>> July 30, 2009
Assignee and consignee are both accounting terms and used in business. But there are also difference between assignee and consignee .
When goods or property are transferred to assignee. Assignee gets its ownership also. Because, it is the agreement of sale . But consignee is like agent. When consignor transfers his goods or property, its ownership is of consignor, agent can only sells these consignment goods just for getting commission. So, transfer of goods or property to assignee is deemed as sale and entry of sale will be passed in the books of company or assignor. But if goods or property is transferred to consignee, it is not sale and sale entry will be only passed when goods are sold by our consignee.
Back up means extra copy of all records in any other drive of your computer. It is very useful facility when you are making company accounts and due to many reasons like light cut off , software problem , delete the company by mistake or any other reason and at that time you can get all record of respected company from its backup restoring . So , it is very necessary to make backup of your all current companies in tally.ERP 9 .
System of making backup is very easy to understand. Select the company from company info and click back up in the company info of tally.ERP 9 . After clicking backup, write the name of drive in destination and also choose the name of company whose backup , you want to make . Accept it .
Benefit of Backup
Suppose same company is deleted, after this you can not see its account in Tally.ERP 9 . Now, you can bring again in Tally.ERP 9 . For this go to company info and click restore. In restore, write the name of drive in source and choose deleted company whose backup is in that drive. After this accept this form. Now, you can recover all accounts of deleted company in Tally.ERP 9 by restoring of backup data.
Education is the third eye and it is the light which opens new way for you. When a student begins to go to school, he dreams of future that he will become doctor, engineer or Policeman etc. Do all dreams convert in reality? No, because, our school and college provides education but our target are not fixed by us. So, we walk all the time wrong way when we find our right way, we can not achieve target due to shortage of time. So, fix your target first and then do hard work to achieve them.
I remember one small story of Swet Martin which I have taught to my students in classroom for motivating them. One day an old saint was crying on his house’s first floor. He was saying, “What do you want, you will get it. One person went to him and said to him, “I want to become richest person of world by doing the business of diamonds. How can it possible? I want to tell one more thing that I have nothing to invest in business. ” That old person said, “Yes it can possible. Because what do you want, you will get it. For this you have to keep two things. He gives first diamond. He said, “This is the diamond, its name is time, do not waste your time. Value of time is equal to diamond. Take other from me. It is pearl. Its name is good work. Utilize your time to do good work. If you will use both things properly, you will surely become richest person of the world in your business. That person said to him, “you are befooling me.” I am well educated and I know commerce. There is no value of time and good works in market. If you go to any shop and sell your time and good works. You will get nothing.” After saying that, he returned home. Now again, he was wasting his time to see the dance and drinking. Due to the feature of our mind that it can remember all old things . So he remembers that yesterday one old person said that we should not waste the time. He threw the bottle of wine. Next day, he went to his uncle’s Jewellery shop. He said that he wanted to do work. His uncle appointed him as helper in his shop for cleaning the shop. He did his duty fully hard work. He did not waste the time by escaping from his duty. He understood that doing duty is good work for him. After year, he opened his own Jewellery shop in his village. After opened his shop in city. Here, he did work for one year and then he opened his branches first in state and after six month all states in his country. Now, God was with him and luck was in his pocket. After four years of his beginning of career, he started to open his diamond business’s branches in whole world. Now, he became richest person of the world and opened his head office in New York one of world famous city of world.
Now he remembers that old person who gave him this good suggestion. He goes to village for thanking him. That old saint is in same position as he was five year old. He is still crying, “What do you want, you will get it.”
Now he reaches to saint in village and touches his feet. He says that you were saying true. After five years, I realized that time is like diamond and good works are like pearls. I did not waste even one second in last five years and always did good works. So, I have become the richest person in the world in the field of diamond business. It is also true that before five years I spent 20 years but I could not do what I have done in five years. That old saint is happy and says that you have realized this thing very lately. I am still crying on this road that what do you want, you will get it and people are saying me mad. I think, you have also become mad. That person said that yes without becoming mad, we can not get success. From this story we can get idea that if students want to succeed in life, they should not waste the time and devote their time in education and think that this is the good work for them.
Swami Vivekananda also explains above things in his words that if you want to success in the life, you have to leave your narrow thinking. Because with narrow thinking, you can not think high. Without high thinking, you can not reach your success.
Besides above things, I think that practice of any work is must for getting success. Regular practice will give you power to get every thing which you want to get.
Jason of you tube’s Eclectic Asylum Art has proved it that nothing is impossible. He made Mona Lisa picture by using ms paint only and played it in video just 5 minutes and got the You tube award 2007 . But originally this painting is made within 2 hours and 30 minutes in ms paint. Watch it and think about “What do you want, you will get it ."
>> July 29, 2009
Download its free trial version from here .
>> July 28, 2009
Student life is the best life because when we study in school and college , we feel enjoy with our friends . There are many benefits of making friends in class room which I can explain you in following points
- You can discuss every problem of accounting with your friend and get good solution after discussion.
- If you have many friends , then after talking with them you can develop your communication and leadership skill in class room .
- I think friendship is the holy relation in this world and true friend is the best partner of the world . You can share him / her your personal problem also .
- I have some best friend which I made in my school and college time . I often discuss my personal problem with them and they provide me the best solution . In other words , I can say that they are my best advisers and guide .
