What is the difference between personal account real account and nominal account ?
Difference between accounts and finance
Accounts means information system but Finance means play with money
accounting:Is an art of recording classifying and summarizing the business activities.
Finance" finance is nothing but cash.every business should maintain only cash.
Number of reconciliation
Reconciliation show the balance between pass book and cash book, and also identify the mistakes.
reconciliation is comparing the bank pass book and cash book.
Procedure of VAT and its return filing with full details?
Prepare 201 This is a summery of all purchase and all sales All purchase including folloiwng Taxable purchase on which In put tax credit is receivalbe Taxable purchase on which In put tax credit is n...
What is account payee cheque? Expand CTC cheque?
Account payee means, who wrote cheque to whom, That person must and should have bank account.
CTS : cheque transferred system.
How do u get your information from other tax years so that you can provide the right notification to the IRS.
Power bhd is considering raising new finance by a right issues of 2million new ordinary shares of rm0.50 each at rm1.60. Currently the share price is rm1.80 and the issued ordinary share capital is rm8million. Shareholders are entitled to 2 new shares for every 8 shares held. (a) how much will be...
Why depreciation is not charged on land?
Since Fixed assets are used to generate periodic revenue, an appropriate proportion of the cost of fixed assets, which is believed to be used or expired for generation of periodic revenue, needs to be...
The value of land is not depreciate therefore it is not cover in the definition of depreciation.
What is short term solvency ratio?
Ratios used to judge the adequacy of liquid assets for meeting short-term
obligations as they come due, including
1) the current ratio,
2) the acid-test ratio,
3) the inventory turnover ratio, and
4) the accounts receivable turnover ratio.
Short-term Solvency Ratios Its a ratio to measure the firms ability to meet short-term financial obligations. With this the firm will avoid financial distress in the short-run. There are two most important Short-term Solvency Ratios
1. Current Ratio.
2. Quick Ratio.
What are MIS reports and how do you prepare it?
MIS Reports means management information system.which helps to analysis the monthly inflow and out flow of money, stock, staff performance.Not only monthly through MIS reporting we can compare yearly performance .
Report which gives the clear picture of input and output also helps us to improvise the business. The data for this report may vary business to business.
Example:
1. For finance it could be balance sheet.
2. For HR it tells about the attrition rate, headcounts.
Retail invoice is raise when any thing will sale out and the cash receipt will issue against any collection will be made
How to make a VAT entry in books including setoff?
Answered by: mcgozon
Member Since Mar-2009 | Answered On : Mar 26th, 2009
1. Purchases
Accounts Payable xxx
VAT Input xxx
Cash in Bank xxx
Purchases recorded for the month.
2. Sales
Accounts Receivable xxx
Sales xxx
VAT Output xxx
Sales recorded for the month.
3. Set Off
VAT Output xxx
VAT Input xxx
VAT Debit & Credit Account xxx
Transfer of Surplus to VAT Debit & Credit Account.
4. Payment
VAT Debit & Credit Account xxx
Cash in Bank xxx
Payment of VAT reported for the month of ______.
1)purchese a/c dr,input vat a/c dr, ramana a/c cr
2) RAJU A/C DR ,SALES A/C CR,OUTPUT VAT CR ,
1. purchase a/c Dr
vat input a/c Dr
to Bank/Creditor a/c
2. Bank/ Debtors a/c Dr
to Sales a/c
to vat output a/c
3. Vat output a/c Dr
to vat payable a/c
4. Vat payable a/c Dr
to vat input a/c
to Bank/cash a/c
How to work with a balance sheet, components needed to prepare a balance sheet
Balance Sheet is Prepared with the compliance of Accounting Equation A=L+C and Accounting Standards and Schedule Vi of companies Act 1956.
Balance sheet is prepared by the accounting equation. ie Assets=Capital+Liabilities .
What is the fictitious assets?
Asset created by an accounting entry (and included under assets in the balance sheet) that has no tangible existence or realizable value but represents actual cash expenditure. The purpose of creating...
1. Fictitious assets are not real assets, these assets are only imaginary assets.
2. Fictitious are assets not represented by tangible possession or property. Eg: preliminary expenses
Differentiate between standard remittance and bills receivable remittance?
Transaction for change in depreciation method
If a company change its depreciation method from straight line method to another method than what will be the impact for the difference?
It should be adjusted in only that assests account by charging extra dep. or charging less dep........
No Journal entry is needed. You just use the method that you changed to.
Recording damage inventory in books of account
A person conducts business of cell phone but unfortunately some cell phone is damage and are not able to sales. he recorded this loss in books of account through this below general entry of loss amount. cost of sales account (dr.) inventory account (cr.) is the above entry correct...
Account for letter of credit in the books
How to account for letter of credit in the books of accounts of the company ?
Once the material received the general entry will be Purchase A/c Dr XXXX To Supplier (Creditor) A/c Cr XXXXX When the L/C is opened the entry should be Supplier (Creditor) A/C Dr XXXXX To Suppl...
1-Debit the account of the applicant with us and credit the bank of the beneficary with the equal money
2-Debit applicant account with us and credit the suspense account with us when the applicant pay for us.
What is contingent liabilities?
contingent liabilities are subjected to occurrence or not of a future event. Means a liability may be arise in future or not , it all depends on a future event. So these are not actual liabilities and shown as a foot note after balance sheet .
Contingent liability refers to liabilities which may or may not occur in the future. eg:court case
What is the difference between perpetual & periodic inventory system?
In periodic costing we come to know about the cost incurred at the end of the time period, whereas in perpetual cost we know about the cost incurred at each and every moment. Perpetual inventory system uses LIFO,FIFo and average cost method
Periodic inventory method calculate ending stock at the end of the accounting period, which could be Month to Date or Year to Date, while Perpetual inventory system calculates the ending stock on a co...
Your client is preparing financial statements to show the bank. You know that he has incurred a computer repair expense during the month, but you see no such expense on the books. When you question the client, he tells you that he has not received the official bill, although he knows the expense was...
its depending on the basis he based on whether its monetary or accrual basis
As we are already aware about one of the concept of accounts i.e. prudence concept, which explains that all the expenses and losses which are to be held in near future should be recognized in advance ...
Accounts Payable Interview Questions
Accounts Receivables Interview Questions
Cost Accounting Interview Questions
Fixed Assets Interview Questions
General Ledger Interview Questions
Supervisory Interview Questions
good will is..................................... account
Personal a/c: In this account enter transactions related to persons.
Real a/c: in this account we should enter transactions related to assets.
Nominal a/c: In this a/c we should enter transactions related to Income & expenses.