List of Bloggers with an Interest in Accounting

There are many ways to make friend online . Chatting with yahoo messenger or google talk is simple way to make friend online . But if you want to find the friends who are interested in same field in which you are  interested . To watch the blogger's profile is the best way . I am in Accounting field and my interest is also in accounting . So, in my Blogger profile , I have written interest "accounting" and after clicking this label , I found about 3100 bloggers  who are interested in same field . You can make your own free blog at google blogger after this make your profile and write your interest in your profile and after clicking on selected interest you can find large number of other bloggers .


I have make the list of bloggers with an interest in Accounting in this page , you can direct meet them from here .

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Is Service Tax Payable for The Receipts from Foreign Sub Franchisee ?

Problem

I run an consultancy offering distance courses of foreign institutions in Management ( I have the master franchisee for Asia nd Africa ) the students enrol through my sub franchisee located in India and abroad. the sub franchisee send me the fees against which I send them the study material, exam papers etc. the sub franchisee and the stduents are located in India and abroad. My TO is above 50 lacs. DO I PAY SERVICE TAX FOR THE RECEIPTS FROM MY FOREIGN sub franchisee also ( they never come to India and send the fees through bank transfer, I send the study material through courier)

Solution

Under section 65(105)(zze) of the Finance Act 1994 ,FRANCHISE SERVICES are fully taxable , and In your case your are franchisor and providing services with the help of sub- franchisee , in this case , there is no difference , so , you have to pay service tax on the gross amount which you have received from your sub franchisee with new rates because

" Service tax is payable on the gross amount charged by the franchisor from the Franchisee in relation to Franchise " See the Notification No. 7/2003 at here "

Moreover , I want to tell you that any service which is provided by Indians to foreign clients are also comes under the service tax provision and even IIM and IIT are paying service tax on the fees which they get from foreign students .

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How to Operate Tuition Centre Successfully

Are you fresh commerce graduate or post graduate and interested to open your own Tuition Centre in your local area . If yes , then learn the steps for operating this successfully.

Tuition in India is the special type of teaching in home and almost all difficult subject is taught by tutor . It is also good source of earning . Accounting tuition is also boom in India . It is the part time income of tutor but later tutor can make it as his full time profession.

It is also truth , many tutors close their tuition center due to suffering many problems . So , this article basically describe you about how to succeed in this profession.

First Step

Clear written contract with student

After coming of student to your center, before starting tuition , you must contract clearly in written form with student . In this contract following points must be mentioned :-

• Tuition fees


• Time of tuition


• Period of Tuition

Second Step

3 days Demo Class Only

You can provide maximum 3 days demo class , after this you should take the tuition fees . Many students have habit to delay it . So , be strict on this point . It may be monthly basis or total of course basis .

Third Step

From time to time , advertising of your tuition center is also necessary . You can use following advertising media for promoting your tuition center .

• Banner ads near schools and colleges .


• Cable ads .


• Pamphlets in daily newspaper .


• Google AdWords Ads ( At very minimum cost )

If you want to promote your accounting tuition center on http://www.svtuition.org/ , I can help you to show your classified on Accounting Education ( Specially for Indian Fresh Accounting Tutors )

For this fill following form

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Make your own Portfolio More Quickly with Google Finance

My portfolio is useful feature in Google Finance which can be used by investors to track every stocks and mutual funds of companies once add transactions in myportfolio.

If add the transaction of buying any stock after adding symbol ( if you do not know the symbol of company ,then add full name of company ), date , nos. of shares and price . Google finance shows your shares market value , your current gain and you can record your sold shares and check your performance on same window . One more benefit is that your can watch news relating to your portfolio and also import , download and delete your made portfolios

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Learn Account System Used in Hospital at Suresh's Blog

Suresh MBA ( Bangalor) has given brilliant detail of accounting system which is used in modern hospital . Your can learn here .

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Importance of Standard Costing

Standard Costing one of the advance technique of cost accounting . With this manager calculates the standard cost and compare it with actual cost and after calculating variance , improvement is done in area of production . So Standard costing is so important for every type of business organisation . We can explain its importance under following points

Increase the efficiency

Account manager fixes the standard cost of direct material , labour and overheads and pre-determined standard cost increases the efficiency of production , every worker produce goods according to standard cost . After this actual cost is also compare with standard cost . With this comparison , manager will succeed to increase the efficiency of worker for reducing cost .

Effective utilization of resources

Standard costing is also helpful for effective utilization of resources . We can explain this with small example
Suppose , A company purchase following raw material without setting any standard cost .

Name of Item                Actual Cost

x - material                          $ 40000
y - material                          $ 30000
z - material                          $ 20000

Because A company can not set the standard of quantity and rate of raw material cost . It may possible .

• Company has purchased raw material more than current production and extra raw material is the waste of working capital .
• Company does not research the market , it may possible that one supplier can supply same raw material with following cost
  
  
  

  
  Name of Item                Actual Cost
  
  x - material                          $ 35000
  y - material                          $ 20000
  z - material                          $ 15000
  

  
  
  
  

  Now company will face the total loss due to not utilization his resources effectively and standard costing is only way to effective utilization for reducing cost .

  Use in Budgetary Control

  Standard costing can also use in budgetary control . We know that budgetary control is the part of management and in controlling , it can be used . In budgetary control , not only standard cost is calculated but after comparing relative actions of improvement are taken . With standard costing , effective control of cost can be possible .

