deferred taxation

A deferred tax liability is an account on a company's balance sheet that is a

result of temporary differences between the company's accounting
and tax carrying values, the anticipated and enacted income tax rate, and
estimated taxes payable for the current year.

Cash-in-transit (CIT) or Cash/valuables-in-transit(CVIT) is the physical

transfer of banknotes, coins and items of value from one location to another.

Long-term liabilities are liabilities with a future benefit over one year, such
as notes payable that mature longer than one year. In accounting, the longterm liabilities are shown on the right wing of the balance-sheet representing
the sources of funds, which are generally bounded in form of capital assets.

What is the difference between job costing and process

costing?
Job costing is used for unique products, and process costing is used for
standardized products. Size of job. Job costing is used for very small
production runs, and process costing is used for large production runs.

Definitions
Joint products
Joint products are two or more products separated in the course of processing, each having a
sufficiently high saleable value to merit recognition as a main product.

Joint products include products produced as a result of the oil-refining process, for example,
petrol and paraffin.

Petrol and paraffin have similar sales values and are therefore equally important (joint) products.

By-products

By-products are outputs of some value produced incidentally in manufacturing something else (main
products).

By-products, such as sawdust and bark, are secondary products from the timber industry (where
timber is the main or principal product from the process).

Sawdust and bark have a relatively low sales value compared to the timber which is produced
and are therefore classified as by-products

(Or)_

- joint products are produced on purpose, while by products are produced

incidently
- joint products are closed in their value while by products are of less value
- extra money may be spent over joint products after the split off point to be
finished, while no money is spent on by products after they are generated

What is the difference between a budget and a standard? A budget usually

refers to a department's or a company's projected revenues, costs, or
expenses. Astandard usually refers to a projected amount per unit of product,
per unit of input (such as direct materials, factory overhead), or per unit of
output.

What is Financial Accounting? Financial Accounting deals with the study of accounting and its
concepts and measurements that underly financial statements, and developing the skills needed
to analyze financial statements effectively, and gain an understanding of the choices enterprises
make in reporting the results of their business activities. The most basic objective of financial
accounting is preparation of general purpose financial statements, which are financial
statements meant for use by stakeholders external to the entity, who do not have any other
means of getting such information.
What is the scope of Financial Accounting? Financial Accounting has wide scope and area
of application. It is not only for the business world, but spread over in all the spheres of the
society in all professions. As accounting is a dynamic subject, its scope and area of operation
have been always increasing, keeping pace with the changes in socio-economic changes. It
also practiced in non-trading institutions like schools, colleges, hospitals, chartable trust, trust

clubs, co-operative society and also in government and local self-government in the form of
municipality, panchayat.

Accounting Terms
Accounting Equation - The Accounting Equation is Assets = Liabilities +
Equity. With accurate financial records, the equation balances.
Accounting - Accounting keeps track of the financial records of a
business. In addition to recording financial transactions, it involves
reporting, analyzing and summarizing information.
Accounts Payable - Accounts Payable are liabilities of a business and
represent money owed to others.
Accounts Receivable - Assets of a business and represent money owed
to a business by others.
Accrual Accounting - Records financial transactions when they occur
rather than when cash changes hands. For example, when goods are
received without payment, an Accounts Payable is recorded.
Accruals - Accruals acknowledge revenue when it is earned and
expenses when they are incurred even though a cash transaction may not
be involved.
Amortization - Reduces debts through equal payments that include
interest.
Asset - Items of value that are owned.
Audit Trail - Allow financial transactions to be traced to their source.
Auditors - Examine financial accounts and records to evaluate their
accuracy and the financial condition of the entity.
Balance Sheet - Provides a snapshot of a business' assets, liabilities, and
equity on a given date.

