WHAT ARE THE ELEMENTS OF A CONTRACT? For a contract to be established, the following have to be existing: ·        Offer and acceptance (an agreement) ·        Consideration ·        Intention to create legal relations ·        Capacity OFFER: A definite expression of willingness to be held accountable on specified terms without any further changes to the agreed … Read More

  WHAT ARE THE FINANCIAL STATEMENTS IN ACCOUNTS? Transcending from the trial balance, the financial statements will need to be prepared using the closing balances derived from the trial balance. The two main financial statements are the: ·        Statement of profit or loss (profit or loss account) and the ·        Statement of financial position (balance … Read More

WHAT IS THE ENTITY CONCEPT? This is where a business is usually seen and treated as a separate party from the business; so, the records of the business must be kept separate from the personal records of the owner of the business. The entity concept states that business transactions must be separately recorded from those … Read More