MBA at a Research business school versus MBA at a teaching business school

Research business schools attract and retain accomplished researchers as faculty. Practically all faculty members will have earned doctorates in business or a related discipline, and the emphasis for the faculty is their quality and quantity of research. The research productivity of the faculty is important in that it helps establish the reputation and name recognition of the business school and the program. Furthermore, research productivity influences the public rankings of business schools. Research business schools will typically have a well-established PhD program, and in some cases PhD candidates will teach some of the foundation module courses.Teaching business schools attract and retain accomplished teachers as faculty, and the emphasis for the faculty members is their...

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Posted in Accounting , MBA Info

Top 10 reasons to take an MBA in canada

Top 10 reasons to take an MBA will be slightly different for different students, since everyone has their own career and personal goals. Below are some of the most often-cited reasons for taking an MBA.1. Career advancement2. Career change3. Networking and making business/industry contacts4. Increase earnings/ future salary5. Recognized, world-wide respected degree6. Flexible study options (full-time, part-time, online/distance)7. Huge choice of MBA specializations8. Access to and opportunity to learn from experts in the field9. A secure future10. Personal challenge...

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All MBA programs in canada

Asper School of Business University of Manitoba)Centre for Innovative Management Athabasca University)College of Management and Economics University of GuelphDeGroote School of Business McMaster UniversityDesautels Faculty of Management McGill UniversityDivision of Graduate Studies and Research Royal Military CollegeÉcole des sciences de la gestion (ESG) Québec a Montreal (UQAM)Edwards School of Business University of SaskatchewanEdwards School of Business ...

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History of MBA schools in canada

The history of the establishment of MBA schools in CanadaEstablished in 1948, the MBA degree exists not only to provide individuals with the qualifications to advance their respective careers but also to help meet the needs of Business for specialized individuals well-versed in the abilities to manage in the modern business world. In addition, the introduction of the MBA program has provided the impetus for greater integration between schools and the business world. In fact, not only are former business people increasingly teaching business education but most schools have ongoing, direct dialogue with Business to develop new courses and programs and transform and/or expand existing ones to ensure they are relevant to the needs of the Business. For the latter's purpose, some educational...

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History of MBA schools in canada

Originally, MBA programs were 2 years in duration with the first year devoted to the teaching of a core of business fundamentals and the second year focussing on education in either general management or in an area of concentration as chosen by the student. However, by the late 1970s to early 1980s, there was increasing dissatisfaction, especially on the part of the business community, with two aspects of the MBA programs being offered. Firstly, there was objection to the tendency to educate students in the theoretical knowledge of business while ignoring the teaching of its practical applications; that is, the curriculum was divorced from reality. Secondly, business education was criticized as being crude and amateurish because it was individuals with little or no direct experience...

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History of MBA schools in canada

Establishment of the Canadian MBA Degree Program Following the recommendations made by Canada's foremost Corporate Executive Officers (CEOs) and presidents regarding the desirability and feasibility of founding graduate-level business management education, the MBA degree was established in Canada in September of 1948.Prior to 1948, management education in Canada consisted of individual and Continuing Education courses and non-degree programs. As the structure of the corporation became more complex, in large part due to the introduction of new business and labour management practices, and as the global economy became stabilized following World War II, Canada's business community increasingly required highly specialized, well-educated managers capable of operating in this new environment....

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Top mba subject in uk

The MBA is the world’s most popular postgraduate degree. Each year around 90,000 MBAs graduate in the US and around 10,000 in the UK. So what do all these MBA students learn? Here’s a typical list of subjects: MarketingAccountingOrganisational BehaviourQuantitative AnalysisFinanceOperationsEconomicsStrategyManagement Some of the course also offer additional courses relative to their specialisms for example in retail, construction or finance. While subjects such as organisational behaviour are of less immediate use to an entrepreneur marketing, finance, quantitative analysis, strategy, economics and finance all offer skills and knowledge that is immediately applicable to most entrepreneurial business...

