the system of recording and summarizing business and financial transactions and analyzing, verifying, and reporting the results also : the principles and procedures of this system studied accounting as a freshman.

the system of recording and summarizing business and financial transactions and analyzing, verifying, and reporting the results also : the principles and procedures of this system studied accounting as a freshman.

the system of recording and summarizing business and financial transactions and analyzing, verifying, and reporting the results also : the principles and procedures of this system studied accounting as a freshman.

the system of recording and summarizing business and financial transactions and analyzing, verifying, and reporting the results also : the principles and procedures of this system studied accounting as a freshman.

the system of recording and summarizing business and financial transactions and analyzing, verifying, and reporting the results also : the principles and procedures of this system studied accounting as a freshman.

the system of recording and summarizing business and financial transactions and analyzing, verifying, and reporting the results also : the principles and procedures of this system studied accounting as a freshman.

the system of recording and summarizing business and financial transactions and analyzing, verifying, and reporting the results also : the principles and procedures of this system studied accounting as a freshman.

the system of recording and summarizing business and financial transactions and analyzing, verifying, and reporting the results also : the principles and procedures of this system studied accounting as a freshman.

Best Accounts Classes for Commerce Students (CA/CMA/CS/B.com/11-12th) It is a systematic process of identifying, recording, measuring, classifying, verifying, summarizing, interpreting and communicating financial information. It reveals profit or loss for a given period, and the value and nature of a firm's assets, liabilities and owners' equity. Accounting provides information on the #BestAccountsClassesforCommerceStudents

Best Video Classes for CFR for CMA Final Get India's most popular faculty CMA Final course through Pen Drive, DVD #BestVideoClassesforCFRforCMAFinal

Best Corporate Financial Reporting Class for CMA Final By CA/CMA Santosh Kumar ICMAI is the Institute of Cost Accountants of India (ICAI) formerly known as the Institute of Cost and Work Accountants of India (ICWAI). For becoming a Cost & Management Account there is a three-stage process – Foundation Course, Intermediate Course, and the Final Course. #BestCFRClassforCMAFinal

Section 54B EXEMPTION ON TRANSFER OF URBAN AGRICULTURAL LAND In order to avail exemption under section 54B of the Income Tax Act, 1961, the assessee is required to acquire new agricultural land within a period of two years from the date of transfer. Only on fulfilling the said condition, exemption under section 54B is available #Section54BEXEMPTIONONTRANSFERFURBaNAGRICULTURALLAND

EXEMPTION ON TRANSFER OF HOUSE PROPERTY USED FOR RESIDENCE Exemption under section 54 can be claimed in respect of capital gains arising on transfer of capital asset, being long-term residential house property. To claim exemption under section 54, another house should be purchased within a period of one year before or two years after the date of transfer of house #EXEMPTIONONTRANSFEROFHOUSEPROPERTYUSEDFORRESIDENCE

Capital Gain- MISCELLANEOUS TOPICS The person buying the property must deduct taxes at the rate applicable to the NRI's income slab, if the property is a short term asset. If the property is a long term asset, 20% LTCG tax applies. ... Accordingly, short term capital losses can be set off against any income under capital gains be it short term or long term #CapitalGainMISCELLANEOUSTOPICS

Section 50CA (Introduced Vide the finance Act, 2017) FULL VALUE OF CONSIDERATION IN CASE OF UNQUOTED SHARES Finance Act, 2017 inserted new section 50CA in the Act w.e.f 1st April, 2018 to provide that where consideration for transfer of unquoted equity share of a company is less than the FMV of such share determined in accordance with the prescribed manner, the FMV shall be deemed to be the full value of consideration

Manner of Calculating Depreciation under Income Tax Act Section 32(1) of the Income Tax Act 1961 says that depreciation should be computed at the prescribed percentage on the WDV of the asset, which in turn is calculated with reference to the actual cost of the asset. When an assessee is acquiring the asset in the previous year then the actual cost becomes the WDV. #MannerofCalculatingDepreciationunderIncomeTaxAct

