These represent the amounts set aside by management out of accumulated profits for various purposes. Reserves are commonly classified into two categories: Types of Reserves Revenue reserves These are the