Article Categories
- All Categories
-
Data Structure
-
Networking
-
RDBMS
-
Operating System
-
Java
-
MS Excel
-
iOS
-
HTML
-
CSS
-
Android
-
Python
-
C Programming
-
C++
-
C#
-
MongoDB
-
MySQL
-
Javascript
-
PHP
-
Economics & Finance
Articles on Trending Technologies
Technical articles with clear explanations and examples
Explain the capital payments and revenue payments
First, let us understand about the capital payments.Capital PaymentsCapital payments are payments of capital expenditures of a company, which are made into cash.In other words, capital payments are non-recurring payments which are paid in cash and are part of the capital expenditures. These payments are made in installments or at once.Capital payments include the following −Payment which is made to purchase an asset/assets.Share capital and debentures redemption.Repayment of proprietors in long drawing.Goodwill payments etc.ExampleSuppose a company purchases a product from a vendor. Moreover, the vendor sent a team of professionals at the time of installation and invoiced the company with ...
Read MoreDifferentiate between sole trader and partnership
Let us understand what a sole trader and a partnership are, before learning about their differences.Sole traderAn individual who owns and runs the total business is known as sole trader. In simple words, a sole trader has to look after his/her own resources to run their business.He/she has to apply for a license before starting their business. Chance of liability is unlimited, so he/she should have a cautious approach.Motivation, secrecy, freedom of trade selection etc. are the characteristics of sole proprietorship. Main objectives are creating own opportunities, helping large business, productive use of funds etc.PartnershipIt is a legal relationship between ...
Read MoreDifferentiate between lease and rent
Let us understand what a lease agreement and a rent agreement are, before learning about their differences.Lease agreementAccording to section 105 of transfer of property Act, 1882 “lease is defined as transfer of a right to enjoy a property, made for a certain time, express or implied or in perpetuity, in consideration of a price paid or promised, or of money, a share of crops/service or any other thing of value, to be rendered periodically or on specific occasions, to the transferor by the transferee, who accepts the transfer on such terms”.The conditions for rent agreement as a lease are ...
Read MoreGive examples for the percentage of completion method
Let us consider two examples for the percentage of completion method.Example 1Calculate by using percentage of completion method, if estimated cost of project is $700000 and costs to date are $85000, total revenue estimated = $2000000).SolutionThe solution is as follows −Step 1Percentage of completion = costs to date / estimated cost of project = 85000/700000 ⇒ 12.14 % (rounded to two digits)Step 2Revenue recognition = percentage of completion * total revenue estimated = 12.14% * 2000000 ⇒ $ 242800Step 3Income recognition = recognized revenue – costs to date = 242800 – 85000 ⇒ $157800Example 2A construction is building a maintenance facility and the ...
Read MoreEstimate the total income of the project with the percentage of ncompletion method
Let us estimate the total income of the project by using percentage of completion method, if revenue estimated is $300000, estimated costs is $60000 and costs to date is $7000.SolutionThe solution is as follows −Step 1 -Percentage of completion = costs to date / estimated cost of project = 7000/60000 = 11.67 % (rounded to two digits)Step 2 -Total income (estimated) = revenue estimated – estimated costs = $300000 – 60000 = $240000Step 3 -Income recognition = percentage of completion * total income (estimated) = 11.67% * $240000 = $28008Percentage of completion method accountingLet’s say, the business has a project, ...
Read MoreWrite the journal entries for the percentage of completion method
In this method, all the revenues are recognized based on the percentage of work completed over a period of time through a cost to cost method.Journal entriesThe journal entries for the percentage of completion method are as follows −ParticularsDebitCreditIncurring costsConstruction in progressCash or accounts payableBillingAccounts receivableConstruction in progress (Bill)Receiving paymentsCashAccounts receivablePeriod end adjustments for revenueConstruction expenseConstruction in progressConstruction revenueCompleting the projectConstruction in progress (Bill)Construction in progressExampleConsider the following table for understanding how to write journal entries. Here, all numbers are used for understanding purposes only.Particulars2001 ($ IN MILLION)2002 ($ IN MILLION)2003 ($ IN MILLION)Cumulative cost incurred ($)4915Total cost (estimated) $151515Billings3105Collected2115SolutionThe ...
Read MoreWhat is the percentage of the completion method?
The percentage of completion method recognizes all the revenue and profit associated with long-term projects on proportion/percentage of work completed.In this method, revenue is recognized yearly. Sellers can recognize gain/loss in a project in every accounting year. This method estimates stages of project completion or estimates costs of remaining costs. This method falls in IFRS 15.The formula for the percentage of completion method is as follows −Revenue (to recognized) = percentage of completed work * total contract valueTypesThe types of the percentage of completion method are as follows −Cost to cost methodPercentage of work completed = total expenses incurred (accounting ...
Read MoreHow to fill a polygon with a custom hatch in Matplotlib?
To fill a polygon with a custom hatch in matplotlib, we can override the matplotlib.hatch.Shapes class.StepsSet the figure size and adjust the padding between and around the subplots.Make a hatch shape using polygon class and get the path.Override the custom hatch shape class, with shape_vertices, shape_codes, etc.Create a new figure or activate an existing figure.Add an axes to the figure as part of a subplot arrangement.Add an axes patch of shape polygon.Set the hatching pattern.To display the figure, use show() method.Exampleimport matplotlib.hatch import matplotlib.pyplot as plt from matplotlib.patches import Polygon plt.rcParams["figure.figsize"] = [7.50, 3.50] plt.rcParams["figure.autolayout"] = True my_hatch_shape ...
Read MoreWrite a query to store and retrieve book information in the database (DBMS)?
Use the create command to create a table. Insert the values that are book information into the created database table using insert command.If we want to view or retrieve the inserted data use the select command.Step 1Create a book table in database as follows −The create command is used to create table, view, indexSyntaxThe syntax for the create command is as follows −Create table tablename(col1 datatype(size), col2 datatype(size), ……….colN datatype(size));ExampleUse the below mentioned command −create table book (bookname varchar(30), authorname varchar(30), noofcopies number(20));The output is the table created as shown below −BooknameAuthornamenoofcopiesStep 2Describe − The command used to describe the ...
Read MoreExplain the stages and their examples of database development lifecycle (DBMS)?
Let’s see the stages of database system life cycle (DDLC) and their facts using tabular form −Stage of Database system development LifecycleExample of FactsExample of Documentation ProducedDatabase PlanningAims and objectives of database projects.Mission statements and objectives.System IdentificationDescription of major user views (Job roles, business application areas).Definition of scope and boundary of database system, definition of user views to be supported.Requirements Collection and AnalysisRequirements of user views, system specifications, including performance and security requirements.User requirement specification, system specification.Database designUser’s responses to checking the logical database design, functionality provided by target DBMS.Logical database design, data dictionary, physical database design.Application DesignUsers’ response to ...
Read More