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NEFT in india

>> May 21, 2013

NEFT in India is very good system for transferring money from one bank to another bank's branch. NEFT means national electronic fund transfer. This system uses CAS for recording the transfer.

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Centralised Accounting System

Centralised accounting system is that system in which all records are kept in one place. This place may be physical or digital. Its small form is CAS. It controls all departments and branches budgets, accounts receivables, account payable, expenditures, incomes and other transactions' records.

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How to Pass Vat Adjustment Entry in Tally

>> May 20, 2013

Yesterday, one of my follower (who is experienced accountant) came in my office for solving his accounting problem. He was taken one week ago appointment on my telephone. So, he told following problem.

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When do You Adjust the Amount of Outstanding Expenses?

>> May 16, 2013

We know that outstanding expenses are those expenses whose services, we have taken but we did not pay the cost of service. It is possible, there are lots of times when we do not pay on the time.

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Why will Some Liabilities Accounts have a Debit Balance?

>> May 15, 2013

Normally all liabilities account have a credit balance, because we have to pay the liabilities to the outside of company. But it is possible some liabilities account have a debit balance. I can explain, when this situation will happen?

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How to Configure Ratios

>> May 14, 2013

Configure's dictionary meaning is to give shape or try to best for calculating optimized answer according to our requirement. Configure the ratios means to calculate the ratios on your calculator and try to change the figure and check whether answer is more close of our requirement. For example, we need our current ratio 3 :1, so we will change some current assets or change some current liabilities and then check the answer.

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How to Calculate Debt Capacity of Company

>> May 13, 2013

Debt capacity means capacity of company to repay the Debt. To calculate the debt capacity of company is effected by lots of factors. But on the basis of risk and return in company, we can calculate or measure the debt capacity.

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Estimation for Working Capital

>> May 12, 2013

From the following information prepare an estimate of working capital required to finance level of activity of 312000 units p.a.. (52 weeks) and how will you finance the working capital
Particulars                        Per Units (Rs.)
Raw Material                     90
wages                               40
Overheads      
Manufacturing                     30
Administrative                     40
Selling                                10
                                       ------------
                                        210
profit                                   40
                                         ---------
Selling Price                     250
                                       -----------

Other Information:

1. Raw Material are held in stock for a period of 4 weeks. 
2. Materials remain in process for 2 weeks requiring 50% wages and 40% overheads. 
3. Finished goods remain in stock for period of 4 weeks 
4. Credit allowed to customers is 8 weeks but 20% of the invoice price is collected immediately. 
5. Time lag in payment of wages is 1.5 weeks and in overheads is 4 weeks. 
6. Credit available from suppliers is 4 weeks but 20% of creditors are pain 4 weeks in advance. 7. Bank balance is to be maintained at Rs. 60000.

Abhijit from India

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Consolidated Per Shares, Stocks

 Sam Corporation has 100,000 outstanding shares of $10 par common stock and 5,000 outstanding shares of $100 par, cumulative 10% preferred stock. Sam's net income for the year is $300,000, and its stockholders' equity at year end is as follows:

Total Stockholders' Equity

$5000 10% cumulative preferred stock, $100 par
100,000  Common stock, $10 par
$ 600,000 Additional paid-in capital.
$ 400,000 Retained earnings

Par Corporation owns 60 % of the outstanding common stock of Sam, acquired at a fair value equal to book value several years ago. Compute Par's investment income for the year and the balance of its. Investment in Sam account at the end of the year.

Suganya from India 

Dear Suganya, Answer is very simple, you just multiply 60% with $ 10,00,000 and it will be $ 6,00,000
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Reimbursement Entry

Sir
Generally we used to pay various taxes on behalf of our client through online and after that collect the cheque of that same amount so in this regard please advise the best journal entry for these type of payment in tally Erp 9.
Ex Suppose we paid Rs. 100 of Mr. Ram as Income Tax Payment and subsequently takes a cheque of Rs. 100 from Mr. Ram so what type of entry has to passed in Tally. Please guide

Himanshu from India

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