Book keeping and Accountancy class 11 Book keeping and Accountancy class 11, In Class 11, students are introduced to the fundamentals of bookkeeping and accountancy. The subject aims to provide students with a basic understanding of financial transactions, recording them accurately, and preparing financial statements. Here are some of the key topics cover in Class… Read More »
Are fictitious asset and deferred revenue expenditure are same No, fictitious asset and deferred revenue expenditure are not the same. A fictitious asset is a non-monetary asset that has no physical substance and cannot be seen or touched. It represents an expense that has been paid for in advance, such as prepaid expenses or deferred… Read More »
Is net turnover the same as net profit No, net turnover and net profit are not the same. Net sale refers to the total revenue generated by a business after deducting any discounts, returns, and allowances. It represents the total amount of sales made by a business during a particular period. To visit: https://www.incometax.gov.in On… Read More »
Capital in balance sheet is a opening capital or closing capital In a balance sheet, the capital represents the owner’s equity or shareholders’ equity of a business. It can refer to either opening capital or closing capital, depending on the specific context of the financial statement. 1.Opening capital: Opening capital refers to the initial capital… Read More »
Tax planning vs accounting Tax planning vs accounting Website link Tax planning vs accounting: Tax planning and accounting are distinct but interconnected aspects of managing finances. Here’s a comparison between tax planning and accounting: Tax Planning: Focuses on minimizing tax liability and optimizing tax-related strategies to legally reduce taxes. Involves analyzing current and projected… Read More »
Direct expenses Direct expenses are those expenses that are directly related to the production of goods or services offered by a business. These expenses can be easily traced to a particular product or service and are essential for the production or delivery of that product or service. Examples of expense directly allocated include raw materials,… Read More »
Credit Note and Debit Note A credit note and debit note are both types of accounting documents used to record transactions between two parties. A completed credit note is a document that is issue by a seller to a buyer when goods or services are return, or when the price of goods or services… Read More »
Depreciation expense or loss Depreciation is considered an expense in accounting, but it is not the same as a loss. In accounting, depreciation is the process of allocating the cost of a long-term asset over its useful life. It is an expense that represents the reduction in the value of the asset over… Read More »
Prepaid Expenses It is considered as personal accounts in accounting because they represent an advance payment made by the business for goods or services. It will receive in the future. Personal accounts are those accounts that deal with individuals, firms or entities. That either indebts to the business or have lent money to the business.… Read More »
Salaries Website Link Salaries and wages are both expenses related to employee compensation, but they are classified differently based on their association with the production process. Wages are considered a direct expense because they are directly related to the production of goods or services. Wages are typically paid to workers who are directly involved in… Read More »