- We can also learn the life of our friends . One of my friend name is Pardeep Dhingra .He is area sales manager in ICICI Bank . I have learnt many things from his life . He is so hard worker , fully disciplined , well educated , punctual , dedicated to his job and profession , passion to his work , innovative mind , promoter of life development , best communicator and leader . He got high position with struggle and hard work . From his life , I always get guidance to become like him . My another friend is Vikram Verma . Now he is Govt. teacher . I know him from school time . He is very peaceful personality . He always thinks very high and spiritual . His thinking level is very wide . I always learn how to increase my thinking level from him . He faced every problem of life with smile and talk everyone with sweet voice . Manish is also my friend and I can explain what he is . He is scholar and professor of English and Education . He got this position by day and night hard work . I learnt him , if a person takes challenge to do any thing he can do only after do it by passion. His Enthusiasm and strenuousness for doing the work always guides me how to get success in life .
- Dear students , do not waste time just chatting with classmates . Make classmates your best and true friend . They are your real asset who will be helpful to you in whole life . They will become your partner in your happiness and sorrow . They will give you support and direct your life . You should also ready to help your friends also . Friendship is the other name of Cooperation , sacrifice and love .
So , Enjoy friendship in class room.
>> July 27, 2009
i would like to ask you that how can i deduct salary of absent worker in tally 9. as per our company rules we deduct salary of absent worker every month .can you please solve my problem with example. and also give example of how to calculate overtime in tally 9.
We do not need to record about any deduction from salary in case of absent . If company is not giving salary on the absent time . Calculate the net salary and pass the entry either in payroll voucher or in payment voucher in tally 9.
Suppose you are working in XYZ co. and you do you did you duty just for 10 days in the whole month due to your personal problem . Company will not pay 20 days salary , if there is no rule of leave encashment or absent pay . If your salary is Rs. 20000 , then you will get only 20000 X 10/26 = Rs. 7692 . If company provides overtime salary , it is also expense of company and it is given hourly basis . I have already written that it is given double of normal salary . Suppose you have done 5 hours overtime . Then first normal salary per hour we will calculate :-
normal salary per day = 20000/26 = 769
normal salary per hour = 769 / 8 =96
overtime salary = 96 X 5 = Rs. 481
Company will pay you = Rs. 7692 + Rs. 481 = Rs. 8173
>> July 26, 2009
Dear Birendra I want to tell on your quote that ' True Guru' is deep word and I am just trying to become ' True Guru ' but I have not reached on this category . It is true that in these days without direct money reward no body do same thing what I am doing but I think on the views of Gandhi Ji , who said in his book which is written by him when he was returning from South Africa to India that before doing any action see whether it will be benefited for poorest person of world . I think that after becoming Google Search Engine ( great benevolence of Larry Page and Sergey Brin the founders ( True Gurus ) of Google ) , poorest person can get all knowledge and education with just paying Rs. 500 or $ 10 to $ 15 dollar per month Internet bill . So , I am just acting upon the great advice of Gandhi Ji .
I am also happy that whole world is learning from my Accounting Education classroom without any caste , religion , country , time and money barriers
Read Account student's original Quote which he send to my email account .
First of all, I would like to say that you are doing a great job by helping
accounts students, taking out your valuable time. Nobody does this type of
thing nowadays. You are a true guru. Keep it up. God you surely give you the
Thank you again.
For instance :
Suppose , Let's say you have farm business and you want to decide what to grow. You know that each crop will bring in a certain amount of money and take a certain amount of land, capital, and fertilizer to grow.
You can grow three things: wheat, corn, and Paddy.
Each of them has its own costs and brings in a given amount of money. However, there are only limited resources available.
Now we can solve this farm business problem with Google docs's spreedsheet . Sign in Google docs and take new spreadsheet and make the tables for above problems with following way .
[ Crop distribution must be in bushels because it is the way to measure grain ]
After showing problem in google docs's spreadsheet , then click tool button and after this click solve button .
After clicking solve button , you will see new pop up window in which you have to fill the correct information relating to your problem . Then click solve . After this you will see following solution and according to this solution , you have to produce for maximizing your profit .
>> July 25, 2009
Every person should create this fund . Emergency fund is also more important from financial point of view because it can save any business from becoming bankrupt , enterprises keeps some amount set aside in his saving account for paying creditors in emergency ( in case loses in business ) .
Emergency fund is real power in rainy days . Every person should have minimum three to four months worth of living expenses in his saving account because after stopping of income , expenses are never stopped due to our necessary so with this emergency fund you can pay these expenses and get time for finding new source of earning .
In accounting , its name is also general reserve or reserve fund which is the part of capital of any sole trade business but actually this is Emergency Fund in real sense .
How Much Should You Have In Your Emergency Fund?
you can start to save in emergency fund 5% of your total earning every month . Suppose , your earning is $ 100 per month , you can save $ 5 save in emergency fund . After the year it will become $ 5 X 12 = $ 60 and after five years it will become $60 X 5 = $ 300 and you will get interest on saving extra and with this you can get the financial support in emergency situations .
>> July 23, 2009
By the method, we calculate the price of the product is called value chain.
In commodity business, manager will calculate the total cost of product and add some margin in it but same procedure will not adopt in branded product, here he will also see its competition level and if it is the situation of monopoly, he will take high margin on his branded product. Niche business will also concentrate on targeted market. So Value chain is so important in management accounting to analysis proper pricing and earning high profit for business.
AS 21 provides following steps for making consolidated balance sheet .
1. Investment in subsidiary company by holding company will not be shown in consolidated balance sheet’s asset side .
2. Share capital of subsidiary company in holding company will not be shown in consolidated balance sheet of holding company.