Bookkeeping - Recording of financial transactions in an accounting

system.
Budgeting - Budgeting involves maintaining a financial plan to control
cash flow.
Capital Stock - Total amount of common and preferred stock issued by a
company.
Capital Surplus - The amount in excess of par value for shares of
common stock.
Capitalized Expense - Accumulated expenses that are expensed over
time.
Cash Flow - The difference in money flowing in and out. A negative flow
indicates more money going out than coming in. A positive flow shows
more money coming in than going out.
Cash-Basis Accounting - Records when cash is received through
revenues and disbursed for expenses.
Chart of Accounts - An organization's list of accounts used to record
financial transactions.
Closing the Books/Year End Closing - Closing the Books occurs at the
end of the annual period and allows for a start with a clean book at the
beginning of the next year.
Cost Accounting - Used internally to determine the cost of operations
and to establish a budget to increase profitability.
Credit - Entered in the right column of accounts. Liability, equity and
revenue increase on the credit side.
Debit - Entered in the left column of accounts. Assets and expenses
increase on the debit side.
Departmental Accounting - Shows individual departments' income,
expenses and net profit.

Depreciation - The decrease in an asset's value over time.

Dividends - Profits returned to the shareholders of a corporation.
Double-Entry Bookkeeping - Requires entries of debits and credits for
each financial transaction.
Equity - Represents the value of company ownership.
Financial Accounting - The accounting branch that prepares financial
reporting primarily for external users.
Financial Statement - Financial Statements detail the financial activities
of a business.
Fixed Asset - Used for a long period of time, e.g. - equipment or
buildings.
General Ledger - Where debit and credit transactions are recorded.
Goodwill - Intangible asset a business enjoys like its reputation or brand
popularity.
Income Statement - A Financial Statement documents the difference in
revenue and expenses resulting in income.
Inventory Valuation - A valuation method modified for use in real estate
and business appraisals.
Inventory - Inventory consists of raw materials, work in progress, and
finished goods.
Invoice - An Invoice shows the amount of money owed for goods or
services received.
In The Black - Makes reference to a profit on the books; opposite of in
the red. Black Friday sales are known for the profit retailers are adding to
their books.

In The Red - Makes reference to a loss on the books; opposite of in the

black. In the days of handwritten accounting, ledger entries written in
black meant there was a profit, but those in red meant there was a loss.
Job Costing - Job Costing tracks costs of a particular job against its
revenues.
Journal - The first place financial transactions are entered. They are
entered chronologically.
Liability - Liabilities are the obligations of an entity, usually financial in
nature.
Liquid Asset - Consist of cash and other assets that can be easily
converted to cash.
Loan - A monetary advance from a lender to a borrower.
Master Account - A Master Account has subsidiary accounts. Accounts
Receivable could be a master account for various individual receivable
accounts.
Net Income - Net Income equals revenue minus expenses, taxes,
depreciation and interest.
Non-Cash Expense - Does not require cash outlay, e.g. - depreciation.
Non-operating Income - Income not generated from the business. An
example might be the sale of unused equipment.
Note - A Note is a document promising to repay a debt.
Operating Income - Determined by subtracting operating expenses from
operating revenue. Interest and income tax expenses are not included.
Other Income - Non-recurring income, e.g. - interest.
Payroll - An account listing employees and any wages and salaries due
them.
Posting - Refers to the recording of ledger entries.

Profit - Profit is revenue minus expenses. Reductions for taxes, interest,

and depreciation are included.
Profit/Loss Statement - A financial report issued by a company on a
regular basis that discloses earnings, expenses and net profit for a given
time period.
Reconciliation - The act of proving an account balances; debits and
credits equal. An example of reconciling an account is to verify that the
bank statement matches the checkbook balance, making allowances for
outstanding checks and deposits.
Retained Earnings - Money left after all the bills have been paid and all
the shareholder dividends have been distributed; often reinvested in the
business.
Revenue - The actual amount of money a company brings in during a
particular time period; gross income.
Shareholder Equity - A companys total assets less its total liabilities;
owners equity; net worth. Shareholder equity comes from the start-up
capital of the business plus retained earnings amassed over time.
Single-Entry Bookkeeping - An accounting process that uses on one
entry, instead of debit and credit entries. Small businesses using cash
accounting system benefit from the ease of this system, which is much
like keeping a checkbook.
Statement of Account - A written document that shows all charges and
payments; accounts receivable statement; accounts payable statement.
Generally, a monthly accounts receivable statement is sent to a charge
customer; and reconciled by an accounts payable clerk for payment.
Subsidiary Accounts - Accounts that are under a control account; they
must equal the main account balance. Examples of subsidiary accounts
may be Office Supplies, or Cleaning Supplies, under the control
account called Supplies.

