What is Trial Balance

What is Trial Balance?

March 1, 2023Posted inAdvance AccountingNo Comments
A trial balance is a list of all the accounts and their balances in a company's general ledger at a specific point in time. The purpose of a trial balance is to verify that the total of all debit balances in the general ledger equals the total of all credit balances.
What is Prepaid Expenses

What is Prepaid Expenses?

March 1, 2023Posted inAdvance AccountingNo Comments
Prepaid expenses refer to payments made by a business for goods or services that will be received or used in the future. They are recorded as assets on a company's balance sheet, because they represent resources that will be used up over time. The payments for prepaid expenses are made in advance and are recorded as an asset on the balance sheet until the goods or services are received or used, at which point they are recorded as an expense.
What is Partnership Deed

What is Partnership Deed?

March 1, 2023Posted inAdvance AccountingNo Comments
A partnership deed, also known as a partnership agreement, is a legal document that outlines the terms and conditions of a partnership. It lays out the rights and responsibilities of the partners, the management of the business, and the distribution of profits and losses.
What is Outstanding Expenses

What is Outstanding Expenses?

February 25, 2023Posted inAdvance AccountingNo Comments
Outstanding expenses refer to the expenses that have been incurred by a business but have not yet been paid for. These are also known as unpaid expenses or accrued expenses. They are recorded in the company's financial statements as accounts payable or accrued liabilities.
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Interest on drawing refers to the interest charged on funds withdrawn by the owner(s) of a business for personal use.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.