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Top MBA subject in uk

The MBA is the world’s most popular postgraduate degree. Each year around 90,000 MBAs graduate in the US and around 10,000 in the UK. So what do all these MBA students learn? Here’s a typical list of subjects:MarketingAccountingOrganisational BehaviourQuantitative AnalysisFinanceOperationsEconomicsStrategyManagement Some of the course also offer additional courses relative to their specialisms for example in retail, construction or finance. While subjects such as organisational behaviour are of less immediate use to an entrepreneur marketing, finance, quantitative analysis, strategy, economics and finance all offer skills and knowledge that is immediately applicable to most entrepreneurial business...

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MBA tuition fee, living cost and expenses in uk

MBA in UK has lots of financial benefits:Most universities in UK offer a One-year MBAAccess to National Health Centre; which is free for students registered on courses of six months or longerFree school education for registered dependent childrenExpenses (In Pound Sterling) (approx.) Average Tuition Fee Average Living Costs Total costs per year Medium-cost Universities 9,000 - 12,000 6,000 15,000 - 18,000 High-cost...

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MBA Application Procedure

1. Academic Record - Transcripts & MarksheetsFull details of your education including your course subjects and grades are required in the applications. Transcripts or official records of your previous academic qualifications are crucial for your application. Students applying for admission are required to submit an official transcript from each college or university that they have attended after secondary school with complete details of the subjects, credits involved and other details like correspondence courses, diplomas etc. Most universities ask for the transcript to be sealed in an envelope and signed and attested across the seal by the registrar. This procedure...

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MBA Application Procedure

This section explains the process of applying to UK universities for an MBA program.Application Requirements & Documents Required: Academic Record - Transcripts & MarksheetsStandardized Tests Score ReportsWork Experience Details - ResumeLetter of RecommendationApplication Essays / Statement of PurposeSend enquiries at least 12 months before the proposed date of admission. There are two ways to get application forms. Requesting Application Forms : You can request application forms from the universities website. Most universities have a form on their website which can be completed online to request application material. Agents/Representatives : ...

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MBA programes

EligibilityBachelor Degree: Most UK universities accept the three-year graduation system for entry into the MBA programme. So, if you have a three-year bachelor degree like Bachelor of Arts (BA), Bachelor of Commerce (BCom) or Bachelor of Science (BSc), this is acceptable as it is considered equivalent to a British Bachelor (Ordinary) Degree. However, some universities may require an Honours degree. This is usually equivalent to B.Com. (H), B.Sc. (H) or afour year degree course like B.E. For most good Universities, a good first degree from a leading university in India or its equivalent is essential. ...

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What is the Best Small Business Accounting Software

By now you probably realize that the accounting software you use for your business is a critical part to tracking the success of your business. Whether you are currently running a small business, or starting one up, you want to consider what program would work best for your business. What is the best small business accounting software out there in today's market? Let's look at some guidelines that will help you decide which software will work best for you.Is It Cost Effective?The biggest questions most small business owners pose when it comes to purchasing software is "Is it worth it?" Does it make sense for your particular business to pay 'x' amount of dollars for accounting software, when the owner only takes home 'x' amount of dollars a year? Well, contrary to what you may...

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8 Things to Know Before Selling Your Accounting Practice8 Things to Know Before Selling Your Accounting Practice

Understand why you are selling the practice. Buyer's want to know that you are committed to the sale and not just testing the waters. I would say one of this is one of the most common questions buyers ask and for good reason.2. Have a plan for after the practice closes and the deal is done. Will you be helping the new buyer with transiting the client base or are you headed to sunny Florida. This will affect the purchase price as the buyers will be looking for support and guidance in the beginning.3. Understand the purchase price and what you are asking for the practice. Selling your accounting practice is simple supply and demand economics....

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Diversified Funds - Gain More Profit

Financial institutions today have come up with a wide range of financial services and packages that help in managing risk. Examples of these financial institutions are the different banks found worldwide, insurance companies, and other similar financial companies.Diversified funds is one of the demands that these banks offer for its clients put aside funds that are in form of investments to different financial instruments that will relatively generate income and profit.The concept of diversified funds lays solely on the idea that each and every investor should invest in different financial instruments. Needless to say, this means...

