Errors In Accounting
When I say funds, I mean investment funds in basic. These are also recognized as mutual funds, but there are also hedge funds which are aimed at sophisticated investors.
At about the age of 9 I realized I loved planting or developing factors. We didn’t have a garden or a shamba as is commonly recognized in East Africa but that did not deter me from my passion. I would collect tins/cans or any container and plant flowers. I fondly remember acquiring those bulbs (before the energy saver bulbs with twisted styles came) and planting indoor water plants in them. My dear Mum joked that when I develop up, I would not have chairs in my residence…she could only envisage plants all more than!
Costing Profit and Loss Account: When price accounts are maintained independent of economic accounts, a separate costing profit and loss account is prepared for figuring out the profit or loss of a particular period. This account is debited with the price of sales and credited with the sales value. It is also debited with products like abnormal losses, under-absorption of overheads, or loss on sale of particular jobs, and credited with items like abnormal gains, more than-absorption of overheads, or profit on sale of unique jobs. The balance of this account will indicate the profit or loss as per cost records, which should be reconciled with the profit or loss as per monetary records.
Equity records the worth attributed to the owners of the company As a business tends to make a profit the equity value increases. If a business sustains a loss, likewise equity goes down. This profit line item is referred to as Retained Earnings. This item has a specific connection with the Profit and Loss Statement and will be discussed further later.