Edaccountancy

Consignment in accounting refers to a business arrangement where a consignor entrusts goods to a consignee for sale, while retaining ownership of the goods until they are sold. This arrangement is commonly used in various industries such as retail, art, antiques, and fashion. In the United States, the accounting treatment of consignment transactions follows generally accepted accounting principles (GAAP). Here's a detailed explanation of consignment accounting, along with some examples: 1. Consignment Agreement:    The consignment process begins with a consignment agreement between the consignor and the consignee. This agreement outlines the terms and conditions of the consignment, including the consignee's commission percentage, the date of consignment, any conditions on sales, and other relevant terms. The consignment agreement serves as legal evidence of the consigned goods' dispatch. Example: A clothing manufacturer (consignor) enters into a consignment agreement with

👉 Overview of consignment account

  1 .        Average Cost

Amortization Calculator Amortization Calculator Loan Amount: Interest Rate (%): Loan Term (years): Start Date: Grace Period (months): Calculate   1 .        Amortization An amortization calculator is a powerful tool that assists individuals in planning and managing their loan repayment. It provides a clear breakdown of the repayment schedule, helping borrowers understand how their payments are allocated toward interest and principal over time. This blog post aims to explain what an amortization calculator is, how it can benefit users, and a step-by-step guide on how to use it effectively. What is an Amortization Calculator? An amortization calculator is a digital tool that automates the complex calculations involved in loan repayment. It helps users determine the monthly payment amount, visualize the amortization schedule, and track the outstanding balance over the loan term. By entering specific

  1 .        Accumulated Depletion What is accumulated depletion in accounting? First understand the meaning of depletion, depletion means the amount reduced in the quantity of something.

  1.        Accrual What is accrual in accounting? Accrual means the recognition of revenue and expense as they are earned or incurred in the period in which transaction occurs. However, the money received or paid it will be recorded in the transaction period only. Example: In 2020 A purchased goods of $100 on credit. So, this transaction will be recorded in the period of 2020 only. And will be carry forward in the next financial year till the money get received.