Supplies - Consumable materials used in business and replenished as

needed. Supplies are not inventory for sale; rather they are used to carry
out business activities.
Treasury Stock - Shares a company retains or buys back once offered to
the public for purchase.
Write-down/Write-off - An accounting transaction that reduces the
value of an asset.

Basic Accounting Terms List

1. Accounts Receivable AR
Definition: The amount of money owed by your customers after goods or services have been
delivered and/or used. See how it works here.

2. Accounting ACCG
Definition: A systematic way of recording and reporting financial transactions.

3. Accounts Payable AP
Definition: The amount of money you owe creditors (suppliers, etc.) in return for good and/or
services they have delivered. See how it works here.

4. Assets (Fixed and Current) FA and CA

Definition: Current assets are those that will be used within one year. Typically this could be
cash, inventory or accounts receivable. Fixed assets (non current) are more long-term and will
likely provide benefits to a company for more than one year, such as a building, land or
machinery.

5. Balance Sheet BS
Definition: A financial report that summarizes a company's assets (what it owns), liabilities
(what it owes) and owners equity at a given time.

6. Capital CAP
Definition: A financial asset and its value, such as cash or goods. Working capital is
calculated by taking your current assets subtracted from current liabilities.

7. Cash Flow CF
Definition: The revenue or expense expected to be generated through business activities
(sales, manufacturing, etc.) over a period of time. Having a positive cash flow is essential in
order for businesses to survive in the long run.

8. Certified Public Accountant CPA

Definition: A designation given to someone who has passed a standardized CPA exam and
met government-mandated work experience and educational requirements to become a CPA.

9. Cost of Goods Sold COGS

Definition: The direct expense related to producing the goods sold by a company. This may
include the cost of the raw materials (parts) and amount of employee labor used in production.

10. Credit CR
Definition: An accounting entry that may either decrease assets or increase liabilities and
equity on the company's balance sheet, depending on the transaction. When using the doubleentry accounting methodthere will be two recorded entries for every transaction: a credit and
a debit.

11. Debit DR
Definition: An accounting entry where there is either an increase in assets or a decrease in
liabilities on a company's balance sheet.

12. Expenses (Fixed, Variable, Accrued, Operation) FE, VE, AE, OE

Definition: The fixed, variable, accrued or day-to-day costs that a business may incur through
its operations. Examples of expenses include payments to banks, suppliers, employees or
equipment.

13. Generally Accepted Accounting Principles GAAP

Definition: A set of rules and guidelines developed by the accounting industry for
companies to follow when reporting financial data. Following these rules is especially critical for
all publicly traded companies.

14. General Ledger GL

Definition: A complete record of the financial transactions over the life of a company.

15. Liabilities (Current and Long-Term) CL and LTL

Definition: A company's debts or financial obligations it incurred during business operations.
Current liabilities are those debts that are payable within a year, such as a debt to suppliers.
Long-term liabilities are typically payable over a period of time greater than one year. An
example of a long-term liability would be a bank loan.

16. Net Income NI

Definition: A company's total earnings, also called net profit or the bottom line. Net
income is calculated by subtracting totally expenses from total revenues.

17. Owner's Equity OE

Definition: An owners equity is typically explained in terms of the percentage amount of stock
a person has ownership interest in the company. The owners of the stock are commonly
referred to as the shareholders.

18. Present Value PV

Definition: The value of how much a future sum of money is worth today. Present value helps
us understand how receiving $100 now is worth more than receiving $100 a year from now. See
an example of the time value of money here.

19. Profit and Loss Statement P&L

Definition: A financial statement that is used to summarize a companys performance and

financial position by reviewing revenues, costs and expenses during a specific period of time;
such a quarterly or annually.

