Accounting

Capital is the amount contributed by the partners in the firm. Partner’s capital shows equity in a partnership owned by specific partners. It records the initial and subsequent contribution made by each partner and also the withdrawal made by the partner. Partner’s Capital Account shows the ownership interest in the firm by each partner of the firm. Partner’s Capital Account can either be fixed or fluctuating. It records all the transactions related to the partnership firm and the partners. All the initials transaction…

The value of Assets and Liabilities undergoes a change with the passage of time due to many reasons, like regular wear and tear, appreciation in the value of assets, bankruptcy of any debtor, and so on. In the Partnership firm, whenever a partner retires, it becomes necessary to revalue the assets and reassess the liabilities of the firm to ascertain the current value of these. The Revaluation of Assets and Reassessment of Liabilities are done because of any change in the value of the assets and liabilities that belong to…

As some U.S. companies are turning to job cuts to reduce costs, chief financial officers and other executives are navigating a host of potential stumbling blocks.While jobless claims are still historically low, U.S.-based employers announced 33,843 job cuts in October, up 13% from September and up 48% from a year earlier, according to outplacement and executive coaching firm Challenger, Gray & Christmas Inc. October marked the highest number of announced layoffs since February 2021, with cost cutting and market…

The most common approach for maintaining a company’s financial transaction records has historically been a manual accounting system. Traditionally, the bookkeeper would physically write a summary of transactions and the final accounts while also maintaining books of accounts, including the cash book, diary, and ledger. The advent of various devices capable of carrying out a variety of accounting tasks was made possible by technical advancements.A common billing machine, for instance, was created to typewrite a description…

PARIS—French prosecutors have opened probes into the role played by consulting firms in France’s 2017 and 2022 presidential elections, widening an existing investigation into consulting firm McKinsey & Co. Earlier this year, French financial prosecutors opened a tax-fraud and money-laundering investigation into McKinsey. It came soon after the French Senate alleged that McKinsey, which is based in New York, hadn’t paid corporate tax in France for at least a decade,…

When the firm is reconstituted all the accumulated profit, reserves and losses are transferred to Partner’s Capital Accounts (if capital is fluctuating) or Current Accounts (if capital is fixed) in their old profit-sharing ratio. This is done because the reserves or accumulated profits/losses belong to the partners before the reconstitution of the firm (or change in profit-sharing ratio). Accumulated profit/losses, and reserves are distributed among the old partners in the old profit-sharing ratio.Accounting Treatment of…

Chinese e-commerce company Alibaba Group Holding Ltd. BABA -4.49% reported one of its weakest revenue expansions since going public, underscoring the persisting weight of Beijing’s zero-Covid policy on domestic consumption and business activities.The Hangzhou-based company said Thursday that its July-September quarter revenue rose 3% from the same period year earlier, marking a return to growth from the slim dip in the previous quarter when widespread pandemic lockdowns…

Chinese e-commerce company Alibaba Group Holding Ltd. BABA -1.44% reported one of its weakest revenue expansions since going public, underscoring the persisting weight of Beijing’s zero-Covid policy on domestic consumption and business activities.The Hangzhou-based company said Thursday that its July-September quarter revenue rose 3% from the same period year earlier, marking a return to growth from the slim dip in the previous quarter when widespread pandemic lockdowns…

Get ready to fork over more for this year’s Thanksgiving meal.American families will spend about 14% more this year on their holiday dinner thanks to higher prices of turkey, flour, eggs and other staples, according to data from Information Resources Inc. Increasing costs of ingredients, production and transportation—coupled with extreme weather and avian influenza outbreaks across the U.S. that affected millions of birds—could add up to what IRI projects to be the most pricey Thanksgiving meal in recent memory. Here’s…

A recent agreement between Washington and China allowing U.S. accounting regulators to inspect China-based audits is raising questions about the role of unregistered auditors in the Chinese gambling enclave of Macau, where several U.S.-listed casino businesses operate.Auditors typically assemble a team involving several outside auditors, usually individual accountants or accounting firms, as their clients often operate globally. Under U.S. audit rules, any audit firm that performs at least 20% of the audit work based on…