tag:blogger.com,1999:blog-33102968624857590082024-03-16T03:32:27.748-07:00All is AccountingUnknownnoreply@blogger.comBlogger74125tag:blogger.com,1999:blog-3310296862485759008.post-15027523432111298102015-11-03T02:54:00.000-08:002015-11-03T02:54:25.006-08:00Solution to Accounts Quiz 3<div dir="ltr" style="text-align: left;" trbidi="on">
<a href="http://allisaccounting.blogspot.in/2015/11/1.html" target="_blank">Solution to Accounts Quiz 3</a><br />
1. Financial Accounting<br />
2. Treasury Stock<br />
3. Assets<br />
4. Accounting Equation<br />
5. Liabilities<br />
6. Equity<br />
7. Business Transactions<br />
8. Double Entry Accounting<br />
9. General Ledger<br />
10. Contra Account<br />
<br /></div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3310296862485759008.post-27719762798991862272015-11-02T06:45:00.004-08:002015-11-02T07:02:51.964-08:00Accounts Quiz 3<div dir="ltr" style="text-align: left;" trbidi="on">
<div class="MsoListParagraphCxSpFirst" style="mso-list: l0 level1 lfo1; text-align: justify; text-indent: -.25in;">
<div style="text-align: left;">
<div class="MsoNormal" style="text-align: justify;">
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<ol>
<li><span style="text-indent: -0.25in;">The process of communicating
financial information to people outside of an organization.</span></li>
<li><span style="text-indent: -0.25in;">The expanded accounting equation
includes revenues, expenses, common stock, dividends, paid in capital, and
________.</span></li>
<li><span style="text-indent: -0.25in;">Resource accounts with the same
balance as expenses.</span></li>
<li><span style="text-indent: -0.25in;">A formula used to compute and
balance double entry accounting.</span></li>
<li><span style="text-indent: -0.25in;">Unearned revenues are what type
of account?</span></li>
<li><span style="text-indent: -0.25in;">Paid in capital is what type of
account?</span></li>
<li><span style="text-indent: -0.25in;">What do journal entries record?</span></li>
<li><span style="text-indent: -0.25in;">The concept that debits will
always equal credits.</span></li>
<li><span style="text-indent: -0.25in;">A record or document that
contains account summaries for accounts used by a company.</span></li>
<li><span style="text-indent: -0.25in;">An account with an opposite
balance.</span></li>
</ol>
<div>
Post your answers in the comments section. </div>
<br /></div>
</div>
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</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3310296862485759008.post-2077978365365327772015-08-15T07:36:00.003-07:002015-11-02T01:07:52.987-08:00Best Practices for Account Reconciliation<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="color: black; font-family: "times" , "times new roman" , serif;">Account reconciliation is an under appreciated yet critical control to help ensure an organization's financial integrity. Weaknesses and inefficiencies in the reconciliation process often lead to mistakes on the balance sheet and overall inaccuracies in the financial close. </span></div>
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<span style="color: black; font-family: "times" , "times new roman" , serif;">Since the enactment of Sarbanes Oxley (SOX) in 2002 and other rules and regulations that have followed, ensuring the accuracy of account reconciliations has become increasingly important. In the past, if an external auditor found a material error during review of a company's financial statements, it could still be corrected by the company with an adjusting entry. In most cases, the controller wouldn't have to issue a restatement, nor would the auditor have to report the error. </span></div>
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<span style="color: black; font-family: "times" , "times new roman" , serif;">With the advent of SOX, the call for compliance has risen to another level. If the auditor finds a material error, the company may be required to disclose a failure of controls. And, if the auditor finds a misstatement while reviewing the quarterly or annual SEC reports that the company cannot prove it would have found on its own, then the error is determined to be a material misstatement and a material weakness that could also require disclosure. </span></div>
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<span style="color: black; font-family: "times" , "times new roman" , serif;">An efficient, accurate, and timely financial close cycle (beginning with the account reconciliation process) can create a foundation for evaluating business performance, supporting organizational decisions, and satisfying external reporting requirements. Automation of the account reconciliation process is a critical step on the road to achieving "balance sheet integrity" - and ultimately, a timely and efficient financial close. However, software alone will not ensure account reconciliations are accurate.</span></div>
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<span style="color: black; font-family: "times" , "times new roman" , serif;">Following this best practices list will send you on your way to error-free account reconciliations and a more efficient financial close:</span></div>
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<div style="background-color: none; border: 0px; box-sizing: border-box; color: #333333; font-stretch: inherit; line-height: 32.2999992370606px; margin: 0px; padding: 0px; text-align: justify; vertical-align: baseline;">
<strong style="border: 0px; box-sizing: border-box; font-stretch: inherit; font-style: inherit; font-variant: inherit; line-height: inherit; margin: 0px; padding: 0px; vertical-align: baseline;"><span style="color: black; font-family: "times" , "times new roman" , serif;">Account reconciliations should be complete - no account left behind!</span></strong></div>
<ul style="background-color: none; border: 0px; box-sizing: border-box; color: #333333; font-stretch: inherit; line-height: 32.2999992370606px; margin: 0px 0px 1.5rem 1.75rem; padding: 0px; vertical-align: baseline;">
<li style="border: 0px; box-sizing: border-box; font-stretch: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; padding: 0px; text-align: justify; vertical-align: baseline;"><span style="color: black; font-family: "times" , "times new roman" , serif;">Ensure all appropriate accounts are being reconciled, including new accounts.</span></li>
<li style="border: 0px; box-sizing: border-box; font-stretch: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; padding: 0px; text-align: justify; vertical-align: baseline;"><span style="color: black; font-family: "times" , "times new roman" , serif;">Ensure that there is an overall reconciliation policy and that it is adhered to company wide.</span></li>
<li style="border: 0px; box-sizing: border-box; font-stretch: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; padding: 0px; text-align: justify; vertical-align: baseline;"><span style="color: black; font-family: "times" , "times new roman" , serif;">Ensure that each reconciliation includes a title, description of the account, and procedures and/or instructions on how to complete the reconciliation (applicable contacts, reports to run or obtain, etc.).</span></li>
<li style="border: 0px; box-sizing: border-box; font-stretch: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; padding: 0px; text-align: justify; vertical-align: baseline;"><span style="color: black; font-family: "times" , "times new roman" , serif;">Documentation supporting the account balance should be included with the reconciliation.</span></li>
</ul>
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<div style="background-color: none; border: 0px; box-sizing: border-box; color: #333333; font-stretch: inherit; line-height: 32.2999992370606px; margin: 0px; padding: 0px; text-align: justify; vertical-align: baseline;">
<strong style="border: 0px; box-sizing: border-box; font-stretch: inherit; font-style: inherit; font-variant: inherit; line-height: inherit; margin: 0px; padding: 0px; vertical-align: baseline;"><span style="color: black; font-family: "times" , "times new roman" , serif;">Account reconciliations should be accurate.</span></strong></div>
<ul style="background-color: none; border: 0px; box-sizing: border-box; color: #333333; font-stretch: inherit; line-height: 32.2999992370606px; margin: 0px 0px 1.5rem 1.75rem; padding: 0px; vertical-align: baseline;">
<li style="border: 0px; box-sizing: border-box; font-stretch: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; padding: 0px; text-align: justify; vertical-align: baseline;"><span style="color: black; font-family: "times" , "times new roman" , serif;">The individual preparing and reviewing the account should have a basic understanding of what the account is used for and what should be used to support the balance. For example, cash accounts will most often need the general ledger and a bank statement in order to perform the reconciliation.</span></li>
<li style="border: 0px; box-sizing: border-box; font-stretch: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; padding: 0px; text-align: justify; vertical-align: baseline;"><span style="color: black; font-family: "times" , "times new roman" , serif;">Ensure that the correct, most updated balances are being reconciled.</span></li>
<li style="border: 0px; box-sizing: border-box; font-stretch: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; padding: 0px; text-align: justify; vertical-align: baseline;"><span style="color: black; font-family: "times" , "times new roman" , serif;">Ensure that the reconciliation actually supports the balance and is not just a repeat of the general ledger or a roll-forward of the balance.</span></li>
<li style="border: 0px; box-sizing: border-box; font-stretch: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; padding: 0px; text-align: justify; vertical-align: baseline;"><span style="color: black; font-family: "times" , "times new roman" , serif;">Watch for accounts that have unusual balances (such as an accrual with a debit balance or a receivable account with a credit balance).</span></li>
</ul>
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<strong style="border: 0px; box-sizing: border-box; font-stretch: inherit; font-style: inherit; font-variant: inherit; line-height: inherit; margin: 0px; padding: 0px; vertical-align: baseline;"><span style="color: black; font-family: "times" , "times new roman" , serif;">Account reconciliations should be completed and reviewed in a timely manner.</span></strong></div>
<ul style="background-color: none; border: 0px; box-sizing: border-box; color: #333333; font-stretch: inherit; line-height: 32.2999992370606px; margin: 0px 0px 1.5rem 1.75rem; padding: 0px; vertical-align: baseline;">
<li style="border: 0px; box-sizing: border-box; font-stretch: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; padding: 0px; text-align: justify; vertical-align: baseline;"><span style="color: black; font-family: "times" , "times new roman" , serif;">Create due dates for the reconciliations. </span></li>
<li style="border: 0px; box-sizing: border-box; font-stretch: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; padding: 0px; text-align: justify; vertical-align: baseline;"><span style="color: black; font-family: "times" , "times new roman" , serif;">Have a mechanism to track the status of each reconciliation.</span></li>
<li style="border: 0px; box-sizing: border-box; font-stretch: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; padding: 0px; text-align: justify; vertical-align: baseline;"><span style="color: black; font-family: "times" , "times new roman" , serif;">Make the high-risk account reconciliations due early on in the close cycle to identify any potential problems.</span></li>
<li style="border: 0px; box-sizing: border-box; font-stretch: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; padding: 0px; text-align: justify; vertical-align: baseline;"><span style="color: black; font-family: "times" , "times new roman" , serif;">Review the unidentified differences and post the necessary adjustments while the accounting period is still open.</span></li>
</ul>
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<div style="background-color: none; border: 0px; box-sizing: border-box; color: #333333; font-stretch: inherit; line-height: 32.2999992370606px; margin: 0px; padding: 0px; text-align: justify; vertical-align: baseline;">
<strong style="border: 0px; box-sizing: border-box; font-stretch: inherit; font-style: inherit; font-variant: inherit; line-height: inherit; margin: 0px; padding: 0px; vertical-align: baseline;"><span style="color: black; font-family: "times" , "times new roman" , serif;">Account reconciliations should support the appropriate accounting principles.</span></strong></div>