3. Calculation of minority interest
Minority interest means all shareholders who invest in subsidiary company but they are not shareholder of holding company. In other words any stock in subsidiary company which is not owned by parent company (holding company) so, when holding company will make his consolidated balance sheet minority interest will be shown in liability side by calculation of following formula
4. Calculation of capital reserve
( a) Holding company purchases the shares of subsidiary company at discount , this value of discount will be shown as capital reserve in liability side of consolidated balance sheet .
( b ) If the value of share capital of subsidiary company is more than investment of holding company in subsidiary company.
We calculate this difference. It will also be capital reserve and be shown in liability side of consolidated balance sheet.
In general words, when an employee works more than normal working hours. That extra work time is called overtime and when company pays for this. This is called overtime salary or wages.
Calculation of overtime wages is not so easy because, different country has different rules and regulation for calculating overtime pay. But, it must be high than normal rate of wages in general working hours.
Calculation of Overtime Salary in USA
In USA, Overtime wages is calculated under Fair labor standards Act 1937. This act also defines overtime. Any employee who works more than 40 hours in week, that excess hours will be overtime. Suppose, if an employee has worked 52 hours in a week in USA. Then he will get overtime wages of 52-40 =12 hours with 1.5 times of normal hourly wage. Suppose his hourly pay is 5 $. Then he will get overtime wages 1.5 X 5X 12 = $ 90 .
Calculation of Overtime salary and wages in India
But In India, there is no such rules apply but different factories provides it with normal hourly or day rate basis. Some Indian companies only provide incentive for overtime.
But Factories Act, 1948 provides guidelines that it should be double of total salary .
We can explain it with simple example
Suppose one employee is working in Indian factory . His basic pay is Rs. 5000 , his dearness allowance is Rs. 200 and House rent allowance is Rs. 1000
Total salary = 5000 + 500 +1000 = Rs. 6500
This is monthly basis . Suppose , one employee worked 10 hours as overtime in factory . Then we will pay him overtime double of normal salary
First of all we convert normal salary into hourly salary
Hourly salary rate = 6500 / 26 = Rs. 250 per day = 250 / 8 = Rs. 31.25 per hour
Overtime salary = Normal hourly rate of salary X 2 = Rs. 31.25 X 10 X 2 = Rs. 625
MrExcel has made learning video for calculation of Overtime in excel sheet which is very useful for accountants
>> July 22, 2009
>> July 21, 2009
Main aims of writing this article are:-
1. To guide accounting teachers, lecturer and professors by telling them which way of teaching is best for commerce student.
2. To satisfy online visitors of Accounting education website especially from China who want to know what are main tips of Accounting teaching.
I think, teaching is very helpful way to develop the behavior of student in positive way. In any field of education, teacher teaches not only his subject but also trains students to adjust themselves in society by making them self independent. A great responsibility is on the shoulders of teacher. You know that commerce student will become next accountant , officer , manager , teacher and businessman of your country who will build the nation and in real sense Accounting teacher’s responsibility is to provide not only accounting knowledge but also teach how to stand in the globalization age of business .
So learn following accounting teaching tips:-
# First Tip
We typically scrutinize in society that businessman deals in goods and accountant faces new transaction daily basis. But accounting teacher combat students which come from different family, caste culture and society. So, to know the psychology of each student is must for accounting teacher. Some students may be lazy to do accounting questions but some students may be sharp. So, according to student’s nature, accounting teacher should teach his subject. But main aim of teaching should the progress of student in his attitude regarding accounting subject. Effective way of teaching can only create interest in accounting.
# Second Tip
Accounting teacher should learn accounting topic’s theory and practical question by himself before taking class. He should convert all difficult concepts into simple form.
# Third Tip
Making the environment suitable for learning of accounting is very important for getting result from accounting teaching. For instance, one accounting teacher comes in class room, without linking current topic with previous taught topic, he starts new topic of accounting subject, he will not succeed in his aim of good accounting teaching because, student will not understand, if they feel that system of teaching is not well linked with previous accounting topic. So, try to make environment of learning. You can use local business transactions which can easily understand by students. Like purchase and sale transactions of street shop. From simple to complex is the best technique in accounting teaching.
If any student is disturbing in classroom, then first duty of teacher is to settle his problem because that one student can create problem for whole class.
# Fourth Tip
Accounting teacher should not think that his duty is only teach his topic, then go to home and earn money. He should understand that student is not any material goods with this, you can make finished product. He is live creature with fickle mind. Keep in touch with students personally. Care his feeling and emotions. Try to know what their family problems are. Some students may suffer from financial problem; some student may face the problem of low level of eye sight or weak health. . So, teacher should help also in his personal problem. After this its positive effect will be on student and you can make understand every difficult problem of accounting. In English, it is general saying that you can take the horse to water but not make him drink. Same saying happens on accounting teaching. You can teach but you can not make all students intelligent in one day. But after doing hard work and understanding the nature of students and help them according to their need, you can succeed in this profession.
# Fifth Tip
In accounting, practical solution of business transactions are most important. Accounting teacher should aware what are happening in business, commerce and finance. He should read what main amendments are in different commercial laws because all concepts and GAAP are also changeable according to changes in business and govt. rules. After this accounting teacher can give optimum solution to their students.
>> July 20, 2009
When a company sells the goods or delivers the goods, both things may be same or not. Some time company wants record only inventory when any item of stock are delivered from godown. After this company records it in accounts when buyer accepts his goods. So, Tally.ERP 9 provides the facility to record only inventory by creating delivery notes and making of delivery challan.
