Joint venture vs Strategic Alliance

In business world, various arrangements are setup from time to time in order to achieve strategic objectives. But sometimes, it becomes very difficult to undertake new business strategy. The business risk of the organisation does not allow to carry on…

Suspense Accounts

In order to trace out ambiguous entries, entities take support of Suspense Accounting. So, that it can find out the reasons and properly record the transaction. The role of this account came into play in two circumstances: when the accountant…

Cost of Goods Manufactured

We have covered Cost of goods manufactured topic in detail previously. Keeping in view the demand of this topic in students, we are putting together some very interesting problems and solutions. Practicing these will increase your chances of passing exams…

Job Order Costing System

Job Order Costing is an important topic in accounting. In most of the manufacturing sectors such as textile industry, all jobs are accounted for using this costing method. In large companies such as textile sectors, orders from customers are received…

Closing Entries Problems and Solution

Closing entries are required to be passed to ensure accounting records show true and fair view of the financial position of the company. Therefore, role of Closing Entries are very important. The following Closing Entries Problems with Solution will help…

What is Indifference Curve and Indifference Map

An indifference curve represents the different combinations of two items that will provide the customer with an equal degree of satisfaction. As a result, an indifference curve may be described as a locus of all the points expressing different. Combinations…

What is Law of Diminishing Marginal Utility?

So far we have covered two important topics of Cardinal Utility Approach and Total and Marginal Utility. Now, it is time to expand our discussion further. So, we will discuss the law of diminishing marginal utility. According to the law,…

Gross Margin Method

Under this method, we estimate the ending figure of the closing inventory based on the gross profit percentage. In this approach, we assume that the gross profit % remains constant during the reporting period. This method is also known as…

Bank Reconciliation Statement

The balance as per bank statement and the bank balance in the ledger accounts differ in most cases. That is why; there is a need to reconcile the difference between two sets of balances. There are plenty of reasons for…