What is Book Keeping and a comparison with Accounting. Find Everything related to Book Keeping, Here we are providing complete details for What is Book – Keeping and a comparison with Accounting like – activities involved in Book keeping, Book keeping ensures etc. Recently we provide complete details for What is Debit and credit explained … Read more
Stages of Accounting: As per this definition, accounting is simply an art of record keeping. The process of accounting starts by first identifying the events and transactions which are of financial character and then be recorded in the books of account. This recording is done in Journal or subsidiary books, also known as primary books. … Read more
Accounting standard 28 Impairment of Assets: The objective of AS 28 is to prescribe the procedures that an enterprise applies to ensure that its assets are carried at no more than their recoverable amount. The asset is described as impaired if its carrying amount exceeds the amount to be recovered through use or sale of … Read more
Journal – Meaning: Process and Types of Journal Entries. Journal is the first stage of recording business transactions. It is called as “Book of original entry” After receiving the source documents related to business transactions entries are recorded in the journal, which is called Journalizing the transactions. Journal provides base for whole Accounting process by … Read more
Factoring How does it work – Factoring is an activity in receivables management system which facilitates a company to get the cash immediately on real time basis. If you like this article then please like us on Facebook so that you can get our updates in future ……….and subscribe to our mailing list ” freely … Read more
Accounting Cycle: When complete sequence of accounting procedure is done which happens frequently and repeated in same directions during an accounting period, the same is called an accounting cycle. Accounting cycle starts from the recording of individual transactions and ends on the preparation of financial statements and closing entries. The accounting cycle is the name given to the collective … Read more
Weighted Average Cost of Capital (WACC) is defined as the weighted average of the cost of various sources of finance, weight being the market value of each source of finance outstanding. To balance financial risk, control over the company and cost of capital, a company usually does not procure entire fund from a single source, … Read more
Brand impairment testing and compliance with mandatory Ind AS disclosures. The shifting from IGAAP to Ind AS has resulted in change in accounting for intangible assets, particularly for ‘Brand’. Earlier accounting standard on intangible assets (IGAAP AS-26) prescribes amortization of brand whereas new accounting standard (Ind AS-38) prescribes. Transition from IGAAP to Ind-AS has resulted … Read more
Internal Control – Meaning, Objectives, Scope, Limitations. As per SA-315, the internal control may be defined as “The process designed, implemented and maintained by those charged with governance, management and other personnel to provide reasonable assurance about the achievement of an entity’s objectives. Now you can scroll down below and check more details from below…. … Read more
General Journal: This is also known as Journal Proper or General Journal. It is used for making the original record of such transactions for which no special journal has been kept in the business. All transactions are first recorded in the journal as and when they occur; the record is chronological; otherwise it would be difficult to … Read more
Ind AS 41, Agriculture: The objective of Ind AS 41 is to prescribe the accounting treatment and disclosures related to agricultural activity. Agricultural activity is the management by an entity of the biological transformation and harvest of biological assets for sale or for conversion into agricultural produce or into additional biological assets. Biological transformation comprises the processes … Read more
Subsidiary Books: Introduction and Advantages of Subsidiary Books. In a Business, most of the transactions generally relate to receipts and payments of cash, sale of goods and their purchase. It is convenient to keep a separate register for each such class of transactions one for receipts and payments of cash, one for purchase of goods … Read more
LedLedger Accounts – Principal Book of Accounts: All journals are posted into ledger chronologically and in a classified manner Ledger is the principal book of accounts where similar transactions relating to a particular person or property or revenue or expense are recorded. It is a set of accounts. It contains all accounts of the business enterprise … Read more
Goodwill Impairment Testing Disclosures under Ind AS: Transition from IGAAP to Ind-AS has resulted in change in treatment of goodwill. IGAAP prescribe amortization if it arises on amalgamation and impairment testing if it arises on consolidation, whereas Ind-AS prescribe only impairment testing. The purpose of the current study is to provide evidence of the extent … Read more
Objectives of Accounting: Business is an economic activity undertaken with the motive of earning profits and to maximize the wealth for the owners. Business cannot run in isolation. Largely, the business activity is carried out by people coming together with a purpose to serve a common cause. This team is often referred to as an … Read more