“Delivery challan is the simple receipt of delivery of goods which is made by Tally.ERP 9 after passing the inventory voucher of delivery note. It is the proof of delivery of goods from seller to buyer. Delivery challan's other name is delivery note . ”
Now, we explain the procedure of making delivery challan with passing entry in delivery note with simple example
XYZ co. Delivers goods to ABC Co. on 1 july 2009 . There are following items in delivery
ZA1item – pc 100 Rate Rs. 10 per pc value Rs. 1000
JZ1 item – pc 10 Rate Rs. 100 per pc value Rs. 1000
Ist open Tally.ERP 9 and by going company info select XYZ company
2nd in the gate way of tally.ERP 9 , you will find feature F 11 click it and select inventory feature inside it and in the feature of inventory , you have to write yes in the front of Using tracking number ( Delivery / Receipt Note ) and accept the inventory feature .
3rd After this again select Inventory vouchers and right side you will see delivery note button and it is written as “ Dely Note “ in short form . It means delivery note voucher. Click it .
4th In Delivery note, you have to write reference no. , you can give a, b , c and make series of it or give any other . Select party name ABC Co. If you did not create ledger of customer, then you can create it in delivery note by pressing Alt + C and create ABC Co. under sundry debtors Account. After this you will see light yellow pop up screen. Write detail of order of sale. Choose sale of ledger sale account. It also should be created by you in ledger creation. Now Select stock item above and you will see again light yellow pop up window write here tracking no.
5th Now Go to display , then go to day book , here you can , see one delivery note , in voucher entry , you can print this delivery note . It is also works as delivery challan.
6th You can also print sale bills pending by going with following direction
Display >> statement of inventory >> sale bills pending
>> July 17, 2009
In the series of Accounting Standards of India’s simple explanation, we have already written and published 19 Accounting Standards and After writing all Accounting Standards in simple explanation, it will become free full versions source for all students from 10+2 to post graduate level, accountants and also auditors because basic knowledge of all accounting standards is also very necessary for becoming accountant or auditor.
Today we discuss Accounting standard 20 , It explains the methods to calculate Earning per share in different situations .
1. Normal EPS
If there is not any existence of bonus or right shares, Calculation of EPS is very easy. For calculation EPS , the following formula will apply .
2. If issues of shares are on different period
If company issues shares at different period, then first of all accountant will calculate number of shares on the basis of weighted average suppose in the beginning 1 Jan. Company has 100 shares after this , 1 July company issues 50 more shares and 1 Nov. company issues 50 more shares , total net profit is Rs. 1000
Weighted Average of Shares = ( 100 X 6/ 12 ) + ( 150 X 4 / 12 ) + ( 200 X 2 / 12 )
= 50 + 50 + 33.33
Earning per share = 1000 / 133.33 = 7.5
3. Earning per share if company issue bonus shares
Bonus shares are those shares which are given existing share holder without getting any amount from shareholders, so it will increase the number of equity shares and decrease the value of EPS .
Suppose company has equity shares 100 and company has issued 1 share as bonus to every 2 shares holding with existing shareholder. Net profit of company Rs. 1000
Total no. of shares = 100 + 100 X ½
EPS = 1000 / 150 = 6.6
4. Earning per share if company issue right shares
If company issues right shares to existing share holders at that time calculation of EPS is some difficult. You must follow the following procedure for calculating EPS in 4th situation.
Calculate theoretical ex – right fair value of share
Calculation of adjusted factor
Calculation of EPS
Suppose company has 100 shares, and company issues right share of 1 for every 2 holding
Fair value of share is Rs. 10 and value of right share is Rs. 5. Calculate the value of EPS If net profit is Rs. 1000
Theoretical ex – right value per share = 100 X 10 + 50 X 5 / 100 + 50 = 8.33
Calculation of adjusted factor = 10 / 8.33 = 1.2
Value of EPS = 1000/ 100 + 1000 / 100 X 1.2 = 18.3
>> July 16, 2009
I have a doubt related to Costing of certain Items we import.We used to import Cages from other Countries like China,Italy etc.
As every body know we incurred certain Direct Expenses while importing.My doubt is How can I allocate these expenses to those items and How much Percentage of Profit I can add to those items.
List of Items :-
Say our Expenses comes around like these:
Printing & stationery
Total Expenses till products reached our Store:
Purchases for 35 varieties of Cages
Here by,How can I allocate all these expenses to those 35 Various items and How can I or How much Percentage of Profit I can add to those various items.
As I know what my manager is doing is :
Purchase value * 10% + Purchase Value * 150% = Selling Price.
Total=390 is the Sales value of an Item which has the Purchase price of 150.
Is this a correct Solution.Please advice me in this.Please give me a Correct solution.
I saw your inventory . There are many pieces in one type of items . For calculating sale price of every item , we can use differential pricing system . Because of list price like book selling is not given , so you can add 10 to 30% margin add in every item .
But Again , I could not understand how your manager add first 10% margin and then 150% of original cost . In general market there is no trend to add total 160% margin on cost .
or you can also use following method . But because I have seen average cost per pc very high difference , so possibility of applying following formula is too limited .
When you receive the goods from other countries , all the expenses will be the part of Total cost of product . So , we will calculate total cost
Value of purchase + Value of the Expenses of Import
You did not mention , what is your finished product and is there any other indirect expenses or not . If there are indirect expenses , we have to include in it and calculate total cost .
After this we can calculate per unit cost of product
= Total cost of product / Total units of product
Different business have different profit margin . It depends on large number of factors like , product's life cycle , demand , supply , competitive strategy and product mix . But normally it may be 10% to 50% of sale
You can estimate sale value by applying following formula
= Cost + Total cost of products X Profit margin rate / 100 - rate
sale price per unit = total sale value / total units
>> July 14, 2009
character and moral Education is base of Indian Education System.