Rates of Depreciation- PGBP "Electrical fittings" include electrical wiring, switches, sockets, other fittings and fans, etc. 5A. Rate of depreciation shall be 40% if conditions of Rule 5(2) are satisfied. #RatesofDepreciationPGBP

Assets on Which Depreciation is Admissible Depreciation is allowable as expense in Income Tax Act, 1961 on basis of block of assets on Written Down Value (WDV) method. Depreciation on Straight Line Method (SLM) is not allowed. Block of assets means group of assets falling within a class of assets for which same rate of depreciation is prescribed #AssetsonWhichDepreciationisAdmissible

Section 145 METHOD OF ACCOUNTING Section 145(1) provides that income chargeable under the head “Profits and gains of business or profession” or “Income from other sources” shall be computed by either cash or mercantile system of accounting regularly employed by the individual who is paying taxes. #Section145METHODOFACCOUNTING

Debentures issued as a collateral security Debentures issued as collateral security is secondary or parallel security for the original loan taken by the company. The lender can realize the collateral security in case borrower fails to make the payment of the original loan. #Debenturesissuedasacollateralsecurity

ISSUE OF DEBENTURES A debenture is a type of debt instrument unsecured by collateral. Since debentures have no collateral backing, debentures must rely on the creditworthiness and reputation of the issuer for support. Both corporations and governments frequently issue debentures to raise capital or funds #ISSUEOFDEBENTURES

Over Subscription and pro- rata Allotment Oversubscription and pro-rata allotment. Over subscription is the application money received for more than the number of shares offered to the public by a company. ... The company may reject some applicants in full, i.e., no shares are allotted to some applicants and application money is refunded. #OverSubscriptionandprorataAllotment

Shares Issued at Premium(section 52) A company issues its shares at a premium when the price at which it sells the shares is higher than their par value. This is quite common, since the par value is typically set at a minimal value, such as $0.01 per share. The amount of the premium is the difference between the par value and the selling price #SharesIssuedatPremium

Minimum Subscriptions of Shares Minimum subscription is the term which is used to represent the amount of the issue which has to be subscribed or else the shares can't be issued if it is not being subscribed #MinimumSubscriptionsofShares

TYPES OF SHARES Most classes of share will fall into one of the below categories of types of share: 1 Ordinary shares. 2 Deferred ordinary shares. 3 Non-voting ordinary shares. 4 Redeemable shares. 5 Preference shares. 6 Cumulative preference shares. 7 Redeemable preference shares #TYPESOFSHARES

MEANING OF SHARES In simple Words, a share or stock is a document issued by a company, which entitles its holder to be one of the owners of the company. A share is issued by a company or can be purchased from the stock market. By purchasing a share you can earn a portion of the company and by selling the shares you get capital gain. #MEANINGOFSHARES

TYPES OF COMPANIES The most common types of companies are: Royal Chartered Companies. Statutory Companies. Registered or Incorporated Companies. Companies Limited By Shares. Companies Limited By Guarantee. Unlimited Companies. Public Company (or Public Limited Company) Private Company (or Private Limited Company) #TYPESOFCOMPANIES

SALIENT FEATURES OF A COMPANY Following are the broad features of a company: Incorporated Association: ... Independent Legal Entity: ... Separate Property: ... Perpetual Existence: ... Common Seal: ... Separation of Ownership and Management: ... Limited Liability: ... Transferability of Shares: #SALIENTFEATURESOFACOMPANY

FINAL ACCOUNT OF MANUFACTURING ENTITIES The manufacturing entities generally prepare a separate Manufacturing Account as a part of Final accounts in addition to Trading Account, Profit and Loss Account and Balance Sheet. ... Manufacturing costs of finished goods are then transferred from the Manufacturing Account to Trading Account. #FINALACCOUNTOFMANUFACTURINGENTITIES

What is a BALANCE SHEET In financial accounting, a balance sheet or statement of financial position or statement of financial condition is a summary of the financial balances of an individual or organization #WhatisaBALANCESHEET