  Proper decisions

  Standard costing is also helpful for taking proper decisions for deciding cost. There are large number of expenses and there are many alternatives of these expenses . When standard cost is decided at that time , best alternative from different expenses is chosen and it will reduce extra cost burden .

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Role of Information Technology in Accounting

Indian accounting is set to face new challenges from the developed countries after outsourcing accounting work . To meet the challenge accounting sector in India needs tangible improvement in terms of quality and output. To fulfill these needs , Indian accountants must be well formed about the latest trends in accounting industry , i.e. about new techniques of voucher entries , new methods of accounting of branches and departments and new system of automation of accounting work . This should be possible only with the accountants interface millennium technology (IT ) in bringing about which is playing an important role in the era of globalisation .

Meaning of IT

Information technology refers to a broad term comprising of new communication and computing technology . Computer hardware software and Internet are key to these system that are designed developed and managed by IT professionals .




Present Scenario of IT

The mobile Internet is overtaking the wired Internet . Nokia predicts that the number of internet connected mobile phones will exceed the number of Internet connected PCs by 2010 .

Networking is growing at fantastic speed of 10 to 15 % per month or about 200% a year .

Specialists forecast that in less than 10 years from now Internet terminals would be as common as telephone instrument but much more useful .

About 99% of the districts have optical fiber network (OFN ) providing desired bandwidth for Internet connectivity for e-governance application in the country .

The accounting community has more readily embraced the Internet than general population in countries likes USA , Canada and UK etc.


Major Role of IT in Accounting

1. To put information close to accountants .
2. To improve the capacity of accounting research and extension specialists to organise , store , retrieve and accounting information exchange .
3. To evolve mechanism of information sharing .
4. To develop accounting database for easy access and data base decision making .
5. Access to the storehouse of information is easy.
6. accounting data will available universally .
7. One accountant can deal with various companies through effective utilization of IT in accounting .

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Simplified Accounting Standard 28 - AS 28 – Impairment of Assets

According to Accounting standard 28 (AS 28) , when a businessman has utilized any asset and after it becoming useless , then it is the duty to calculate the difference between its sale value and its current carrying cost and this will be loss and these assets are become impaired and this impairment loss should mention in the statements of company . In this AS, there is no need to recognize the impaired loss of inventories, construction contracts, financial assets and deferred tax assets because, these are already mentioned in other accounting standards .

Formula for Calculating Impaired loss

=Carrying Amount of Asset – Net Selling Price

Carrying amount is that amount which can be recognized in balance sheet after deducting any accumulated depreciation.

This impairment loss should be recognized as an expense in statement of profit and loss.

Related : Steps of Calculating Impairment Loss of Goodwill

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Attend Free Webinar of Google on Email Account Security Event

-----------------------------But Security ?

Is Your Email Account Secure ?

If you want to learn more about email security , recent research regarding email security , best solutions about email account hacking and also want to ask live questions relating to email security with Google Engineers

Register today ( here ) to secure your place at this event to be held on October 26th at 10 AM Pacific Time.n October 26th for Email Security and Compliance in the Cloud. This live webinar event will specifically address the important issues that decision makers need to understand as they consider how to improve the security and compliance of their email systems, and reduce the cost of security and compliance management.

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Accounting Education Loans in India

In India , there are large number of alternative like CA , IWAI , CS , MBA Finance and M.Com. for getting higher educations in the field of Accounting. After increasing the cost of living , accounting education at higher level is not affordable because 60% illustrious students who are interested in Accounting field belong to middle level and due to this problem , they leave their education after 10+2 level and find middle level jobs .

Now , after liberalization of financial sector in India , large number of banks are providing education loan specially the students who want to make career in the field of Accounting and Finance . Current system of giving education loan has become so easy which was not available in some years back .Many nationalized banks like Allahabad Bank , Bank of Baroda, Central Bank of India, Indian Bank, Punjab National Bank, United Bank of India have started new schemes for providing education loans without large paper formalities . Indian private banks also starts fantabulous schemes for developing students in the field of accounting and finance by supporting education loan .


Both private and public Indian banks provide education loan with following rules regulation which you should know :


1. Basic Eligibility Criteria for Students


Students seeking education loans should be an Indian National.

Student gets admission to professional or technical course in India or abroad through an entrance exam or a merit-based selection procedure.

Main accounting education will be B.COM , Master Degree courses and Ph.D programs ,CA, ICWA and CFA .etc

Diploma and degree courses offered by various colleges and universities which are approved by UGC, or other recognized national and private institution .

Age between 18 to 35

2. Amount of Education Loan from 4 Lakhs to 20 Lakhs.

Education loan of maximum Rs 10 lakhs for studying in India and Rs 20 lacs can be borrowed for studying in abroad. The amount may increase in special cases.

3. Other Rules

• If you borrow a loan of above Rs 4 lakhs, then you should give the bank with a guarantee of a 3rd party.
• If the amount is more than Rs 7.5 lakhs as loan, then the co-obligation of parents or guardian of the student along with a collateral security need to be guaranteed.
• The loan can be repaid in 5 to 7 years.
• Repayment will be from future income of the student after his appointment in company .

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How to Divide Journal in Subsidiary Books ?

Subsidiary books are those books which come into existence after sub division of journal . If journal divides into many books then all these books are called subsidiary books . Journal can be divided in subsidiary book with following way .

