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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.

There may be certain incomes which have been earned during the year but not yet received till the end of the year. Income like interest on investments, rent and commission etc.

The benefit of some of the expenses already spent will be available in the next accounting year also.

The main objectives for which adjustments are made in the books of accounts are as follows:

Those transactions which relate to the accounting period for which final accounts are being prepared…

Some concerns like to ascertain the cost of goods manufactured by them during the year distinctly before they prepare the trading and ascertain the gross profit.

There is no doubt that every business prepares balance sheet at the end of each accounting period yet it suffers from the following limitations:

The preparation of Balance sheet gives following advantages: