Trial Balances and Financial Statements

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What is the difference between Authorised capital, Issued capital, Subscribed capital, Called-up capital and Paid-up capital?

By Hasaan Fazal on May 12, 2011

Authorized capital: The amount of capital with which a company is registered with the registrar of companies (body responsible for registration of companies). It is the maximum amount of capital which a company can raise through shares i.e. shared capital can be maximum up to the authorized capital and not beyond. Due to this reason […]

Posted in ACCA, ACCA - F7, Accounting Concepts & Conventions, Accounting Equation, CA, Capital structure and Financing of Companies, CAT, CAT - T3, CAT - T6, CIMA, CIMA C02, FA2, FFA, FIA, Financial Accounting, Financial Statements of Companies, Financial Statements of Companies, Financial Statements of Sole Traders, Module B, Module C, Published Accounts, Single Entry and Incomplete Records, Trial Balances and Financial Statements | 7 Responses

What is the purpose of Statement of changes in equity?

By Hasaan Fazal on March 30, 2011

Many students find it confusing that if we already have two financial statements, one covering the financial position of the business and the other telling about the financial performance then why do we need yet another statement with the name of Statement of Changes in Equity? And more interestingly, many think that its just a […]

Posted in ACCA, ACCA - F3, ACCA - F7, Accounting Concepts & Conventions, CA, CAT, CAT - T1, CAT - T3, CAT - T6, FA1, FA2, FFA, FIA, Financial Account Basics, Financial Accounting, Financial Statements of Companies, Financial Statements of Sole Traders, Module B, Module C, Published Accounts, Trial Balances and Financial Statements | Leave a response

Why closing inventory appears on the credit side of Trading account?

By Hasaan Fazal on March 26, 2011

Closing stock or as it is also named as closing inventory is definitely an asset. But trading account is not the same as Inventory account. Inventory, being an asset, should have a debit balance in Inventory account. Trading account is a distinct account and both must not be mixed up together. The answer to the […]

Posted in ACCA, ACCA - F3, ACCA - F7, Accounts & Ledgers, CA, CAT, CAT - T3, CAT - T6, FA1, FA2, FFA, FIA, Financial Account Basics, Financial Accounting, Financial Statements of Companies, Financial Statements of Sole Traders, Module B, Module C, Published Accounts, Trial Balances and Financial Statements | Leave a response