1. Cash Book
Cash book is that subsidiary book in which all transactions relating to cash and bank receipts are recorded. This book is easily used as subsidiary and ledger account .There is no need to make cash or bank account extra because double entry effect fulfills just making cash book. Cash and bank balance of cash book are transfer directly to trial balance.

2. Purchase Book

Purchase book is that subsidiary book in which accountant records only purchases of goods or inventory on credit. This book is maintained in such business institute where goods are continually purchased on credit and in large quantity. Its other name is purchase day book, invoice book, credit purchase journal or supplier’s journal.

3. Sale Book

Sale book is that subsidiary book in which all record relating to credit sale of goods are kept and after this, different accounts of debtors are opened in ledger and transfer the amount of credit sale to respective debtor account for calculation the amount of receivable from each debtor.

4. Purchase Return Book

Purchase return Book records all goods which are return to our creditor due to any reason. It decreases the amount of creditor and total purchase. It is recorded on the debit note basis.

5. Sale Return Book

Sale return book is that book in which accountant records all goods which are returned by customers and it is prepared on the credit note basis. Credit note is that note which shows sale return’s quantity and total amount.

6. Bill Receivable Book

If bills of Exchange are written in the business according to nature of business, then all written bills which are accepted by our debtors to pay its amount. So , these bills are records in bill receivable book

7. Bill Payable Book

Bill of payable is opposite of bill receivable and it in this book all accepted bill whose amount , we have to pay because we either purchased the goods or got loan from other party . This book shows our total liability regarding our bill payable .

8. Journal Proper

Journal proper is that subsidiary book in which all the transactions are recorded which are not recorded any other subsidiary book .In these transactions , we can include following :-

a) Opening journal entries
b) Closing journal entries
c) Transfer journal entries
d) Rectification of error journal entries
e) Entries on the dishonor of bill of exchange
f) Adjustment journal entries
g) Credit purchase and sale of fixed assets
h) Journal Entry of Depreciation
i) Journal entry of interest on capital

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Can Students and Teachers Help a Billion Hungry People ?

On World Food Day , UN World Food Program presented his report that there are over one billion
hungry People in this world who have no food to eat .It is also estimated that more than one billion Internet users and from them 40% to 50% are young including students and teachers .Is it possible to feed that all hungry people and can Students and Teachers help a Billion Hungry People ?

They can do this easily by donation $ 1 in UN World Food program . Donation is very good way to help hungry people .

After the co-operation of teachers and students , we can make hunger free world .

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Easy Steps to Backup and Restore Accounting Data in Tally.ERP 9

Tally Solution Company introduced Tally.ERP 9 as new way to easy record transactions of your company. In this post , I'd like to focus on two of the tools of Tally.ERP 9 which you can use to backup and other restore and both are inter-related .

Here are some Commonly asked questions about the Backup and Restore tools to help you get started .

Q: What is backup ?

Backup means to take one copy of your accounting data from tally folder and paste it any other destination Which can be used if by mistake company data are deleted by you.

Q:- What is restore ?

Restore means bringing deleted company from backup copy and use it

Q:- What does Accountant need to use Backup and Restore tools in Tally.ERP 9 ?

There are following benefits for using these tools :-

• Save the energy of accountant for feeding voucher entries again .
• Save time.
  

Simple Steps for using backup and Restore tools

Step # 1

Open Tally and right side you will see company info. button , click it and then click select button . Choose the company whose backup do you want in any other drive of your computer .

Step# 2

After this again click company info and then click Backup button . In backup you will see source and destination .

Source means where is your current accounting data save and destination where you want to keep its backup in your hard desk .

Suppose I want to keep my svtuition.org company's accounting data in F drive so write it and select svtuition.org company and accept it .

This is ok , Tally.ERP 9 software automatically will make extra copy on your desire destination drive .

Now , you can check , it suppose , if you delete your company whose backup you have in F drive .

Delete company by going to Company info >> alter >> delete by pressing Alt + d and after deleting company , you will see there will no button of that company in select company category .

After this again go to company info and then click restore button and tally will pick the file from your backup and again bring it in tally folder .

With this you can take benefit , if you delete any company by mistake or by any default of computer virus , you can get all company data .

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List of All Indian Accounting Standards with Their Effective Date of Issue

From time to time , I have written AS 1 to AS 26 after simplified them . I have ignored the date of issue these accounting standards by ICAI . But , it is very important to know when these standard come in to existence . So , I find the list of All accounting standards with their effective dates of each accounting standard from wikipedia which I have embed here by using Google Docs import html formula .

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How to Pass Difficult Journal Entries with Advance Tips of Prof. Augustins

Professor Augustins (Bangalore) has made very good presentation which is very helpful for commerce students to solve problems relating to difficult adjustment and journal accounting in financial accounting . In this presentation , there are 43 slides which made after hard work and deep study of financial accounting .

How To Solve Difficult Adjustments And Journal Entries In Financial Accounts

View more presentations from Augustin Amaldas.

Related : Procedure of Journalising

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Unsophisticated Explanation of Financial Reporting of Interests in Joint Ventures ( AS 27)

Accounting standard 27 explains the joint venture and its accounting treatment. ICAI has defines joint venture, venturer and joint control and control in this standard. Joint venture means the contract between two or more parties for doing economic activity. Control on the business activities by both is called joint control.

For making financial statement of joint venture , joint venture can be divide into two different aspects :-


Ist When Joint Venture treated as joint operation:-

In this aspect, there is not existence of any new corporate. Venturer join in the venture just for completing any project and uses their own assets, so there is no need to make separate financial statements. But in the books of venture, treated as investment and profit from joint venture will show as return on the joint venture investment.

