Authorised capital & paid up capital
What is authorised capital and how different it is from paid up capital? What is its importance while analysing a balance sheet of a firm?
How to pass a JV when we receive bill including service tax? How to close this a/c?
If we can cliam Service Tax:
Exp A/C Dr
Service Tax A/c Dr
To Vendor's A/C
If we can not claim service tax :
Exp A/c Dr
To Vendor A/C(With Gross Amount)
Entries to post is Expense A/C Dr.Tax A/C Dr.Vendor A/C Cr.Upon end of each month we will file return wi...
In capital budgeting irr is the rate at which npv equals to a. Positive one b. Negative one c. Zero d. None of these
c. Zero
If irrevocable letter of credit is backed by a cd. How do you account for it? Will it be on balance sheet or is it just a footnote item?
Letter of credit is always backed by Fixed Deposit. Bank does not issue letter of credit unless and until it has tangible securities provided by you pledged in bank's favour.Moreover bank charges ...
How will you treat pre-paid insurance in balance sheet?
The words "pre-paid insurance" are self explanatory.What is pre-paid insurance? The insurance that is paid in advance, before due date. This is treated like current asset. The exact treatmen...
A survey showed that average sales of a shopkeeper during last three days have been 45. If the sales on first and second day have been 34 and 5 find out the sales of third day.
I believe this is not really an accounting question.
The answer I think is- 96 units.
Explanation: Average of last 3 days is 45 that means total sales 45x3= 135 units
1st day sales is 34 and 2nd day 5. That means 135-(34+5) = 96 units.
Correct me if I am wrong.
Volume of trade in a company over past four days has been 3431, 4532, 2789, and 5467. Find out the rate of changes day to day.
Again an arithmetics question.
1st day 3431
2nd day 4532 = ((4532-3431)*100/3431) = 32.08977 % change
3rd day 2789 = (2789-4532)*100/4532 = -38.4598 % change
4th day 5467 = (5467-2789)*100/2789 = 96.02008 % change
Is this what you are asking for?
Karamat sahoo spends 34% of his salary in clothing. If 30% of karamat sahoo's salary is 3456 rupees then find his expenditure on clothing.
Seems to be a simple arithmetics problem.
if 30% = 3456 then 100 % = (3456/30)*100 = 11520
So 34% = 115.2*34 = 3916.80
So he spends Rs. 3916.80 on clothing.
Seems a pagal guy, itna kharcha kapdon pe kyon kar raha hai? :)
What is most challenging task for the team leader?
The most challenging task is to make your people listen to you.
In other words, they should really not have guts to go against you. I know it may sound very dictatorial but it is how it should be.
A horse should not be friend of "Chana" that he eats, as they say.
Why it is necessary to create contingent liability? How this liability helps the banker to relieve from the future liability due to default in payment by the concerned party?
It is not necessary to create contingent liabilities.If any such liability exists then it must be shown in the balance sheet. But you don't have to create any for the heck of it.Moreover it does n...
Give an example of cash flow which will determine the break even point and the percentage of roi.
The question is incomplete.If you want to know break even point then you need to know fixed and variable costs and sale price.Moreover if you want to know Return Over Investment (ROI) then you need to...
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.
Rates and ratios are often interpreted as same. Differentiate between the two giving at least two examples?
Rates and ratios have utterly different meanings.Rates may mean the charges per unit. While ratios mean the ratio of one variable to other.Rates are expenses which are debited to profit and loss accou...
Capitalized property and equipment
When can costs subsequent to acquisition of property plant and equipment are capitalized?
When any fixed asset is purchased then all costs related to installation of the machinery and repairy (only major repairy) are capitalised.There can be quite number of expenses associated with the ass...
What is the meaning contribution margin ? How is use ? Etc
In cost accounting the concept of Contribution exist. Costs are bifurcated into Fixed and Variable. Equation is simple: fixed cost + variable cost + profit = sale pricein short sale price - variable c...
Cost and management accounting
Differeciate between cost accounting and management accounting.
As far as I know, Cost accounting is related only to the cost factors.And management accounting is related to the managerial decision making based on accounting details.Cost accounting include:Cost Sh...
Calculation of turnover in construction comapanies? What is the use of turnover? If turnover was not announced annualy, what are the problems arised?