FINAL ACCOUNTS OF NON-MANUFACTURING ENTITIES In other words, non-manufacturing entities do not process the goods purchased and sell them in its original form. Meanwhile it indulges in some liabilities, makes some assets and also incurs some expenses like salaries, stationary expenses, advertisement, rent etc to run the business #FINALACCOUNTSOFNONMANUFACTURINGENTITIES

Methods of Preparing an Account Current When frequent transactions regularly take place between two parties, they prepare Account current. In the case of consignment, consignee prepares it. When frequent transactions occur between Bank and customers. #METHODOFPREPARATIONOFACCOUNTCURRENT

ACCOUNT CURRENT An Account Current is a statement of transactions which represents running transactions between parties. We prepare Account Current for a specific period of time. It includes interest received or charged on transactions. #ACCOUNTCURRENT

AVERAGE DUE DATE In the case of drawings, the owners draw the amounts from the business on various dates. They can settle it on one date. When different amounts are due on different dates and ultimately settled on one day the interest is calculated by means of Average Due Date. #AVERAGEDUEDATE

Types of commission The Different Types of Sales Commission Gross Profit. Glow Images, Inc / Getty Images. ... Revenue Commission. Another common form of commissions is revenue commission. ... Placement Fees. Found most often in auto sales, placement fees give a set amount for each unit sold. ... Revenue Gates. ... Understanding Your Commission Plan. #Typesofcommission

Treatment of Accounts- WHEN THE BUSINESS SENDS GOODS CASUALLY ON SALES OR RETURN Goods sent Casually. Usually, when the goods are sold to the customer, they are immediately treated as sales and the revenue is recognized. However, when the goods are sold on approval or return basis the accounting treatment is different. The sale is recorded only when the goods are approved by the buyer. #TreatmentofAccounts

Distinction between Consignment and sale The following are the key differences between consignment and sale: ... The parties to a consignment are consignor and consignee whereas the parties to the sale are buyer and seller. The relationship between parties of a consignment is of principal and agent, but in the sale contract, they are debtor and creditor. #DistinctionbetweenConsignmentandsale

CONSIGNMENT ACCOUNT Consignment is an arrangement in which goods are left in the possession of an authorized third party to sell. Typically, the consignor receives a percentage of the revenue from the sale (sometimes a very large percentage) in the form of a commission. #CONSIGNMENTACCOUNT

Accounting records are key sources of information and evidence used to prepare, verify and/or audit the financial statements. They also include documentation to prove asset ownership for creation of liabilities and proof of monetary and non monetary transactions. #ACCOUNTINGRECORDS

Dishonour of bill When the drawee (a person who is liable to pay) is not able to make the payment on the date of maturity of a bill, a bill is said to be dishonoured. ... Dishonour of a bill can be either by non-acceptance or non-payment. A dishonoured bill is equivalent to the bounced cheque #Dishonourofbill

Discounting of bills Featured snippet from the web Discounting of bills refers to a facility in which holder of a bill of exchange can get the bill discounted with bank before the maturity. After deducting the commission, bank pays the balance to the holder. This bill is then presented to seller's customer and full amount is collected #Discountingofbills

Negotiability negotiability. Characteristic of a document (such as a check, draft, bill of exchange) that allows it to be legally and freely (unconditionally) assignable, saleable, or transferable. It allows the passing of its ownership from one party (transferor) to another (transferee) by endorsement or delivery. #Negotiability

Distinction between Bills of Exchange and Cheque The Cheque is the document which contains an order to the bank to pay a certain amount of money from the account of the customer. The Bill of Exchange is the document which contains an order to drawee to pay a certain amount to the payee on demand or after certain time period #DistinctionbetweenBillsofExchangeandCheque

What is Cheque A cheque, or check, is a document that orders a bank to pay a specific amount of money from a person's account to the person in whose name the cheque has been issued. The person writing the cheque, known as the drawer, has a transaction banking account where their money is held #WhatisCheque

