What are the essentials of a contract?

Nagasravan Tamma
Published on 17-May-2022 13:59:55
Following are the essentials of valid contract −Agreement − For a valid contract, agreement is the most essential element, which consists of offer and acceptance.Two parties − Minimum two parties are required for a contract. One will offer the contract and the other will accept the contract.Free consent − Consent ... Read More

What is the accounting treatment for costs in contract costing?

Nagasravan Tamma
Published on 17-May-2022 13:53:35
Accounting treatment for costs is explained below −Sr.NoCost treatment1MaterialsCost of material purchased/sent to the site is charged.Cost of material unused/returned to the store is credited to the contract account.Cost of material stored (for future use) is debited to the stock account.2LabourLabour charges and their related costs are charged to the ... Read More

What is contract costing?

Nagasravan Tamma
Published on 17-May-2022 13:50:43
Contract costing is one of the methods of job costing and it is also called terminal costing. In this, each contract is given a number and the records are maintained separately. This method is generally used by builders, construction firms, contractors etc. The main objective of this method is to ... Read More

What is the job costing procedure?

Nagasravan Tamma
Published on 17-May-2022 13:48:31
The job costing procedure consists of the following aspects −Direct materials cost is calculated with the help of requisition form.Employee wages are also calculated by the payroll department with the help of tickets issued.Overhead charges are also considered.Manufacturing overheads are as follows −Direct expensesDirect labourMaterial expensesManufacturing overheads of each department.Job ... Read More

What is carryover method accounting?

Nagasravan Tamma
Published on 17-May-2022 13:43:22
Carryover method of accounting is used when there is a merger of two or more non-profit entities into a new entity. Their assets and liabilities are merged and come into effect on the date of merger transactions.Following adjustments are required in carryover method accounting −Modifications of contracts − Alters terms ... Read More

What is acquisition accounting?

Nagasravan Tamma
Published on 17-May-2022 13:41:17
In merger and acquisition, to acquire the records of the events under acquisition method consists of the following steps −Measure of tangible assets and liabilitiesAcquirer measures tangible assets and liabilities at market fair value on acquisition date (date at which he gains control). Some assets like lease, insurance contracts etc. ... Read More

What is purchase accounting for merger or acquisition?

Nagasravan Tamma
Published on 17-May-2022 13:38:10
Either two or more companies merge or a company acquires another. In either of the processes, one company purchases another company asset for the union of their business. Accounts are maintained for these transactions.Accounting for merger and acquisition transactionsIdentification of business combination− To achieve some synergy form.Identification of acquirer − ... Read More

What is the differences between corporation and company?

Nagasravan Tamma
Published on 17-May-2022 13:35:52
A company is a business organization which is associated with persons and set up with an aim of undertaking a business. It is governed by Companies Act 2103. Whereas a corporation is a corporate body registered outside or within a nation.In simple words a company is suitable for small entities ... Read More

What is the differences between businessman and entrepreneur?

Nagasravan Tamma
Published on 17-May-2022 13:33:27
We can say a businessman walks in a defined path and an entrepreneur makes his own path and a businessman can follow the path defined by an entrepreneur. In general many people think that both businessman and entrepreneur have similar or same meaning but they differ in their own way.BusinessmanA ... Read More

What is the difference between reorganization and restructuring?

Nagasravan Tamma
Published on 17-May-2022 13:30:31
In simple words, the word restructuring means any changes in a company. Generally the word restructuring in the corporate world is used in economic downturns. One should have a good understanding about the restructuring process before going for it.ReorganizationIt is a clause in company charter which provides guides to merger ... Read More