Redemption of Preference Shares
Redemption of preference shares means returning the preference share capital to the preference shareholders either at a fixed date or after a certain time period… Read More »Redemption of Preference Shares
Business Accounts
What is Job Costing? Objectives and Advantages
Job Costing Definition Job costing is defined as a method of recording the costs of a manufacturing job, rather than process. With costing systems, a… Read More »What is Job Costing? Objectives and Advantages
Machine Hour Rate: Advantages and Disadvantages
Machine hour rate method is one of the methods of absorption of factory overheads into production. In industries like chemicals, engineering, steel and other heavy… Read More »Machine Hour Rate: Advantages and Disadvantages
Service Costing: Definition and Objectives
Service costing refers to the costing procedure used for determining the cost per unit of service rendered. The term defined as the cost of specific… Read More »Service Costing: Definition and Objectives
What is Leverage? Types and Importance
What is Leverage? Leverage results from using borrowed capital as a funding source when investing to expand the firm’s asset base and generate returns on… Read More »What is Leverage? Types and Importance
What are the Methods are used to Material Issue?
Material Issues Method 1. (FIFO) First in First out The FIFO flow concept is a logical one for a business to follow, since selling off the… Read More »What are the Methods are used to Material Issue?
What is a Suspense Account in Accounting?
Suspense Account Suspense account is an account in the general ledger in which amounts are temporarily recorded. It is used when the proper account cannot… Read More »What is a Suspense Account in Accounting?
Difference between Journal and Ledger
Difference between Journal and Ledger is that the journal is the first step of bookkeeping and ledger is followed by the journal. Because the bookkeeping… Read More »Difference between Journal and Ledger
What is Contra entry? Examples
Contra entry is the entry which same account can be debited and credited in contrary situation. Ex: we debit bank account when depositing cash. At… Read More »What is Contra entry? Examples
Cash Book: Types of Cash Books
Cash book is a book of original entry in which all the business transactions relating to cash receipts and payments are recorded in chronological order.… Read More »Cash Book: Types of Cash Books