2nd When joint venture treated as separated entity:-

If the partners of joint venture create a corporate and do written agreement for doing specific project for earning profit. Then all financial books must be maintained due to separate entity of joint venture and financial statements are made just like other business organization’s financial statements.

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Intangible Assets in Accounting Standard 26

Accounting standard 26 (AS 26) in Indian GAAP defines intangible assets and provide rule for calculation of cost intangible assets and showing it in financial statement. AS 26 states that any asset can include intangible asset if we can touch physically but these have future economic benefits. Goodwill is one of main examples of intangible asset. Except this many other intangible assets like technical know how and other trademarks but do not include any asset which are included any other accounting standard.

How to calculate the cost of intangible asset:-

Generally, if intangible asset is purchase from outside, hen its purchase price will be the cost of intangible asset and will be the part of total asset of financial statement.

Making and publishing of website is exception case in AS 26. According to AS 26, it is not included in this standard but include fixed accounting standard. But if we see overall the balance sheet it will goes to the asset side and other general expenses for maintaining website will goes to profit and loss account.

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Steps to Use Wikipedia Beta for Making Your Professional Profile

One of best internet site name is Wikipedia which is operated by donation and collaborative basis . It is one of the top 10 sites in the world which is opened by different countries . Making your professional profile is best for your business or
professional growth . Wikipedia have different categories like Indian accountants , Accountants by nationality , Writers , bloggers and you can add your profile in them with easy way . For this , I am writing simple steps for making profile in wikipedia .

1. Open Wikipedia and make your id and confirm it .

2. Click Wikipedia's above button wikipedia beta . Beta is very easy way to make your profile .

3. When you click Beta , you will see user page . Click it and make your profile here .



I have also made my profile on use page . You can read here .

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Accounting Standard 25 - Interim financial Reporting

Interim financial reporting means all financial statement which is related to the financial result of company less than one year . ICAI has given power to make financial statement for quarter or monthly basis or half yearly and show his performance to creditors, investors and shareholders for more close connection with them. But ICAI has made rules regarding this reporting and it is included in accounting standard 25. Any company who want to show or publish his interim financial reporting, it is very necessary to include following statements in these interim financial reporting.

1. Balance sheet
2. Profit and loss statement
3. Extra ordinary reports regarding new accounting and company policies.

Many companies have different nature and their business must be updated before financial statement and to provide knowledge to interested party is also very important. So , this AS will guide CA to check interim financial reports .

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Revenue Its Main forms

Revenue is the amount which any company or business gets for providing services or goods after selling them. This revenue is earning or income source of that business organization. Every business works for production or trading in specific goods and all sales will be revenue of business and after deducting all expenses business can find net profit or loss from that trade.

Main forms of Revenue

Revenue can classify in following forms:-

1. Operating vs Non – Operating Revenue

Operating revenue is the outcome from sale of goods. If XYZ Co. sells goods and receives $ 150000 , then this amount be operating revenue of XYZ Co. but if Non-operating revenue is outcome from other sources or investments . Suppose, if same company has invested some amount in PQ Co. and gets $ 10000 as dividend so this dividend will be non operating revenue.

2. Business vs Govt. vs NGO revenue vs Professional revenue

Business revenue means total sale by business organization and also included other incomes like dividend, interest and rent .

Government revenue means all revenue like income tax, excise duty and other tax which is collected by Govt. from public and in revenue this , we also include all other revenue of Govt. departments .

NGO revenue is income from donation and subscription fees by donors

Professional revenue is income for providing professional services .

3. Top line revenue vs Bottom line revenue

Top line revenue means total revenue of business before deducting expenses and losses .

Bottom revenue is net profit which can be calculated after deducting all expenses and losses.

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How to Calculate Managerial Remuneration in Company Accounts

Indian company laws makes the provision regarding maximum amount given to directors , managers and managing directors . The rules and regulations are mentioned in section 349, 350, 351 of Indian company law 1956. Here we are explaining simple steps for calculating managerial remuneration special for commerce students and accountants.

In case of nil profit

If any company earns nil profit, then and managerial remuneration is more than 10%, then managerial remuneration will limited up to Rs. 75000 to Rs. 200000



(Disclaimer: Please check new amendments of company law 1956 regarding this amount)

Schedule X111and its part 11 has directed with following way.

(Note : Managerial persons include managing or whole time directors and managers . )

In above managerial remuneration following items will not included :-

Contribution to provident fund + gratuity + encashment of leave at the end of the tenure +children’s education allowance + leave travel concession

Definition of effective capital of company

Effective capital of company means paid up capital excluding revolution reserve .


In case of Company earns profit

At that time managerial remuneration is calculated on net profit . For this net profit is calculated with following way:-

Gross profit + Add following

1. Subsidies received by company from govt.
2. Profit on sale of fixed asset but not include capital revenue of issue of shares , sale of business , etc.

- Less the following items

1. Usual working charges
2. Bonus or commission paid or payable to company staff .
3. Tax liability by central govt. except income tax liability
4. Interest on mortgage
5. Repair expenses
6. Normal depreciation
7. Liability of legal charges / damages
8. Bad debts

Following items will not deduct

1. Remuneration payable to other directors, managerial directors and managers .
2. Income tax charges
3. Capital losses
4. Unpaid losses and penalties

After calculating net profit, the following chart showing the rate of remuneration which is charged on calculated net profit.

