When two or more persons agree to form an organization and run a business jointly, then such a business is called a partnership business. There are certain costs associated with any kind of business.
If a party owes a number of payments to another, payable on different dates, it may like to pay a single lump sum payment in lieu of a number of payments such that there is no loss or gain to any party. The procedure of finding such a date is called equation of payments and the date found is called average due date.
An annuity is a sequence of equal payments made at equal intervals of time. E.g. of annuities are weekly wages, monthly home mortgage payments, payments to a recurring deposit, quarterly stock dividend etc.
A bill of exchange is an instrument in writing, an unconditional order signed by the maker directing to pay a certain sum of money only to or to the order of a certain person or to the bearer of the instrument. The bill is written by the seller (creditor), called payee, to the purchaser (debtor), called drawee.
Certain business organizations need to raise money from public. In India, such an organization needs to be registered under the Indian Companies Act. Such an organization is called a public limited company.
In order to increase revenue, state governments levy sales tax on the sale of goods within their states. For the inter-state movement of goods, the Union (Central) Government also levies sales tax, known as Central Sales Tax. It is the tax imposed on purchase of items.
A bank is an institution which carries on the business of taking deposits and lending money. The rate of interest charged by the bank from its borrowers is usually higher than what it pays to depositors. The business of receiving, safeguarding and lending of money is called banking.
In the VAT system, the tax is realized by the government at many points in the supply chain, right from the manufacturer to the retailer.
Percentages are very much part of our lives but what does percentage mean? “Per cent” means “out of 100”; and “out of”, mathematically means “divide by”.
Calculating Cost Price, Sell Price, Marked Price, Net Price, Discount, Profit, Loss Profit Percent, Loss Percent