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Accounting Procedures of Non-Trading concern

Like trading organization, non-trading concerns also maintain some usual books of account like, journal, ledger cash books, trial balance etc. However, it is difficult to keep full set of books by a small organization. Therefore, most of the non-trading organization, prepare cash book only before the preparations of final accounts. These organizations have to prepare the final accounts more or less similar to that of trading organization by following double entry book keeping systems to answer on the following three points.What is the summary of the cash transactions of particulars period?Is the income of the year sufficient to meet the expenditures?What...

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Receipts and Payments Account

According to J. R. Batliboi, "A Receipt and Payment Account is summary of actual cash receipts and payments extracted form the cash book covering a particular period."From the above definition, it can be concluded that receipts and payments account is summary of cash transactions. It is prepared on the basis of cash book. It also records the banking transactions. It starts with opening balance of cash and bank. All the cash or cheque receipts are entered on the debit side where as all incomes through cash or cheques are credited. It ends with closing balance. It records all the cash transactions whether they relate to current, past or coming...

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Provision for Discount on Debtors

Discount is allowed to debtors if they make quick and prompt payment. At the end of the accounting year, there may be certain debtors to be allowed discount which is an expected loss. to meet such discount, a provision is created form the profit of current year which is called provision for discount on debtors.Note: New provisions for discount on debtor is to be calculated on the good debtors because discount is allowed to good debtor but not to bad and doubtful debts....

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Non-Trading Concern

Non-trading concerns are also called as non-trading institutions or organizations which are established for rendering services to the society or its members. Their aim is not to earn profit but to promote and to provide the recreational facilities in the field of sports, are and culture, education, health etc.Examples of non-trading concerns are:Educational institutions as colleges, schools.Clubs as Lion Club.Societies as Red Cross Society.Charitable hospitals.Unions as trade union, labour unions.Libraries, hostels.Associations etc.Features of Non-trading organization;The main aim of such organization is not to earn profit but to render...

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Provision for Bad and Doubtful Debts

Doubtful debt denotes the amount of debtors which may not be recoverable. It is an expected loss. To meet such loss, some amount set aside as provisions which is called provision for doubtful debts. It is calculated a fixed percentage of sundry debtors. While posting it, provision for bad or doubtful debt is shown on the debit of profit and loss account and also shown as a deduction from debtor on the assets side of the balance sheet. ...

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Provision for Bad and Doubtful Debts

Doubtful debt denotes the amount of debtors which may not be recoverable. It is an expected loss. To meet such loss, some amount set aside as provisions which is called provision for doubtful debts. It is calculated a fixed percentage of sundry debtors. While posting it, provision for bad or doubtful debt is shown on the debit of profit and loss account and also shown as a deduction from debtor on the assets side of the balance sheet. ...

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Provisions

Provision refers to the setting aside of certain amount  to meet some contingencies which may be expected but not yet incurred. In other words, provision usually means any amount written of or retained by way of providing depreciation, renewal or diminution in the value of assets. It is a charge to the profit and loss account. Some examples of provision are as:Provision for bad and doubtful debt.Provision for discount on debtors.Provision for taxation.Provision for depreciation.Provision for repairs and renewals etc.Provisions are either shown as deductions from assets in the balance sheet or on the liability side of balance sheet. When...

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Secret Reserves

Secret reserve is created to strengthen the financial position of the firm without disclosing reserves to the public. They are not shown in the balance sheet. Such reserves are usually maintained by banks, insurance companies etc. Generally, it is created by showing lower profit than what actual is. It may be done in any of the following ways:By undervaluing the closing stock.By providing excessive depreciation.By overvaluing liabilities.By making excessive provisions or losses.Advantages:It helps to strengthen the financial position of business.It helps to meet the exceptional losses.Disadvantages:Profit shown by the financial statement is not...

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Dividend Equilization Fund

It is created for maintaining equal dividend over years. In other words, sometime a company may not have sufficient profit to distribute as dividend. At that time, the company can utilize such fund.Advantages:It helps to distribute same rate of dividend even there is loss in the business.Due to the uniformity of dividend over years, the market value of shares does not fluctuate abnormally.Disadvantages:Creation of dividend equilization fund reduces the amount of divisible profit.Small organization having poor financial position may not be able to create such fund....

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Reserve for Redemption of Liabilities

The firm requires to manage big amount to redeem long term liabilities like debentures. Thus, a reserve is created out of profit for the redemption of liabilities which is called reserve for redemption of liabilities.Advantages:Loan can be repaid in specific date which increases the creditability of the business.It helps to avoid the financial crises of repaying liabilities.Disadvantages:It reduces the amount of divisible profit of shareholders....

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Research and Development Fund

This fund is also created out of profit. It is a specific  reserve which is created to meet heavy expenditures of research and development of new product in the market. In this perfect competition business world, all most all the businesses require to spend for research of new product.Advantages:It helps to research and develop the new product.It helps to earn good profit due to the invention of new and better product in the market.Disadvantages:It reduces the divisible profits of the shareholders.Small organization having poor financial position may not be able to create such fund....

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Sinking Fund

Sinking fund is a specific reserve set aside for redemption of a long term debt or the replacement of a wasting assets. The distinct feature of sinking fund is that the amount of it is invested in outside securities to earn the interest. The investment is collected before the use of specific purpose.Advantages of sinking fund:There will be no problem of collecting funds for the purchases of new assets.Sinking fund is also created to repay the long term loan, therefore company will not face the problem of managing fund from outsiders.It can be invested in outside securities which will increase sum of reserve.Disadvantages of sinking fund:A big...

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Revenue Reserve

Revenue reserve are created out of revenue profit. Revenue profits refer to the profit that is earned by operating the business. Profit on sales of goods, discount received etc. are revenue profits. There are two types of revenue reserves:General ReserveSpecific ReserveGeneral Reserve:A general reserve is also known as "Free Reserve" which is created only when there is a  profit or when the management desires to create. This reserve is created by setting aside a prat of the profits in order to strengthen the general financial position of the business. The aim of creating such reserve is not a specific purposes.To meet unknown future...

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Reserve and types of Reserve

The term 'reserve' denotes something kept for future use. In accounting sense, it denotes the amount set aside out of profit for the purpose of strengthening the financial position of the business. It is created for meeting unknown liability or loss in the future. Thus, it is not an expenses or loss in real sense.According to William Pickles,"Reserves mean the amounts set aside out of profits and other surpluses, which are not earmarked in any way to meet any particular liability, known to exist on the date of the balance sheet".Features of Reserves:It is created for meeting unknown liability or losses.It is created out of net profits.It is not...

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Objectives for providing depreciation

For the replacement of assets: The fund equal to the amount of the depreciation is created which will remain in the firm. After the expiry of the life of asset, the same fund can be utilized to replace the new asset.For the determination of true profit or loss: Depreciation is also an expense like repair and maintenance which must be included in profit and loss account to ascertain the correct profit or loss of a business for the year.For the presentation of assets in the balance sheet at their proper value: Depreciation must be charged to each fixed asset for the true and fair presentation of assets in the balance sheet. The depreciation is...

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Factors affecting the amount of Depreciation

a) Original cost of the assets: Original cost includes the purchase price of the asset plus freight and installation expenses. Depreciation is charged on cost of asset so, it is found as:Cost of Asset = Purchase price + Freight (Transportation expenses) + Installation (erection) expensesb) Estimated working life of the asset: All the fixed assets have their working life which can be estimated but not predetermined. After this period, the assets will be worthless or scrap. The working life of asset plays vital role in the determination of depreciable amount.c) Scrap value: Scrap value is also called as salvage or residual or terminal value...

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Causes of Depreciation

Wears and Tears: The value of an asset declines due to its constant use in the business. Generally, fixed assets are depreciated due to wear and tears which means reduction in the efficiency and value of an asset caused from vibration, friction, accident, movement, erosion etc.Innovation: Due to the development of science and technology, the new and improved automatic machines may be invented. Such invention reduces in the value of old and existing machinery.Expiry of Time: The value of some assets like patent right, copy-right, lease hold property etc. decrease with the passage of time. The right of such assets is predetermined for certain duration....

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Additional notes while prepaing Final Accounts & Depreciation

Any reserves or fund account given in the in the trial balance should be shown in the balance sheet only.Any transfer to Employees Provident Fund and other Staff Welfare Fund like pension fund should be debited to P/L account as a charge to profit rather than an appropriation and shown in the balance sheet as "Provision".Declaration of dividend at a certain percentage should be calculated on the paid up capital.Premium paid on redemption of preference share should be written off against the existing share premium account. In its absence, the profit and loss account should be debited.Investment should be shown at cost price.Interest on investment...

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Marshalling of Assets and Liabilities

The arrangement of assets and liabilities in the balance sheet is known as marshalling of assets and liabilities. The marshalling of assets and liabilities can be done either in order of liquidity or in order of permanency.In order of liquidity, liquid assets and current liabilities are shown first in the balance sheet. But in order of permanency, those assets and liabilities which are permanent nature are shown first. List of Important AdjustmentsOutstanding ExpensesPrepaid ExpensesAccrued IncomeAdvance IncomeClosing StockDepreciation on Fixed AssetsInterest on CapitalInterest on DrawingBad DebtsProvision for Bad DebtsProvision for Discount...

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Notes on preparing Balance Sheet

All the real and personal accounts having debit balances (given in debit side of trial balances) should be shown on the asset side of balance sheet.All the real and personal accounts having credit balances (given in credit side of trial balances) should be shown on the liability side of balance sheet....

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Liability side of Balance Sheet

Capital:It is the amount of money invested by the businessman into the business. Net profit earned increases the amount of capital whereas net loss and drawing decrease the capital.Long term liabilities:Those liabilities which are spend after long period say after 5 or 10 years are called long term liabilities. Examples of such liabilities are:Bank loanDebenturesBondsMortgageCurrent liabilities:These liabilities are to be repaid within a short period usually within an accounting year such as;CreditorsBills payableBank overdraftOutstanding expensesProvision for dividend and taxationAdvance incomeShort term loan....

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Fictitious Assets

Such assets are nominal in nature and do not have real value. They are either the past accumulated losses or expenses incurred once in the life of a business. Some examples are,Preliminary expensesDiscount or loss on issue of shares and debenturesDeferred revenue expenditure e.g. advertisement expensesBrokerage and share underwriting commissionDebit balance of profit and loss account....

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Current Assets

Those assets which can be converted into cash through the normal course of business within a short time ordinarily in an accounting year. Some examples are:Cash in handCash at bankBills receivablesDebtorsClosing stockPrepaid expensesShort term investmentAccrued income etc....

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Fixed assets

Those assets which are of a relatively permanent nature used in operation of business. They are for earning income but not for resale like;Land and buildingPlant and machineryFurniture and fixtureLease holds and freeholdMotor vehiclesGoodwillPatentTrademark etc....

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Importance of Balance Sheet

It shows the financial position of the organization for a certain period by showing details about capital, assets and liabilities.It helps to test the liquidity position of the organization by providing necessary infomation for the calculation of liquidity ratios.It also helps to know solvency position i.e., long term loan paying ability of a firm.It shows capital structure i.e. the position of owner's capital, shareholder's capital and borrowed capital of a firm....

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Items of credit side of Profit and Loss Account

Gross profit transferred from trading account.Various incomes: Discount received, commission received, rent received, interest received, bad debt recovered, commission received etc.After entering all the expenses and incomes in the debit and credit side of profit and loss account respectively, net profit is found on the debit side of profit and loss account if credit total figure is greater than debit total. But it will be net loss if the debit total is heavier than the credit total....

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Balance Sheet

Balance sheet is also known as the statement of assets and liabilities, which shows the financial position of the organization at a given date of accounting period. It is the last part of final accounts to be prepared with the help of trial balance after the preparation of profit and loss account.According to Freeman,"A balance sheet is an item wise list of assets, liabilities and proprietorship of a business at a certain date."Features of Balance Sheet:It shows the financial position of the business on a particular date.It gives the knowledge of assets and liabilities.It is a statement but not an account like trading and profit and loss account.Total...

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Items of debit side of Profit & Loss Account

Gross loss transferred from trading.Office and administrative expenses: Office salaries, office rent, office lighting, printing and stationery, legal charges, general expenses, audit fees, insurance, postage etc.Financial expenses: Interest on loan, discount allowed, bank charges, interest on capital etc.Selling expenses: Salesman salaries and commission, advertising, brokerage commission, free samples, bad debts, traveling expenses etc.Distribution expenses: Carriage outwards, warehouse expenses, warehouse rent and insurance, delivery van expenses, packing expenses etc.Other items: Depreciation on fixed assets, provision for bad debts, repairs...

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Profit and Loss Account

After the preparation of the Trading account, Profit and Loss Account is prepared. Profit and Loss account is taken as the second part of the final account. It is prepared to calculate the net profit or loss of the business made during a certain period. Profit and loss account contains all expenses or losses and incomes or gains that have not been dealt with while preparing the trading account.According to Prof. Carter,''A profit and loss account is an account into which all gains and losses are collected, in order to ascertain the excess of gains over the losses or vice-versa.Importance of Profit and Loss Account:- It helps to determine the...

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Items shown on the Credit side of Trading Account

Sales and sales return: Sales refers cash or credit sale of trading goods. It is credited to trading account. Sales return is deducted from the sales figure to get net sales. Sales of fixed assets are ignored.Closing stock: It denotes the goods in hand with the firm at the end of the accounting period. Closing stock also may include raw material or work-in-progress or finish goods. Generally, closing stock is given outside the trial balance which must be shown on the credit side of trading account and on the asset side of balance sheet. However, it is entered only in credit side of trading account if it is given inside the trial balance. Closing stock is valued at cost or market price which ever is lower in case of both pric...

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Items in Debit side of Trading Account

1. Opening Stock: Closing stock of the previous year becomes the opening stock of the current year which is available on the opening day of new accounting period. However, there will no opening stock in case of newly opened business. It is available in the trial balance that must be debited to the trading account. Opening stock may include the raw materials, work-in-progress as well as finished goods.2. Purchases and Purchases Returns: Purchases of raw materials or resale goods made during the year are debited to trading account. Both cash and credit purchases are taken into consideration. Purchase returns are deducted from purchases to find out the figure of net purchases.3. Purchase expenses: All the expenses that are incurred to bring the goods or materials upto warehouses are purchase...

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Need or Importance of Trading Account

Some of the objectives of preparing Trading account are as follows:To determine the cost of production which helps to calculate the gross profit or loss of trading activities.To assemble all the direct expenses of bringing the goods in saleable condition.To ascertain the performance of different years of business through the gross profit ratio which is calculated by dividing the gross profit by sales.To help to calculate the ratio of cost of goods sold to sales which is helpful in the fixation of price of the produc...

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Trading Account

Trading account is the first part of the final accounts which is prepared to calculate the gross profit or loss of buying, manufacturing and selling of trading goods for a certain period. Gross profit if the difference between sales and cost of goods sold. If the amount of sales of goods is higher than the cost of goods sold, there is a gross profit. Reversibly, if sales figure is smaller the difference is gross loss. In the words of J.R. Batliboi, "The trading account shows the results of buying and selling of goods therefore, it does not include any items of operating expenses but transactions in goods are include...

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Preparation of Final Accounts

The final accounts include trading account, profit and loss account and balance sheet. They are prepared normally with the help of trial balance. Sometime, ledger balances and additional information may be given. While preparing final accounts, we need to mind the relation of trial balance with final account.Debit items of trial balance generally appear either on the debit side of trading or profit and loss account or on the assets side of the balance sheet.Credit items of trial balance generally appear either on the credit side of the trading or profit and loss account or on the liability side of the balance she...

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Introduction to Final Accounts

After the completion of preparing Trial Balance, Final Accounts are prepared to ascertain the net result i.e. profit or loss and the financial position of the business. In other words, a business can find out the profit or loss made by the business through the final accounts. They are prepared at the close of the accounting period with the help of trial balance. It is the final step of accounting circle which includes:Trading Account.Profit and Loss Account.Balance Sheet.In case of manufacturing concern, a separate manufacturing account must be prepared before preparing trading account. Final accounts are prepared mainly for following two objectives.To ascertain the net result i.e. profit or loss made by the business firm during the accounting period.To know the financial position of the...

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Generally used Terms in Accounting

Journal Entry, Ledger, Trial Balance, Trading Account, Manufacturing Account, Profit and Loss Account, Gross Profit or Loss, Net Profit or Loss, Profit and Loss Appropriation Account, Balance Sheet, Current Assets, Fixed Assets, Fictitious Assets, Investment, Current Liabilities, Permanent Liabilities, Marshalling of Assets and Liabilities, Liquidity, Permanency, Final Account, Closing Stock, Outstanding Expenses, Prepaid, Depreciation, Bad Debts, Provision for Bad Debts, Provision for Discount, Drawing, Accrued Income, Interest on Capital, Interest on Drawing etc........

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Revenue Loss

Revenue losses are those losses which are occurred during the normal course of business activities. They are shown on the debit side of Profit and Loss Account. The some example of revenue losses are as follows:Loss on sale of trading goods.Loss on leakage or theft of goods.Loss on goods lost by fire e...

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Capital Loss

Capital losses are those losses which are incurred at the sale of fixed assets. It also consists the losses on raising capital. Such losses are shown on asset side in the balance sheet. The some example of capital losses may be as follows:Loss on sale of machinery at lower price than its book value.Loss or discount on issue of shares.Loss or discount on issue of debentur...

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Revenue Profit

Revenue profit are those profit which is generated by the activities of day to day business operation since the main target of a business is to earn such revenue profits. Such profit is shown in Profit and Loss Account. The following are the some example of revenue profits:Profit earned on the sale of trading goods.Commission earned.Income from investment.Discount received e...

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Capital Profit

Capital profits are those profits which are earned by selling fixed assets or issuing shares or debentures. They should be transferred to capital reserve account, which appear in the balance sheet as liability. The some example of capital profits are as follows:Income earned by selling fixed assets in more value than its book value.Income earned by issuing shares or debentures at premium.Income earned by forfeiting the shar...

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Revenue Receipt

Revenue receipts are generated in the day to day operation of business. A big portion of revenue receipts is occupied by the amount obtained from the regular sales of trading goods or services. The following are the some example of revenue receipts:Amount received from sale of trading goods.Amount received from sale of services.Interest received.Commission, discount received.Rent received e...

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Capital Receipts

Those receipts which are generated in the form of capital is called capital receipts. It denotes the amount received by a firm from the owner or from outsiders like creditors, debenture holders as a loan. It also includes the amount received from the sale of fixed assets.Some examples of capital revenue are as follows:Amount received by issuing shares and debentures.Amount received from owner as additional capital or share capital.Bank loan.Loan from others financial institutions or persons.Amount received by selling fixed asse...

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Deferred Revenue Expenditure:

Deferred revenue expenditure is also called as capitalized expenditure. The benefits of some revenue expenditures may be consumed for several years which are called deferred revenue expenditure. Only a part of it is considered as revenue expenditure and debited to profit and loss account. The remaining amount is put as an asset in the balance sheet.Some Deferred Revenue Expenditure are as follows:Preliminary expenses.Share underwriting commission.Discount on issue of shares and debentures.Cost of heavy advertiseme...

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Revenue Expenditure

Those expenditure which are done to operate the business are revenue expenditures. The benefit of such expenses is to utilized in an accounting period. Nature of revenue is repetitive and may incur so many time during the business life. The examples of revenue expenditures are as follows.1. Expenditures incurred in the normal course of business:Rent, wages, salaries, advertising, legal expense, taxes, insurance premium, fuel, water, lighting, heating, bank charges, telephone, postage, stationery etc.Interest, commission, discount, depreciation, bad debts etc.2. Expenditures incurred to purchase raw materials or resale goods:Cost of trading (resale) goods.Cost of raw material.Consumable stores.3. Expenditure incurred to maintain fixed assets for working condition:Repairs and renewals of fixed...

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Capital Expenditure

Capital expenditure is done to acquire the fixed assets. Such fixed assets is acquired for the benefits for more than one accounting year. These expenditure help to earn income, which are shown in the assets side of the balance sheet.According to Kohler,"Capital Expenditure is an expenditure intended to benefit future periods, in contrast to a revenue expenditure, which benefits a current period, an addition to a capital asset. The term is generally restricted to expenditures that add fixed assets units or that have the effect of increasing the capacity, efficiency, life span or economy of operation of an existing fixed asset."The some example of capital expenditures are as follows:Expenditure done for acquiring fixed assets:Purchase of land building, plant and machinery.Purchase of furniture...

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Posted in Accounting Errors