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YouTube Blog: Can a Billion Views Help a Billion People?#c3827775069445552515#c3827775069445552515#c3827775069445552515

This the link of YouTube blog where you can read below interesting article for helping hungry people .

YouTube Blog: Can a Billion Views Help a Billion People?#c3827775069445552515#c3827775069445552515#c3827775069445552515

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Who was First Indian Woman Accountant ?

For the Indian students of accounting , it is very interesting to know who was the first Indian Woman Accountant . I also did not know this question but today ( 18/10/2009 ) When I opened Wikipedia's Indian Accountant Category . I found the profile of R. Sivabhogam . After reading it , I can tell you , who was The First Indian Woman Accountant ?

R Sivabhogam was the first woman accountant in India. She worked as Accountant from 1933 to 1954 and after this she became Chairperson of Southern India Regional Council of the Institute of Chartered Accountants of India for three consecutive terms from 1955 to 1958 . She was also a senate member of the University of Madras.

One more interesting after getting status and reputation , She never left Gandhian principles and wore Khadi till her death in June 1966.

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Happy Deepavali to All Fans , Friends , Students and Accountants

As writer and Publisher of Accounting Education , I personally wish that God brings happiness , love and peace to all fans , friends , students and accountants on this festival . This is the day of light and it has deep meaning spiritually as well as educational . On this day , Shri Ram Chandra Ji returns to Ayodhya after 14 years . So , This festival provide the message of happiness .



Life of student is also life of struggle and on this day , you can start your new struggle for doing more hard work and create passion without leaving your happiness and openness of your mind .

I think main aim of burning the candles is to awake sleeping mind and be ready for getting education . So , Deepavali is not festival of Hindus but whole world and whole religions .



I and my blog is also fully ready to provide new , advance , challenging and update accounting knowledge and support to students and new and young accountant to make good future in this nice profession .



What we want : Where the mind is without fear ,where knowledge is free
In End , Happy deepavali !!

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Analysis of Accounting Professionals Profiles

Till this date 58 candidates has fill Accounting Education E-Job form and have become Online Accounting Professionals and their resumes are online . This article tells you more about them.


Qualification Vise Detail of Accounting Professionals


M.Com. = 7 Accounting Professionals

M.B.A. = 4 Accounting Professionals

ICWAI = 1 Accounting Professional

B.Com. = 31 Accounting Professionals

B.A. = 4 Accounting Professionals

10+2 = 9 Accounting Professionals

Others = 2 Accounting Professionals


Location Vise Detail of Accounting Professionals


Hyderabad = 6 Accounting Professionals

Bangalore = 8 Accounting Professionals

Mumbai = 3 Accounting Professionals

Kolkata = 3 Accounting Professionals

Others = 38 Accounting Professionals


Full Time vs Part Time Wise Detail of Accounting Professionals


Full Time Interested = 39 Accounting Professionals

Part Time Interested = 19 Accounting Professionals



According to Gender


Female = 15 Accounting Professionals

Male = 43 Accounting Professionals



If you are also Online Accounting professional at http://www.svtuition.org/ , the fill the this e-job form

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Look Accountant's Office Room and Design Your Own

Different Accountants maintain their office room according to their need . I find following office of Keith who is accountant in Chicago (USA ) . You can find everything at their proper place . This is too small but due to proper adjustment , he has succeeded to keep every thing relating to accounting work on this room . He also upload above picture in flickr and also given following notes to know what is in his office room .



If are interested to make you office room for your accounting work by yourself , then there are large number of online software and tool with this you can create structure of office room . One of them I saw at better homes and Garden website which is very easy and funny to use it and you can create your office structure .

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Tally to Become More Powerful with Diamond and Platinum Edition

Tally solution pvt. ltd.'s Tally.ERP 9 ( Series A ) has succeeded in this year and Now in 2010 B and C series with diamond
and Platinum edition will be launched for more than 1000 users can do and share all their accounting work . These edition will be more suitable who have large number of branches globally and after launching above two edition , they can solve all accounting problem due to increasing the size and locations of production and sale .

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Accounting Standard 24 ( AS 24 ) - Discontinuing Operations

When, I have read this accounting standard, I find this accounting standard more interesting than other accounting standards. Because, ICAI gives some guidelines to auditors who check the financial statements of company.

1. To see the net profit or loss of discontinuing operations upto the date of dispose off, is mentioned in financial statement.

2 . To check the effect of discontinuing operation on financial statement especially in balance sheet.

Before going to deepness of AS 24 we just discuss simple meaning of discontinuing operations and its accounting treatment under AS 24.


Meaning of discontinuing operations


A company starts many operations in same time and finds that one or some of these operations are not profitable, so company can stop to do activities in these operations. All these operation which is stopped by company is called discontinuing operations. But one more important thing is to know:

Before closing any operation company has already purchased some asset and taken some loan for operating such operation, so proper accounting for this necessary. In accounting treatment of discontinuing operation, company should sell its all assets and paid its all liabilities and balance amount should add in capital or reserve of company.

If time period to dispose off of discontinuing operation is more than one year then calculate its net annual profit or loss and show it in financial statement like other active operation.

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Real Identification of Creditors in Accounting

Creditors are those people who provide goods on credit or loan in money. They have right to get the amount of their goods or loan with interest. So, in accounting,
these creditors are shown in liabilities side. If creditors provides long term loan then all amount of long term loan of creditors will shown as long term liabilities in balance sheet. If creditors have given only goods on credit, then their amount will be shown as current liability in the balance sheet of other party and that other party is called debtor. There is deep relationship between debtor and creditor and we can explain it with follow business transaction.