In general context turnover means volume of sales in case of Construction compay turnover means Projects complted in a particular period . with the hepl of turnover one can assess the efficiency and profitabllity of the company
Turnover means total sales from strict accounting sense.Few liberals would also say that turnover means total purchase + total sales.It really depends on your viewpoint. But for a construction company...
Business processes and finance operating model within the domestic arena...Means what..? Please explain
Ok. It seems that you are working for some Indian company.Domestic arena means within India or US wherever. The opposit of domestic is international. So international arena means that the software may...
Interview questions for financial analyst
What are the generally asking questions for the position of financial analyst
I don't know whether you mean the person who will work in management as financial analyst or the person who would work in IT as Business Analyst under the name Financial Analyst.Anyway following t...
Business analyst hedge accounting (or deriVATive accounting)
This is for any of you who have worked in a role of ba hedge accounting.I need to get an idea of your role in that position.Who are the stakeholders? Do you need to have an in depth knowledge of deriVATive products?Any further detail will be helpful thanks
Hi,
Even I want to work as Business Analyst. I am looking for BA position. As far as derivatives are concerned they are very simple to study.
Obtaining in-depth knowledge of derivatives is not much difficult.
Vasudeo
What do you mean by rectification
There are three types of errors possible.Error of commissionError of omission andError of principleIn error of commission, the right amount is posted in wrong account.Say I buy something from you so i...
If any errors are made in accounting like posting wrong amount, posting to wrong account, making partial entries or giving credit to the account instead of debit etc all these kind of errors are commi...
Explain what is money market?
Money market is the market of money.Just like goods and services are sold in market money itself is also sold.That does not mean foreign currency. I mean when you buy short term deposit, treasury bill...
where we can do short time transaction of money. In money market we can borrow money for short time.
What is meaning of stale cheque?
The words are self explanatory. Each negotiable instrument has a validity. No financial instrument can be given for indefinite period. A cheque which has crossed maximum 6 months from the date o...
If the cheque date is older than the six month to current date that is called Stale Cheque. This is not a valid cheque and banker will not accept.
For Ex: Current date 05-Jun-2008 if cheque date is 4-Dec-2007 or before cheque will be stale.
Financial accounting and reporting
What are the major areas of differences in financial accounting and reporting practices observed around the world? In what areas are there substantial similarities?
I must admit. This is one of the best questions ever asked in this forum.
I don't know the answer. And I want the answer. I believe the answer can be given only by someone who is experienced in different accounting practices worldwide.
What are the documents require for the payment?What are the expenses are made in inventory stock?
In making payment for buying stock/goods we need invoice/bill and lorry receipt or bill of lading. If the goods are brought via air transport then airway bill or whatever name it is called by.And then...
Hi friends,i have a problem with suspense account. I been working for some organization and they have been getting this suspense account error since 2003. But its a big organization and they didn't consider it as a problem so far..But now-a-days this suspense account is increasing rapidly and decreasing...
I have worked for "Westpac Banking corporation" which is largest bank of Australia. I was in suspense team. In suspense accounts generally value comes when the values moves from sub ledger to ledge...
To clear suspends account in oracle finance.we have to assign suspends account type in at our chart of accounts as liabilities account type.in values of account segment.then go to accounting setups op...
Explain about real account, personal accounts and nominal accounts
Personal A/c means A A/c which related to a person. There are two types, Neutral Person(Rams A/c, Mohans A/c etc.) And Artificial person(With related to a group of person or firm for example( Pacl I...
real accounts means: Dr what comes in and Cr what goes out:;;;;;;; In which includes all assets and liabilities for exp: bank ,cash ,loan, creditors ,building personal accounts means: Dr. the recei...
What is miscellaneous expenses & why they carry forward every year
Miscellaneous expenses are those expenses which are very minor/small in nature.Any expense which cannot be debited to any expense account is debited to misc exp a/c. Examples: donations given to someo...
Miscellaneous expenses are the petty expenses, which every business incurr in their day to day transaction, these could be refreshment expenses, conveyance, postage etc. for accounting these expenses ...
Liabilities are on lEFT side and assets on right side in balance sheet
Why always liabilities are on lEFT side and assets on right side in balance sheet?
The accounting equation is Assets= Liabilities + Stockholders Equity
As you can see the assets are on the left and Liabilities are on the right. On the Balance sheet Assets are reported first and Liablities and Stockholders Equity after.
It is nothing but convention.
In United States they mention Assets on left and Liabilities on the right side.
Vasudeo
How do you calculate sensex points?