<ul style="background-color: none; border: 0px; box-sizing: border-box; color: #333333; font-stretch: inherit; line-height: 32.2999992370606px; margin: 0px 0px 1.5rem 1.75rem; padding: 0px; vertical-align: baseline;">
<li style="border: 0px; box-sizing: border-box; font-stretch: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; padding: 0px; text-align: justify; vertical-align: baseline;"><span style="color: black; font-family: "times" , "times new roman" , serif;">Account reconciliations should follow their local accounting principles. </span></li>
<li style="border: 0px; box-sizing: border-box; font-stretch: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; padding: 0px; text-align: justify; vertical-align: baseline;"><span style="color: black; font-family: "times" , "times new roman" , serif;">Ensure the reconciliations follow the principles, such as historical cost, matching, and full disclosure.</span></li>
<li style="border: 0px; box-sizing: border-box; font-stretch: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; padding: 0px; text-align: justify; vertical-align: baseline;"><span style="color: black; font-family: "times" , "times new roman" , serif;">Ensure the reconciliations are objective, that they identify material unidentified differences, that they are consistent, and that the transactions behind the general ledger balance followed the convention of conservatism.</span></li>
<li style="border: 0px; box-sizing: border-box; font-stretch: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; padding: 0px; text-align: justify; vertical-align: baseline;"><span style="color: black; font-family: "times" , "times new roman" , serif;">Reconciliations should follow company policies.</span></li>
</ul>
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<div style="background-color: none; border: 0px; box-sizing: border-box; color: #333333; font-stretch: inherit; line-height: 32.2999992370606px; margin: 0px; padding: 0px; text-align: justify; vertical-align: baseline;">
<strong style="border: 0px; box-sizing: border-box; font-stretch: inherit; font-style: inherit; font-variant: inherit; line-height: inherit; margin: 0px; padding: 0px; vertical-align: baseline;"><span style="color: black; font-family: "times" , "times new roman" , serif;">The account reconciliation process should be constantly reviewed and improved.</span></strong></div>
<ul style="background-color: none; border: 0px; box-sizing: border-box; color: #333333; font-stretch: inherit; line-height: 32.2999992370606px; margin: 0px 0px 1.5rem 1.75rem; padding: 0px; vertical-align: baseline;">
<li style="border: 0px; box-sizing: border-box; font-stretch: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; padding: 0px; text-align: justify; vertical-align: baseline;"><span style="color: black; font-family: "times" , "times new roman" , serif;">Review the account reconciliation policy to ensure it accurately reflects the company's position.</span></li>
<li style="border: 0px; box-sizing: border-box; font-stretch: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; padding: 0px; text-align: justify; vertical-align: baseline;"><span style="color: black; font-family: "times" , "times new roman" , serif;">Review the overall process routinely to identify improvements that help drive quality and timeliness.</span></li>
<li style="border: 0px; box-sizing: border-box; font-stretch: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; padding: 0px; text-align: justify; vertical-align: baseline;"><span style="color: black; font-family: "times" , "times new roman" , serif;">Review the reconciliation procedures and/or instructions to ensure they answer: What? When? Who? Why? How Much?</span></li>
<li style="border: 0px; box-sizing: border-box; font-stretch: inherit; font-style: inherit; font-variant: inherit; font-weight: inherit; line-height: inherit; margin: 0px; padding: 0px; text-align: justify; vertical-align: baseline;"><span style="color: black; font-family: "times" , "times new roman" , serif;">Use standard templates for the various types of reconciliations for consistency and ease of reviewing for accuracy and completeness.</span></li>
</ul>
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<span style="color: black; font-family: "times" , "times new roman" , serif;">Good tools and processes provide a framework for ensuring quality, accuracy, and completeness. They provide a means to track assignments, due dates, and work completion. A robust, automated account reconciliation process will focus the right people on the right activities and give management real-time information around the close process.</span></div>
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<span style="color: black; font-family: "times" , "times new roman" , serif;"><br /></span></div>
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<span style="color: black; font-family: "times" , "times new roman" , serif;">Source : http://www.accountingweb.com/technology/accounting-software/best-practices-for-account-reconciliation</span></div>
</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3310296862485759008.post-25440362731717472072015-08-14T05:47:00.000-07:002015-08-14T05:48:21.012-07:00What is 401(k) plan? <div dir="ltr" style="text-align: left;" trbidi="on">
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<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhR44XyQYq3nTFZt6O3dmX1DNy4FrPMp60iBlvsqsPtdvwA0yXwpxHSov57Bu9dDllN9XEvv3nsEi_m5JPfCGyhmF1Q5ZVMVdZBkDkUT6QsTtSl9v_v5_DtqSyPMTAfnBczf4BDEHQD3ro/s1600/401.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="240" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhR44XyQYq3nTFZt6O3dmX1DNy4FrPMp60iBlvsqsPtdvwA0yXwpxHSov57Bu9dDllN9XEvv3nsEi_m5JPfCGyhmF1Q5ZVMVdZBkDkUT6QsTtSl9v_v5_DtqSyPMTAfnBczf4BDEHQD3ro/s320/401.jpg" width="320" /></a></div>
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<span style="font-size: large;"><span style="-webkit-text-stroke-width: 0.150000005960464px; background-color: none; font-family: Times, 'Times New Roman', serif;">401(k) plan is an arrangement that allows an employee to choose between taking compensation in cash or deferring a percentage of it to an account under the plan. The amount deferred is usually not taxable to the employee until it is withdrawn or distributed from the plan. However, if the plan permits, an employee can make 401(k) contributions on an after-tax basis, and these amounts are tax-free when withdrawn. 401(k) plans are a type of retirement plan known as a </span><span style="font-family: Times, 'Times New Roman', serif;">qualified plan</span><span style="-webkit-text-stroke-width: 0.150000005960464px; background-color: none; font-family: Times, 'Times New Roman', serif;">, which means that this plan is governed by the regulations stipulated in the </span><span style="font-family: Times, 'Times New Roman', serif;">Employee Retirement Income Security Act of 1974</span><span style="-webkit-text-stroke-width: 0.150000005960464px; background-color: none; font-family: Times, 'Times New Roman', serif;"> and the tax code.</span></span></div>
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Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3310296862485759008.post-56469604102059769342015-08-10T06:24:00.001-07:002015-08-10T06:24:21.333-07:00Definition of notes receivable<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="font-family: Times, Times New Roman, serif;"><strong style="margin: 0px; padding: 0px; text-align: justify;">Note receivable</strong><span style="text-align: justify;"> </span><span style="text-align: justify;">is a claim that requires a formal instrument as proof of debt and usually provides for payment of interest by the debtor.</span></span><br />
<span style="font-family: Times, Times New Roman, serif; text-align: justify;"><br /></span>
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<span style="font-family: Times, Times New Roman, serif;">Notes receivable are also called <strong style="margin: 0px; padding: 0px;">promissory notes</strong>. That is, they require the debtor to pay the promised amount at a definite time or on demand. One making the promise (i.e., <strong style="margin: 0px; padding: 0px;">debtor</strong>) is called the <strong style="margin: 0px; padding: 0px;">maker</strong>, while one to whom the note is payable (i.e., the <strong style="margin: 0px; padding: 0px;">creditor</strong>) is called the <strong style="margin: 0px; padding: 0px;">payee</strong>. Due (maturity) date is the date when the note receivable is to be paid.</span></div>
<div>
<span style="font-family: Times, Times New Roman, serif;"><br /></span></div>
<div>
<div style="font-stretch: normal; line-height: 20px; margin-top: 18px; padding: 0px;">
<span style="font-family: Times, Times New Roman, serif;">Let’s assume that on April 1, 20X3 Vapaus Company (a fictitious entity) has a $10,000 past due account from Aanbod Company. Vacaus accepts a 60-day, 12% note receivable from Aanbod for $10,000. On April 1, 20X3 Vapaus would make the following journal entry to record the receipt of note receivable:</span></div>
</div>
<div>
<span style="font-family: Times, Times New Roman, serif;"><br /></span></div>
<div>
<table border="1" cellpadding="0" cellspacing="0" class="je" style="border-collapse: collapse; border: 3px solid rgb(255, 189, 73); color: black; margin: 10px 1px 0px; padding: 0px; width: 404px;"><thead style="margin: 0px; padding: 0px;">
<tr style="margin: 0px; padding: 0px;"><td nowrap="" style="background-color: #ffffcc; border-bottom-color: rgb(255, 189, 73); border-bottom-width: 3px; border-style: none none solid; margin: 0px; padding: 0px;" valign="top" width="220"><div style="font-stretch: normal; font-weight: bold; line-height: 20px; margin-left: 2px; margin-right: 2px; padding: 1px;">
<strong style="margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;">Account Titles</span></strong></div>
</td><td nowrap="" style="background-color: #ffffcc; border-bottom-color: rgb(255, 189, 73); border-bottom-width: 3px; border-style: none none solid; margin: 0px; padding: 0px;" valign="top" width="87"><div align="center" style="font-stretch: normal; font-weight: bold; line-height: 20px; margin-left: 2px; margin-right: 2px; padding: 1px; text-align: center;">
<strong style="margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;">Debit</span></strong></div>
</td><td nowrap="" style="background-color: #ffffcc; border-bottom-color: rgb(255, 189, 73); border-bottom-width: 3px; border-style: none none solid; margin: 0px; padding: 0px;" valign="top" width="89"><div align="center" style="font-stretch: normal; font-weight: bold; line-height: 20px; margin-left: 2px; margin-right: 2px; padding: 1px; text-align: center;">
<strong style="margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;">Credit</span></strong></div>
</td></tr>
</thead><tbody style="margin: 0px; padding: 0px;">
<tr style="margin: 0px; padding: 0px;"><td nowrap="" style="border: none; margin: 0px; padding: 0px;" valign="top" width="220"><div style="font-stretch: normal; line-height: 20px; margin-left: 2px; margin-right: 2px; padding: 1px;">
<span style="font-family: Times, Times New Roman, serif;">Notes Receivable-Aanbod</span></div>
</td><td nowrap="" style="border: none; margin: 0px; padding: 0px;" valign="top"><div align="center" style="font-stretch: normal; line-height: 20px; margin-left: 2px; margin-right: 2px; padding: 1px; text-align: center;">
<span style="font-family: Times, Times New Roman, serif;">$10,000</span></div>
</td><td nowrap="" style="border: none; margin: 0px; padding: 0px;" valign="top"><span style="font-family: Times, Times New Roman, serif;"> </span></td></tr>
<tr style="margin: 0px; padding: 0px;"><td nowrap="" style="border: none; margin: 0px; padding: 0px;" valign="top" width="220"><div style="font-stretch: normal; line-height: 20px; margin-left: 2px; margin-right: 2px; padding: 1px;">
<span style="font-family: Times, Times New Roman, serif;"> Accounts Receivable-Aanbod</span></div>
</td><td nowrap="" style="border: none; margin: 0px; padding: 0px;" valign="top"><span style="font-family: Times, Times New Roman, serif;"> </span></td><td nowrap="" style="border: none; margin: 0px; padding: 0px;" valign="top"><div align="center" style="font-stretch: normal; line-height: 20px; margin-left: 2px; margin-right: 2px; padding: 1px; text-align: center;">
<span style="font-family: Times, Times New Roman, serif;">$10,000</span></div>
</td></tr>
</tbody></table>
<span style="font-family: Times, Times New Roman, serif;"><br /></span></div>
<div>
<div style="font-stretch: normal; line-height: 20px; margin-top: 18px; padding: 0px;">
