1. What are the rules of Account?

Or Golden rules of Accounting

1. Real Accounts : Debit what comes in Credit what goes out

2. Nominal Accounts : Debit All Expenses And Losses Credit All Income And Revenue 3. Personal Accounts: Debit the Receiver Credit the Giver

2. Reconciliation
Reconciliation means to reconcile the bank balances, or to match the cash book and pass book

3. What is BRS?

'BRS' stands for Bank Reconciliation Statement. This is prepared in order to tally the balances of Bank Book maintained by the Organization and Pass Book Maintained by the Banks for any particular account and the reasons there off.

4. What is the bill of exchange

Bills of exchange may be defined as a commitment subscribed by your customer to pay a certain amount on a given date upon presentation of the bill of exchange. They can be used to materialize installment payments.

5. General entry for credit purchases, credit sales.

purchases A/C -dr To supplier A/C Debtor A/c-dr To sales a/c

6. In how many days employees dues should be paid.

As per wages act, employee dues should be paid upto 7th day of the day on which wages become payable

7. What is column cash book?

1. cash book is a subsidiary book. IT IS PREPARED WHEN ONLY CASH & BANK TRANSECTIONS ARE OCCURED. SOMETIMES ONE PARTY RECEIVES OR ALLOW THE DISCOUNT ON THE TRANSECTIONS SO THAT PARTY WILL RECORD THAT ENTRY IN CASH BOOK. CASH BOOK IS NOTHING BUT MINIMISING THE JORNALS. 2. (a) (b) (c) Cash book has one, two and three columns. One column cash book : only Cash Two column Cash book: Cash & Bank transactions Three column cash book: Cash, Bank and Cash discount.

8. What is capital?

1. Cash or Goods used to generate income either by investing in a business or different income property. 2. In simple capital means property or material or things of the business. capital is the amount invested in the business for acquiring assets to run business

9. How can Calculate Deffred Tax of Any Firm Like Pvt. Ltd.
Deferred Tax liability is only a provision in the balance sheet, which will be calculated on the difference amount of the WDV of Fixed Assets as per Companies Act and as per Income Tax Act at the end of each financial year.

10. Contents of a Balance sheet

LIABILITIES AND ASSETS WHERE WE HAVE CAPITAL,LOAN,CREDITORS,RESERVES,O/S, BILLS PAYABLE,ETC IN LIABILITIES AND FIXED ASSETS LIKE PLANT & MACHINERY ,BUILDING, FURNITURE, CASH BANK BALANCE, BILLS RECEIVABLE, SUNDRY DEBTORS, CLOSING STOCK,GOODWILL,PREPAID EXPENSES, ETC.

11. WHAT WILL BE JOURNAL ENTRY OF COST OF GOODS SOLD.

lets Take a example Opening Stock Rs 1000 dr Purchase Rs 2000 Dr Closing stock Rs 500 Dr if the same is shown in Trail balance, The formula for cost of goods sold =opening stock+Purchase - closing stock. it means ultimately we debit in trading and profit and loss accont is Rs 2500/So the Journal entry would be Trading and profit and loss account dr Rs 2500 To Cost of goods sold Rs 2500 ( Being cost of goods sold transferred to P/l Trading account)

12. What is inventory

Inventory in a Manufacturing Company relates to Stock in Hand at any Particular Date which could be of Finished, Semi Finished or unfinished which can be treated as Current Assets. High accumulation of Inventory is always risky since it indicates locking up of Funds. So it should always be at a reasonable level

13. How to create Sundry Creditors and Sundry Debtors Aging analysis

Aging reports means Dr's or Cr's Pending amt showing below types. Below 30 Days, 30 to 60 Days and Above 60 days known as ageing reports created in tally using F6 key <D-S-O-P/R-F6>.

14. what is the different between Liability and owners equities ?

Owner's equity represents the capital i.e., the investment in the form of cash and assets made by the owner and the returna thereof, viz., P&L balance, general reserves etc. However, all other claims accrued to the business by entities other than owners constitute other's liabilities. Total liabilities are sum total of owners and other liabilities.

15. Where do you post Credit Sales in Trading or P& L Account, or should we deduct from the actual sales and put the net figures in the column. Clarify
Where do you post Credit Sales in Trading or P& L Account, or should we deduct from the actual sales and put the net figures in the column. Clarify

16. will preference share holders will have voting right?wat is difference between eqity holders and preference share holders

No preference shareholders donot have the right to vote. But in two circumstences they have voting right . 1.Reduction of Share capital. 2.cumilative preference dividend not paid in last 2 consecutive years. The both 2 situations they have right to vote...in according to the comp's Act 1956.

