ACCOUNTING PAPER 2

[yellitgirl]

hey dere!
in my openion accounts is one of the most difficult subjects there are! ( atleast in commerce) :$

anyways accounts exam is kinda far ryt now but lets discuss the doubts and questions here. moreover we can also give notes and tips to help each other out

 

[yellitgirl]

imited liablity companies are those which have the right to sell shares to the general public and hold limited liability. limited liability means that the creditors of the business can not force the owners of the business to sell their private property in order to pay back their debts.
limited liability accounts are just like any other account except it also includes Appropriation account. Appropriation account includes:
1- corporation tax (deducted from profit for the year before tax.)
2-retained profits (added to the profit we have after deducting the corporation tax)
3-transfer to general reserves (deducted from the amount we have after adding the retained profits of last year)
it further states the dividends of the company.
^ % of preference dividend
^ % of ordinary dividend
and retained profit of this year carried forward to the next year.