<span style="font-family: Times, Times New Roman, serif;">On May 30,20X3 – when the note receivable matures -- Vapaus Company would record interest revenue of $200 (i.e., $10,000 x 2%). If Aanbod pays the note receivable, Vapaus would record cash receipt. However, if Aanbod fails to pay the note receivable, Vapaus would transfer dishonored note receivable and interest into accounts receivable account; and if the account receivable account is deemed uncollectible, the company would write it off against the allowance for doubtful accounts. In either case, Vacaus would record an Interest Revenue of $200.</span></div>
</div>
<div>
<span style="font-family: Times, Times New Roman, serif;"><br /></span></div>
<div>
<div style="font-stretch: normal; line-height: 20px; margin-top: 18px; padding: 0px;">
<span style="font-family: Times, Times New Roman, serif;">If Aanbod pays the note receivable, Vacaus would make the following journal entry on May 30, 20X3:</span></div>
</div>
<div>
<span style="font-family: Times, Times New Roman, serif;"><br /></span></div>
<div>
<table border="1" cellpadding="0" cellspacing="0" class="je" style="border-collapse: collapse; border: 3px solid rgb(255, 189, 73); color: black; margin: 10px 1px 0px; padding: 0px; width: 404px;"><thead style="margin: 0px; padding: 0px;">
<tr style="margin: 0px; padding: 0px;"><td nowrap="" style="background-color: #ffffcc; border-bottom-color: rgb(255, 189, 73); border-bottom-width: 3px; border-style: none none solid; margin: 0px; padding: 0px;" valign="top" width="216"><div style="font-stretch: normal; font-weight: bold; line-height: 20px; margin-left: 2px; margin-right: 2px; padding: 1px;">
<strong style="margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;">Account Titles</span></strong></div>
</td><td nowrap="" style="background-color: #ffffcc; border-bottom-color: rgb(255, 189, 73); border-bottom-width: 3px; border-style: none none solid; margin: 0px; padding: 0px;" valign="top" width="88"><div align="center" style="font-stretch: normal; font-weight: bold; line-height: 20px; margin-left: 2px; margin-right: 2px; padding: 1px; text-align: center;">
<strong style="margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;">Debit</span></strong></div>
</td><td nowrap="" style="background-color: #ffffcc; border-bottom-color: rgb(255, 189, 73); border-bottom-width: 3px; border-style: none none solid; margin: 0px; padding: 0px;" valign="top" width="88"><div align="center" style="font-stretch: normal; font-weight: bold; line-height: 20px; margin-left: 2px; margin-right: 2px; padding: 1px; text-align: center;">
<strong style="margin: 0px; padding: 0px;"><span style="font-family: Times, Times New Roman, serif;">Credit</span></strong></div>
</td></tr>
</thead><tbody style="margin: 0px; padding: 0px;">
<tr style="margin: 0px; padding: 0px;"><td nowrap="" style="border: none; margin: 0px; padding: 0px;" valign="top" width="216"><div style="font-stretch: normal; line-height: 20px; margin-left: 2px; margin-right: 2px; padding: 1px;">
<span style="font-family: Times, Times New Roman, serif;">Cash</span></div>
</td><td nowrap="" style="border: none; margin: 0px; padding: 0px;" valign="top"><div align="center" style="font-stretch: normal; line-height: 20px; margin-left: 2px; margin-right: 2px; padding: 1px; text-align: center;">
<span style="font-family: Times, Times New Roman, serif;">$10,200</span></div>
</td><td nowrap="" style="border: none; margin: 0px; padding: 0px;" valign="top"><span style="font-family: Times, Times New Roman, serif;"> </span></td></tr>
<tr style="margin: 0px; padding: 0px;"><td nowrap="" style="border: none; margin: 0px; padding: 0px;" valign="top" width="216"><div style="font-stretch: normal; line-height: 20px; margin-left: 2px; margin-right: 2px; padding: 1px;">
<span style="font-family: Times, Times New Roman, serif;"> Notes Receivable-Aanbod</span></div>
</td><td nowrap="" style="border: none; margin: 0px; padding: 0px;" valign="top"><span style="font-family: Times, Times New Roman, serif;"> </span></td><td nowrap="" style="border: none; margin: 0px; padding: 0px;" valign="top"><div align="center" style="font-stretch: normal; line-height: 20px; margin-left: 2px; margin-right: 2px; padding: 1px; text-align: center;">
<span style="font-family: Times, Times New Roman, serif;">$10,000</span></div>
</td></tr>
<tr style="margin: 0px; padding: 0px;"><td nowrap="" style="border: none; margin: 0px; padding: 0px;" valign="top" width="216"><div style="font-stretch: normal; line-height: 20px; margin-left: 2px; margin-right: 2px; padding: 1px;">
<span style="font-family: Times, Times New Roman, serif;"> Interest Revenue</span></div>
</td><td nowrap="" style="border: none; margin: 0px; padding: 0px;" valign="top"><span style="font-family: Times, Times New Roman, serif;"> </span></td><td nowrap="" style="border: none; margin: 0px; padding: 0px;" valign="top"><div align="center" style="font-stretch: normal; line-height: 20px; margin-left: 2px; margin-right: 2px; padding: 1px; text-align: center;">
<span style="font-family: Times, Times New Roman, serif;">$200</span></div>
</td></tr>
</tbody></table>
<span style="font-family: Times, Times New Roman, serif;"><br /></span></div>
<div>
<div style="font-stretch: normal; line-height: 20px; margin-top: 18px; padding: 0px;">
<span style="font-family: Times, Times New Roman, serif;">When a note matures in the later fiscal period, the company holding the note receivable recognizes interest revenue at the end of each accounting period (i.e., along with interest receivable) for that period. Interest revenue is usually reported as Other Income.</span></div>
</div>
<div>
<br /></div>
</div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3310296862485759008.post-26687646437634717282015-08-10T06:18:00.003-07:002015-08-10T06:19:03.234-07:00Accounting for cash (sales) discounts<div dir="ltr" style="text-align: left;" trbidi="on">
<div style="font-family: Arial; font-size: 13px; font-stretch: normal; line-height: 20px; margin-top: 18px; padding: 0px;">
Let's see how the credit term of 2/10, n/30 works in an example.</div>
<div style="font-family: Arial; font-size: 13px; font-stretch: normal; line-height: 20px; margin-top: 18px; padding: 0px;">
Michael & Co Ltd. ships $1,000 of goods to a customer. If the customer pays Michael & Co Ltd. within 10 days of the invoice date, the customer is allowed to deduct $20 (2% of $1,000) from the purchase of $1,000. In other words, the $1,000 amount can be settled for $980 if it is paid within the 10-day discount period.</div>
<div style="font-family: Arial; font-size: 13px; font-stretch: normal; line-height: 20px; margin-top: 18px; padding: 0px;">
In the situation when the buyer is paying the account payable to Michael & Co Ltd. for $1,000 early enough to receive a 2% discount, the following entry is made by the <u style="margin: 0px; padding: 0px;">buyer</u>:</div>
<table border="0" cellpadding="0" cellspacing="0" class="je" style="border-collapse: collapse; border: 3px solid rgb(255, 189, 73); color: black; margin: 10px 1px 0px; padding: 0px; width: 353px;"><thead style="margin: 0px; padding: 0px;">
<tr style="margin: 0px; padding: 0px;"><td style="background-color: #ffffcc; border-bottom-color: rgb(255, 189, 73); border-bottom-width: 3px; border-style: none none solid; margin: 0px; padding: 0px;" valign="top" width="205"><div style="font-family: Arial; font-size: 13px; font-stretch: normal; font-weight: bold; line-height: 20px; margin-left: 2px; margin-right: 2px; padding: 1px;">
Account Titles</div>
</td><td style="background-color: #ffffcc; border-bottom-color: rgb(255, 189, 73); border-bottom-width: 3px; border-style: none none solid; margin: 0px; padding: 0px;" valign="top" width="73"><div align="center" style="font-family: Arial; font-size: 13px; font-stretch: normal; font-weight: bold; line-height: 20px; margin-left: 2px; margin-right: 2px; padding: 1px; text-align: center;">
Debit</div>
</td><td style="background-color: #ffffcc; border-bottom-color: rgb(255, 189, 73); border-bottom-width: 3px; border-style: none none solid; margin: 0px; padding: 0px;" valign="top" width="69"><div align="center" style="font-family: Arial; font-size: 13px; font-stretch: normal; font-weight: bold; line-height: 20px; margin-left: 2px; margin-right: 2px; padding: 1px; text-align: center;">
Credit</div>
</td></tr>
</thead><tbody style="margin: 0px; padding: 0px;">
<tr style="margin: 0px; padding: 0px;"><td style="border: none; margin: 0px; padding: 0px;" valign="top"><div align="left" style="font-family: Arial; font-size: 13px; font-stretch: normal; line-height: 20px; margin-left: 2px; margin-right: 2px; padding: 1px;">
Accounts Payable</div>
</td><td style="border: none; margin: 0px; padding: 0px;" valign="top"><div align="center" style="font-family: Arial; font-size: 13px; font-stretch: normal; line-height: 20px; margin-left: 2px; margin-right: 2px; padding: 1px; text-align: center;">
1,000</div>
</td><td style="border: none; margin: 0px; padding: 0px;" valign="top"><div align="left" style="font-family: Arial; font-size: 13px; font-stretch: normal; line-height: 20px; margin-left: 2px; margin-right: 2px; padding: 1px;">
<br /></div>
</td></tr>
<tr style="margin: 0px; padding: 0px;"><td style="border: none; margin: 0px; padding: 0px;" valign="top"><div align="left" style="font-family: Arial; font-size: 13px; font-stretch: normal; line-height: 20px; margin-left: 2px; margin-right: 2px; padding: 1px;">
Purchases Discount</div>
</td><td style="border: none; margin: 0px; padding: 0px;" valign="top"><div align="center" style="font-family: Arial; font-size: 13px; font-stretch: normal; line-height: 20px; margin-left: 2px; margin-right: 2px; padding: 1px; text-align: center;">
<br /></div>
</td><td style="border: none; margin: 0px; padding: 0px;" valign="top"><div align="center" style="font-family: Arial; font-size: 13px; font-stretch: normal; line-height: 20px; margin-left: 2px; margin-right: 2px; padding: 1px; text-align: center;">
20</div>
</td></tr>
<tr style="margin: 0px; padding: 0px;"><td style="border: none; margin: 0px; padding: 0px;" valign="top"><div style="font-family: Arial; font-size: 13px; font-stretch: normal; line-height: 20px; margin-left: 2px; margin-right: 2px; padding: 1px;">
Cash</div>
</td><td style="border: none; margin: 0px; padding: 0px;" valign="top"></td><td style="border: none; margin: 0px; padding: 0px;" valign="top"><div align="center" style="font-family: Arial; font-size: 13px; font-stretch: normal; line-height: 20px; margin-left: 2px; margin-right: 2px; padding: 1px; text-align: center;">
980</div>
</td></tr>
</tbody></table>
<div class="Usingtheexamplefromabove" style="font-family: Arial; font-size: 13px; font-stretch: normal; line-height: 20px; margin-top: 18px; padding: 0px;">
On the other hand, in the case when we are receiving payment from the Customer for a $1,000 account receivable early enough to offer a 2% discount, the <u style="margin: 0px; padding: 0px;">seller</u> would make the following entry:</div>
<table border="0" cellpadding="0" cellspacing="0" class="je" style="border-collapse: collapse; border: 3px solid rgb(255, 189, 73); color: black; margin: 10px 1px 0px; padding: 0px; width: 353px;"><thead style="margin: 0px; padding: 0px;">
<tr style="margin: 0px; padding: 0px;"><td style="background-color: #ffffcc; border-bottom-color: rgb(255, 189, 73); border-bottom-width: 3px; border-style: none none solid; margin: 0px; padding: 0px;" valign="top" width="215"><div style="font-family: Arial; font-size: 13px; font-stretch: normal; font-weight: bold; line-height: 20px; margin-left: 2px; margin-right: 2px; padding: 1px;">
Account Titles</div>
</td><td style="background-color: #ffffcc; border-bottom-color: rgb(255, 189, 73); border-bottom-width: 3px; border-style: none none solid; margin: 0px; padding: 0px;" valign="top" width="65"><div align="center" style="font-family: Arial; font-size: 13px; font-stretch: normal; font-weight: bold; line-height: 20px; margin-left: 2px; margin-right: 2px; padding: 1px; text-align: center;">
Debit</div>
</td><td style="background-color: #ffffcc; border-bottom-color: rgb(255, 189, 73); border-bottom-width: 3px; border-style: none none solid; margin: 0px; padding: 0px;" valign="top" width="67"><div align="center" style="font-family: Arial; font-size: 13px; font-stretch: normal; font-weight: bold; line-height: 20px; margin-left: 2px; margin-right: 2px; padding: 1px; text-align: center;">
Credit</div>
</td></tr>
</thead><tbody style="margin: 0px; padding: 0px;">
<tr style="margin: 0px; padding: 0px;"><td style="border: none; margin: 0px; padding: 0px;" valign="top"><div align="left" style="font-family: Arial; font-size: 13px; font-stretch: normal; line-height: 20px; margin-left: 2px; margin-right: 2px; padding: 1px;">
Cash</div>
</td><td style="border: none; margin: 0px; padding: 0px;" valign="top"><div align="center" style="font-family: Arial; font-size: 13px; font-stretch: normal; line-height: 20px; margin-left: 2px; margin-right: 2px; padding: 1px; text-align: center;">