17. How we will account the preliminary expenses in journal and ledger as well as balance sheet?
Journal: If you wish to written off your Preliminary expenses Preliminary Exp A/c Dr. 1000 To Cash / Bank 1000 Being Preliminary expenses written off rs 1000) Ledger: you should have show the written off amount rs 1000 in debit side of P & L A/c Balance Sheet: You should have Asset side under the head of Miscellaneous Expenditure - preliminary Exp. Written of rs 1000. Otherwise if you not written off any amount during the year, you should have only show the opening balance of amount in assets side

18. What is the mean of capital in account

For Each & Every Business, you need Funds to start and run a Business. So this amount (Whether contributed by the Owners (Director / Stakeholder) or Financed from elsewhere) is called as Initial Capital. Later on, the meaning of Capital get Broadens into the Amount of Assets including Cash & cash equivalents which can be bifurcated into Current Assets and Fixed Assets.Net Capital can be calculated by deducting Liabilities from the Assets available. It shows the overall capacity of the Business Entity

19. PASS JOURNAL ENTRIES PURCHASED GOODS FROM Mr. X ON CREDIT 1000
PURCHASE A/C DR 1000 TO Mr X a/c 1000 (Being goods purchased from Mr. X on credit)

20. What is tds and how it is calculating

TDS is Tax Deducted at Source. This rule is introduced by the Govt. is in order to expedite Tax Collection (At least a part of the Total Tax Liability) as soon as an assesse earn his income. Normally we pay Income Tax and File returns of any Financial Year in the Next Year. By Deducting Taxes in the form of TDS, Govt. can get the revenue (At least a part thereof before setting off) in advance. At the end of the FY when you file your IT Return, you can deduct the amount deducted so far by way of TDS from your overall tax liability and pay only the balance if anything is due to the Tax Department or you can ask for a refund if the TDS deducted is more than your liability. TDS is deducted on salaries, dividend, Insurance, Winning from Lotteries, Horse Race, Rent, Commission, Professional Income etc.., etc., It is deducted according to the specified rates as per Finance Act.

21. what is the mean of ABC analysis ?

ABC analysis stands for Always Better Control...In this method of Inventory control.the most valuable materials being of small quantities yet of high sensitive are Ranked as "A" and the next category is "B" and the raw materials which are of large volume but of lower price sensitive are ranked "C".
ABCOutstandingly important Of Average Important Relatively unimportant as a basis for a control

22. What are the difference between P/l a/c and income and expenditure

Income and Expenditure account is created by non profit making organizations (NPO) and P&L account is created by business like trading and manufacturing etc.

23. What is set off and carry forward.

1: ---set off and carry forward comes under taxation. I vl take an e.g. explain set off-- Mr. has got 2 business one is cloth shop and another is coffee shop...at the end of d year...owner faced a loss of 50000 from cloth shop and profit of 60000 from coffee shop.(6000050000) therefore the owner is only liable to pay tax on 10000 rs because according to income tax act. His loss should be recovered from his profit. Note: - both the business should come under one head. 2::::: ---carry forward ---taking same scenario if Mr. faced a loss of 100000 and profit 0f 30000 ...den his profit amount will be adjusted to his loss amount and he will not be liable to pay any tax...whereas (100000-30000) leftover amount vl be again adjusted to next year profit....if he couldnt recover his loss amount next year...d maximum time he can take is 8 years..

24. How do you calculate Profit earned per share?

Net profit after all taxes and dividend divided by number of shares equal to earning per share

25. What do you mean by depreciation?

Depreciation is the decrease in the value of fixed asset due to wear and tear(usage),obsolesce etc. the important point to note is deprecation is for fixed assets only

26. What is the Formula of debt equity ratio? Also Define its importance in accountancy
Debt equity ratio is a long term ratio; it shows the proportion of debt over the equity. The formula for debt equity ratio is DER = Debt/Equity Here Debt is long-term liabilities and equity is none other than the share holders fund (Equity+Preference+Reserves-Ficticious assets)

27. What Does Return On Capital Employed - ROCE Mean?

ROCE compares earnings with capital invested in the company. It is similar to Return on Assets (ROA), but takes into account sources of financing. Operating Income : In the numerator we have pre-tax operating profit or operating income. However, it is also possible to adjust the EBIT by deducting the sum of the taxes. In the absence of non-operating income, operating income agrees with EBIT; otherwise, it can be derived from EBIT by subtracting nonoperating income. Capital Employed: In the denominator we have net assets or capital employed instead of total assets (which is the case of Return on Assets). Capital Employed has many definitions. In general it is the capital investment necessary for a business to function. It is commonly represented as total assets less current liabilities or fixed assets plus working capital. ROCE uses the reported (period end) capital numbers; if one instead uses the average of the opening and closing capital for the period, one obtains Return on Average Capital Employed (ROACE).
OR A ratio that indicates the efficiency and profitability of a company's capital investments. Calculated as: