Accounting

Features of the Installment Purchase System

Features of the Installment Purchase System

Under the installment purchase system, there is an outright sale of goods with the buyer having the facility to pay the purchase price in a certain number of agreed installments. In this system, a certain amount is paid as a down payment amount at the time of signing the agreement. The buyer make.....

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Concept of Installment System

Concept of Installment System

Concept of Installment System An installment system is just like a credit purchase and hires a purchase system of selling and buying goods. It is a credit system of purchase and sale of goods in which payments or receipts are made on an installment basis over a period of time. Like, hire purchase.....

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Difference between Hire Purchase and Installment System

Difference between Hire Purchase and Installment System

Both hire purchase and installment sales are popular methods of financing goods. There are 3 parties in Hire Purchase trade namely the seller, the financier, and the buyer. There are only 2 parties involved in Installment sale namely the seller and buyer. The main dissimilarities or difference be.....

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Methods of Recording Transactions under the Installment System

Methods of Recording Transactions under the Installment System

Methods of Recording Transactions under the Installment System In the installment system, there is an immediate sale, in which the price, instead of being paid in one lump sum, is spread over a period, interest is charged on unpaid balances. An installment sale is a financing arrangement in which.....

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Concept of Admission of New Partner

Concept of Admission of New Partner

Concept of Admission of New Partner A new partner may be admitted when the firm needs additional capital or managerial help. Admission of a new partner is the inclusion of a new partner as an associate or partner to an existing enterprise is known as an admission of a partner. Partnership by its .....

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Impact of Admission of New Partner in the Profit Sharing Ratio of the Firm

Impact of Admission of New Partner in the Profit Sharing Ratio of the Firm

Impact of Admission of New Partner in the Profit Sharing Ratio of the Firm New Profit Sharing Ratio is the ratio at which the partners decide to share profits/losses in the future. A new partner may be admitted when the firm needs additional capital or managerial help. When a new partner is admit.....

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Impact of Admission of New Partner in Value of Goodwill of Firm

Impact of Admission of New Partner in Value of Goodwill of Firm

Impact of Admission of New Partner in the Value of Goodwill of the Firm A reputation built up by a firm has an impact on the present profit and future profit to be earned by the firm. The new partner when admitted, has to compensate for all these sacrifices made by the old ones. At […]

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Re-arrangement of Reserve and Surplus and Accumulated Loss of the Firm

Re-arrangement of Reserve and Surplus and Accumulated Loss of the Firm

Re-arrangement of Reserve and Surplus and Accumulated Loss of the Firm at the Time of Admission of New Partner Reserves are the number of profits, which is set aside until there is a need for money for some purpose. The surplus is where the profits of the company reside. At the time of admission .....

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Adjustment of Life Insurance Policy of Partners

Adjustment of Life Insurance Policy of Partners

Adjustment of Life Insurance Policy of Partners at the Time of Admission of New Partner The partners of a firm may decide to take a Joint Life Policy on the lives of all the partners of the firm. Partners may take out a joint life insurance policy on the lives of all the partners. It enables t.....

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Re-adjustment of Partners’ Capital Giving

Re-adjustment of Partners’ Capital Giving

Re-adjustment of Partners’ Capital Giving due Influence of New Admittance In your partnership, you may decide to add new partners. Sometimes, after the admission of the new partner, all the partners may decide to make their capital proportionate to the new profit sharing ratio or any other .....

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Account Current

Account Current

Account Current It is a statement of transactions in a debit and credit form between a seller and his customer. It is a statement of transactions which represents running transactions between parties. It is periodically prepared and sent by a trader to his debtor or creditor with a view to verif.....

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Account Sales

Account Sales

Account Sales This is a statement supplied by an agent or a consignee who sells goods on behalf of the consignor. It is a report or statement that shows the price at which the goods are sold, expenses incurred by the consignee on behalf of the consignor, consignee’s commission and the net b.....

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