980</div>
</td><td style="border: none; margin: 0px; padding: 0px;" valign="top"><div align="left" style="font-family: Arial; font-size: 13px; font-stretch: normal; line-height: 20px; margin-left: 2px; margin-right: 2px; padding: 1px;">
<br /></div>
</td></tr>
<tr style="margin: 0px; padding: 0px;"><td style="border: none; margin: 0px; padding: 0px;" valign="top"><div align="left" style="font-family: Arial; font-size: 13px; font-stretch: normal; line-height: 20px; margin-left: 2px; margin-right: 2px; padding: 1px;">
Sales Discount</div>
</td><td style="border: none; margin: 0px; padding: 0px;" valign="top"><div align="center" style="font-family: Arial; font-size: 13px; font-stretch: normal; line-height: 20px; margin-left: 2px; margin-right: 2px; padding: 1px; text-align: center;">
20</div>
</td><td style="border: none; margin: 0px; padding: 0px;" valign="top"><div align="center" style="font-family: Arial; font-size: 13px; font-stretch: normal; line-height: 20px; margin-left: 2px; margin-right: 2px; padding: 1px; text-align: center;">
<br /></div>
</td></tr>
<tr style="margin: 0px; padding: 0px;"><td style="border: none; margin: 0px; padding: 0px;" valign="top"><div style="font-family: Arial; font-size: 13px; font-stretch: normal; line-height: 20px; margin-left: 2px; margin-right: 2px; padding: 1px;">
Accounts Receivable</div>
</td><td style="border: none; margin: 0px; padding: 0px;" valign="top"></td><td style="border: none; margin: 0px; padding: 0px;" valign="top"><div align="center" style="font-family: Arial; font-size: 13px; font-stretch: normal; line-height: 20px; margin-left: 2px; margin-right: 2px; padding: 1px; text-align: center;">
1,000</div>
</td></tr>
</tbody></table>
<div style="font-family: Arial; font-size: 13px; font-stretch: normal; line-height: 20px; margin-top: 18px; padding: 0px;">
The method of recording the cash (sales) discounts is called the Gross Method.</div>
<div style="font-family: Arial; font-size: 13px; font-stretch: normal; line-height: 20px; margin-top: 18px; padding: 0px;">
Also see : <a href="http://allisaccounting.blogspot.in/2015/08/explanation-of-210-n30-credit-terms.html" target="_blank">Explanation of 2/10, n/30 credit terms</a></div>
<div style="font-stretch: normal; margin-top: 18px; padding: 0px;">
<br /></div>
<div>
<br /></div>
</div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3310296862485759008.post-2700153932499932452015-08-10T06:16:00.000-07:002015-08-10T06:16:01.239-07:00Explanation of 2/10, n/30 credit terms<div dir="ltr" style="text-align: left;" trbidi="on">
<div style="font-family: Arial; font-stretch: normal; line-height: 20px; margin-top: 18px; padding: 0px; text-align: justify;">
Indication "2/10, n/30" (or "2/10 net 30") on an invoice represents a cash (sales) discount provided by the seller to the buyer for prompt payment.</div>
<div style="font-family: Arial; font-stretch: normal; line-height: 20px; margin-top: 18px; padding: 0px; text-align: justify;">
<u style="margin: 0px; padding: 0px;">The term 2/10, n/30</u> is a typical credit term and means the following:</div>
<ul class="content_list" style="list-style: none; margin: 0px; padding: 0px;">
<li style="background-attachment: initial; background-clip: initial; background-image: url(http://simplestudies.com/images/g_line_2.gif); background-origin: initial; background-position: 0% 9px; background-repeat: no-repeat; background-size: initial; font-family: Arial; font-stretch: normal; line-height: 16px; margin: 9px 0px 0px; padding: 0px 0px 0px 24px; text-align: justify;">"2" shows the discount percentage offered by the seller.</li>
<li style="background-attachment: initial; background-clip: initial; background-image: url(http://simplestudies.com/images/g_line_2.gif); background-origin: initial; background-position: 0% 9px; background-repeat: no-repeat; background-size: initial; font-family: Arial; font-stretch: normal; line-height: 16px; margin: 9px 0px 0px; padding: 0px 0px 0px 24px; text-align: justify;">"10" indicates the number of days (from the invoice date) within which the buyer should pay the invoice in order to receive the discount.</li>
<li style="background-attachment: initial; background-clip: initial; background-image: url(http://simplestudies.com/images/g_line_2.gif); background-origin: initial; background-position: 0% 9px; background-repeat: no-repeat; background-size: initial; font-family: Arial; font-stretch: normal; line-height: 16px; margin: 9px 0px 0px; padding: 0px 0px 0px 24px; text-align: justify;">"n/30" states that if the buyer does not pay the (full) invoice amount within the 10 days to qualify for the discount, then the net amount is due within 30 days after the sales invoice date.</li>
</ul>
<div style="font-family: Arial; font-stretch: normal; line-height: 20px; margin-top: 18px; padding: 0px; text-align: justify;">
The terms offered by the seller usually depend on the trade custom. Some variations of the cash discount terms, among others, may be "2/15, n/30" (2% discount for the payment within 15 days and the full amount to be paid within 30 days) or "n/10 EOM" (the invoice is due and payable 10 days after the end of the month in which the sale occurred).</div>
<div style="font-family: Arial; font-stretch: normal; line-height: 20px; margin-top: 18px; padding: 0px; text-align: justify;">
In accounting, a cash (sales) discount represents an expense to the seller. The account used to recognize the expense may be called "Sales Discount" or "Discount on Sales."</div>
<br />
<h2 class="title_4" style="background-attachment: initial; background-clip: initial; background-image: url(http://simplestudies.com/images/title_4.jpg); background-origin: initial; background-position: 0% 0%; background-repeat: no-repeat; background-size: initial; font-family: Arial; font-stretch: normal; font-weight: normal; margin: 20px 0px 0px; padding: 0px;">
</h2>
<br />
<div style="-webkit-text-stroke-width: 0px; color: black; font-family: Arial; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: 20px; margin: 18px 0px 0px; orphans: auto; padding: 0px; text-align: justify; text-indent: 0px; text-transform: none; white-space: normal; widows: 1; word-spacing: 0px;">
The buyer treats such a discount as a reduction of the cost and uses the account called "Purchases Discount" or "Discount on Purchases."</div>
</div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3310296862485759008.post-33566266748054048012015-08-07T21:33:00.002-07:002015-08-07T21:34:26.609-07:00Accounts Payable<div dir="ltr" style="text-align: left;" trbidi="on">
<h3 style="background-color: none; border: 0px; box-sizing: border-box; color: #333333; font-stretch: inherit; line-height: 20px; margin-bottom: 20px; padding: 0px; text-align: left; vertical-align: baseline;">
</h3>
<h4>
<span style="font-family: Times, Times New Roman, serif;"><span style="font-weight: normal;">When a company orders and receives goods (or services) in advance of paying for them, we say that the company is purchasing the goods on account or on credit. The supplier (or vendor) of the goods on credit is also referred to as a creditor. If the company receiving the goods does not sign a promissory note, the vendor's bill or invoice will be recorded by the company in its liability account Accounts Payable (or Trade Payables).</span></span></h4>
<h4>
<span style="font-family: Times, Times New Roman, serif;"><span style="font-weight: normal;"><br /></span></span></h4>
<h4>
<span style="font-family: Times, Times New Roman, serif;"><span style="font-weight: normal;">As is expected for a liability account, Accounts Payable will normally have a credit balance. Hence, when a vendor invoice is recorded, Accounts Payable will be credited and another account must be debited (as required by double-entry accounting). When an account payable is paid, Accounts Payable will be debited and Cash will be credited. Therefore, the credit balance in Accounts Payable should be equal to the amount of vendor invoices that have been recorded but have not yet been paid.Under the accrual method of accounting, the company receiving goods or services on credit must report the liability no later than the date they were received. The same date is used to record the debit entry to an expense or asset account as appropriate. Hence, accountants say that under the accrual method of accounting expenses are reported when they are incurred (not when they are paid).The term accounts payable can also refer to the person or staff that processes vendor invoices and pays the company's bills. That's why a supplier who hasn't received payment from a customer will phone and ask to speak with "accounts payable."The accounts payable process involves reviewing an enormous amount of detail to ensure that only legitimate and accurate amounts are entered in the accounting system. Much of the information that needs to be reviewed will be found in the following documents:</span></span></h4>
<h4>
<span style="font-family: Times, Times New Roman, serif;"><span style="font-weight: normal;"><br /></span></span></h4>
<h4>
<span style="font-family: Times, Times New Roman, serif;"><span style="font-weight: normal;">purchase orders issued by the company</span></span></h4>
<h4>
<span style="font-family: Times, Times New Roman, serif;"><span style="font-weight: normal;">receiving reports issued by the company</span></span></h4>
<h4>
<span style="font-family: Times, Times New Roman, serif;"><span style="font-weight: normal;">invoices from the company's vendors</span></span></h4>
<h4>
<span style="font-family: Times, Times New Roman, serif;"><span style="font-weight: normal;">contracts and other agreements</span></span></h4>
<h4>
<span style="font-family: Times, Times New Roman, serif;"><span style="font-weight: normal;">The accuracy and completeness of a company's financial statements are dependent on the accounts payable process. A well-run accounts payable process will include:</span></span></h4>
<h4>
<span style="font-family: Times, Times New Roman, serif;"><span style="font-weight: normal;">the timely processing of accurate and legitimate vendor invoices,</span></span></h4>
<h4>
<span style="font-family: Times, Times New Roman, serif;"><span style="font-weight: normal;">accurate recording in the appropriate general ledger accounts, and</span></span></h4>
<h4>
<span style="font-family: Times, Times New Roman, serif;"><span style="font-weight: normal;">the accrual of obligations and expenses that have not yet been completely processed.</span></span></h4>
<h4>
<span style="font-family: Times, Times New Roman, serif;"><span style="font-weight: normal;">The efficiency and effectiveness of the accounts payable process will also affect the company's cash position, credit rating, and relationships with its suppliers.</span></span></h4>
</div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3310296862485759008.post-58913827876641309082015-08-03T04:00:00.001-07:002015-08-03T04:03:32.127-07:00Excel - VLOOKUP Easy Explanation<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="font-family: 'Times New Roman', serif; font-size: 13pt; text-align: left;">To build a VLOOKUP, you
need 4 parameters</span><br />
<span style="font-family: 'Times New Roman', serif; font-size: 13pt; text-align: left;"><br /></span></div>
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<!--[if !supportLists]--><span style="color: #2c2b2b; font-family: Symbol; font-size: 10.0pt; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.5pt; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="color: #2c2b2b; font-family: "Times New Roman","serif"; font-size: 11.5pt; mso-fareast-font-family: "Times New Roman";">First parameter of the
function contains a value you want to search.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="color: #2c2b2b; font-family: Symbol; font-size: 10.0pt; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.5pt; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="color: #2c2b2b; font-family: "Times New Roman","serif"; font-size: 11.5pt; mso-fareast-font-family: "Times New Roman";">Second parameter is
the range of cells where you want to make your research.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="color: #2c2b2b; font-family: Symbol; font-size: 10.0pt; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.5pt; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="color: #2c2b2b; font-family: "Times New Roman","serif"; font-size: 11.5pt; mso-fareast-font-family: "Times New Roman";">Third parameter
indicates the column number you want to return.<o:p></o:p></span></div>
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<!--[if !supportLists]--><span style="color: #2c2b2b; font-family: Symbol; font-size: 10.0pt; mso-bidi-font-family: Symbol; mso-bidi-font-size: 11.5pt; mso-fareast-font-family: Symbol;">·<span style="font-family: 'Times New Roman'; font-size: 7pt; font-stretch: normal; line-height: normal;">