20. Return on Investment ROI

Definition: A measure used to evaluate the financial performance relative to the amount of
money that was invested. The ROI is calculated by dividing the net profit by the cost of the
investment. The result is often expressed as a percentage. See an example here.

conceptual framework of accounting

Accordingly, the International Accounting Standards Board (IASB) developed

its own conceptual framework that describes the basic concepts underlying
financial statements prepared in conformity with International Financial
Reporting Standards (IFRS).

historical cost

A historical cost is a measure of value used in accounting in which the price

of an asset on the balance sheet is based on its nominal or original cost when
acquired by the company. The historical-cost method is used for assets in
the United States under generally accepted accounting principles (GAAP).

replacement cost

The term replacement cost or replacement value refers to the amount that
an entity would have to pay to replace an asset at the present time, according
to its current worth. In the insurance industry, "replacement cost" or
"replacement costvalue" is one of several method of determining the value of
an insured item.

net realizable value

With regards to inventory, net realizable value (NRV) is the estimated selling
price in the ordinary course of business minus any cost to complete and to sell
the goods. NRV is one of the amounts considered when determining the lower
of cost or market for items in inventory.

Economic value

Economic value is a measure of the benefit provided by a good or service to

aneconomic agent. It is generally measured relative to units of currency, and
the interpretation is therefore "what is the maximum amount of money a
specific actor is willing and able to pay for the good or service"?

Revenue recognition is an accounting principle under generally accepted

accounting principles (GAAP) that determines the specific conditions under
whichrevenue is recognized or accounted for.

Generally, revenue is recognized only when a specific critical event has

occurred and the amount of revenue is measurable.

apital and Revenue Expenditure

Expenditure on fixed assets may be classified into Capital Expenditure and Revenue
Expenditure. The distinction between the nature of capital and revenue expenditure is
important as only capital expenditure is included in the cost of fixed asset.

Capital Expenditure
Capital expenditure includes costs incurred on the acquisition of a fixed asset and any
subsequent expenditure that increases the earning capacity of an existing fixed asset.
The cost of acquisition not only includes the cost of purchases but also any additional costs
incurred in bringing the fixed asset into its present location and condition (e.g. delivery costs).
Capital expenditure, as opposed to revenue expenditure, is generally of a one-off kind and its
benefit is derived over several accounting periods. Capital Expenditure may include the
following:

Purchase costs (less any discount received)

Delivery costs

Legal charges

Installation costs

Up gradation costs

Replacement costs

As capital expenditure results in increase in the fixed asset of the entity, the accounting entry is
as follows:
Debit

Fixed Assets
Credit

Revenue Expenditure

Cash/Payable

Revenue expenditure incurred on fixed assets include costs that are aimed at 'maintaining'
rather than enhancing the earning capacity of the assets. These are costs that are incurred on a
regular basis and the benefit from these costs is obtained over a relatively short period of time.
For example, a company buys a machine for the production of biscuits. Whereas the initial
purchase and installation costs would be classified as capital expenditure, any subsequent
repair and maintenance charges incurred in the future will be classified as revenue expenditure.
This is so because repair and maintenance costs do not increase the earning capacity of the
machine but only maintains it (i.e. machine will produce the same quantity of biscuits as it did
when it was first put to use).
Revenue costs therefore comprise of the following:

Repair costs

Maintenance charges

Repainting costs

Renewal expenses
As revenue costs do not form part of the fixed asset cost, they are expensed in the income
statement in the period in which they are incurred. The accounting entry to record revenue
expenditure is therefore as follows:

Debit

Revenue Expense (Income Statement)

Credit

Cash/Payable

What is goodwill?
In accounting, goodwill is an intangible asset associated with a business
combination. Goodwill is recorded when a company acquires (purchases) another
company and the purchase price is greater than the combination or net of 1) the fair
value of the identifiable tangible and intangible assets acquired, and 2) the
liabilities that were assumed.
Goodwill is reported on the balance sheet as a noncurrent asset. Since 2001, U.S.
companies are no longer required to amortize the recorded amount of goodwill.
However, the amount of goodwill is subject to a goodwill impairment test at least
once per year.
Outside of accounting, goodwill could refer to some value that has been developed
within a company as a result of delivering amazing customer service, unique
management, teamwork, etc. This goodwill, which is unrelated to a business
combination, is not recorded or reported on the company's balance sheet.