Not only Accounting Education, but for learning every type of education, student must concentrate on his study and follow the rules of Celibacy. But due to invention of Internet and billions of web side are promoting sex contents in the form of articles, video and audio for greed of earning high profit. These sex sites and also other bad sites are very harmful for developing the personality of your students and children.
Here, I am providing simple steps which Teachers of Computer class (Internet connected), Parents and also academies can use to prevent children and students to see sex sites.
Objective of Educational tutorial
- To educate simple parent how to secure the sites for their children.
- To educate computer teacher to create discipline by protecting their students from inappropriate content on Internet.
- To motivate Parents to use this system practically to their home , K- 12 School , computer centers and also in office .
Steps for automatically blocking Sex and Adult sites :-
Go to OpenDNS .
Choose the option of Computer by clicking on Computer Option.
Choose your computer’s window by click on appropriate type of computer, if your computer’s window software is XP, then click on XP other vise you can click according to the type of your computer window.
Now click on start button on your computer and then go to control panel and then click network connection and you will see local area network and then click on its properties . Then select its Internet protocol and then click on its properties.
Now write DNS server address
Write = preferred DNS server = 22.214.171.124
Alternative DNS server = 126.96.36.199
And then ok . After this click on the website OpenDNS’s step 2 .
After clicking OpenDNS’s step 2 , you have to create a free OpenDNS account by writing username , email and password . And then click on create account . After this you have go to your email account and confirm OpenDNS site link for creation your account in it .
After confirming , you will reach in dashboard of OpenDNS site and now click setting and then click on filtering option . Moderate radio button will be helpful for protecting parents from sex and adult sites . After apply it , children and student can not succeed to open any sex and adult site .
If you know any domain or other adult site which you want to block always then you write its URL address and click on add domain ( be sure to choose always block . )
the OpenDNS filters will see the address of that site against their own database of adults and sex sites and if there’s in OpenDNS database , then that sex and adults web pages won’t be displayed on the child’s and student's computer .
related : What should be in Business PC
You have taken admission in B.Com. for whatever purpose . But , It is very necessary that you start to attend the classes from first year of B.Com. Commerce is combination of large number of fields . There are many branches of application of commerce subjects . Accounting is the main subject of commerce field . First of all , you have to make your base strong in accounting . For this , you should know following things first .
- What is accounting ? Read its introduction completely.
- Try to know how accounting is linked with other branches of commerce ?
- Connect you also with specialised person in accounting.
☼ Watch accounting and finance definitions
Student of commerce should watch accounting and finance definitions. So that it will remember by finger tips.
☼ Communicate to Teacher
Commerce student should communicate to teacher relating to accounting topics . Two way discussion between teacher and student will increase the understanding on each and every topic.
☼ Note on your note book
When accounting teacher tells you different concepts of accounting , please note it on your note book first and then read it in your home .
☼ Raise curiosity
Curiosity to know new in accounting is the basic element for deep study . So , you should raise curiosity to know related topics which have taught by teacher .
☼ Make base to any Good accounting book
You should make base to any good accounting book of great writer and add in your notebook also the references of other related books of accounting .
☼ Take interest in doing practical questions of accounting
After attending regular accounting classes , you must take interest in doing practical questions of accounting . When you solve practical questions of accounting , take care of following important things .
- What is the possibility of these practical question to come in the examination?
- Is your answer correct or wrong ?
- If you answer is wrong , then read again the question and also read basic to solve such practical accounting questions.
- Do practical question of accounting with patience . Patience is very necessary .
☼ Read also online accounting news
From time to time , ICAI , ICWAI , ICSI , RBI and SEBI and amend accounting standards , cost standards , banking rules and money and capital market rules , its effect will be on solving your question . So , read also online accounting news relating to above institutions also . For getting updated news , you can search on google news also .
>> July 13, 2009
These days big companies of India like Reliance , Subiksha and birla are opening their retail shops in middle cities . They appoint accountant for sole aim to record retail sales in Tally 9 and Tally.ERP 9 . For making of sale invoice and give it to customer and record sale in one plateform , training of POS invoicing is must .
Objectives of Tutorial
- To define what is POS and what is its use
- To provide the steps for making POS invoice in tally 9 and in Tally.ERP 9
- To solve the related problems of POS .
What is POS and POS invoice ?
POS means point of sale and in retail shop , when a customer buys any product from shop , he want to get slip or receipt for this . This receipt is called POS invoice .
What is the use of POS invoice ?
POS invoice is the proof of sale and also for customer , it is the proof of purchase . Because tally 9 has the option to treatment of VAT on it so , customer also know how much VAT is given by him on purchasing .
Simple Steps for making POS invoice in Tally 9 and Tally.ERP 9
From gateway of tally go to feature 11 and write yes to allow invoicing and accept it and also activate VAT option in statutory feature of tally 9
Go to account info and then create ledger of sale under sale account and customer under sundry debtor account and bank under bank account , Create VAT account under duties and taxes
Account info >> ledger >> create
After this again go to account info and then go to voucher type and then create POS invoice with type of sale .
Pass the voucher entry of Sale in sale voucher when you will click sale voucher , you will see the pop up of voucher type and you have to write POS invoice .
and in POS invoice , you pass the voucher entry by writing different items which you have sold , if you do not create the stock items , then press Alt + C for creation and then in stock item , you can also create stock measurement again press Alt + C in it .