First case

Mr. X has taken $ 50000 dollar loan from Mr. y on 15% annual interest.

Second case

Mr. Y has taken goods of $ 10000 on credit from Mr. X .


Now we can explain who is debtor and who is creditor in above transaction.

Because Mr. X has taken loan from Mr. Y, so Mr. X is debtor and his liability to pay $ 50000 with 15% annual interest and Mr. Y is creditor because he has claim for getting his money with agreed return. But in second case , we see Mr. Y has taken goods from Mr. X , in this case situation is quite opposite , Mr. Y becomes debtor and Mr. X becomes Creditor for sold goods of $ 10000 .

In End, We can say , if anybody take agreement for proving goods , services , property or money to other person for getting returning on this , then that person will be creditor and other party of contract will become debtor .

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What is journal entry for cheque dishonored?

When any company gets cheque for his receivable amount and when it is deposited in bank by company . At that time, company entered this amount
in receipt voucher but if it is dishonored then its opposite journal entry must be entered in day book

Party or Debtor account Dr. (Dishonored cheque amount)

Bank account Cr.

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Why should You be Proud of Chiense Students ?

Chiense ( Chinese ) young students are learning Hindi in China . They understand , if they have to fight India in his land , then it is very necessary to learn Hindi . So , all of you should be proud of Chiense students . Even , we all Indians are ignoring our Mother Tongue Hindi and almost all Indian University are promoting English language for providing education .

Large numbers of Indian students who are well qualified but due to they got their education in Hindi medium are also facing problem in their career setting . Our Human resource ministry should learn from China's education system and to encourage all Hindi medium students to set up their career after completing higher education .

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Simple Explaination of Accounting Standard 23

Accounting for investment in associates in consolidated financial statements

This accounting standard 23 ( AS 23 under Indian GAAP ) is very helpful to cooperate type investors. In this standard, the simple rule is that investor must record all investment in associates. Here, I want to explain associates. It is not subsidiary company but if an investor invests his fund‘s 20% or more in any other company then it becomes his associate. There are two methods to record investment in associate.

Ist method: - Equity method:-

Under this method, investment in associate is record on the real cost of investment. Equity means total assets minus liabilities and it is very simple to understand for accountant because what amount is paid for getting investment in associate will only recorded in books of investor.

2nd method - Non equity method:-

After 1 June 2008, non equity method is also adopted, it is related with inflation accounting and if any fluctuation arise between the time of recording and the time of actual purchase, then this will also be recorded .

Showing it in consolidated balance sheet

If you have studied other accounting standard regarding subsidiary and holding company. You can understand what is consolidated balance sheet. Here, I brief introduction consolidated balance sheet shows all assets and liabilities of both holding and subsidiary company and showing investment relating to associate in consolidated balance sheet is not difficult.

When you have recorded these type of investment its balance become automatically asset and this will go to asset side of balance sheet consolidated.

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How can a Professional Stock Broker Maintain His Accounts in Tally

This article describes how stock broker make his accounts more professionally like professional accountant and you’ll also learn about different transactions and journal entries relating to stock broking profession.

Like any other professional stock broking is loyal profession. Stock broker is a person who purchases and sells of shares on the behalf of investors. Investor can not buy or sell shares himself. Even, making of DEMET account, it is possible to purchase and sell shares easy way by investor.

But only authorized stock broker has been given power to open DEMAT account by SEBI. So, professional stock broker takes the commission of his work. That is called brokerage. Now after basic knowledge of stock broking and stock broker to know maintaining stock broker accounts is very necessary.

Tally’s new software Tally.ERP 9 gives power to professional stock broker to record all their accounts himself.


Step 1. Create company of stock broking
Like other company creation, stock broker has also to create their own stock broking company in Tally.ERP 9 . Follow the following steps

Gate way of tally >> company info >> Create Company

If professional stock broker purchases and sells his own shares also, then he should create company account with inventory. Otherwise, only account is sufficient option in company creation.

Step 2. Create ledger and inventory accounts
Gateway of tally >> account info >> ledger >> create

a) Create fixed assets account like office of stock broker, computer, furniture, other machinery under fixed asset.
b) Create different investors account under sundry debtor account.
c) Create brokerage account under indirect income account
d) Create expenses account under indirect expenses
e) Create bank account under bank account
f) Create company whose shares are purchased under sundry creditor account
g) Create inventory account by following steps

Gate way of tally >> inventory info >> stock measurement >> create

a) Basic shares are counted in nos. and formal name is number like one share, or hundred shares. So stock measurement will be nos. as full form number.
b) Create also stock item , here you can write different company’s share , suppose reliance shares , tata shares , icici bank shares , hdfc bank shares etc .

Step 3. Pass the voucher entry
a) When a person opens DEMAT account and direct approach to stock broker for buying shares at that time stock broker gets the cheque from party advance for buying the shares or even some authorized banks like SBI are providing online fund transfer for buying any company shares. but entry must be same

Bank account / Credit Card Receipt account Dr. (Purchase price of share + brokerage)
Party account Cr. (Purchase price )
Brokerage account Cr. ( brokerage )

This entry will be passed in receipt voucher of tally

b) when stock broker purchase the share on the behalf of party .

