Definition: As stated in the Accounting Standard (AS) 26 “Intangible Assets” published by the Institute of Chartered Accountants of India (ICAI). It is an attributable non-monetary asset beyond physical affluence, retained for use in the manufacturing or production of goods and services for renting to others or for supervisory purposes. An asset is a reserve transpired by … [Read more...] about Intangible Assets
Accounting
Cash Flow Statement
Definition: The Cash Flow Statement serves the shift of the cash by the company, i.e., accepting cash on the one side and making payments by cash on the other side. Its ambition is to determine the difference between the cash-in-hand the company has at the beginning and at the end of the year. A specified protocol of divergent stock exchanges demands corporate entities to … [Read more...] about Cash Flow Statement
Bank Reconciliation Statement
Definition: Bank Reconciliation Statement is inclined to acquire the balance of the passbook through the balance of cash book or to find the balance of the cash book by taking the balance of passbook on a precise date. The lag does not commonly matter as early or afterwards, the client and bank both will make the entries. However, to understand the precise position and to … [Read more...] about Bank Reconciliation Statement
Non-profit organization
Definition: Non-profit organization are established to provide aid to society. They are entrenched to develop charity, commerce, religion, or any other fruitful objects. Their main objective is to provide services without the intention of earning profits in return, like trading organizations. Content: Non-profit organization Types of accounts Formats Features of … [Read more...] about Non-profit organization
Ledger
Definition: A ledger is an organized book of all the transactions that occurred in the business related to income, expenses, assets, liabilities. The entries in it are posted from the journal entries passed; thus posting in it is treated as the second step of preparing the financial books of accounts. Content: Ledger Classification Types Importance Ledger in … [Read more...] about Ledger
Joint Cost
Definition: The joint cost refers to that cost which is incurred before the split-off point on the production or manufacturing of multiple products, by consuming the same inputs or factors of production (i.e., raw material and manufacturing process). This type of cost accounting is usually common in primary industries. Split-off Point: The production stage at which all the … [Read more...] about Joint Cost
Service Costing
Definition: The term service costing or operating costing refers to the computation of the total operational cost incurred on each unit of the intangible product. These intangible products or services can be either in the form of internal services that are carried out by industries as supporting activities for the manufacturing of goods. Or in the way of external services that … [Read more...] about Service Costing
Cost Sheet
Definition: A cost sheet is a statement which represents the various costs incurred at different stages of business operations, in a tabular format. It determines the total cost or expenditure made by the organization, along with the cost incurred on each unit of a product or service in a particular period. The cost sheet of a business organization provides an insight into … [Read more...] about Cost Sheet
Cash Book
Definition: A cash book is that unique book of accounts which fulfils the objective of both, a journal and a ledger. Like a journal, it is the first book which records all the cash transactions of the business. It also acts as a subsidiary book to post all the cash transactions, similar to a cash account in the ledger. It can be broken down into two words, i.e., 'cash' and … [Read more...] about Cash Book
Journal Entries
Definition: Journal refers to a 'book' or 'diary' and entry means noting down of something. On combining these two words, we get 'journal entry'. It can be explained as a book meant for the original recording of the day to day business transactions or activities in a systematic order. The formal step by step entry of these business activities in a journal is termed as … [Read more...] about Journal Entries