Earnings Per Share (EPS) Definition – The portion of a company’s profit allocated to each outstanding share of common stock. Earnings per share serves as an indicator of a company’s profitability. EPS is a ratio that is widely used by financial analysts, investors and other users to gauge an entity’s profitability. Its purpose is to … Read more
Branches of Accounting: Accounting has universal application for recording transactions and events and presenting suitable information to aid decision-making regarding any type of economic activity ranging from a family function to functions of the national government. But hereinafter we shall concentrate only on business activities and their accounting because the objective of this study material is … Read more
Debt Equity Ratio: The debt-equity ratio is an indication of the relationship between the contribution of the creditors and shareholders /owners in the capital employed in business. It’s one of important financial liquidity ratios among all that are used to assess the performance of a company. If you like this article then please like us … Read more
Value Added statement is another form of understanding the performance or profitability of an enterprise. It shows how the benefits of the efforts of an enterprise are shared between employees, providers of finance, the state and towards and replacement and expansion. Value added can be defined as the value created by the activities of a … Read more
Costing: Preparation & Presentation of cost records and cost statements is the responsibility of the Management. Therefore, Cost Accounting Standards are guidelines for the companies [for the management] that specify the cost accounting treatment for various cost elements, minimum disclosure requirements and ensure the comparability, consistency, and completeness of cost records. le to use the word … Read more
Accounting is a very important part of running a business. Apart from managing taxes, it helps with maintaining the finances of the company. Knowing your numbers lets you make informed decisions about business strategies and future moves. You can also judge the health and success of the business through proper financial analysis. Make Accounting Easy … Read more
Rent Control Act has been enacted and implemented by all the State Governments to protect the legitimate rights of the tenants. Primarily it focuses on controlling the rent and protection of protect tenants from unauthorized eviction by landlords. Following are the key issues dealt by rent control act: 1. Rent control Act: Rent control acts … Read more
The loss suffered by a company on the sale of fixed assets, The loss suffered by the business in the ordinary course of business is called revenue loss. Capital and Revenue Losses: Revenue losses are the losses which arise during the normal course of business whereas capital losses are those which occur when selling fixed … Read more
Contingent Assets and Contingent Liabilities: A contingent asset is a potential asset associated with a contingent gain. Unlike contingent liabilities and contingent losses, contingent assets and contingent gains are not recorded in accounts, even when they are probable and the amount can be estimated. and A contingent liability is defined as a liability which may arise depending on the outcome of a specific event. It is a possible obligation which may or may … Read more
Internal Rate of Return (IRR) is that rate of return at which the present value of cash inflows is equal to the present value of cash outflows. Thus, it is that rate at which the NPV of the project will be o & the profitability index will be 1. Internal Rate of Return Before undertaking … Read more
Systems of Accounting, Basis of accounting (Cash Basis & Accrual Basis). Difference between Accrual Basis of Accounting and Cash Basis of Accounting. Cash Basis of accounting: Cash Basis of Accounting is a method of recording transactions by which revenues, costs, assets and liabilities are reflected in the accounts for the period in which actual receipts or … Read more
How to Finalize Balance Sheet & Analysis of Balance Sheet. A balance sheet is a summary of a business’s finical health on any given day. It shows a company’s assets, liabilities, and equity accounts. In this article, you can find some basic details for How to Finalize the Balance Sheet and Analysis of the Balance Sheet. If you like … Read more
Difference Between Net Salary, Gross Salary and CTC. Difference between Various Types of Salaries!. The thing for which we wait for the entire month, the thing which vanishes so quickly, the thing which gives us liquidity & helps us become an independent person is – our salary! Now check more details for “Difference Between – … Read more
Types of Cash Book: Cash book is the book in which all transactions concerning cash receipts and cash payments are recorded. Cash Book is in the form of an account. It serves the purpose of Cash Account also. On the debit side, all cash receipts are recorded while on the credit side, all cash payments … Read more
Steps to Locate Errors: Even if there is only a very small difference in the trial balance, the errors leading to it must be located and rectified. A small difference may be the result of a number of errors. The following steps will be useful in locating errors: Whenever there is a difference in the trial … Read more