This is made up of (i) Debtors and (ii) Creditors. Debtors are those who bought goods on credit. In other words, they are persons to whom the firm has sold goods or services without payment. Creditors are those people to whom money is owed. Example, person from whom the firm has bought goods and services …
Here, we are meant to understand that in any accounting records, it is very common to expect future losses. And so an accountant is not prepared to bring into account that possible future projects occur. This shows that in any accounting records, that it is only losses that are anticipated and even recorded whereas profits …
Here, in accounting, the quantity of an amount will affect its treatment. As we may know that all records in accounting draw towards their cost. This in effect t shows that much importance is attached to the items of its greater cost. All the same, in presenting final accounts and balance sheets of a large …
This one requires that for any procedure or method to be in use in any business for any accounting records, it should continue for a reasonable long period of time. This means that one should not be changing his or her method to be carried out in the business, it must be the generally accepted …
Here, accounting records are balanced many times in a period and this period is sometime every twelve calendar months. In every business, whether Government or individual is allowed to choose his accounting period. The period may however be one month, three months (that is quarterly) or six months (i.e. half yearly).
In accounting, the receipts and payments of the owners of the business are not necessarily the amount of cash actually received or paid in a particular period of account. It is the receipts due and not yet received and the expenses due and not yet paid. These treats advances in the period in which they …