After writing stock items , you can also write its quantity and value and then you will see next table where you have to write VAT and choose the rate and calculate the value of VAT yourself and total bill value , you will see below . If your customer want to pay with different way , then right side , you can click multi mode payment button . After this if your customer has paid with credit card , then choose the credit card with its no. and paid amount , your customer can also pay by gift vouchers , then choose gift voucher and select the name of respective debtor .
After this you can print the same POS invoice and you can give its copy to customer .
Solution the related problems of POS
Problem of Accountant relating to POS
I would like to ask about POS invoice in tally9, As per tally 9 reference manual gift voucher ledger under group sundry debtors/sundry creditors, here i am very confused that gift is the expenses so it should be under group indirect/direct expenses, please explain me with example.
Actually , When you pass the voucher entry of sale by adopting POS invoice as voucher type , in the right side you will see the multi mode payment option in which you have seen gift voucher payment system .
It is not the expense but it is the way of payment . It is like bill of exchange which we know gift voucher , some time our customer do not have money at that time he can issue gift voucher and we can get our money from his office . See wikipedia's detail also .
You need not to select any direct and indirect expenses option , just choose gift voucher the option of payment which you have to get and select the name of debtor in sale voucher entry after this accept the voucher .
Other Software which can use for making POS invoice in retail shop
Except Tally 9 and Tally.ERP 9 , following software can also use for making POS invoice and recording retail sale entry
# Select the source of supply
There may be large number of vendor for same software and if it is branded software , you can find only few vendors . First of all make the list of all vendors and also check their prices .
# Get review from online magazine
You can find large number of online magazines which publish updated review of accounting and other software . You can read the market price , quality and other features of new software product . It will be helpful to you to analyse which is the best out of different alternatives .
I can refer to you some of the best review magazine for your study before actual buying of any software .
# Confirm Trial facility
You should first operate on trial basis and then purchases . For instance Tally solution company has launched new version of Tally and its name is Tally.ERP 9 . You can download it before actual purchasing and operate it on trial basis .
# Placing Actual purchase order
It is the duty of purchase department to send purchase order before trial period . Agreement of purchase should be written . Purchase department should use their own purchase order form instead of using vendor's form . He also send one copy to Accounting department for proper recording of it .
>> July 12, 2009
- Basic accounting unit
- Partnership accounting unit
- Other part of financial accounting including container accounts , branch accounts , department accounts , and investment accounts .
When we look the syllabus of B.Com. first year , we find that some concepts of B.Com. Ist year accounting is already studied in 10+2 . But you can be in home at accounting if you will study with regular practise . You should care that all universities have some syllabus of accounting in India. All 10+2 students who have cleared in commerce subjects , they can easily understand the accounting subject in B.Com. Ist year . But art and non medical students who admit in B.Com. Ist year , will have to do extra hard work.
Accounting is subject , which we can not understand without classroom. So , try your best for not missing your class . Except regular classroom study , you should follow , following things.
All topics which has been taught in classroom , should revise in your home.
Try to solve accounting problems yourself . you should adopt this concept fully. As soon as , you will do practise in accounting , your grasp on accounting will increase .
Always remember that if you are not understand any topic of accounting , Never cram it . Talk with your teacher on that topic . When you will understand that topic , after this go forward for next topic .
For understanding accounting concepts better way , you should consult more and more books of accounting which are written by different authors . You should also read the accounting blogs of accounting professors , because they write always updated in the field of accounting and also share their experience with you . After regular classroom study , good books study and then reading of accounting blogs , you will become the master in accounting subject .
Main aim of accounting is to develop human brain . If you brain is developed by your regular practise , then no work will be difficult for you.
In last keep in touch with accounting education .
( Personal advice from author Prof. Vinod Kumar )
>> July 10, 2009
Business PC is the epitome of business's reputation . It should not be normal but something advance can impress your customers . Business PC must be fast and included all necessary hardware and software .
All softwares must be purchased under valid license from software companies . Because of large number of confidential contract copies and other reports are in Business PC , so tight security can ensure safety of these reports and documents. Of Course new version of Antivirus with continually updates can also safe your Business PC from Internet Viruses .
For backup of important documents of business , businessman should attach CD writer and also ensure more than 2 plugs of pan drive in Business PC .
HP DX9000 (business version of HP TouchSmart IQ506 PC) has External attraction , like this model businessman can buy any other related model of Business PC .
Businessman has to do lot of works like management , planning , motivation , recruitment and accounting and finance . before purchasing Business PC , check the RAM . 1 GB RAM is sufficient for doing all business work . Because 1 GB RAM of Business PC can help for opening multiple Internet browsers in same time without closing other Internet browsers .
Business PC should be fast , attractive , up to date , advance , well equipped ,connected , operated with electricity and fully charged battery .
>> July 9, 2009
# 1 Collect Scrap papers and notes
We see typically in office that scape and dead papers , notes are spreading here and there and create disturbance in work . Collect all these papers in one place and check whether they are important or not .
# 2 Action on Rough notes
Sometime we see that we note dates of office meetings and other important matter on rough notes and not to do action on it . We should do action on it . With this we can increase the productivity in office .
# 3 Check old Calender data
In office make all shedule on manual or online Calender and check all pending works and do it before its dead or expire date .
4 # Note all new projects of Office
Make the rule of your life to record all new project of office on notebook and also write " waiting for " if you do same work after some time also mention its future date on same note.
# 5 Check all work's productivity
Check all work's productivity one by one from time to time .
# 6 Make Creative Environment of Office
Office is the place where you live and work for 8 to 12 hours . So , for increasing its productivity , it is your personal duty to make its creative environment . You can make creative environment of office by doing Excellent , scatter-brained , Exciting and thought stirrer-up work .
