Financial Accounting When precision for depreciation account is maintained, the annual charge for depreciation shall be debited to Profit and Loss Account and credited to the Provision Account. When shares are oversubscribed, the promoter may decide to scale down the number of shareholding. When this is done, the shares are being issued on prorata. In government imprest system, the amount reimbursed is the amount of the float. A business which converts raw materials into finished goods prepares a Trading Profit and Loss Account. The accounting term used to describe the excess of current assets over current liabilities is called working capital. In a non-profit oriented organisation, the excess of income over expenditure is added to the accumulated fund. A Trial Balance is prepared to test the arithmetical accuracy of of entries made in the ledger. Materials are taken out of government unallocated store by means of stores issue voucher. As evidence of payment to a government ministry, the revenue collectors issue treasury receipt. An excess of the value of assets over the purchases consideration for acquisition of business is credited to capital reserve.
Posted on: Tue, 17 Sep 2013 13:45:05 +0000