New Accounts
2
Balance Sheet --> Reports the financial position at the end of the period. Income Statement --> Reports the results of operations for the period. Statement of Cash Flows --> Reports cash inflows and outflows during the period. Statement of Stockholders' Equity --> Reports the changes in stockholders' equity during the period why balance sheet should tally A balance sheet is a quantitative summary of a company’s financial condition at a specific point in time, including assets, liabilities and net worth. The first part of a balance sheet shows all the productive assets a company owns, and the second part shows all the financing methods (such as liabilities and shareholders’ equity). Also called statement of condition because it shows the position of all the assets & liabilities of a company at a specific day. Therefore, both the side of balance sheet must get tallied i.e. assets equals to liabilities at any point of time. well the balance sheet is a statement showing the value assets and liabilities of the business as on the last date.It tallies because of the double entry system which says taht every transaction affects atleast two persons or parties or every debit has an equal and corresponding credit. Balance sheet should tally because all the journal entry has the same amount for debit as well as credit, and also Assets = Liabilities+Capital. Goodwill means good reputation or good name of business.Goodwill is intangible asset not a fictitious asset. and wecan not calculate exact value of goodwill. because their are different methods for goodwill and all methods showingdifferent answers. Goodwill help us in earning more profits.their are two
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ACCOUNTS
Transcript of New Accounts
Balance Sheet --> Reports the financial position at the end of the period.
Income Statement --> Reports the results of operations for the period.
Statement of Cash Flows --> Reports cash inflows and outflows during the period.
Statement ofStockholders' Equity --> Reports the changes in stockholders' equity during the periodwhy balance sheet should tally
A balance sheet is a quantitative summary of acompanysfinancialcondition at a specific point in time, includingassets, liabilities and net worth. The first part of abalance sheet shows all the productive assets a companyowns, and the second part shows all the financing methods(such as liabilities and shareholders equity). Also calledstatement of conditionbecause it shows the position of allthe assets & liabilities of a company at a specific day.Therefore, both the side of balance sheet must get talliedi.e. assets equals to liabilities at any point of time.well the balance sheet is a statement showing the valueassets and liabilitiesof thebusinessas on the last date.It tallies because of the double entry system which saystaht every transaction affects atleast two persons orparties or every debit has an equal and correspondingcredit.Balance sheet should tally because all the journal entry has the sameamount fordebit as well as credit, and also Assets = Liabilities+Capital.
Goodwill means good reputation or good name of business.Goodwill is intangible asset not a fictitious asset. and wecan not calculate exact value of goodwill. because their aredifferent methods for goodwill and all methods showingdifferent answers. Goodwill help us in earning more profits.their are two types of goodwill 1. self generated goodwill2.Purchased goodwill.What are the Goddwill calculation Methods?
1) Average profit method2)Super profit Method3) Capitalisation Method
Preliminary expeneses are the nature of fictitious assets.These are the formation expenses of thecompanybefore anyoperation of the busines held. These are transferred totheprofit and lossaccounts and written off every yearfrom the profits of thebusiness. These expenses are shownon the assets of the balance sheet under the headmisceallenous.