International Accounting Standard 1: Presentation of Financial Statements

or IAS 1is an international financial reporting standard adopted by the
International Accounting Standards Board (IASB).
IAS 2 is an international financial reporting standard produced and
disseminated by the International Accounting Standards Board (IASB) to
provide guidance on the valuation and classification of Inventories.
International Accounting Standard 16 Property, Plant and Equipment or IAS 16 is
an international financial reporting standard adopted by the International Accounting
Standards Board (IASB). It concerns accounting for property, plant and equipment (known
more generally as fixed assets), including recognition, determination of their carrying
amounts, and the depreciation charges and impairment losses to be recognised in relation
to them.[1]
IAS 18 Revenue as issued at 1 January 2012. Includes IFRSs with an effective date
after 1 January 2012 but not the IFRSs they will replace. This extract has been
prepared by IFRS Foundation staff and has not been approved by the IASB. For the
requirements reference must be made to International Financial Reporting
Standards. The primary issue in accounting for revenue is determining when to
recognise revenue. Revenue is recognised when it is probable that future economic
benefits will flow to the entity Tand these benefits can be measured reliably. This
Standard identifies the circumstances in which these criteria will be met and,
therefore, revenue will be recognised. It also provides practical guidance on the
application of these criteria. Revenue is the gross inflow of economic benefits during
the period arising in the course of the ordinary activities of an entity when those
inflows result in increases in equity, other than increases relating to contributions
from equity participants. This Standard shall be applied in accounting for revenue
arising from the following transactions and events: (a) the sale of goods; (b) the
rendering of services; and (c) the use by others of entity assets yielding interest,
royalties and dividends.

control account
noun
plural noun: control accounts
1.
an account used to record the balances on a number of subsidiary accounts and
to provide a cross-check on them.
Home Bills of Exchange Dishonour of a Bill of Exchange

Dishonour of a Bill of Exchange

Abida Rehman Bills of Exchange No Comments

DISHONOUR OF A BILL OF
EXCHANGE:
Learning Objectives:
1.

Make journal entries when a bill of exchange is dishonoured by the

drawee.

DEFINITION AND EXPLANATION:

A bill of exchange is said to be dishonoured when the drawee refuses to
accept or make payment on the bill. A bill may be dishonoured by nonacceptance or non-payment.
1.

If the drawee refuses to accept the bill when it is presented before him
for acceptance, it is called dishonour by non-acceptance. When a bill is
dishonoured by non-acceptance, an immediate right of recourse against
the drawer and endorser accrues to the holder. In this case, presentment
for payment is not necessary.

2.

If the drawer has accepted the bill, but on the due date, he refuses to
make payment of the bill, it is called dishonour by non-payment. In this
case the holder has immediate right of recourse against each party to
the bill.

Noting Charges: When a bill of exchange is dishonoured, the holder can

get such fact noted on the bill by a notary public. The advantages of noting
is that the evidence of dishonoured is secured. The noting is done by
recording the fact of dishonoured, the date of dishonour, the reason of
dishonour, if any. For doing all this the notary public charges his fees which
is called noting charges.

JOURNAL ENTRIES ON THE DISHONOUR OF

THE BILL OF EXCHANGE:
CREDITORS BOOKS:
At the time a bill is dishonoured, it may be either with the drawer or with his
banker with whom he has discounted it or with a creditor of whose favor he
may have endorsed it:
(a) When the bill of exchange is still in the drawers possession:
Acceptors personal account (full value of the bill and noting charges) [Dr.]
To Bills receivable account

[Cr.]

To Cash account (noting charges) [Cr.]

(b) When the bill of exchange has been discounted with the bank:
Acceptors personal account [Dr.]
To Bank [Cr.]

Note: The amount will include the noting charges. No separate entry will be
passed for noting charges as in case (a) above
(c) When the bill of exchange has been sent for collection:
Acceptors personal account [Dr.]
To Bank for collection account [Cr.]
(d) When the bill of exchange has been sent for collection:

Acceptors personal account [Dr.]

To Personal account of creditor [Cr.]

It may be noted that in all four cases the drawer debits the acceptors credits
that partys account who presents the bill for payment.

DEBTORS BOOKS:
When the bills payable is dishonoured the debtor has to pass the same
journal entry in all the cases The journal entry is:
Bill payable account (full value of the bill) [Dr.]
Trade expenses account (noting charges) [Dr.]
To personal account of drawer [Dr.]

EXAMPLE 1:
P draws a bill on Q for $2,000 who accepts and returns it to P on the same
date. The bill is dishonoured by Q on the due date. P pays $30 as noting
charges.
Record the above transactions in the books of P and Q.

