What is Joint Venture

What is Joint Venture?

February 25, 2023Posted inAdvance AccountingNo Comments
A joint venture (JV) is a business arrangement in which two or more parties agree to combine their resources, expertise, and capital in order to achieve a specific goal or set of goals. Joint ventures can take many different forms and can be structured in a variety of ways, but they generally involve a shared ownership and control of the venture, as well as a sharing of profits and losses.
What is Interest on Drawing

What is Interest on Drawing?

February 25, 2023Posted inAdvance AccountingNo Comments
Interest on drawing refers to the interest charged on funds withdrawn by the owner(s) of a business for personal use. It is similar to interest on a personal loan, but in this case, the owner(s) is borrowing from the business. It is considered a non-operating expense, and it is recorded in the company's income statement.
What is Interest on Capital

What is Interest on Capital?

February 25, 2023Posted inAdvance AccountingNo Comments
Interest on capital refers to the cost of borrowing funds to finance a business's operations or investments. It represents the interest charged on loans or other forms of debt that a business has taken on, and it is recorded as an expense in the company's income statement.
What is Depreciation

What is Depreciation?

February 24, 2023Posted inAdvance AccountingNo Comments
Depreciation is an accounting method used to allocate the cost of a tangible asset over its useful life. It is a non-cash expense that is used to gradually reduce the value of an asset and allocate the cost to the periods in which the asset is used. This allows businesses to match the expense of an asset with the revenue it generates, and it is an important component in determining a company's net income and tax liability.
What is Closing Stock

What is Closing Stock?

February 24, 2023Posted inAdvance AccountingNo Comments
Closing stock, also known as ending inventory, refers to the total value or quantity of goods and materials that a business has on hand at the end of a specific period, such as a month or year. This value is used in accounting and financial reporting as part of the calculation of cost of goods sold (COGS) and gross profit.
What is Bill of Exchange

What is Bill of Exchange?

February 23, 2023Posted inAdvance AccountingNo Comments
A bill of exchange is a legal instrument, similar to a check, that is commonly used in international trade. It is a written order from one party (the drawer) to another party (the drawee) to pay a specified sum of money to a third party (the payee) on a specific date or at a specific time in the future.
What is Balance Sheet

What is Balance Sheet?

February 23, 2023Posted inBasics of AccountingNo Comments
A balance sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time, such as the end of a financial year. It shows the company's assets, liabilities, and equity and it is used to measure the company's overall financial health. The balance sheet is called a "balance" sheet because the total value of the assets must equal the total value of the liabilities plus the equity.