Accounting

Interest on Drawings Drawings are the funds pulled by partners from the firm, as opposed to capital invested. So,  in order to maintain a fair profit allocation, a condition in […]

Control Accounts If the trial balance is not balanced, it indicates a mistake in the transaction recording. To discover this mistake, one must go through all of the transactions for

What is Capital and Revenue Expenditures Capital Expenditure Capital  Expenditures are those expenses that provide a benefit for more than one accounting period. For example, the company has purchased a

What is Depreciation in Accounting Depreciation is a method of accounting that spreads the cost of a tangible or physical asset over its useful life or expected life. The cost

What is Accounting Equation The accounting equation is used in double-entry accounting to demonstrate the connection between assets, liabilities, and equity. According to the accounting equation, the entire worth of