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How is discount allowed treated in the trading and profit andloss account?
Discounts are allowed in the trading and loss accounts, because the products are not in brand new condition. This allows an amount of money to be taken off so that the item is discounted.
Can a company director withdrawal cash for drawings account from company?
Yes, but it will be treated as a drawings account.
What is the Accounting definition of carriage inward?
Carriage inward :Occurs when a business has to pay for purchased goods to be delivered to it's Premises.Carriage Outward:Occurs when a business PAYS for sold goods to be delivered to it's customers premises.Carriage inward and outward are always debited and both must be treated as Expenses.
Nature of account of purchases return?
i think it should be treated as an ""Expense""
Is cash account temporary account?
No cash account is a permanent account. as u treated cash as a debit element in General journal against of Capital. Capital is a permanent account so cash too.
How is carriage inward treated in a trading and profit and loss account?
it is added to the cost of sales
How is discount allowed treated in the trading and profit andloss account?
Discounts are allowed in the trading and loss accounts, because the products are not in brand new condition. This allows an amount of money to be taken off so that the item is discounted.
Dividend account is treated as either asset account liability account or expense account?
Hi, Dividends are paid out of retained earnings (part of Capital) therefore I think Dividends can not be treated as an expense (the prudence being increase in Capital can not be treated as Revenue thats Cash generation while dividends are Surplus appropriation). regards, Zeeshan
Why is closing stock written at credit side in trading account?
Closing stock or as it is also named as closing inventory is definitely an asset. But trading account is not the same as Inventory account. Inventory, being an asset, should have a debit balance in Inventory account. Trading account is a distinct account and both must not be mixed up together.The answer to the question "why closing stock is written on the credit side of the trading account" lies in understanding two points:First, Cost of sales must be matched up with current year's revenue and as the inventory at the end of the period has not been sold and thus should not be accounted against sales revenue, therefore it must be deducted from cost of sales. That is the conceptual reason why we deduct closing stock from the total of opening inventory and purchases.Second, in order to account for the inventory at the year end in the trading account, closing entry is passed and due to this closing entry closing stock appears at the credit side of trading account. This is the accounting reasonfor having it on the credit side. The closing entry is as follows:Debit: Inventory accountCredit: Trading accountInventory account is debited as inventory is still with the entity at the end of the period and is an asset so asset will be raised by debiting the inventory account.Students must understand that at the end of the period this asset is raised because usually it is not known how much stock is still with the entity until stock count and it was all treated as part of cost of sales i.e. trading expense against this period sales.But as it has not been traded that's why trading accounting in which cost of sales has been recorded it will be credited to give the correct information of the total inventory consumed in making current period's sales which is Opening Inventory + Purchases - Closing Inventory.
Can a company director withdrawal cash for drawings account from company?
Yes, but it will be treated as a drawings account.
What is the Accounting definition of carriage inward?
Carriage inward :Occurs when a business has to pay for purchased goods to be delivered to it's Premises.Carriage Outward:Occurs when a business PAYS for sold goods to be delivered to it's customers premises.Carriage inward and outward are always debited and both must be treated as Expenses.
Nature of account of purchases return?
i think it should be treated as an ""Expense""
Is cash account temporary account?
No cash account is a permanent account. as u treated cash as a debit element in General journal against of Capital. Capital is a permanent account so cash too.
Which statement is a valid comparison of the way the British and French treated Native Americans?
the british sought to displace the native americans while the french treated them more as trading partners.
Is bilateral talk trading agreement the right thing to do?
Bilateral talk trading agreement:Correct way to arrange trading issues. Every country has its specific situation and has to be treated with specific way to suit that situation. A universal agreement to suit all is unsuit for all.
How are the provisions for doubtful debts treated in the final accounts?
The debts are treated as expenses in the profit and loss account, being entered on the debit side of the income statement coloums.
How were colored people treated in the sixties?
Badly, depending on where you were talking about. Read black like me by John Howard griffen and it gives you a detailed account of how human beings were being treated.
