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RESPECTED morgain300

Good sir/madam upon your comment.

I think this site helps the student to easily solve there problems by interacting.

I referred your profile you have a good experience...

Hello ,

Why got confused .
Just concentrate and you will have the answer by yourself.

First of all I make you clear about what I understand from the question statement.

Your position is for...

Good question:

See first of all you need to understand is this that there are two types of costs which you see in the profit & loss A/c.

These costs are -1. direct costs
And ...

Hello,
Computation of retained earnings is easy and simple but first of all you need to understand the basics.
Meaning: retained means we have kept something aside and right now not making use of...

The proper treatment regarding dividend journal entries are as below:

At the time of dividend declared,

Profit &loss appropriation a/c... dr 6,000
...

When you have paid such an amount you would have passed the entry as:

Prepaid insurance a/c... dr 18600
To cash / bank a/c ...

For calulating the capital at the last day of the accounts closed is:

Opening capital
+ capital introduced during the year
- drawings made during the year
+ profit / net income of the year ...

As per matching concept,
All costs are to be recorded with their revenues in the same accounting period in which such costs and revenues are incurred.
In brief,
All costs must matched with the...

Preparing a balance sheet one needs to have the following basics

1. pass the journal entry
2. post the entires into the ledgers
3 . Take the brought forward balances to the trial balnce
4 ....

Doubtful accounts are usually opened for any future loss which may be estimated to occur in future .
As per prudence principal , such doubtful accounts are set off from the curent year profir or...

all costs incurred for producing the units are clubbed together and divided by the number of units produced.
cost may be varible and fixed costs.

cost per unit = total cost / number of units...

Yes I have the interest for taking part in it.

Fees receivable a/c... dr
To fees earned a/c

Fees receivable is debited because as per the accrual based concept any thing earned during the current year but not recevied should be recorded...

Fees outstanding a/c... dr
To fees a/c

Yes the expense is of the capital nature.
As we all known to the fact that there are basically two types of expenses which are :
1. capital nature expense

Which helps the...

For Purchase Of An Additional Asset So Assets Got Increased By The Amount Of $ 1000 And As The Cash Of $ 400 Goes Out So Assets On The Other Hand Got Decreased By The Amount Of $ 400 While For The...