Methods of Preparing an Account Current When frequent transactions regularly take place between two parties, they prepare Account current. In the case of consignment, consignee prepares it. When frequent transactions occur between Bank and customers. #METHODOFPREPARATIONOFACCOUNTCURRENT

ACCOUNT CURRENT An Account Current is a statement of transactions which represents running transactions between parties. We prepare Account Current for a specific period of time. It includes interest received or charged on transactions. #ACCOUNTCURRENT

AVERAGE DUE DATE In the case of drawings, the owners draw the amounts from the business on various dates. They can settle it on one date. When different amounts are due on different dates and ultimately settled on one day the interest is calculated by means of Average Due Date. #AVERAGEDUEDATE

Distinction between Abnormal Loss And Normal Loss Abnormal loss: The type of loss which occurs due to some unfortunate incidence which can be avoided such as fire, or some other accidents. Normal loss is the expected loss or the loss which is anticipated prior to the production. For example, shrinkage, evaporation, rusting etc #DistinctionbetweenAbnormalLossAndNormalLoss

Types of commission The Different Types of Sales Commission Gross Profit. Glow Images, Inc / Getty Images. ... Revenue Commission. Another common form of commissions is revenue commission. ... Placement Fees. Found most often in auto sales, placement fees give a set amount for each unit sold. ... Revenue Gates. ... Understanding Your Commission Plan. #Typesofcommission

Treatment of Accounts- WHEN THE BUSINESS SENDS GOODS CASUALLY ON SALES OR RETURN Goods sent Casually. Usually, when the goods are sold to the customer, they are immediately treated as sales and the revenue is recognized. However, when the goods are sold on approval or return basis the accounting treatment is different. The sale is recorded only when the goods are approved by the buyer. #TreatmentofAccounts

Distinction between Consignment and sale The following are the key differences between consignment and sale: ... The parties to a consignment are consignor and consignee whereas the parties to the sale are buyer and seller. The relationship between parties of a consignment is of principal and agent, but in the sale contract, they are debtor and creditor. #DistinctionbetweenConsignmentandsale

CONSIGNMENT ACCOUNT Consignment is an arrangement in which goods are left in the possession of an authorized third party to sell. Typically, the consignor receives a percentage of the revenue from the sale (sometimes a very large percentage) in the form of a commission. #CONSIGNMENTACCOUNT

Accounting records are key sources of information and evidence used to prepare, verify and/or audit the financial statements. They also include documentation to prove asset ownership for creation of liabilities and proof of monetary and non monetary transactions. #ACCOUNTINGRECORDS

Dishonour of bill When the drawee (a person who is liable to pay) is not able to make the payment on the date of maturity of a bill, a bill is said to be dishonoured. ... Dishonour of a bill can be either by non-acceptance or non-payment. A dishonoured bill is equivalent to the bounced cheque #Dishonourofbill

Discounting of bills Featured snippet from the web Discounting of bills refers to a facility in which holder of a bill of exchange can get the bill discounted with bank before the maturity. After deducting the commission, bank pays the balance to the holder. This bill is then presented to seller's customer and full amount is collected #Discountingofbills

Negotiability negotiability. Characteristic of a document (such as a check, draft, bill of exchange) that allows it to be legally and freely (unconditionally) assignable, saleable, or transferable. It allows the passing of its ownership from one party (transferor) to another (transferee) by endorsement or delivery. #Negotiability

Distinction between Bills of Exchange and Cheque The Cheque is the document which contains an order to the bank to pay a certain amount of money from the account of the customer. The Bill of Exchange is the document which contains an order to drawee to pay a certain amount to the payee on demand or after certain time period #DistinctionbetweenBillsofExchangeandCheque

What is Cheque A cheque, or check, is a document that orders a bank to pay a specific amount of money from a person's account to the person in whose name the cheque has been issued. The person writing the cheque, known as the drawer, has a transaction banking account where their money is held #WhatisCheque

Distinction Between Bills of Exchange and Promissory Note The significant difference between them is that a bill of exchange is a written order drafted by the drawer on the drawee to receive the mentioned sum within the specified period. Whereas, a promissory note is a written promise made by the borrower or drawer to repay the amount on a specific date or order of the payee. #DistinctionBetweenBillsofExchangeandPromissoryNote