Key Ratios
Liquidity Ratios S NoRatio NameFormula1Current RatioCurrent Assets / Current Liabilities Note : Stores and spares...
Accounting for goodwill on admission of a new partner.
There can be different situations for accounting for Goodwill : Where the goodwill is paid...
Difference between new ratio and sacrificing ratio
Sacrificing RatioNew profit Sharing RatioIt is the ratio in which old partners give their share...
Computation of New ratio and Sacrificing ratio
Suppose A, B and C are partners in a firm sharing profits in the ratio...
Meaning of Admission of a Partner in Partnership Firm
Admission of a partner in a partnership firm refers to the process of adding a...
Journal Entries for issue of Shares
Bank A/c Dr.. To Share Application A/c (Being Share Application money received) Share Application A/c...
Face Value vs Issue Price vs Market Price of a share
These terms often sound similar but they are considerably different. Face Value This is the...
Classification of Share Capital
Share Capital can be of different types and each type is discussed below : Authorised...
Difference between Equity share and Preference Shares
The key points of difference between equity shares and preference shares are summarised as follows...
What are Equity Shares
These are shares which gives the voting rights. So the equity shareholders are the real...
Types of Preference Shares
Preference shares can be broadly classified based on following four criteria : Based on right...
Meaning of Share Capital
Companies will usually need huge capital to run the business. Such huge capital cannot be...