A promissory note , is a written  unconditional undertaking by the maker to pay the specified amount to the specified person or to his order to the bearer of the promissory note.
Features of a Promissory Note
1. A promissory note is an unconditional written undertaking to pay the specified amount.
2. It is drawn and signed by [...]

From accounting point of view, Bills of Exchange are of two types:
1. Trade Bill: Where a Bill of Exchange is drawn and accepted for a trade transaction, it is called ‘Trade Bill’.
2. Accommodation Bill: Where a Bill of Exchange is drawn and accepted for mutual help, it is called ‘Accommodation Bill’.
Advantages of Bills of Exchange: [...]

Meaning         
“A Bill of Exchange is an instrument in writing containing an unconditional order signed by the maker, directing a certain person to pay a certain sum  of money only to, or to the order of, a certain person or to the bearer of the instrument.”
                                               —- Section 5 of the Negotiable Instruments Act, 1881
It means [...]

A secret Reserve is a reserve the existence or the amount of which is not described  in the Balance Sheet. It is a surplus called a ‘Hidden Reserve’. It can be said that there is a great amount  of assets over liabilities and that the large amount is not shown by the Balance Sheet. Such reserves are [...]

Meaning of Reserves
Reserves are amounts set aside out of the  profits. It is  accumulated profits to make stronger the financial position of business. It is not a charge against profits. Reserves are not meant to cover any liability or depreciation in the value of assets. Examples are General Reserve, Reserve for Expansion, Reserve for Equalisation [...]

Provision is the  amount set aside, by charging it in the Profit and Loss Account, to provide for depreciation or a known liability the amount of which cant be determined with complete accuracy. A provision is therefore,  different from liability which is to provide for a known liability of known amount. For example, provision for [...]

The amount of depreciation for the year is measured  using various methods out of which  two main methods for evaluating  depreciation are:
1. Fixed Percentage on Original Cost or Fixed Instalment or Straight Line Method; and
2. Fixed Percentage on Diminishing Balance or Reducing Instalment Method or Written-Down Value Method.
 Straight Line Method
Under this method, a suitable percentage of [...]

In Books of account,depreciation is recorded by any of the two methods, a) when depreciation is charged to the assets account; and b) when provision depreciation/accumulated depreciation account is created.
The  two methods in detail are :
When Depreciation is Charged to Assets Account: Under this method, depreciation is directly charged to the Asset Account, provision for depreciation [...]

Factors for evaluating the amount of depreciation are:
1. Original (Historical) Cost of the Asset: Cost will include all expenses incurred like freight and installation charges up to the point the asset is ready for use.
2. The Estimated Residual or Scrap Value at the End of its Life: Resident value is an estimated sale value of [...]

A decision tree is a graphical technique that presents conditions and actions sequentially and thus shows which condition to consider first and which one to consider next. It is also a method of showing the relationship of each condition and its permissible actions. A diagram is drawn that looks like a tree with branches, and [...]

Direct costs are those costs that are directly associated with the system that are incurred in buying equipment, employing people, cost of consumable items, rent for accommodation etc.
Indirect costs are the result of operations that are not directly associated with a given system or activity. For example,heating or airconditioning, insurance and cost of maintenance etc. [...]

Costs that are constant and do not change are fixed costs. For example, rent to be paid is a fixed cost. Another example would be, if a company purchases computer hardware, the cost is fixed, whether or not it is wholly used to run a system.
Costs can also be variable. Variable costs are those that [...]

Tangible benefits means that benefit which is definite and can be determined in advance. Tangible cost means that it is known and can be estimated quite accurately. For example, the cost of salary of employees, the expense of specific piece of equipment, would be tangible cost.
 Intangible cost refers to something which we know exists, but [...]

Cost –benefit analysis is a tool for evaluating the effectiveness of the project. It may be used by the management to decide as to what extent benefits outweigh the costs. The costs associated with the proposed business system are the expenses arising from developing, installing, training and implementing the systems. The benefits are the advantages [...]

The need for providing considerable amount of depreciation over the useful life of an asset comes up  for the following purposes:
1. To Ascertain the Correct Profit or Loss: The first objective is to ascertain the correct profit or loss. If depreciation is ignored, the loss that is occurring (though not being paid for in cash) in respect [...]