Tag Archives: Liabilities

What is meant by partnership deed? State its important points

What is meant by partnership deed? State its important points A partnership deed, also known as a partnership agreement, is a document that outlines in details the rights and responsibilities of all parties to a business operation. It has the force of law and is designed to guide the partners in the conduct of the business. It is helpful in …

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Define partnership deed and discuss its contents

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’ …

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Bill of Exchange Important Question 8 for I.Com Part 1

Bill of Exchange Important Question 8 for I.Com Part 1 Y sells goods to Z for Rs.2000 and draws a bill on Z for 3 months, which he accepts and returns it to Y. One month before its maturity, Z retires the bill under a rebate of 6% p.a. Pass journal entries in the books of Y and Z. Solution …

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What is accounting equation?

What is accounting equation? The accounting equation is the process used to capture the effect of economic events; Assets = Liabilities + Owner’s Equity. It is encompassed on the balance sheet. Source: http://www.e-conomic.co.uk/accountingsystem/glossary/accounting-equation Or The equation that is the foundation of double entry accounting. The accounting equation displays that all assets are either financed by borrowing money or paying with …

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Define Real Account

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 …

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Objective Type Questions for Principle of Accounting I.Com Part 1 (a)

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

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