ACCOUNTING POLICIES FOR SMALL BUSINESS ORGANISATIONS

A. SINGNIFICANT ACCOUNTING POLICIES: 1. Basic Assumptions: The Financial Statements are prepared on a going concern concept and as per the historical cost convention on accrual basis. 2. Revenue Recognition: (a) Sale is recognized on dispatch of goods to customers (b) Sale of service/commission is recognized as and when the right to receive arises (c)…


JOURNAL ENTRIES IN CASE OF LOSS OF GOODS

First you need to crate following account 1. Loss of Goods: (Under Purchase Group) : you need this in case of loss of traded goods. So that inventory could be nuterilised 2. Loss of Goods by Fire and/or Theft: you need this account to transfer your loss to profit and loss account. You need to…