Shares in company account Dr. ( Purchase price )

Bank account Cr.

c) When stock broker transfers these share to party under DEMAT account

Party Account Dr.

Shares in company account Cr.

d) When broker purchases his own shares

Purchase account Dr. ( Write different shares in item column with rate and quantity )

Bank account Cr.

e) When broker sells his own shares

Bank account Dr.

Sale account Cr.

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Accounting Solution of VAT Problem of Plastic Bottle Manufacturing Co.

Problem

Presently I am working in plastic bottle manufacturing co. as a post of production & account supervisor. During this so many problem arises one of which that when we purchase machinery parts for repairing machinery in this situation can we take the credit of input vat! or not, how can we pass this entry.

Solution


Yes, you can take credit of Input VAT only if you get the price of sold machinery parts. But your situation is quite different. You are final consumer of machinery parts and you are not selling, you can not get credit of Input VAT. Credit of Input VAT means , you can cover your input VAT which you have to pay to your supplier from the total Output VAT which you have obtained from your customer after selling same product .

Actually, after 1 April 2005, VAT is applied in India and its simple meaning of value added tax. If sell any product you have to only deposit VAT in Govt. which is excess of output VAT over Input VAT . Suppose, you have sell your plastic bottles, then on these sold bottles, you can get credit of your input VAT.

You have also the journal entry of passing it. This is below :-

For purchasing of Machinery parts

Machinery account Dr. (Amount of purchase)

VAT account Dr. (Amount of VAT on purchase)

Supplier’s Account Cr. (Total amount purchase price + VAT input)

For payment to supplier and Govt.

Supplier Account Dr. ( Total amount )

Bank account Cr.

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3 Security Defects Regarding Foreign Direct Investment in India

Foreign direct investment is useful for Indian development and it is helpful for providing infrastructure . With FDI , new resource can be generated by India . But if Indian Govt. ignore , its major three defects regarding FDI , then , foreign direct investment can raise many new problems .

1. From many time , Indian Govt. had provided facility to Indian Companies for getting FDI from other countries and with Indian companies , many individuals and false companies had promote and utilize this fund for terrorism . It has become the major tool to create problems relating to the security of India .


2. Mumbai terror attacks is one of major example of FDI misuse in India . Reason is clear . There is the defect in controlling system of entering FDI in India.


3. Third and last defect is relating to checking . From long , time system of checking is not so good regarding what is coming with foreign traveller who are visiting India .

Now Indian Govt. has take action to overcome the situation and started ground action by checking baggage and tight airport ground handling

airport, security,

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Get Google Calendar Reminder for Accounting Shedule Via Mobile SMS

Google Calender is free product which is used almost every business organisation for making time table and daily shedules . From Long time , Google has given facility of getting Reminding Alert of Calender Shedule Via E-mail and Pop Up on your PC .

But , Google has introduced new facility of getting Reminder for shedule Via mobile sms. This is most useful facility and its benefit can be taken by Accountants . If accountant uses this tricks in accounting shedules , then can become more disciplined regarding his accounting work . Suppose , you have to submit your tax challan in Bank for paying tax but due to other busy work , you can forget to check your google calender or e-mail . At that time , you find sms from your pocket mobile then you can do above work .


That's Nice to become punctual !

For enable this you have to go to Google calender and then above google calender homepage , you will see setting and in setting , you will find mobile setup . Click mobile set up and then write your mobile no . and after this google sms service send you code no. add it in next box and verified your sms subscription . One more thing , accountant should remember , you have to save after this verified your code .



Now , all work is done and Now , when you will write any new event for future shedule and work , you will get its sms one your mobile .

Except above facility , Accountant can also get the free facility of the google alert via sms , tweet of twitter via sms and many more feed of any new published content via sms of mobile by just go to lab of google and create the directory of google alert or any feed .

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How to Use Barcode in Accounting

If you have search any query on Google , then you will see Google Logo as Bar Code , Google is celebrating 57th anniversary of the first patent on the bar code see " The Washington Post "


If you will search on Google , you will find Top search result about how to Use barcode reader and any many more . But Do you know how to Use barcode in Accounting .




Today this tutorial will give the guidance about using barcode for the accounting purpose .


What is Barcode


Barcode are technical language in the black and white bars which can read by Barcode reader .

What is purpose of Barcode ?

Simply , to track the quantity of your material , goods and stock in your Computer data base


How can it Works


Using of barcode is very simple . Purchase the barcode reader machine from amazon.com or e-buy.com and then connect it with your own pc. Prof. Matt of Google Webmaster Central has shown how it works to record book code in Google book Library to track your books .

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Now , with this barcode , we can use it in Accounting . It is very useful when Accountant want to make Point of Sale Invoice and on this basis record sold stock in his accounting software . In India almost all accountant are using Tally software for doing Accounting Work . Now I will show you the exact procedure of entering Bar Code in tally .


Step No. 1.


Open Tally.ERP 9 and Connect Barcode Scanner at yourshop , or sale place or point of Sale .



Step No. 2


Create the stock item by going


Gateway of Tally.ERP 9 >> Inventory info >> Stock item


When you write item and enter . Barcode reader scan the barcode of item and will mention code no. in the alias field when you keep barcode reader physically on product's barcode place . In case of books it is always back of book .


Write Yes Allow Party detail in POS Invoice .