</span></span><!--[endif]--><span style="color: #2c2b2b; font-family: "Times New Roman","serif"; font-size: 11.5pt; mso-fareast-font-family: "Times New Roman";">The last parameter is
0 or FALSE (means exact match) or 1 or TRUE (means approaching).<o:p></o:p></span><br />
<span style="color: #2c2b2b; font-family: "Times New Roman","serif"; font-size: 11.5pt; mso-fareast-font-family: "Times New Roman";"><br /></span>
</div>
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Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3310296862485759008.post-28747520272923105062015-07-30T22:55:00.001-07:002015-07-30T22:56:07.085-07:00What is a General Reserve?<div dir="ltr" style="text-align: left;" trbidi="on">
<div style="background-color: none; border: 0px; color: #222222; font-family: 'Open Sans', sans-serif; font-size: 15px; line-height: 1.4em; margin-bottom: 25px; padding: 0px; text-align: justify; vertical-align: baseline; word-wrap: break-word;">
When any amount is kept aside by a company out of its profit for future purpose then that is called as general reserves. In other words the general reserves are the retained earnings of a company which are kept aside out of company’s profits to meet future known or unknown obligations. General reserves are the part of Profit and Loss Appropriation Account.</div>
<div style="background-color: none; border: 0px; color: #222222; font-family: 'Open Sans', sans-serif; font-size: 15px; line-height: 1.4em; margin-bottom: 25px; padding: 0px; text-align: justify; vertical-align: baseline; word-wrap: break-word;">
In other words the general reserve is a free reserves which can be utilized for any purpose after fulfilling certain conditions.</div>
<div style="background-color: none; border: 0px; color: #222222; font-family: 'Open Sans', sans-serif; font-size: 15px; line-height: 1.4em; margin-bottom: 25px; padding: 0px; text-align: justify; vertical-align: baseline; word-wrap: break-word;">
On the basis of above definitions general reserve may be utilized for following purposes:-</div>
<ul style="background-color: none; border: 0px; color: #222222; font-family: 'Open Sans', sans-serif; font-size: 16px; line-height: 16px; margin: 0px 0px 25px; padding: 0px 0px 0px 25px; vertical-align: baseline;">
<li style="border: 0px; font-size: 15px; line-height: 1.5em; margin: 0px; padding: 0px; text-align: justify; vertical-align: baseline;">To settle any unknown future contingencies</li>
<li style="border: 0px; font-size: 15px; line-height: 1.5em; margin: 0px; padding: 0px; text-align: justify; vertical-align: baseline;">To increase the working capital</li>
<li style="border: 0px; font-size: 15px; line-height: 1.5em; margin: 0px; padding: 0px; text-align: justify; vertical-align: baseline;">To strengthen the financial position of the company</li>
<li style="border: 0px; font-size: 15px; line-height: 1.5em; margin: 0px; padding: 0px; text-align: justify; vertical-align: baseline;">To pay dividends to shareholders more than specified limits</li>
<li style="border: 0px; font-size: 15px; line-height: 1.5em; margin: 0px; padding: 0px; text-align: justify; vertical-align: baseline;">General reserves kept to offset some specific future losses.</li>
<li style="border: 0px; font-size: 15px; line-height: 1.5em; margin: 0px; padding: 0px; text-align: justify; vertical-align: baseline;">General reserves includes the money kept aside for litigation or revaluation.</li>
</ul>
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General reserves are shown in liabilities side of balance sheet.</div>
</div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3310296862485759008.post-26198075867336683452015-07-30T22:49:00.001-07:002015-07-30T22:50:02.537-07:00What is accumulated depreciation?<div dir="ltr" style="text-align: left;" trbidi="on">
<div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: justify;">
<span style="background-attachment: initial; background-clip: initial; background-color: none; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; font-family: 'Book Antiqua', serif; font-size: 16pt;">Accumulated depreciation is the total amount of
a plant asset's cost that has been </span><span style="font-family: 'Book Antiqua', serif; font-size: 16pt;">allocated </span><span style="font-family: 'Book Antiqua', serif; font-size: 16pt;">to depreciation
expense since the asset was put into service. Accumulated depreciation is
associated with constructed assets such as buildings, machinery, office
equipment, furniture, fixtures, vehicles, etc.</span><span style="font-family: 'Book Antiqua', serif; font-size: 16pt;"><br />
<br />
<span style="background: none;">The amount of accumulated depreciation is used
to determine a plant asset's book value (or carrying value). For example, a
delivery truck having a cost of $50,000 and accumulated depreciation of $31,000
will have a book value of $19,000. (It is important to note that an asset's
book value does </span>not <span style="background: none;">indicate
the asset's market value since depreciation is merely an allocation technique.)</span><br />
<br />
<span style="background: none;">The accumulated depreciation of each plant asset
cannot exceed the asset's cost. If an asset remains in use after its cost has
been fully depreciated, the asset's cost and its accumulated depreciation will
remain in the general ledger accounts and the depreciation expense stops. When
the asset is disposed (sold, retired, etc.) the asset's cost and accumulated
depreciation are removed from the accounts.</span></span><span style="font-family: 'Book Antiqua', serif; font-size: 16pt;"><o:p></o:p></span></div>
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Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3310296862485759008.post-35682357475587899902015-07-30T22:42:00.002-07:002015-07-30T22:44:18.402-07:00What is a Scrap Value?<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">In financial accounting, scrap value is associated with
the depreciation of assets used in a business. In this situation,
scrap value is defined as the expected or estimated value of the asset at the
end of its useful life. Scrap value is also referred to as an asset's
salvage value or residual value. The following example illustrates how the
scrap value is used.<br />
<br />
A business acquires equipment at a cost of $150,000 and estimates that its
scrap value will be $10,000 at the end of its useful life of 7 years. The
annual straight-line depreciation expense will be $20,000 [($150,000 cost minus
$10,000 scrap value) divided by 7 years]. </span><span style="font-family: 'Book Antiqua', serif; font-size: 14pt;"><o:p></o:p></span></div>
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Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3310296862485759008.post-73637355198511199292015-07-30T22:18:00.002-07:002015-07-30T22:28:49.528-07:00General Ledger - Basic accounting<div dir="ltr" style="text-align: left;" trbidi="on">
<div class="MsoNormal">
<div style="text-align: justify;">
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<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">The general ledger is the core of your company’s financial
records. These constitute the central “books” of your system, and every
transaction flows through the general ledger. These records remain as a
permanent track of the history of all financial transactions since day one of
the life of your company.<o:p></o:p></span></div>
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<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">Sub-ledgers and the <span style="text-transform: uppercase;">GENERAL</span> Ledger</span></b><span style="font-family: 'Book Antiqua', serif; font-size: 14pt;"><o:p></o:p></span></div>
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<br /></div>
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<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">Your accounting system will have a number of subsidiary ledgers
(called sub-ledgers) for items such as cash, accounts receivable, and accounts
payable. All the entries that are entered (called posted) to these sub-ledgers
will transact through the general ledger account. For example, when a credit
sale posted in the account receivable sub-ledger turns into cash due to a
payment, the transaction will be posted to the general ledger and the two (cash
and accounts receivable) sub-ledgers as well.<o:p></o:p></span></div>
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<br /></div>
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<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">There are times when items will go directly to the general ledger
without any sub-ledger posting. These are primarily capital financial
transactions that have no operational sub-ledgers. These may include items such
as capital contributions, loan proceeds, loan repayments (principal), and
proceeds from sale of assets. These items will be linked to your balance sheet
but not to your profit and loss statement.<o:p></o:p></span></div>
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<br /></div>
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<b><span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">Setting up the General Ledger</span></b><span style="font-family: 'Book Antiqua', serif; font-size: 14pt;"><o:p></o:p></span></div>
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<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">There are two main issues to understand when setting up the
general ledger. One is their linkage to your financial reports, and the other
is the establishment of opening balances.<o:p></o:p></span></div>
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<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">The two primary financial documents of any company are their
balance sheet and the profit and loss statement, and both of these are drawn
directly from the company’s general ledger. The order of how the numerical
balances appear is determined by the chart of accounts, but all entries that
are entered will appear. The general ledger accrues the balances that make up
the line items on these reports, and the changes are reflected in the profit
and loss statement as well.<o:p></o:p></span></div>
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<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">The opening balances that are established on your general ledgers
may not always be zero as you might assume. On the asset side, you will have
all tangible assets (the value of all machinery, equipment, and inventory) that
is available as well as any cash that has been invested as working capital. On
the liability side, you will have any bank (or stockholder) loans that were
used, as well as trade credit or lease payments that you may have secured in
order to start the company. You will also increase your stockholder equity in
the amount you have invested, but not loaned to, the business.<o:p></o:p></span></div>
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<b><span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">Components of the Accounting System</span></b><span style="font-family: 'Book Antiqua', serif; font-size: 14pt;"><o:p></o:p></span></div>
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<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">Think of the accounting system as a wheel whose hub is the general
ledger (G/L). Feeding the hub information are the spokes of the wheel. These
include<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">1. Accounts receivable<o:p></o:p></span></div>
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<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">2. Accounts payable<o:p></o:p></span></div>
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<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">3. Order entry<o:p></o:p></span></div>
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<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">4. Inventory control<o:p></o:p></span></div>
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<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">5. Cost accounting<o:p></o:p></span></div>
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<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">6. Payroll<o:p></o:p></span></div>
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<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">7. Fixed assets accounting<o:p></o:p></span></div>
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<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">These modules are ledgers themselves. We call them sub-ledgers.
Each contains the detailed entries of its specific field, such as accounts
receivable. The sub-ledgers summarize the entries, then sends the summary up to
the general ledger. For example, each day the receivables sub-ledger records
all credit sales and payments received. The transactions net together then go
up to the G/L to increase or decrease A/R, increase cash and decrease
inventory.<o:p></o:p></span></div>
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<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">We'll always check to be sure that the balance of the sub-ledger
exactly equals the account balance for that sub-ledger account in the G/L. If
it doesn't, then there's a problem.<o:p></o:p></span></div>
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<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">Differences between Manual and Automated Ledgers</span></b><span style="font-family: 'Book Antiqua', serif; font-size: 14pt;"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">Think of the G/L as a sheet of paper on which transactions from
all four categories of accounts-assets, liabilities, income, and expenses-are
recorded. Some of them flow up from various sub-ledgers, and some are entered
directly into the G/L through a general journal entry. An example of such a
direct entry would be the payment on a loan.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">The same concept of a sheet of paper holds for each sub-ledger
that feeds the general ledger. A computerized accounting system works the same
way, except that the general ledger and sub-ledgers are computer files instead
of sheets of paper. Entries are posted to each and summarized, then the summary
is sent up to the G/L for posting.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">Basic Terms and Concepts</span></b><span style="font-family: 'Book Antiqua', serif; font-size: 14pt;"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">There are a few (and only a few) things you need to understand in
order to make setting up your accounting system easier. They're basic (trust
me), and they will probably clear up any confusion you may have had in the past
when talking with your CPA or other technical accounting types.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">Debits and Credits</span></b><span style="font-family: 'Book Antiqua', serif; font-size: 14pt;"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">These are the backbone of any accounting system. Understand how
debits and credits work and you'll understand the whole system. Every
accounting entry in the general ledger contains both a debit and a credit.
Further, all debits must equal all credits. If they don't, the entry is out of
balance. That's not good. Out-of-balance entries throw your balance sheet out
of balance.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">Therefore, the accounting system must have a mechanism to ensure
that all entries balance. Indeed, most automated accounting systems won't let
you enter an out-of-balance entry-they'll just beep at you until you fix your
error.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">Depending on what type of account you are dealing with, a debit or
credit will either increase or decrease the account balance. (Here comes the
hardest part of accounting for most beginners, so pay attention.) Figure 1
illustrates the entries that increase or decrease each type of account.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">Debits and Credits vs. Account Types<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">Account Type Debit
Credit<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">Assets
Increases
Decreases<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">Liabilities
Decreases
Increases<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">Income
Decreases
Increases<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">Expenses Increases
Decreases<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">Notice that for every increase in one account, there is an
opposite (and equal) decrease in another. That's what keeps the entry in
balance. Also notice that debits always go on the left and credits on the
right.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">Let's take a look at two sample entries and try out these debits
and credits:<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">In the first stage of the example we'll record a credit sale:<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">Accounts Receivable
$1,000<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">Sales Income
$1,000<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">If you looked at the general ledger right now, you would see that
receivables had a balance of $1,000 and income also had a balance of $1,000.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">Now we'll record the collection of the receivable:<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">Cash
$1,000<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">Accounts Receivable
$1,000<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">Notice how both parts of each entry balance? See how in the end,
the receivables balance is back to zero? That's as it should be once the
balance is paid. The net result is the same as if we conducted the whole
transaction in cash:<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">Cash
$1,000<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">Sales Income
$1,000<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">Of course, there would probably be a period of time between the
recording of the receivable and its collection.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">That's it. Accounting doesn't really get much harder. Everything
else is just a variation on the same theme. Make sure you understand debits and
credits and how they increase and decrease each type of account.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">Assets and Liabilities</span></b><span style="font-family: 'Book Antiqua', serif; font-size: 14pt;"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">Balance sheet accounts are the assets and liabilities. When we set
up your chart of accounts, there will be separate sections and numbering
schemes for the assets and liabilities that make up the balance sheet.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">A quick reminder:</span></b><span style="font-family: 'Book Antiqua', serif; font-size: 14pt;"> Increase assets with
a debit and decrease them with a credit. Increase liabilities with a credit and
decrease them with a debit.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">Identifying assets</span></b><span style="font-family: 'Book Antiqua', serif; font-size: 14pt;"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">Simply stated, assets are those things of value that your company
owns. The cash in your bank account is an asset. So is the company car you
drive. Assets are the objects, rights and claims owned by and having value for
the firm.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">Since your company has a right to the future collection of money,
accounts receivable are an asset-probably a major asset, at that. The machinery
on your production floor is also an asset. If your firm owns real estate or
other tangible property, those are considered assets as well. If you were a
bank, the loans you make would be considered assets since they represent a
right of future collection.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">There may also be intangible assets owned by your company.
Patents, the exclusive right to use a trademark, and goodwill from the
acquisition of another company are such intangible assets. Their value can be
somewhat hazy.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">Generally, the value of intangible assets is whatever both parties
agree to when the assets are created. In the case of a patent, the value is
often linked to its development costs. Goodwill is often the difference between
the purchase price of a company and the value of the assets acquired (net of
accumulated depreciation).<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">Identifying liabilities</span></b><span style="font-family: 'Book Antiqua', serif; font-size: 14pt;"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">Think of liabilities as the opposite of assets. These are the
obligations of one company to another. Accounts payable are liabilities, since
they represent your company's future duty to pay a vendor. So is the loan you
took from your bank. If you were a bank, your customer's deposits would be a
liability, since they represent future claims against the bank.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">We segregate liabilities into short-term and long-term categories
on the balance sheet. This division is nothing more than separating those
liabilities scheduled for payment within the next accounting period (usually
the next twelve months) from those not to be paid until later. We often
separate debt like this. It gives readers a clearer picture of how much the
company owes and when.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">Owners' equity</span></b><span style="font-family: 'Book Antiqua', serif; font-size: 14pt;"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">After the liability section in both the chart of accounts and the
balance sheet comes owners' equity. This is the difference between assets and
liabilities. Hopefully, its positive-assets exceed liabilities and we have a
positive owners' equity. In this section we'll put in things like<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">1. Partners' capital accounts<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">2. Stock<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">3. Retained earnings<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">Another quick reminder:</span></b><span style="font-family: 'Book Antiqua', serif; font-size: 14pt;"> Owners' equity is
increased and decreased just like a liability:<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">1. Debits decrease<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">2. Credits increase<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">Most automated accounting systems require identification of the
retained earnings account. Many of them will beep at you if you don't do so.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">By the way, retained earnings are the accumulated profits from
prior years. At the end of one accounting year, all the income and expense
accounts are netted against one another, and a single number (profit or loss
for the year) is moved into the retained earnings account. This is what belongs
to the company's owners-that's why it's in the owners' equity section. The
income and expense accounts go to zero. That's how we're able to begin the new
year with a clean slate against which to track income and expense.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">The balance sheet, on the other hand, does not get zeroed out at
year-end. The balance in each asset, liability, and owners' equity accounts
rolls into the next year. So the ending balance of one year becomes the
beginning balance of the next.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">Think of the balance sheet as today's snapshot of the assets and
liabilities the company has acquired since the first day of business. The
income statement, in contrast, is a summation of the income and expenses from
the first day of this accounting period (probably from the beginning of this
fiscal year).<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">Income and Expenses<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">Further down in the chart of accounts (usually after the owners'
equity section) come the income and expense accounts. Most companies want to
keep track of just where they get income and where it goes, and these accounts
tell you.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">A final reminder: For income accounts, use credits to increase
them and debits to decrease them. For expense accounts, use debits to increase
them and credits to decrease them.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">Income accounts</span></b><span style="font-family: 'Book Antiqua', serif; font-size: 14pt;"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">If you have several lines of business, you'll probably want to