SOLUTION:
JOURNAL ENTRIES IN THE BOOKS OF P
Bills receivable account

2,000

To Q

2,000

(Acceptance received)

2,030
To Bills receivable account

2,030

To Cash account

30

(Bill endorsed)

Capital expenditure
noun
1.
money spent by a business or organization on acquiring or maintaining fixed
assets, such as land, buildings, and equipment.
"the past twelve months have seen cutbacks in capital expenditure by all ten water
companies"

A revenue expenditure is an amount that is expensed immediatelythereby

being matched with revenues of the current accounting period. Routine
repairs arerevenue expenditures because they are charged directly to an
account such as Repairs and Maintenance Expense.

Deferred Revenue Expenditure is an expenditure which isrevenue in nature and incurred

during an accounting period, but its benefits are to be derived over a number of following
accounting periods.

IAS 8 Changes in Accounting Policies

1. Changes in Accounting Policies
2. Exemption from Retrospective Application
3. Disclosures

Accounting Policy
Accounting policies are the specific principles, bases, conventions, rules and practices
applied by an entity in preparing and presenting financial statements. (IAS 8)
Events after Reporting Period are those that occur between the end of the reporting period and
when the financial statements are authorized for issue.
Following are Examples of accounting policies:

Valuation of inventory using FIFO, Average Cost or other suitable basis as per IAS 2

Classification, presentation and measurement of financial assets and liabilities under

categories specified under IAS 32 and IAS 39 such as held to maturity, available for sale
or fair value through profit and loss

Timing of recognition of assets, liabilities, expenses and income

Basis of measurement of non-current assets such as historical cost and revaluation

basis

Accruals basis of preparation of financial statements

Management must consistently review its accounting policies to ensure they comply with the
latest pronouncements by IASCF and that the adopted policies result in presentation of most
relevant and reliable financial information for users.

Changes in Accounting Policies

Accounting Policies must be applied consistently to promote comparability between financial
statements of different accounting periods. However, a change in accounting policy may be
necessary to enhance the relevance and reliability of information contained in the financial
statements. Such changes may be required as a result of changes in IFRS or may be applied
voluntarily by the management.

As a general rule, changes in Accounting Policies must be applied retrospectively in the

financial statements. Retrospective application means that entity implements the change in
accounting policy as though it had always been applied.
Consequently, entity shall adjust all comparative amounts presented in the financial statements
affected by the change in accounting policy for each prior period presented.

Exemption from Retrospective Application of Accounting

Policies
Retrospective application of a change in accounting policy may be exempted in the following
circumstances:

A change in accounting policy is required by a new IFRS or a change to an existing IFRS

/ IAS and the transitional provisions of those standards allow or require prospective
application of a new accounting policy. Specific transitional guidance of IFRS must be
followed in such circumstances.

The application of a new accounting policy is in respect of transactions, events and

circumstances that are substantially different from those that transpired in the past.

The effect of retrospective application of a change in accounting policy is immaterial.

The retrospective application of a change in accounting policy is impracticable. This may

for example be the case where entity has not collected sufficient data to enable
objective assessment of the effect of a change in accounting estimate and it would be
unfeasible or impractical reconstruct such data.

Where impracticability impairs an entity's ability to apply a change in accounting policy

retrospectively from the earliest prior period presented, the new accounting policy must be
applied prospectively from the beginning of the earliest period feasible which may be the current
period.

Disclosures
Following must be disclosed in the financial statements of the accounting period in which a
change in accounting policy is implemented:

Title of IFRS

Nature of change in accounting policy

Reasons for change in accounting policy

Amount of adjustments in current and prior period presented

Where retrospective application is impracticable, the conditions that caused the

impracticality

IAS 11 Construction Contracts IAS 11 defines construction contract as "... a contract specifically
negotiated for the construction of an asset or a combination of assets ..." Examples of
construction contracts include those negotiated for the construction of highways, buildings, oil
rigs, industrial units, pipelines, airlines and other similar assets. IAS 11 deals with accounting of
construction contracts from the perspective of the contractors who undertake such projects on
behalf of its clients. Self constructed assets for an entity's own use are accounted for in
accordance with IAS 16 and are not within the scope of IAS 11 Construction Contracts.