Sensex or for that matter any index in any capital market acts as the barometer of the economy. When economy is on rise then the index shoots up and vice-versa.There is presumed to be co-relation betw...
SENSEX is calculated using the "Free-float Market Capitalization" methodology. As per this methodology, the level of index at any point of time reflects the Free-float market value of 30 com...
What is meant by reserves?
The word reserves is always used along with Surpluses.Surplus means any trading/business surplus in any financial year. While reserve means money kept aside for specific purpose.Example: General Resev...
Reserve is nothing but money kepting a side for future expenses/payments i.e. unknown expenses.
What is amortization?
1. The paying off of debt in regular installments over a period of time. 2. The deduction of capital expenses over a specific period of time (usually over the asset's life). More specifically...
Amortisation is a concept very similar to depreciation.In case of depreciation, it is charged to assets marking reduction in their value.In case of loans the repayment means amortisation.In case of ce...
What are debt securities?
Debt securities are the securities which are debt in nature.There are 2 kinds of funds raised by any company or government. 1st is called equity and 2nd is called debt. A company can raise both while ...
What is minority interest?
Minority means lower than 50%.Minority interest means the amount invested by minority.Generally minority interest is never calculated. It is calculated only when one company takes other company over. ...
Minority interest in business is an accounting concept that refers to ownership of a company (subsidiary) that is less than 50% of outstanding shares.
I am exactly not a mathematician. But I tried following thing:
d/(m-3) -d/m = 3d/m^2-3m
So the answer is that each of them will have to contribute $ 3d/m^2-3m
Tell me if I am wrong.
Ordinary shares and preference shares
What is the difference between ordinary shares and preference share?
Ordinary shares better knows as Equity shares have following characteritics:a. They can participate in Annual General Meeting and voteb. They do not have any fixed rate of return (dividend)c. Th...
Preference shares have the preference over ordinary shares when it comes to dividend and repayment of capital
Explain about variable cost along with few situations where you would use variable cost .
Costs are bifurcated into 2, Fixed cost and variable cost. In fact the third category also exist which is Semi variable cost.Fixed costs are those costs which do not vary with the production level. Li...
variable cost varies with level of out put but the per unit cost of variable items is fixed.
eg: production of "x" no. of units where the cost varies with no. of units produced.
Who invented double entry system?
It is not really known but the one who is credited for the same is LUCA DE BARGO PACIOLIhe was calss mate of Leonardo da Vinci.book Summa de arithmetica in 1494 was wrote by himThis book mentions doub...
Computer accounting over paper accounting advantages
What are the advantages of computer accounting over paper accounting?
There are more than thinkable advantages of computers for accounting purposes.First: For management accounting purpose, or for that matter if you are running a company, you need to know exactly whethe...
since accounts are prepared throu computers frauds cannot be commited easilyand also with the help of tally u can easily pass journal entry and also finalisation of accounts
What do you mean by money laundering?
The term Money Laundering has American origin as far as I know. Laundry is such a business which is entirely cash driven. There is no question of debots. Few people used to open laundry without actual...
Finalisation accounts preparation
How to prepare finalisation accounts?
The final accounts are:Manufacturing Account,Trading Account,Profit And Loss Account,Profit and Loss Appropriation Account andBalance Sheet.The process of finalisation is something like this:Prepare a...
First of all we journalise the entries, and post into the ledgers and again prepare the trial balance after that trading and profit & loss a/c, balance sheet. Again we will have to analyse the all aspects for decision making
What is departmental accounting? Give an example
Departmental accounting is not a norm as far as I know.It is so because, each department does not need to calculate its profits or losses.In case where the company needs any department or a set of dep...
departmental accounting means account prepared separately for the department and here ledgers will be opened trial balance will be prepared and also p&l account will be prepared and profit or loss is included in the main p&l account and also shown in the balance sheet
The word budget means financial planning activity.Capital Budgeting means financial planning for long term capital expenses.A company may think of diversification, backwardation, forwardation, merger ...
Capital Budgeting is a way to justify capital expenditures. It's done to see if the added benefit of a capital purchase, ie increased revenue or decreased expense, exceeds the cost of capital.
Cash FlowIt is a Statement showing changes in inflow & outflow of cash during the period.A. Operating Activities,B. Investment ActivitiesC. Financial ActivitiesThe CFS allows investors to und...
Changes in working capital due to Non Current Transaction is called Fund Flow and Changes in Working capital due to current and non current transaction is called Cash Flow.
