251 Meaning of Charge :
charge means it is a obligation to secure an indebt ness. It may be fixed
charge and floating charge.
252 Appropriation : It is
application of profit towards Reserves and Dividends.
253 Absorption costing : A
method where by the cost is determine so as to include the appropriate share of
both variable and fixed costs.
254 Marginal Cost : Marginal
cost is the additional cost to produce an additional unit of a product. It is
also called variable cost.
255 What are the
ex-ordinary items in the P&L a/c : The transaction which are not related to
the business is termed as ex-ordinary transactions or ex-ordinary items. Egg:-
profit or losses on the sale of fixed assets, interest received from other
company investments, profit or loss on foreign exchange, unexpected dividend
received.
256 . Share premium : The
excess of issue of price of shares over their face value. It will be showed with the allotment entry in the
journal, it will be adjusted in the balance sheet on the liabilities side under
the head of “reserves & surplus”.
257 Accumulated Depreciation
: The total to date of the periodic depreciation charges on depreciable assets.
258 Investment : Expenditure
on assets held to earn interest, income, profit or other benefits.
259 Capital : Generally
refers to the amount invested in an enterprise by its owner. Ex; paid up share
capital in corporate enterprise.
260 Capital Work In
Progress : Expenditure on capital assets which are in the process of
construction as completion.
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