Commerce Point Tution Classes

DISCOUNT
It is a rebate given by the seller to the buyer. It is of two types
🎲TRADE DISCOUNT : when discount is allowed by a seller to its customers at a fixed percentage on the list price of the goods. It is not recorded in the books of accounts.
🎲CASH DISCOUNT : when discount is allowed to the customers for making prompt payment. It is always recorded in the books of accounts.

ESSENTIAL ELEMENTS OF PARTNERSHIP
✡ Two or more person
✡ agreement
✡ sharing of profit
✡existence of business
✡ relationship of principal and agent

PROVISION IN ABSENCE OF DEED
🖌️ Interest of capital is not paid .
🖌️Interest on drawing not allowed.
🖌️Not salary, commission to any partner.
🖌️Profit is to be share equally.

DEFINE MONEY
Money performs many functions but the most important and the basic of this is that money is commonly accepted as means of payments.on the basis of these functions Money is defined as generally accepted as a medium of exchange . everyone accepts money because they are assured that other will also accept it for the things they want to purchase.

ARTICLE OF DISTINCTION
This fact was analysed by 'veblan' according to him, article of distinction like gold and diamond etc. have more demand if their prices are high, it is because the Creamy layer of the society i.e. rich people while demanding these goods feel that they are aquiring an uncommon good, the uncommon nature signified by its high price. Thus, demand rises even if the prices increases.

PROCESS OF ACCOUNTING

1)identification of transaction .
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2) preperation of vouchers.
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3) recording in books of original entry.
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4) posting to ledger.
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5) preperation of trial balance and financial statements.