Daily Archives: November 9, 2019

Closing entries in Profit and Loss Account

Profit and loss account

We have already seen the entries required for preparing the Trading Account and for transferring the gross profit to the Profit and Loss Account. Now to complete the Profit and Loss A/c, the undermentioned entries will be necessary. (a) For items to be debited to the Profit and Loss Account …

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Final Accounts in Accounting

final accounts

Final Accounts After passing journal entries for events and transaction, posting them to ledgers and preparation of trial balance, the final step us to prepare final accounts. By final accounts, we mean manufacturing and trading account (only trading accounts in case of non-manufacturing entities), profit and loss accounts, and balance …

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Incomplete records system is unscientific

incomplete records system

Incomplete records system is unscientific, incomplete, inaccurate and unsystematic. Explain Incomplete records system, also known as a single entry system is not a standard practice like double-entry system based on dual aspect concept. The double-entry system is based on scientific dual aspect concept that makes it possible to scientifically locate …

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Absorption Costing

absorption costing

Absorption costing also known as full costing is conventional of ascertaining the cost.  It is the practice of charging all cost both variable and fixed to operation, processes and products. It is the oldest and widely used technique of ascertaining the cost. Under this technique of cost, the cost is …

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