Archive | Accounting

Crossed cheques are those, the payment of which are not made over the counter. These cheques are collected by the bank of the depositor.

The advantages of maintaining a bank account are:

Sometimes the drawee of a bill is unable to pay the bill amount on the due date and he may request the drawer to allow him some extra time.

The main advantages of accounting are:

The necessity of Bank Reconciliation Statement are given below:

The advantages of Bill of Exchange are as follows:

The consignor consigns goods to consignee and incurs expenses in sending the goods to consignee.

The difference between Delcredere Commission and Over-riding Commission are:

The difference between account sales and pro-forma invoice are;

When goods are consigned by consignor to consignee it is accompanied by a document called pro-forma invoice.

The difference between consignment and sale are:

The following features of consignment are:

The lot of goods forwarded by the principal to his agent for the purpose of sale on behalf of and at the risk of the principal is called Consignment.

While preparing the provision for doubtful debts accounts, following procedure should be followed:

At the end of the year, after writing off the bad debts about whom we were sure of becoming irrecoverable, there may still be some customer balances from whom it is doubtful to collect the entire amount.

Interest on drawings is calculated at a fixed rate for actual period i.e. from the date of drawings to the date when final accounts are being prepared.