Accounts

What is Promissory Notes

What is Promissory Notes There are three parties to a bill of exchange, namely, the drawer, the drawee and the payee, while in a promissory note there are only two parties - maker and payee.In a bill of exchange there is an unconditional order to pay, while in a promissory note there is an unconditional promise to pay. #WhatisPromissoryNotes

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BILLS OF EXCHANGE AND PROMISSORY NOTES

BILLS OF EXCHANGE AND PROMISSORY NOTES A bill of exchange is an unconditional written order made by the drawer on drawee to receive the specified sum within the mentioned period. Whereas, a promissory note is a written promise made by the borrower or drawer to repay the amount on a specific date or order of the payee. #BILLSOFEXCHANGEANDPROMISSORYNOTES

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Method of Providing Depreciation

Method of Providing Depreciation The following are the various methods for providing depreciation: Straight Line or Fixed Percentage on Original Cost or Fixed Installment Method. Written Down Value or Fixed Percentage on Diminishing Balance or Reducing Installment Method. Insurance Policy Method. Sum of the Digits Method. Revaluation Method. #MethodofProvidingDepreciation

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Factors affecting the amount of depreciation Measurement

Factors affecting the amount of depreciation Measurement Factors for Calculating Depreciation. There are four main factors that affect the calculation of depreciation expense: asset cost, salvage value, useful life, and obsolescence #FactorsaffectingtheamountofdepreciationMeasurement

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Concept of Depreciation

Concept of Depreciation Depreciation is an accounting method of allocating the cost of a tangible or physical asset over its useful life or life expectancy. Depreciation represents how much of an asset's value has been used up. ... For example, companies can take a tax deduction for the cost of the asset, meaning it reduces taxable income #ConceptofDepreciation

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Introduction to ACCOUNTING OF DEPRECIATION

Introduction to ACCOUNTING OF DEPRECIATION Introduction to Depreciation Depreciation is an accounting concept through which businesses calculate the declining values of their assets over time. ... Depreciation is a method of accounting which is used by a business to calculate and allocate the declining costs of its tangible assets over their useful life. #IntroductiontoACCOUNTINGOFDEPRECIATION

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Bank reconciliation Statement in case of overdraft

Bank reconciliation Statement in case of overdraft Overdraft means overdrawing of a bank account. It is the nature of a loan granted by the bank. ... Hence, reverse steps would, of course, be taken while preparing Bank Reconciliation Statement. When there is an overdraft, the bank Pass Book shows a debit balance and the Bank Account in the Cash Book shows a credit balance. #BankreconciliationStatementincaseofoverdraft

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Difference Between Error of Principle And Error of Omission

Difference Between Error of Principle And Error of Omission Difference Between Error of Omission and Error of Commission. The error of omission refers to the error in which a transaction is not at all recorded in the books, either completely or partially. ... Errors of principle indicate the error of recording a transaction against the basic convention or principle of accounting #DifferenceBetweenErrorofPrincipleAndErrorofOmission

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What is a SUSPENSE ACCOUNT?

What is a SUSPENSE ACCOUNT? A suspense account is an account used temporarily or permanently to carry doubtful entries and discrepancies pending their analysis and permanent classification. It can be a repository for monetary transactions entered with invalid account numbers. The account specified may not exist, or it may be deleted/frozen. #WhatisaSUSPENSEACCOUNT

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RECTIFICATION OF ERRORS

RECTIFICATION OF ERRORS Rectification means finding the error in the whole accounting process and correcting it by passing the rectified entry which will help you to make the corrections in the entry which are passed wrongly. The Rectification of errors can be done: ... After trial balance but before preparation of final accounts. #RECTIFICATIONOFERRORS

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SALES RETURN BOOK OR RETURNS INWARD BOOK

SALES RETURN BOOK OR RETURNS INWARD BOOK Return inward book is known as sales return book. Sales return book is a subsidiary book which records goods returned by the customers (i.e. debtors) and which had been sold on credit. Sales return book does not reco rd return of goods sold on cash basis nor does it record return of any assets sold. #SALESRETURNBOOKORRETURNSINWARDBOOK

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SALES BOOK OR SALES JOURNAL

SALES BOOK OR SALES JOURNAL The sales journal (also known as sales book and sales day book) is a special journal that is used to record all credit sales. Every transaction that is entered in sales journal essentially results in a debit to accounts receivable account and a credit to sales account. #SALESBOOKORSALESJOURNAL

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INPUT GST

INPUT GST Input Tax Credit means reducing the taxes paid on inputs from taxes to be paid on output. When any supply of services or goods is supplied to a taxable person, the GST charged is known as Input Tax. ... Input Tax Credit is also viable to a dealer who has purchased good to resale. #INPUTGST

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PURCHASES BOOK OR PURCHASES JOURNAL

PURCHASES BOOK OR PURCHASES JOURNAL Purchases journal (also known as purchases book and purchases day book) is a special journal used by businesses to record all credit purchases. All cash purchases are recorded in another special journal known as cash payment journal or cash disbursements journal. ... The invoice number for the goods purchased #PURCHASESBOOKORPURCHASESJOURNAL

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Types of Petty Cash Books

Types of Petty Cash Book Columnar Petty Cash Book and its Preparation Process. ... Imprest Petty Cash Book. ... Labor minimization. ... Control over petty expenses. ... Verification of arithmetical accuracy of petty expenses. ... Opportunity for the petty cashier to work comfortably. ... Determination of expenses. ... Fixed imprest fund. #Whatispettycashbooks

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What Is Balance ScoreCard

What Is Balance ScoreCard A balanced scorecard is a strategic management performance metric used to identify and improve various internal business functions and their resulting external outcomes. Balanced scorecards are used to measure and provide feedback to organizations. #BalanceScoreCard




Top Reviews

Introduction to Statistics for CA Foundation

Introduction to Statistics for CA Foundation Business Mathematics, Logical Reasoning and Statistics is designed as per latest CA Foundation syllabus for Paper 3 to provide a firm grounding in the principles, techniques and practice. The book adopts self-study approach and has been written in student-friendly manner. With a blend of conceptual learning and problem-solving approach, it offers in-depth understanding of the basic mathematical and statistical tools. #introductiontostatistics


Chapter X of Companies Act 2013

Chapter X of Companies Act 2013 The company shall place the matter relating to such appointment for ratification by members at every annual general meeting. ... Under the Act, the provisions for rotation of auditors in the listed Company & certain other class of Companies, have been provided for. #chapterxofcompaniesact2013


Relevant sections under the Companies Act, 2013 dealing with fraud and false statements

Relevant sections under the Companies Act, 2013 dealing with fraud and false statements The new parent corporate law “The Companies Act 2013” is mostly ... I am limiting my write-up to the provisions to the Act, and I request the readers to refer relevant rules, if any, before ... in the 2013 Act is the Section 447 dealing with “Punishment for fraud”. ... Section 448


What is Corporate Image

What is Corporate Image A corporate identity or corporate image is the manner in which a corporation, firm or business enterprise presents itself to the public. The corporate identity is typically visualized by branding and with the use of trademarks, but it can also include things like product design, advertising, public relations etc #WhatisCorporateImage


What is Energy Audit

What is Energy Audit An energy audit is an inspection survey and an analysis of energy flows for energy conservation in a building. It may include a process or system to reduce the amount of energy input into the system without negatively affecting the output. #whatisenergyaudit