A manager may be entitled to a commission on profits. It is usually given as a fixed percentage on the net profits earned by the firm. In this case, first of all, net profit before commission is calculated. Then, commission payable is calculated as follows:
(i) When commission is payable on net profit before charging such commission:
Commission = Net Profits Before Commission\(\times\)Rate/ 100
(ii) When commission is payable on net profit after charging such commission:
Commission = Net Profits Before Commission \(\times\) \(\frac { Rate }{ 100+Rate } \)

If customers frequently return the goods sold to them that is called return inwards. It is recorded in return inward book.
If we frequently return the goods purchase by us from supplier that is called return outwards. It is recorded in return outward book.

The microprocessor or CPU may be considered as the brain of a computer as it performs all the processing. The CPU is mounted on "Main board" or "Mother board", which is the main circuit of computer. The CPU performs arithmetical, logical and control functions. It is connected with input! output devices, primary and secondary memories through electrical lines, known as buses.
Structure of CPU: A CPU consists of an Arithmetic and Logic Unit (ALU), Control Unit (CU) and a Memory Unit. All the arithmetic and logical operations are performed by ALU. Arithmetical operations include addition, subtraction, multiplication, division, etc. and logical operations include comparisons using various operators like greater than, less than, equals to or not equal to.
the control unit (CU) supervises and controls the working of ALU. It ensures that all the processing is occurring as per the desired schedule and in case of multiple processes, no one process is having the possession of CPU for a long time duration.

Depreciation is "a measure of the wearing out consumption or other loss of value of depreciable asset arising frony use, effluxion of time or obsolescence through technology and market change. Depreciation is allocated so as to charge fair proportion of depreciable amount in each accounting period during the expected useful life of the asset. Depreciation includes amortisation of assets whose useful life is predetermined".

The term maturity refers the date on which a bill of exchange becomes due for payment. In arriving at the maturity date, three days, known as days of grace, must be added to the date on which the period of credit express instrument is payable.

Following are some of the examples of contingent liabilities:
(i) Claims against the company not acknowledged as debts.
(ii) Uncalled liability on partly paid shares.
(iii) Arrears of fixed cumulative dividends.
(iv) Estimated amount of contracts remaining to be executed but not provided for.
(v) Liabilities under a guarantee.
(vi) Liability on Bills Receivable discounted but not matured.

(i) Double Entry System: A business transaction involves the exchange of money and goods or services for money or for a right to claim money in future. Each business transaction involves two parties, i.e., two aspects. There cannot be a business transaction with one aspect. A transaction is just like a scale which must have equal weight on each of the two sides in order to be balanced. Following are some examples which emphasise the two aspects of a transaction:
(a) If a business firm acquires an asset for cash, it has to give up some other asset say cash or the obligation to pay for it in future. Thus, a giver necessarily implies a receiver and a receiver necessarily implies a giver.
(b) If goods of Rs. 30,000 are sold to Rajendra on credit, the business firm gives goods and acquires a right to receive payment in future. Thus, goods and Rajendra are two aspects of this transaction.
(ii) Cash Basis of Revenue and Cost Recognition: Cash basis of revenue and cost recognition means that revenues and expenses are recorded when they are received or paid in cash. For example, if total sales of the firm is Rs 5,00,000 including credit sales of Rs 2,00,000, the revenue from sales will be recorded as Rs 3,00,000 (Rs 5,00,000 - Rs 2,00,000). If total expenses of the firm are Rs 60,000, including Rs 20,000 as outstanding expenses, the expenses would be recorded as Rs 40,000 (Rs 60,000- Rs 20,000).

(i) Purchase of furniture recorded in Purchases Account.
(ii) Wages paid for installation of machinery recorded in Wages Account.

If a business transaction is analysed in terms of its effect on assets, liabilities and capital, it must conform to the aforesaid accounting equation. When a transaction occurs, it can be expressed in terms of accounting equation. While preparing accounting equation following points are to be kept in mind :
Effect of Income or Profit : If there is a profit or gain, it will increase the capital on the one hand and on the other hand it will increase the assets.
Effect of Expense or Loss : Any expense incurred is a loss to the firm. On the one hand, it either decreases assets or increases liabilities (when not paid in cash immediately) and on the other hand capital is decreased.

Closing entries are the journal entries which are passed at the end of the year to be closed by transferring their balance to Trading and Profit and Loss Account.
The nominal accounts having debit balance are closed by transferring to the debit side of Trading Account or Profit and Loss Account, as the case may be. The nominal accounts having credit balance are closed by transferring to the credit side of the Trading Account or Profit and Loss Account
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In the Books of...

Electronic Spreadsheet is a specially designed programme for the business firms. Electronic Spreadsheet is an interactive computer application for organization, analysis and storage of data in tabular form. Spreadsheets are developed as computerized simulations of paper accounting worksheets. The program operates on data entered in cells of a table.

Qualitative characteristics are the attributes of accounting information which tend to enhance its understandability and usefulness. It must possess the characteristics of reliability, relevance, understandability and comparability
(i) Reliability :
Reliability means the users must be able to rely on the information. The reliability of accounting information is determined by the degree of correspondence between what the information conveys and the transaction or event that have occurred, measured and displayed.
(ii) Relevance :
To be relevant, information must be available in time, must help in prediction and feedback. Information is said to be relevant when it must influence the decision of users by confirming or correcting their past evaluation.
(iii) Understandability:
Understandability means decision makers must interpret accounting information in the same sense it is prepared and conveyed to them.
(iv) Comparability :
It is not sufficient that financial information is relevant and reliable at a particular time in a particular circumstances or for a particular reporting entity.

(i) Money measurement concept: Restricts the scope of accounting to factors that are measurable in terms of money. It says only the transactions measurable in terms of money are to be recorded. While we can record values of various assets and liabilities, we cannot record the. level of satisfaction of our customers and loyalty of our employees. We can say our customers are 'happy' or 'very happy', but we cannot write in our accounts how much our customers are happy, simply because 'happiness' cannot be measured in terms of money.
(ii) Principle of Full Disclosure: This principle implies that the accounting report should be full and accurate. If there is any material fact which can affect the profitability of the business in future, it must disclose it to the users whether it is legally required or not. There are standard forms for Balance Sheet, Notes to Accounts for Balance Sheet and Profit & Loss Account. It is a legal requirement for joint stock companies to present information in the standardized form.
(iv) Dual Aspect Principle: This principle is the backbone of accounting. Every business transaction affects at least two aspects in a business. When we buy goods, we get goods and pay cash. When we sell goods we give goods and get cash. Accounting is much more than just buying and selling. Dual aspects is involved in every transaction and event which gives rise to the basic accounting equation, Equity + Liabilities = Assets.