What is Private ledger?
Private ledger is basically such book of accounts in which such accounts are maintained which are maintained to be confidential. Therefore, any such account which might cause some privacy issues or the one that is crucial for the owners’ of the business than such account is maintained under Private ledger. It cannot be treated as […]
What is meant by direct overheads? Does allocated overheads mean direct overheads?
First of all we need to understand the definitions of overheads, direct expenses, allocation and apportionment itself in order to explain the answer of this question. Overheads mean such costs and expenses that were incurred during the production process but it is impossible to identify or trace such costs back to a particular product or […]
What is conversion cost?
Conversion cost is the sum of all such costs that are incurred in converting one article into intended output. Mostly, coversion costs represents the costs of all such activities or resources that have been applied in converting raw materials to finished items. In mathematical or equation form conversion costs are forumalated as follows: Conversion cost […]
Why capital account is not debited to record drawings?
When owner of the business withdraw funds or goods from the business, we do not debit capital account instead we open record these withdrawals in another account which is usually named as Drawings account. So, we record such transactions without disturbing capital account in drawings account. Drawings account is also a capital account as this […]
What is nominal ledger?
First of all students must not confuse the accounts with ledgers. These are two totally different things. Even though these terms are loosely used for each other but they are certainly not the same. Ledgers can be regarded as big registers where we write up and update different accounts. So, it means accounts are specific […]
What is the difference between negative assurance and positive assurance?
Positive assurance is a positive assertion or in other words when opinion is stated in “positive form”. On the other hand, negative assurance is simply an opinion expressed in negative wordings. We call negative assurances negative because of the sentence structure. Sentences that contain NOT in them are called negative sentences or negation But such […]
Is it necessary to do CAT or ACCA before doing CA?
CAT, ACCA and CA are three different qualifications and all three have different minimum entry requirements. CAT qualification has been replaced by a new suit of qualifications named Foundations in Accountancy (FIA). There are no specific minimum entry requirements to start FIA and anyone at any time whether he/she has any accounting background or not […]
