FUNCTIONAL CURRENCY
Functional Currency is the currency in which the entity operates its economic activity. Normally functional currency is local currency but …
DISCOUNT RECEIVED
Discount are very popular terms in present business. It can be considered as another form of business promotion to influence …
What is Debit Note and Credit Note?
Debit Note A debit note or Debit Memorandum (memo) is one type of commercial document which is issued by a …
PREFERENCE SHARES
Preference Share are one type of special shares which has fixed rate of dividend and they posses special rights over …
Nostro Account & Vostro Account
NOSTRO Account “Nostro” is an Italian word which means ‘ours’. Hence Nostro Account points at – ” Our Account with …
PROFORMA INVOICE (PI)
Proforma Invoice (PI) is an estimated invoice sent by a seller to a buyer in advance of a shipment or …
What is Letter of Credit? What are the procedures of Opening a Letter of Credit?
What is a Letter of Credit? Letter of Credit (L/C) is one kind of guarantee in the form of a letter that is …
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Accounting Treatment of Goods in Transit.
Key Points: Ownership of transit goods is determined by the terms of shipping agreement. Free on Board (F.O.B) shipping point …
CREDIT LINE, OR LINE OF CREDIT
What is a line of credit? A line of credit (LOC) or credit line is an arrangement between a financial …
FORWARD CONTRACT
Forward Contract is a binding agreement to buy or sell an item for settlement at a future date, at a …