contract of indemnity

Indemnity is compensation for damages or loss. Indemnity in the legal sense

may also refer to an exemption from liability for damages. The concept
of indemnity is based on a contractual agreement made between two parties,
in which one party agrees to pay for potential losses or damages caused by
the other party.
Bailment
1.

an act of delivering goods to a bailee for a particular purpose, without transfer of

ownership.
"a contract of hire is a species of bailment"

Section 148 of Contract Act lays down that a bailment is the delivery of
goods by one person to another for a definite purpose and upon the agrement
that they shall be returned or, disposed of according to the directions of the
deliverer when the purpose is accomplished.Jan 2, 2014

What is the contract of agency?

An agency agreement is a legal contract creating a fiduciary relationship
whereby the first party ("the principal") agrees that the actions of a second
party ("the agent") binds the principal to later agreements made by the agent
as if the principal had himself personally made the later agreements.
"Contract of guarantee", "surety", "principal debtor" and "creditor" 126. A
"contractof guarantee" is a contract to perform the promise, or discharge the
liability, of a third person in case of his default.

A negotiable instrument is a document guaranteeing the payment of a

specific amount of money, either on demand, or at a set time, with the payer
named on the document.
bill of exchange
noun
1.
a written order to a person requiring them to make a specified payment to the
signatory or to a named payee; a promissory note.

Demand refers to how much (quantity) of a product or service is desired by

buyers. The quantity demanded is the amount of a product people are willing
to buy at a certain price; the relationship between price and quantity
demanded is known as the demandrelationship. Supply represents how
much the market can offer.
Definition: An indifference curve is a graph showing combination of two
goods that give the consumer equal satisfaction and utility. Each point on
anindifference curve indicates that a consumer isindifferent between the
two and all points give him the same utility.
The theory of consumer choice is the branch of microeconomics that
relates preferences to consumption expenditures and to consumer demand
curves.
It requires neither extension nor retrenchment. It wants to earn maximum
profits in by equating its marginal cost with its marginal revenue, i.e. MC =
MR. Diagrammatically, theconditions of equilibrium of the firm are (1) the
MC curve must equal the MR curve.
Price mechanism is an economic term that refers to the manner in which
the pricesof commodities affect the demand and supply of goods and
services. Price mechanism affects both buyers and sellers who
negotiate prices of goods or services.

Factor Pricing: Concept and

Theories
Article Shared by Nitisha

Factors of production can be defined as inputs used for

producing goods or services with the aim to make economic
profit.
In economics, there are four main factors of production,
namely land, labor, capital, and enterprise. The price that an
entrepreneur pays for availing the services of these factors is
called factor pricing.
An entrepreneur pays rent, wages, interest, and profit for
availing the services of land, labor, capital, and enterprise
respectively. The theory of factor pricing deals with the price
determination of different factors of production.

Production theory is the study of production, or the economic process of

converting inputs into outputs.Production uses resources to create a good or
service that is suitable for use, gift-giving in a gift economy, or exchange in a
market economy.

Summary of Comparison:
A general comparison between monopoly and perfect
competition for easy understanding has been
depicted as under:

Diminishing returns. In economics, diminishing returns is the decrease in

the marginal (incremental) output of a production process as the amount of a
single factor of production is incrementally increased, while the amounts of all
other factors of production stay constant. ... It plays a central role in
production theory.
productivity theory
The marginal revenue productivity theory of wages is a theory in neoclassical
economics stating that wages are paid at a level equal to the marginal revenue product of

labor, MRP (the value of the marginal product of labor), which is the increment to revenues
caused by the increment to output produced by the last ...

In economics, general equilibrium theory attempts to explain the behavior of

supply, demand, and prices in a whole economy with several or many
interacting markets, by seeking to prove that the interaction of demand and
supply will result in an overall (or "general") equilibrium.
Inflation is the rate at which the general level of prices for goods and services
is rising and, consequently, the purchasing power of currency is falling.
Central banks attempt to limit inflation, and avoid deflation, in order to keep
the economy running smoothly.
government fiscal and monetary policy
Monetary policy involves changing the interest rate and influencing the
money supply. Fiscal policy involves thegovernment changing tax rates and
levels ofgovernment spending to influence aggregate demand in the
economy.