establish an income account for each. In that way, you can identify exactly
where your income is coming from. Adding them together yields total revenue.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<ul type="square">
<li class="MsoNormal" style="text-align: justify;"><span style="font-family: "Book Antiqua","serif"; font-size: 14.0pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Typical
income accounts would be<o:p></o:p></span></li>
</ul>
<ul type="square">
<li class="MsoNormal" style="text-align: justify;"><span style="font-family: "Book Antiqua","serif"; font-size: 14.0pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Sales
revenue from product A<o:p></o:p></span></li>
</ul>
<ul type="square">
<li class="MsoNormal" style="text-align: justify;"><span style="font-family: "Book Antiqua","serif"; font-size: 14.0pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Sales
revenue from product B (and so on for each product you want to track)<o:p></o:p></span></li>
</ul>
<ul type="square">
<li class="MsoNormal" style="text-align: justify;"><span style="font-family: "Book Antiqua","serif"; font-size: 14.0pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Income
from sale of assets<o:p></o:p></span></li>
</ul>
<ul type="square">
<li class="MsoNormal" style="text-align: justify;"><span style="font-family: "Book Antiqua","serif"; font-size: 14.0pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Consulting
income<o:p></o:p></span></li>
</ul>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">Most companies have only a few income accounts. That's really the
way you want it. Too many accounts are a burden for the accounting department
and probably don't tell management what it wants to know. Nevertheless, if
there's a source of income you want to track, create an account for it in the
chart of accounts and use it.<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<b><span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">Expense accounts</span></b><span style="font-family: 'Book Antiqua', serif; font-size: 14pt;"><o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<span style="font-family: 'Book Antiqua', serif; font-size: 14pt;">Most companies have a separate account for each type of expense
they incur. Your company probably incurs pretty much the same expenses month
after month, so once they are established, the expense accounts won't vary much
from month to month. Typical expense accounts include<o:p></o:p></span></div>
<div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
<ul type="square">
<li class="MsoNormal" style="text-align: justify;"><span style="font-family: "Book Antiqua","serif"; font-size: 14.0pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Salaries
and wages<o:p></o:p></span></li>
</ul>
<ul type="square">
<li class="MsoNormal" style="text-align: justify;"><span style="font-family: "Book Antiqua","serif"; font-size: 14.0pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Telephone<o:p></o:p></span></li>
</ul>
<ul type="square">
<li class="MsoNormal" style="text-align: justify;"><span style="font-family: "Book Antiqua","serif"; font-size: 14.0pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Electric
utilities<o:p></o:p></span></li>
</ul>
<ul type="square">
<li class="MsoNormal" style="text-align: justify;"><span style="font-family: "Book Antiqua","serif"; font-size: 14.0pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Repairs<o:p></o:p></span></li>
</ul>
<ul type="square">
<li class="MsoNormal" style="text-align: justify;"><span style="font-family: "Book Antiqua","serif"; font-size: 14.0pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Maintenance<o:p></o:p></span></li>
</ul>
<ul type="square">
<li class="MsoNormal" style="text-align: justify;"><span style="font-family: "Book Antiqua","serif"; font-size: 14.0pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Depreciation<o:p></o:p></span></li>
</ul>
<ul type="square">
<li class="MsoNormal" style="text-align: justify;"><span style="font-family: "Book Antiqua","serif"; font-size: 14.0pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Amortization<o:p></o:p></span></li>
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<li class="MsoNormal" style="text-align: justify;"><span style="font-family: "Book Antiqua","serif"; font-size: 14.0pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Interest</span><span style="font-family: 'Book Antiqua', serif; font-size: 14pt;"> </span></li>
</ul>
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<li class="MsoNormal" style="text-align: justify;"><span style="font-family: "Book Antiqua","serif"; font-size: 14.0pt; mso-bidi-font-family: "Times New Roman"; mso-fareast-font-family: "Times New Roman";">Rent<o:p></o:p></span></li>
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Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3310296862485759008.post-39864754319711229152015-07-28T04:41:00.003-07:002015-07-28T04:41:46.314-07:00What is a Letter of Credit?<div dir="ltr" style="text-align: left;" trbidi="on">
<h1 style="-webkit-tap-highlight-color: transparent; background-color: white; margin: 0.1em 0px;">
<div style="text-align: justify;">
<div>
<span style="font-family: Helvetica, Arial, sans-serif; font-size: small;"><span style="font-weight: normal; line-height: 23px;">A binding document that a buyer can request from his bank in order to guarantee that the payment for goods will be transferred to the seller. Basically, a letter of credit gives the seller reassurance that he will receive the payment for the goods. In order for the payment to occur, the seller has to present the bank with the necessary shipping documents confirming the shipment of goods within a given time frame. It is often used in international trade to eliminate risks such as unfamiliarity with the foreign country, customs, or political instability.</span></span></div>
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</h1>
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Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3310296862485759008.post-59793897119066439222015-07-28T04:26:00.002-07:002015-07-28T04:36:31.713-07:00What are MIS reports and why do you prepare it?<div dir="ltr" style="text-align: left;" trbidi="on">
<div style="text-align: justify;">
<span style="font-family: Arial, Helvetica, sans-serif;">MIS or Management Information System is a computer-based system used by most
organizations worldwide for transforming data into useful information for better decisionmaking.
It helps management make better plans and carefully organize business operations.
Management information system is used for generating reports including inventory status
reports, financial statements, performance reports etc. These reports are essential for analyzing
different aspects of business. These reports also help to answer 'what-if' questions like what
would be the effect on cash flows of a company if the credit term were changed for its
customers etc.
MIS reports also support decision-making and it helps to integrate the decision maker and the
quantitative model being used. These automated systems allow managers to make decisions for
smooth & successful operation of businesses. The system includes computer resources, people,
and procedures used in the modern business enterprise.
R</span></div>
</div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3310296862485759008.post-13965108338529830442015-07-28T04:23:00.003-07:002015-07-28T04:24:03.087-07:00What is the difference between a contingent liability and an estimated liability?<div dir="ltr" style="text-align: left;" trbidi="on">
<h1 class="faux-h2" style="background-color: white; border: 0px; box-sizing: border-box; font-stretch: inherit; margin: 0px 0px 20px; padding: 0px; text-align: justify; vertical-align: baseline;">
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small;"><span style="font-weight: normal; line-height: 20px;">A contingent liability is a potential liability (and a potential loss). It is dependent upon a future event occurring or not occurring. For instance, if someone files a lawsuit against ABC, ABC will have a contingent liability. The lawsuit liability is dependent upon Jay Corp losing the lawsuit. (Some lawsuits are nuisance suits and will not cause a loss and liability.) When a contingent liability and loss are probable and the amount can be estimated, an estimated amount will be recorded as a liability.</span></span></h1>
<h1 class="faux-h2" style="background-color: white; border: 0px; box-sizing: border-box; font-stretch: inherit; margin: 0px 0px 20px; padding: 0px; text-align: justify; vertical-align: baseline;">
<span style="font-family: Arial, Helvetica, sans-serif; font-size: small; font-weight: normal; line-height: 20px;">Some liabilities are not contingent liabilities but are estimated liabilities. For example, the electricity consumed, property taxes, worker compensation insurance premiums, repairs, etc. are absolutely owed because the services or goods were delivered. There is nothing contingent about these. However, the precise amounts may not be known at the time that the financial statements are prepared. Therefore, these liabilities had to be recorded by using estimated amounts. I suspect that many of the accrual-type adjusting entries involve estimated liabilities.</span></h1>
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Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3310296862485759008.post-70477363512593990602015-07-28T04:16:00.003-07:002015-07-28T04:19:57.132-07:00What is a contingent liability?<div dir="ltr" style="text-align: left;" trbidi="on">
<div style="text-align: justify;">
<span style="background-color: white; line-height: 20px;"><span style="font-family: Arial, Helvetica, sans-serif;">A <b>contingent liability</b> is a potential liability...it depends on a future event occurring or not occurring.</span></span></div>
<div style="text-align: justify;">
<b style="background-color: white; line-height: 1.2;"><span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></b></div>
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<span style="font-family: Arial, Helvetica, sans-serif;"><b style="background-color: white; line-height: 1.2;">Contingent liabilities</b><span style="background-color: white; line-height: 1.2;"> </span><span style="background-color: white; line-height: 1.2;">are</span><span style="background-color: white; line-height: 1.2;"> </span><b style="background-color: white; line-height: 1.2;">liabilities</b><span style="background-color: white; line-height: 1.2;"> </span><span style="background-color: white; line-height: 1.2;">that may be incurred by an entity depending on the outcome of an uncertain future event such as a court case.</span></span></div>
<div style="text-align: justify;">
<span style="background-color: white; line-height: 1.2;"><span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></span></div>
<br />
<div style="text-align: justify;">
<span style="-webkit-text-stroke-width: 0.150000005960464px; background-color: white;"><span style="font-family: Arial, Helvetica, sans-serif;">A potential obligation that may be incurred depending on the outcome of a future event. A contingent liability is one where the outcome of an existing situation is uncertain, and this uncertainty will be resolved by a future event. A contingent liability is recorded in the books of accounts only if the contingency is probable and the amount of the liability can be estimated.</span></span></div>
<div style="text-align: justify;">
<span style="-webkit-text-stroke-width: 0.150000005960464px; background-color: white;"><span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></span></div>
<br />
<div style="background-color: white; line-height: 21.6000003814697px; margin-bottom: 1em; margin-top: 0em; text-align: justify;">
<strong><span style="font-family: Arial, Helvetica, sans-serif;">When to Recognize a Contingent Liability</span></strong></div>
<div style="text-align: justify;">
<div style="background-color: white; line-height: 21.6000003814697px; margin-bottom: 1em; margin-top: 0em; text-align: justify;">
<span style="font-family: Arial, Helvetica, sans-serif;">There are three scenarios for contingent liabilities, all involving different accounting treatments. They are:</span></div>
<ul style="background-color: white; line-height: 21.6000003814697px; list-style-type: square; margin: 1em 0px; padding: 0px 0px 0px 2em; text-align: start;">