All party detail in pos invoice = yes

Skip quantity field during POS invoicing = Yes

Allow modification during POS invoicing = Yes

Step No. 3



Now make POS Voucher under Sale in Type of Voucher

Gateway of tally >> Account Info. >> Voucher Type


Step No. 4


Gateway of Tally > Accounting Vouchers > Select F8: Sales


Select the POS Voucher Type


Select Godown, Party A/c Name, Sales Ledger and VAT/Tax Class (if applicable) from the list.


Important : You can select the item of sale from your made list or Live barcode scanner which you have connected with your computer as same as above picture . Tally will take barcode and manage the stock according to this .

Time of scanning is very less and cost of barcode reader is very cheap and it is helpful to inventory management

After this you can pass the voucher entry in POS and can get the print of POS invoice for giving it to custmor .



Summary of Article

In Accounting , the use of barcodes can provide very detailed up-to-date information of the business business product which is sold in any retail shop or point of sale .

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How to Prepare Construction Accounts from Incomplete Records

Problem

This is Accountant from uae. I am going to join a new within few days... this company is a construction company. The problem is for me that they don't have any record properly there. They have just maintained some of the expenses for the year feb 2008 in excel. Now I want to start in focus or tally all details.. one is that I dont know there receipts during the period. they only few records about that. they dont have any record about tools as well and there depreciation. I don't know how start the work. i am bit confused about that how to start and from where should I start. what are the things I need to keep in mind. I hope that you will help me in this regard. So suggest me how to start the work.

Solution

Not only you many accountants face this problem when they join any new concern they find incomplete record. Preparing accounts without some or all prime accounting information is very difficult. When there is no old record of assets, liabilities, debtors, creditors or any bills of incomes or expenses, writing up his client’s books is not easy. In this situation following steps will be helpful to you to prepare accounts from incomplete records .

Simple Steps in the Preparation of Construction Accounts from Incomplete Records

Ist Step

Making an Opening Balance Sheet When it is not available

You must start your working by making an opening balance sheet manually before recording it in tally. If opening balance sheet is not available for your construction company, then try to trace the balance of different assets and liabilities from your Company’s owner, directors, CEO and manager after meeting with them and you can check all assets and liabilities by physically by making a rough list .

• If your construction company has building or plant then how many and what is its cost.
• If your construction company has taken loan, then from where and what is its opening balance.
• If this create your construction company in Tally.ERP 9 or Tally 9 which you are using and
  
  2nd Step
  
  Prepare summary of Cash Book
  
  You have said me that your client has given you the information of his expenses in excel sheet. Ask more information about bank transactions or try to get bank receipts with this you can trace old receipt transactions of your construction company which will be record in tally receipt voucher.
  
  You know that in the receipt side, we write cash sale and other incomes of business which we receive either in cash or through bank. Even company can introduce new and fresh capital which you have to write in the receipt side. Try to recognize your cash book with bank pass book and it will give you many information regarding which item is not recorded in Company’s book.
  
  
  
  3rd Step
  
  
  Make the list of Debtors and Creditors
  
  It is very necessary to know about amount due to creditor and amount due from debtors. You have to make new list of debtors and creditors by getting knowledge from your construction company’s owner. By analysis current and previous year Debtors and creditors list , you can know many new things
  
  Credit sale = If you have opening balance of debtor and you have known who are the debtor at this time and from bank statement what amount of cash received from debtor . Then you can find credit sale of this year
  
  Credit Sale = Closing debtors + amount received – opening debtors
  X = 10000 +5000 – 8000
  
  X = 7000
  
  
  Discount Allowed = Opening debtors + credit sale – amount received – closing debtors
  
  Bad Debt = Opening debtors + credit sale – amount received – discount allowed – closing debtors
  
  Credit purchase = Closing balance of creditors + amount paid – opening balance of creditors
  
  Discount received = Opening creditors + credit purchase – amount paid – closing balance of creditors
  
  
  You also analysis advance payments to creditors and also advance amount received from debtors.
  
  
  4th Step
  
  
  Calculation the value of Stock and Work in progress
  
  You should check all stock and work in progress. These is our current asset and after physically check the material make the list in tally by going
  
  Gateway of tally >> Inventory info >> stock items >> one by one write all items of your construction company. You can also write there measurement way
  
  Gateway of tally >> inventory info >> units of measurement >> create

Check out also the problem relating to the solution of valuation of stock

You should help the specialize person who can calculate the value of present stock.


5th Step

Calculation of special items

a) Calculation of depreciation and its record in books

b) Calculation of personal benefits from business

If you succeed to make final accounts after analysis above. After this never to forget to record your current transactions. Many current transactions will be linked with your old transaction and you will know many new things which you have omitted. After some time, your company’s financial and revenue position will show correct position. If you have doubt any specific item, then you can contact me again.

related Source : Accounting Procedure of Construction Company and Preparation of accounts from incomplete records (PDF File of Certified Public Accountants of Hong kong )

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Who is Debtor ?

Debtor is our customer. We sell the goods to him on credit. If we sell him goods with cash or cheque or credit card, then there is no need to open debtor account in books. Debtor’s closing balance is also our current asset and it is shown in balance sheet’s asset side. It is also mention in current asset when we calculate working capital for maintaining good working capital management.

To know the amount due from debtors are very important for business organization because

With this company can analysis different amount due from different debtors by making filter in excel and know different questions like what is the amount due between the two ranges or two periods.

If any debtor is not paying after maturity, then we can take action after calculation total receivable amount from him.

To know the value of about debtor is also very important for calculation of average collection period and debtor turnover ratio.

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