Senior auditor
Pakistan Military Accounts Department
Case No. 150 of year 2014.
Mera interview 20 september ko tha islamabad mn.
KPK domicile
Interview acha nae hoa, 3 mint mn farag, 50 mint mn 15 candidates farag keay.
Meri qualification aur experience k mutabik mj sy sawal pochy, meri qualification BSc with
mathematics ha aur experience military acounts mn as junior auditor. Ap sy b ap ke

qualification aur experience sy related question pochy gy.

Mj sy yeh sawal keay
Where do u live? (Abbottabad)
Why ur city name is Abbottabad?
Sir on the name of major james abbott.
Who was james abot? What did he do so important for abotabad that city was named on his
name?
Define mathematics?
What is use of mathematics what are its advantages?
2nd member
You are junior auditor?
JCOs/Sldrs ka DSP Fund kdr mantain hota ha?
Pension kdr bnti ha?
Punching medium kaya hota ha?
DV kaya hoti ha?
3rd member
GFR stands for what?
LPR kaya ha, ic k rules kaya ha?
Encashment kaya ha?
DDO stands for what?
Ok you may go
Write a reply...

Muhammad Nasir Junior Auditor is an an auditor works on pre-audit

Like Reply September 22 at 9:46pm

Muhammad Nasir Pension fund is being maintained in Accounts Office or Revenue Department
Like Reply September 22 at 9:47pm

Muhammad Nasir When an employee did not take leaves in the whole rear reward in terms of cash
awarded to him during that period is called encashment
Like Reply September 22 at 9:48pm

Muhammad Nasir DDO Stands for Drawings and Disbursement Officer

ke Reply 1 15 hrs

Adeel Khan Jadoon Accounting aur auditing ke definations aur general topics yad kar ly, auditor general
aur controler general k bary mn pata kar ly, experience sy related question tayar kar ly,
Yeh qts mery experience sy related han , ap sy yeh nae pochy gy
Like Reply 8 hrs

Maria Matloob Ok thanx

1. What is military accounts general?

2. What is functions of Military Accounts general?
3. What is the job description of senior auditor in military accounts?
Dear all,, for interview u must focus on subject related more and some extent to
economics.....
like function of SECP, state bank, and hot topics of finance like risk management,
budgeting etc etc
required answers plz help
JCOs/Sldrs ka DSP Fund kdr mantain hota ha?
Pension kdr bnti ha? AGPR?
Punching medium kaya hota ha?
DV kaya hoti ha?
GFR stands for what?
LPR kaya ha, ic k rules kaya ha?

Encashment kaya ha?

DDO stands for what?drawing disbursing officer

PMAD

Job Duties:

(i) Local Audit of Defence Services.

(ii) Payment against purchases made by Military.
(iii) Pay & Allowances of Military personnel.
(iv) Pay & Allowance of Civilian paid out of Defence estimates.

Main Functions

Maintenance of Accounts of Defence Services.

Payment of Pay & Allowances to Commissioned Officers, JCOs / ORs and civilians paid from
Defence Services Estimates.

Audit and Payment of Stores indigenous and imported.

Audit and Payment relating to the Works of Defence Services.

Internal Audit.

Compilation of Defence Services receipts / Expenditures.

Preparation of Appropriation Accounts.

Payment of Railway and PIA Claims relating to the Defence Side.

The P.M.A.D is performing dual duties i.e. accounting as well as internal auditing.

GFR. abbreviation for glomerular filtration rate.

LPR stands for

24

+1

LPR
License Plate Recognition
Camera, Technology, Military

4
LPR
Leadership Potential Rating
Military

3
LPR
Amphibious Transport
Military, Army

1
LPR
Local Problem Report
Military

1
LPR

local payment receipt

Military

DCS Direct credit system of credit payments

GFR stands for glomerular (glow-MAIR-you-lure) filtration rate. A blood test

checks your GFR, which tells how well your kidneys are filtering. It's important
to know yourGFR if you are at risk for kidney disease. A urine test will also be
used to check your kidneys.Mar 1, 2012
JCO's or Junior Commissioned Officers