Aiou Code 311 Book Keeping Accounting Solved Assignment for the semester autumn 2016 is being uploading. This is first aiou solved assignment for this code 311 book keeping and accountancy for the semester autumn 2016. This assignment explains the basic terms of accounting e.g. Capital, Commission, and Trade Discount etc.
AIOU CODE 311 BOOK KEEPING ACCOUNTING SOLVED ASSIGNMENT AUTUMN 2016
Capital refers to financial assets or the financial value of assets, such as cash and funds held in deposit accounts, as well as the tangible machinery and production equipment used in environments such as factories and other manufacturing facilities. Additionally, capital included facilities, such as the buildings used for production and storage of the manufactured goods. Materials used and consumed as part of the manufacturing process do not qualify.
A commission is a service charge assessed by a broker or investment advisor in return for providing investment advice and/or handling the purchase or sale of a security. Most major, full-service brokerages derive most of their profits from charging commissions on client transactions. Commissions vary widely from brokerage to brokerage.
AIOU CODE 311 BOOK KEEPING AND ACCOUNTANCY FOR F A / I.COM
A trade discount is a reduction to the published price of a product. For example, a high volume wholesaler might be entitled to a 40% trade discount, while a medium-volume wholesaler is given a 30% trade discount. A retail customer will receive no trade discount and will have to pay the published or list price. The use of trade discounts allows for having just one published price for each product.
The sale and purchase will be recorded at the amount after the trade discount is subtracted. For example, when goods with list prices totaling $1,000 are sold to a wholesale customer entitled to a 30% trade discount, both the seller and buyer will record the transaction at net amount of $700.
Trade discounts are different from early-payment discounts. (Early-payment discounts of 1% or 2% are likely to be recorded by the seller as a sales discount and by the buyer using the periodic inventory method as a purchase discount.
AIOU SOLVED ASSIGNMENT 1 CODE 311 ACCOUNTING AUTUMN 2016