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Imprest System of Petty Cash An imprest system of petty cash means that the general ledger account Petty Cash will remain dormant at a constant amount. ... (Replenishment means getting the total of the currency and coins back to the imprest amount.) The petty cash custodian will cash the check and add the amount to the other cash. #ImprestSystemofPettyCash

PETTY CASH BOOK Petty Cash Book is an accounting book used for recording expenses which are small and of little value, for example, stamps, postage and handling, stationery, carriage, daily wages, etc. These are expenses which are incurred day after day; usually, petty expenses are large in quantity but insignificant in value. #PETTYCASHBOOK

CASH BOOK AND ITS KINDS A cash book is a subsidiary to the general ledger in which all cash transactions during a period are recorded. The cash book is recorded in chronological order, and the balance is updated and verified on a continuous basis. There are three common types of cash books: single column, double column, and triple column #CASHBOOKANDITSKINDS

Advantages of subsidiary book It enables the division of work among accounting personnel by assigning with separate books and it increases efficiency of personnel as they perform same activities daily. It helps to save time and labor by recording similar type of transactions in a separate book. #AdvantagesofSubsidiaryBooks

SUBSIDIARY BOOKS Subsidiary Books are those books of original entry in which transactions of similar nature are recorded at one place and in chronological order. In a big concern, recording of all transactions in one Journal and posting them into various ledger accounts will be very difficult and involve a lot of clerical work. #SUBSIDIARYbOOKS

Short Note on Trial Balance Trial Balance is a list of closing balances of ledger accounts on a certain date and is the first step towards the preparation of financial statements. ... Asset and expense accounts appear on the debit side of the trial balance whereas liabilities, capital and income accounts appear on the credit side. #TrialBalance

LEDGER ACCOUNTS A ledger account contains a record of business transactions. It is a separate record within the general ledger that is assigned to a specific asset, liability, equity item, revenue type, or expense type. Examples of ledger accounts are: Cash. Accounts receivable #LEDGERACCOUNTS

TRADITIONAL CLASSIFICATION OF ACCOUNTS Traditional approach. According to traditional approach, the accounts are classified into four types – personal accounts, real accounts, nominal accounts, and valuation accounts. #TRADITIONALCLASSIFICATIONOFACCOUNTS

Basic Accounting procedures-journal Entries Examples of key journal entries Accounts payable entry. When recording an account payable, debit the asset or expense account to which a purchase relates and credit the accounts payable account. ... Payroll entry. ... Accrued expense entry. ... Depreciation entry. ... Petty cash entry. #BasicAccountingproceduresjournalEntries

What is JOURNAL A journal, from the Old French journal, may refer to several things. In its original meaning, it refers to a daily record of activities, but the term has evolved to mean any record of activities, #WhatisJOURNAL

About Accounting Standards An accounting standard is a common set of principles, standards and procedures that define the basis of financial accounting policies and practices. ... In the United States, the Generally Accepted Accounting Principles form the set of accounting standards widely accepted for preparing financial statements. #AccountingStandards

ACCOUNTING PRINCIPLES Accounting principles are the rules and guidelines that companies must follow when reporting financial data. The Financial Accounting Standards Board (FASB) issues a standardized set of accounting principles in the U.S. referred to as generally accepted accounting principles (GAAP). ... Economic entity principle. #ACCOUNTINGPRINCIPLES

Area of service of Accountant Accounting and auditing These are the main services provided by accountants. Accounting services include perfecting of financial services, preparations of tax returns, track expenses and revenues, producing financial records and provide consulting to a business #AreaOfserviceofAccountant

Users of Accounting Information Important Points to Remember Examples of internal users are owners, managers, and employees. External users are people outside the business entity (organization) who use accounting information. Examples of external users are suppliers, banks, customers, investors, potential investors, and tax authorities. #UsersofAccountingInformation

Golden Rules of Accounting The Golden Rules of Accounting Debit The Receiver, Credit The Giver. This principle is used in the case of personal accounts. ... Debit What Comes In, Credit What Goes Out. This principle is applied in case of real accounts. ... Debit All Expenses And Losses, Credit All Incomes And Gains. #GoldenRulesofAccounting