Notes

Inter-Departmental Transfers Goods are often supplied from one Department to another – Inter-Departmental transfer. Such transfer must be credited to Supplying Department and debited to Receiving Department. If the trans­fers are made at cost price, then it can be treated…

Partnership The Basic Characteristics of a Partnership Describe the basic characteristics of a partnership Definition: The proprietorship form of ownership suffers from certain limitations such as limited resources, limited skill and unlimited liability. Expansion in business requires more capital and…

Consignments The Account in the Consignors and Consignee’s Books Show the account in the consignors and consignee’s books Consignment Overview Consignment occurs when goods are sent by their owner (the consignor) to an agent (the consignee), who undertakes to sell…

Joint Ventures The Meaning of Joint Venture Define a joint venture An association of two or more individuals or companies engaged in a solitary business enterprise for profit without actual partnership or incorporation; also called a joint adventure. A joint…

Bills of Exchange Meaning of a Bill of Exchange Define a bill of exchange Bill of exchange is written order letter in which there is not any condition. Writer’s sign will be in it. In this letter, order to other…

Bills Of Exchange Bills of Exchange Define a bill of exchange Explain the nature of interest of a bill of exchange Account for bill received Account for: Accrued interest; Default of bill; Default or dishonor; The discounting of a bill…