Tag Archives: Assets

Define partnership deed and discuss its contents A document containing an agreement that details the rights and obligations of each partner participating in a venture Contents Name of the firm Location of the business Name and Address of Partners Nature of Firm’s Business Duration of Partnership Partners’ Capitals Interest on Capital Drawing and Interest on Them Division of Profit Partners’ …

Objective Type Questions for Principle of Commerce I.Com Part 1 (j) [mtouchquiz 22]

Final Account Important Question 2 for I.Com Part 1 Prepare trading and profit & loss account and balance sheet for the year ended 31 December, 2007  TRIAL BALANCE Debit Drawings                                                                                 650 Debtors                                                                                    26,250 Furniture                                                                               6,900 Wages                                                                                      2,750 Trade expenses                                                                    475 Selling expenses                                                                   250 Office expenses                                                                      500 Opening stock                                                                          2,000 Purchases                                                                                 5,000 Closing stock                                                                           6,000                                                                                                                                                                                                50,775 Credit   Sales                                                                            …

Define balance sheet A financial statement that summarizes a company’s assets, liabilities and shareholders’ equity at a specific point in time. These three balance sheet segments give investors an idea as to what the company owns and owes, as well as the amount invested by the shareholders. The balance sheet must follow the following formula: Assets = Liabilities + Shareholders’ …

Define Real Account Also known as a permanent account. Includes the balance sheet accounts (assets, liabilities, and owner’s or stockholders’ equity accounts) but excludes the owner’s drawing account, which is a temporary account. Source: http://www.accountingcoach.com/terms/R/real-account.html Or Assets, liability, reserve, and capital accounts that appear on a balance sheet. The balances of real accounts are not cancelled out at the end …

Define Creditors Creditor is an expression used in the accounting world to specify a party who has delivered a product, service or loan, and is owed money by one or more debtors. Source: http://www.e-conomic.co.uk/accountingsystem/glossary/creditor Or A party to whom money is owed Common classifications of a creditor include (1) Secured: who has a legal right to take a specific property …

Objective Type Questions for Principle of Accounting I.Com Part 1 Test 1