Accounting Miscellaneous

In profit and loss appropriation account interim dividend is treated. An interim dividend is a dividend payment made before a company’s annual general meeting (AGM) and the release of final financial statements.

Aged debtors analysis shows how long debts have been outstanding. An aged debtors report is a totalled list of all the invoices your customers haven’t yet paid you for, less any credit notes you’ve issued to your customers and not yet refunded them for.

General office expenses are charged to Administrative expenses head because we know that all types of official expenses are known as administrative expense.

Double entry implies that recording two aspects of every transaction. The double-entry system of accounting or bookkeeping means that for every business transaction, amounts must be recorded in a minimum of two accounts.

Outsider’s claim against the assets of the business is called Liability. Liabilities are defined as a company’s legal financial debts or obligations that arise during the course of business operations.

Endorsement, discounting and collection of bills of exchange is made by Drawer. The individual or firm that issues or signs a draft instructing the drawee to pay a specified sum of money to, or to the order of, a named person (payee), or to bearer.

Cash book is a type of cash receipt journal + cash payment journal. A cash book is a financial journal that contains all cash receipts and payments, including bank deposits and withdrawals.

Cash discount is allowed on Prompt repayment of debt. It is cash discount it may be allowed or received. In case of discount allowed It is an Expense and in case of received it is an income.

Authorized capital is required for the registration of the company. The authorized capital of a company (sometimes referred to as the authorized share capital, registered capital or nominal capital, particularly in the United States) is the maximum amount of share capital that the company is authorized by its constitutional documents to issue (allocate) to shareholders.

The party who sends the goods for sales on fixed commission basis is known as Consignor. Person or firm (usually the seller) who delivers a consignment to a carrier for transporting it to a consignee (usually the buyer) named in the transportation documents.