>> May 23, 2013
Value of firm means if today firm is sold to anybody what amount will be given to the partners of that firm. Today, everyone is smart. Everybody will study the financial statement of firm. By analysis the balance sheet and current market value of firm's assets, anybody can calculate the value of a firm.
>> May 21, 2013
>> 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.
>> 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.
>> 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?
>> 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.
>> May 13, 2013
>> 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
Selling Price 250
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