>> July 8, 2009
As the biggest brand of TOP MNC , he is earning more than 50 companies by advertising their products . Large number of Fans attract from him in shooting of his ads and buy the products .
Visa, Action Shoes, Adidas, Pepsi, Colgate, Boost, Philips, MRF and Fiat. are top listed companies who is giving him fees for taking his brand services .
he charges for advertising the products Rs 3 crore per endorsement [ Estimated ] .
TV channels are also making as brand ambassador . Tendulkar has already signed two times five-year contract worth Rs 100 crore with WorldTel first in 1995 and after 2001
Main Product and brand endorsements
Sachin Tendulkar endorses the following products
- Canon: 2006 - 2009
- Airtel: 2004-2006
- Nazara Technologies: 2005 - 2008. License for Mobile Content development based on Sachin.
- Reliance Communications sub-licensed brand 'Sachin Tendulkar' to update the user of the latest 2007 Cricket World Cup scores and news in Sachin's voice.
- Hutch - ICC's prime communication sponsor protested calling Reliance's plan as 'ambush marketing', a charge that Reliance Communication denies.
- Britannia: 2001 - 2007
- HomeTrade: 2001 - 2002
- Sunfeast: 2007 - 2013/14
- Boost: 1990 - Present
- Adidas: 2000-2010
- Fiat Palio: 2001 to 2003
- Reynolds: 2007 - Present
- TVS: 2002 - 2005
- ESPN Star Sports: 2002 - Present
- G-Hanz: 2005 - 2007
- Sanyo BPL: 2007 - Present
- AIDS Awareness Campaign: 2005
We can explain main divisions of share capital of company with following way :-
1st - Registered or authorised or nominal capital
That part of total capital with whom company wants to register , that part is called authorised capital . This the maximum amount that can any company issue to public for getting capital fund . Still there is not quantity limit for authorised capital determination under Indian Company Act 1956 .
2nd Issued Capital
It is that part of authorised capital which is offered to public to acquire , that part is called issued capital .
3rd Subscribed Capital
It is that part of issued capital which is accepted by public. Subscribed capital can not more than issued capital . If it happen than it will be over subscription and it will be rejected or accepted under pro-rata basis for providing proper accounting treatment .
4th Called up Capital
It is that part of issued capital which is to be paid by shareholders . Company has demanded money of this part . If shareholder does not pay called up capital , then this part becomes call in arrears .
5th Paid Up capital
It is that part of called up capital which is paid by shareholders and after this they can become real owner of company.
6th Reserve capital
One company can determine with special resolution that some part of total subscribed capital will not demanded from shareholder and it is not demand up to the winding up of company . That part of capital is called reserve capital . It can not be changed in general capital with the permission of Court . Board of directors also can not change it in normal capital . It is most benefited for company's creditors . because , this amount can be utilized for payment to creditors at the time of liquidation of company.
There is no need to do any accounting treatment for reserve capital but a small note is written in balance sheet in which company mentions the amount of reserve capital and other interested parties can focus on this note .
A company has Rs. 20000000 as its authorised capital divide into 1000000 equity shares of Rs. 10 each and 200000 pref. shares of Rs. 50 each. Company issued 800000 equity shares and 100000 preference shares . The public subscribed for 600000 equity shares and 100000 pref. shares . All shareholders paid the amount with the exceptionof 50000 equity shares @ Rs. 5 per share . Calculate the amount of various types of share capital .
1000000 equity shares of Rs. 10 each → Rs. 10000000
200000 pref. shares of Rs. 50 each → Rs. 10000000
---------------------------------------> Rs. 20000000
800000 Equity shares of Rs. 10 each → Rs. 8000000
100000 pref. share of Rs. 50 each → Rs. 5000000
----------------------------------------> Rs. 13000000
600000 equity shares of Rs . 10 each → Rs. 6000000
100000 pref. share of Rs. 50 each → Rs. 5000000
---------------------------------------> Rs. 11000000
Called up capital
600000 equity shares of Rs. 10 each
Called up only Rs. 8 per share → Rs 4800000
100000 pref. shares called up @ Rs. 40 each → Rs. 4000000
------------------------------------------------> Rs. 8800000
Paid up capital
Called up equity capital less calls in arears
of Rs. 5 each --------------------------------→ Rs. 4550000
paid up capital of pref. shares ---------------→ Rs. 4000000
----------------------------------------------> Rs. 8550000
Today tutorial 's Objective
This tutorial is made for beginner of Tally.ERP 9 learning . If you have downloaded first time and if you face difficulty to open tally.ERP 9 , then this tutorial will help you .
First of you have click on Tally.ERP 9 software for opening it , after you will see the startup sheet where you will also see different option for activate licensing but before last you will see the option work in Education mode . Click it with mouse or press w from keyboard .
in work in education mode , you have to click any one button either you can click on silver edition mode or gold edition mode . After this you will reach gateway of tally like tally 9 .
you can also learn from following video made specially with instruction :-
I am looking for the Accounting procedures for a Construction Company.Please help me to explain it If u publish because , I have to attend an interview in a newly started Construction Company next week.
Thanking u in advance.Prompt reply will be a great consideration to me.
Look forward to see ur reply.
First of all best of luck for your good performance in interview . Actually , you need not create any doubt about normal business and construction business . Accounting procedure are almost same . If you want to work as accountant in India , Now Tally 9 and Tally.ERP 9 are the best software for recording transaction relating to construction company . I have written solution relating to the accounting problems of construction in this accounting education site which you can find . Here , I can give you some tips for recording the transactions of any construction company .
- These days many construction companies are also using ERP software so , you should also get some basic knowledge of ERP ( Enterprise process planning )
- I have provide basic rules of accounts of construction companies under Indian Accounting standards . You can read here .
- Construction business are relating to build of dam, building, pipelines, ships and other fixed assets , you should make list of main earning and expenses and also different raw material with their measurement units relating to your respective company in which you are going to give interview . Because your duty is to record transaction of raw material , but you should also know what is the raw material and how to measure it .
- Never loss your confidence . Give your interview with full of confidence .
- In last , interview is also part of education . Enjoy it just like other way of learning because when you will face interview , you will learn so many things and after learning it you can do self analysis of your strength and weaknesses and become the expert in the field of accounting .
Again my Good wishes with you and all those candidates who are struggling in the field of Accounting .
If we see dictionary meaning of lease , then we find that it is simple contract in which one person allows another person to use of land and other person gives rent for using land . But AS 19 defines leases in wide sense .
According to accounting standard 19 , “ Leases include all agreement for
(I) use of natural resources like oil , gas , timber , metal , mineral rights and land
( II ) Licensing agreement for producing film , plays and video recording .
It also divides leases into two major categories
( I ) financial lease
It is the agreement to purchase any fixed asset on installment, so financial lease must be shown asset and liability equal to present value of minimum lease payment from standpoint of the lease.
(II ) Operating lease
It is just contract only use of fixed asset and payment will be shown as expenses in the books of lessor (Customer )
>> July 7, 2009
When you reach Tally.ERP 9 download center , you will find large list of download , you have to just click on first button after this , you can select the place of your hard drive and give name to tally erp after this save this and never shut down before completing of download of tally.ERP 9
Reduction of Lead - Time
Lead time is time between placing an order and receiving the goods . It is very important for taking purchasing and inventory control . In production , optimum availability of raw material is must . If we keep inventory control with the help of safety stock and re-order level . But low reorder level and high reorder level are both harmful .
Company is the voluntary and autonomous association of people . These people invest their money in the form of shares . Total capital of company divides in to shares which are transferable from one person to another person . Company is made for general and specific motive. In other words , " it is artificial person and its board of directors controls company business .
According to Indian Company Act 1956's section 3(1) (i) , " All companies who are formed and registered under this act or any other previous company act . "
From definition , we get idea that Indian Company act accepts only those association of people which are registered under Indian Company act 1956 or any previous act . It has its own personal entity . Members come and go but it is continually operating . It does not affect from the death , madness and insolvency of any member .
Definition of Company Accounts
For showing the revenue and financial performance of company , Accountant maintains company accounts .All company accounts are made in Corporate accounting . We can define it as recording of issue of equity and pref. shares , debentures , bonus and right shares . It is also duty to maintain all routine accounts like sole trade and partnership firm . In normal transactions , we can include purchase , sale , receipt and payment transactions and it is recorded in journal first and after posted it to ledger of Company accounts . Company accounts are also helpful for making company's final account .
after this you have to pay $50 per user per year . Google channel has made learning video about how Google Apps is helpful for business .
you can use Google Apps trial here .
You can use SYD function with two way
Going to insert option above the excel sheet and then click function button . After clicking function button , you will see pop up box . In pop up box , you will see drop down button , select finance category from different categories and here you will see SYD function . Select it and then click ok .
After this you will find next pop up box in which you have to put the value of
( a) Cost = Original or initial cost of fixed asset
(b) Salvage = Salvage is the scrap value of fixed asset after use . It may be on estimation basis
(c) Life = Show the active life of fixed asset
(d) Per = Per means period , if you want to calculate depreciation for first year , you have to write 1 , if you have to calculate second year depreciation , then write 2 and so on . You can calculate depreciation of any period .
After this in excel sheet cell , you will find the value of depreciation $ 18000 which is calculated by SYD formula
You can apply direct following formula for calculating the value of depreciation .
First of write equal sign and then write Syd( cost, salvage, life, period )
= Syd( cost, salvage, life, period )
put the value of cost , salvage , life and period as mentioned above and you will find here also
Now understand how to motivate commerce students :-
No. 1 Understand the psychology of Commerce students
Psychology is the science to study and investigate the mind of other person . It is very scientific tool to motivate commerce students . Commerce students come from different economic and social background and every student behaves different with teacher . So , teacher should read each commerce student's psychology by personal attachment with commerce students . In B.Com. and also in MBA , some students are from non commerce background also . So , from time to time some basic knowledge of commerce should be given also in higher classes specially to non-commerce students . It will be motivation for them to do good in commerce .
No. 2 Mixing the different tools of teaching Commerce
First of prepare your commerce topic yourself deeply and after this teach it to commerce students with mixing tool . It means , you should not always give only lecture but also some time , you should get response from commerce students also by asking question . You can also give them some home work . With this commerce students will activate and participate in your teaching classroom and this motivation will do wonder .
No. 3 Use the black board
Using the black board is good technique to educate commerce students effective way . Good understanding about solving accounting or business mathematics is the best motivation to commerce students .
Commerce teacher should solve minimum one question on black board . Practical action on black board always encourage students to solve accounting and finance question on notebook. You can also explain any topic by making different structure on black board .
No. 4 Utilize new techniques of learning
Teacher should always do some search on Google for finding new techniques for learning . Internet can explain large number of teaching and learning techniques which you can utilize in your classroom through project presentation .
No. 5 Fix reward who is doing better
Take the test of commerce students and give them some reward for doing good in commerce subject . This reward surely motivates students to achieve the target of teaching .