Fictitious Assets: There may be some expenditures or losses that are written-off over some years and the full amount is not charged from the profits of the accounting year in which they are incurred. Only a portion of such expenses or losses is written off from the current accounting year. The portion of expenditure not written-off is shown on the Assets side of the Balance Sheet under the head Miscellaneous Expenditure. For example, Advertisement suspense, debit balance of Profit and Loss Account, etc. These are not actually the assets but are still recorded in the Balance Sheet for writing them off over some years.
Trading Account is an account that is prepared to ascertain the trading results of a firm in form of gross profit earned or gross loss incurred during an accounting period.
The users of financial statements can be broadly classified as Internal Users and External Users. Internal Users are the users who have direct access to the financial statements
Financial statements reveal the profitability and financial position of a business at the end of the accounting year. It provides financial information to various accounting users that
A promissory note is an unconditional promise in writing given by the buyer (or creditor) to the seller (or debtor) to pay the amount of money specified therein to the seller or to the order of seller or to bearer.