How can one inflate its profits to show increased profits for any financial year ending
One of the most significant aspects of expenses is Depreciation.By changing the method of depreciation one can inflate profits. From straight line to reducing balance method without retrospective effe...
Accounting manager - interview questions.
Tell me about a time you identified a problem and came up with the solution?What did you do?Describe a typical day at your current employer?Describe a project that required a high amount of energy over an extended period of time?What did you do to keep enthusiasm up?What are your daily challenges?How...
Friend,The questions you have posted are quite common questions and are no way related to accounts manager as such.Anyway, Accounts manager is the person who looks after all books of accounts, ledgers...
Accounting Manager means, a person who is maintain the detail of record of a particular Assets, liabilities, owner's equity, revenue, or expenses.
Dear Friend,I work in a company engaged in capital market. Now your questions. What would you do if you did not have to work for a living? This is more or less a personal question and hence answer it ...
What is mean by working capital?
Many people gave very precise and appropriate answer of this question here. Let me also try.In a balance sheet of any company the liabilities are bifurcated into a) capital, b) loans and c) curr...
working capital mean by current assets minus current libialities
Shadow Balance in bank accounts is the balance upto which the subsequent debits/credit can be posted upto. Shadow Balance = Book Balance - Debit/ Book Balance+Credit (yet to be authorised for postin...
Shadow balance is that balance which is not yet clear.Consider any company's case.Company has given money to someone by a cheque. Then they have shown in their cash book that money has been given....
The balancing, in strict sense, means tallying both the sides of any account and carrying forward balancing figure.In double entry book keeping system the books are supposed to tally automatically. Bu...
Balancing in simple terms mean balancing your Debit and Credit side of any account be it Trading ac, Profit&Loss ac etc.
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Answered by: vasudeo007
View all answers by vasudeo007
Member Since Jul-2008 | Answered On : Aug 18th, 2008
The word "Turnover" has many meanings.
For a trader/manufacturer/service provider it means total sales (cash+credit).
While when a bank gives loan to any person or company they see the turnover.
Here the turnover generally refers to the total credits in any given period in account holder's account.
While bank's own turnover is the total loans disbursed + outstanding recovery of earlier period - bad debts (loans written off) in this period.
Considering the disclosure norms in Accounting Standards the announcement of turnover is required. I am not sure for which industries it is mandatory and for which industries it is not. But it is nevertheless announced.
Balance sheet of any company can be easily window dressed. So to understand whether whatever profits that are shown are really from turnover or not the announcement of turnover becomes necessary.
In case if a person/investor finds out that the turnover of any company is not high but the company is saying that they have made big profits then he can probe in details as to how the company is making its money.
In case if the investor finds out that the company is selling the goods to a huge quantity but not making much profits then he can investigate the books of accounts to find out what are the causes of low profitability.
Vasudeo.
an aspest-
how the management efficiency is being turned around in terms of quantity being sold on technology, cost, human & time constraints.
note-these constraints can be prioritized.
The word "Turnover" has many meanings.For a trader/manufacturer/service provider it means total sales (cash+credit).While when a bank gives loan to any person or company they see the turnove...
Retail banking refers to banking in which banks undergo transactions directly with consumers, rather than corporations or other banks. ...
Banking is informally bifurcated into 2: whole sale and retail.wholesale banking means the lending in bigger volume to fewer borrowers.While retail banking means lending in smaller quantity to large n...
What is double entry book keeping
Double entry book keeping system was first mentioned by "Luca De Bargo Pacioli" in his book Summa de arithmetica in 1494.He was a classmate of Leonardo Da Vinci. The book Summa De Arithmetica was basi...
Simple, double entry book keeping , actually we know that every thing have two aspect , in accounting systems each and every transaction treats as two aspects reciever/giver, what comes/ what goes out...
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
Frankly, no answer is possible. Because the data given is incomplete. It does not mention what speed the other train is coming.
Unless and until that data is received we cannot go ahead with solving.
Regards,
Vasudeo
First answer is correct..
175m in 7.5 secs
220m-- ? secs
9.42Seconds
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Authorised capital is the capital which a company is authorised to issue to the general public, it cannot issue more than that limit. Paid up capital is the actual amount of capital which the public has subscribed.
Authorised Capital: The capital which is maximum capital the company can raise in its life time. Hardly any company issues capital which is equal to authorised capital.Paid up capital: Paid up capital...