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">High probability. Record a contingent liability when it is probable that the loss will occur, and you can reasonably estimate the amount of the loss. If you can only estimate a range of possible amounts, then record that amount in the range that appears to be a better estimate than any other amount; if no amount is better, then record the lowest amount in the range. “Probable” means that the future event is likely to occur. You should also describe the liability in the footnotes that accompany the financial statements.</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">Medium probability. Disclose the existence of the contingent liability in the notes accompanying the financial statements if the liability is reasonably possible but not probable, or if the liability is probable, but you cannot estimate the amount. “Reasonably possible” means that the chance of the event occurring is more than remote but less than likely.</span></li>
<li style="text-align: justify;"><span style="font-family: Arial, Helvetica, sans-serif;">Low probability. Do not record or disclose the contingent liability if the probability of its occurrence is remote.</span></li>
</ul>
<div style="text-align: justify;">
<span style="background-color: white; line-height: 19px;"><span style="font-family: Arial, Helvetica, sans-serif;">GAAP requires that you report contingent liabilities as unspecified expenses on the income statement. You must disclose all contingencies that could significantly alter the company's estimated earnings. Explain any obscure or potentially misleading items in the footnotes. You should also use the footnotes to discuss any contingent liabilities incurred between the initial creation of the financial statements and publication of the final version.</span></span></div>
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<span style="background-color: white; line-height: 19px;"><span style="font-family: Arial, Helvetica, sans-serif;"><br /></span></span></div>
<div style="text-align: justify;">
<span style="font-family: Arial, Helvetica, sans-serif;"><span style="background-color: white; line-height: 19px;">Example - </span><span style="-webkit-text-stroke-width: 0.150000005960464px; background-color: white; text-align: left;">For example, a company may be facing a lawsuit from a rival firm for patent infringement. If the company's legal department thinks that the rival firm has a strong case, and the company estimates that the damages payable if the rival firm wins the case are $2 million, it would book a contingent liability of this amount on its balance sheet. If, on the other hand, the company's legal department is of the opinion that the lawsuit is frivolous and very unlikely to be won by the rival company, no contingent liability would be necessary.</span></span></div>
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<span style="-webkit-tap-highlight-color: transparent; -webkit-text-stroke-width: 0.150000005960464px; font-family: gandhiserif-regular-webfont, Helvetica, Arial, Verdana, sans-serif; font-size: 15px; text-align: left;"><br /></span></div>
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<span style="-webkit-tap-highlight-color: transparent; -webkit-text-stroke-width: 0.150000005960464px; font-family: gandhiserif-regular-webfont, Helvetica, Arial, Verdana, sans-serif; font-size: 15px; text-align: left;"><b><u>Journal Entry</u></b></span></div>
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<span style="-webkit-tap-highlight-color: transparent; -webkit-text-stroke-width: 0.150000005960464px; font-family: gandhiserif-regular-webfont, Helvetica, Arial, Verdana, sans-serif; font-size: 15px; text-align: left;"><br /></span></div>
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<span style="-webkit-tap-highlight-color: transparent; -webkit-text-stroke-width: 0.150000005960464px; text-align: left;"><span style="font-family: Arial, Helvetica, sans-serif;"></span></span><br />
<div style="-webkit-text-stroke-width: 0px; background-color: white; line-height: 21.6000003814697px; margin-bottom: 1em; margin-top: 0em;">
<span style="-webkit-tap-highlight-color: transparent; -webkit-text-stroke-width: 0.150000005960464px; text-align: left;"><span style="font-family: Arial, Helvetica, sans-serif;"><strong>Example of a Contingent Liability</strong></span></span></div>
<span style="-webkit-tap-highlight-color: transparent; -webkit-text-stroke-width: 0.150000005960464px; text-align: left;"><span style="font-family: Arial, Helvetica, sans-serif;">
<div style="-webkit-text-stroke-width: 0px; background-color: white; line-height: 21.6000003814697px; margin-bottom: 1em; margin-top: 0em;">
For example, ABC Company files a lawsuit against Unlucky Company for $500,000. Unlucky’s attorney feels that the suit is without merit, so Unlucky merely discloses the existence of the lawsuit in the notes accompanying its financial statements. Several months later, Unlucky’s attorney recommends that the company should settle out of court for $75,000; at this point, the liability is both probable and can be estimated, so Unlucky records a $75,000 liability. A possible entry for this transaction might be:</div>
<table bgcolor="#f5ede3" border="1" bordercolor="#808080" cellpadding="5" cellspacing="1" style="-webkit-text-stroke-width: 0px; line-height: 21.6000003814697px; width: 100%px;"><tbody>
<tr><td style="background: transparent; border: 0px; margin: 0px; padding: 0px;" valign="top" width="175"></td><td style="background: transparent; border: 0px; margin: 0px; padding: 0px; text-align: right;" valign="top" width="138"><span style="text-decoration: underline;">Debit</span></td><td style="background: transparent; border: 0px; margin: 0px; padding: 0px; text-align: right;" valign="top" width="138"><span style="text-decoration: underline;">Credit</span></td></tr>
<tr><td style="background: transparent; border: 0px; margin: 0px; padding: 0px;" valign="top" width="175">Legal expense</td><td style="background: transparent; border: 0px; margin: 0px; padding: 0px; text-align: right;" valign="top" width="138">75,000</td><td style="background: transparent; border: 0px; margin: 0px; padding: 0px;" valign="top" width="138"></td></tr>
<tr><td style="background: transparent; border: 0px; margin: 0px; padding: 0px;" valign="top" width="175"> Accrued liabilities</td><td style="background: transparent; border: 0px; margin: 0px; padding: 0px;" valign="top" width="138"></td><td style="background: transparent; border: 0px; margin: 0px; padding: 0px; text-align: right;" valign="top" width="138">75,000</td></tr>
</tbody></table>
<div style="-webkit-text-stroke-width: 0px; background-color: white; line-height: 21.6000003814697px; margin-bottom: 1em; margin-top: 0em;">
<br />
When Unlucky later pays ABC company in the out-of-court settlement, the final entry is:</div>
<table bgcolor="#f5ede3" border="1" bordercolor="#808080" cellpadding="5" cellspacing="1" style="-webkit-text-stroke-width: 0px; line-height: 21.6000003814697px; width: 100%px;"><tbody>
<tr><td style="background: transparent; border: 0px; margin: 0px; padding: 0px;" valign="top" width="175"></td><td style="background: transparent; border: 0px; margin: 0px; padding: 0px; text-align: right;" valign="top" width="138"><span style="text-decoration: underline;">Debit</span></td><td style="background: transparent; border: 0px; margin: 0px; padding: 0px; text-align: right;" valign="top" width="138"><span style="text-decoration: underline;">Credit</span></td></tr>
<tr><td style="background: transparent; border: 0px; margin: 0px; padding: 0px;" valign="top" width="175">Accrued liabilities</td><td style="background: transparent; border: 0px; margin: 0px; padding: 0px; text-align: right;" valign="top" width="138">75,000</td><td style="background: transparent; border: 0px; margin: 0px; padding: 0px;" valign="top" width="138"></td></tr>
<tr><td style="background: transparent; border: 0px; margin: 0px; padding: 0px;" valign="top" width="175"> Cash</td><td style="background: transparent; border: 0px; margin: 0px; padding: 0px;" valign="top" width="138"></td><td style="background: transparent; border: 0px; margin: 0px; padding: 0px; text-align: right;" valign="top" width="138">75,000</td></tr>
</tbody></table>
</span></span></div>
</div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3310296862485759008.post-34685687207923116712015-07-26T01:58:00.002-07:002015-07-26T01:59:16.623-07:00Ratios<div dir="ltr" style="text-align: left;" trbidi="on">
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEji6sSMg5uvBfN6QEH4LQU_Lmz09d7n4Tl5meooFwqmamp03nvFpZb4b1mj4XhUp-hljIQDg4TxQ9FQ-vE99BJPUtqEl926RrIfzsXklG81ONjBzQ8Mi1WbUVdXv8aISbLJwI8IoVCocB4/s1600/ratios.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEji6sSMg5uvBfN6QEH4LQU_Lmz09d7n4Tl5meooFwqmamp03nvFpZb4b1mj4XhUp-hljIQDg4TxQ9FQ-vE99BJPUtqEl926RrIfzsXklG81ONjBzQ8Mi1WbUVdXv8aISbLJwI8IoVCocB4/s400/ratios.jpg" width="400" /></a></div>
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Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3310296862485759008.post-77538489431040677452015-07-24T20:36:00.000-07:002015-07-24T20:38:52.618-07:00What is Cash Flow Statement?<div dir="ltr" style="text-align: left;" trbidi="on">
<div style="margin: 0in 0in 0.0001pt; text-align: justify;">
<span style="background: white; font-family: "Book Antiqua","serif"; font-size: 16.0pt; mso-bidi-font-family: Helvetica;">The purpose of the <span style="color: windowtext; text-decoration: none; text-underline: none;">cash flow statement</span> or statement
of cash flows is to provide information about a company's gross receipts
and gross payments for a specified period of time.<o:p></o:p></span></div>
<br />
<span style="background: white; font-family: "Book Antiqua","serif"; font-size: 16.0pt; mso-bidi-font-family: Helvetica;"></span><br />
<div style="text-align: justify;">
<span style="background: white; font-family: "Book Antiqua","serif"; font-size: 16.0pt; mso-bidi-font-family: Helvetica;"><span style="font-family: 'Book Antiqua', serif;">The gross receipts and gross payments will be reported in the cash flow
statement according to one of the following classifications: operating
activities, investing activities, and financing activities. </span></span></div>
<span style="background: white; font-family: "Book Antiqua","serif"; font-size: 16.0pt; mso-bidi-font-family: Helvetica;">
</span>
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<span style="background: white; font-family: "Book Antiqua","serif"; font-size: 16.0pt; mso-bidi-font-family: Helvetica;"><br /></span></div>
<div style="margin: 0in 0in 0.0001pt; text-align: justify;">
<span style="background: white; font-family: "Book Antiqua","serif"; font-size: 16.0pt; mso-bidi-font-family: Helvetica;">The net change from
these three classifications should equal the change in a company's <span style="color: windowtext; text-decoration: none; text-underline: none;">cash and cash equivalents</span> during
the reporting period. <o:p></o:p></span><br />
<span style="background: white; font-family: "Book Antiqua","serif"; font-size: 16.0pt; mso-bidi-font-family: Helvetica;"><br /></span>
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<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiwS-AKfjyjNFbrccWZ0vnVUooSpQx4xnx2-0t5AhPxoGmCzsPY02_STVUEnkdZdtaug0omgqmZZh_RyE-gxEVtXwunmnTySK9Mpw5YtQ67kx9oSGXbXMylqxEhvWVWR6WjrB_5tEcmqu8/s1600/cash+flow+example.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiwS-AKfjyjNFbrccWZ0vnVUooSpQx4xnx2-0t5AhPxoGmCzsPY02_STVUEnkdZdtaug0omgqmZZh_RyE-gxEVtXwunmnTySK9Mpw5YtQ67kx9oSGXbXMylqxEhvWVWR6WjrB_5tEcmqu8/s400/cash+flow+example.jpg" width="361" /></a></div>
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Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3310296862485759008.post-68517684544813953122015-07-24T08:39:00.002-07:002015-07-24T08:39:54.369-07:00What is a suspense account?<div dir="ltr" style="text-align: left;" trbidi="on">
<div style="text-align: start;">
<span style="font-family: Helvetica, Arial, Lucida Grande, sans-serif;"><span style="font-size: 14px; line-height: 20px;">A suspense account is an account in the general ledger in which amounts are temporarily recorded. The suspense account is used because the proper account could not be determined at the time that the transaction was recorded.</span></span></div>
<div style="text-align: start;">
<span style="font-family: Helvetica, Arial, Lucida Grande, sans-serif;"><span style="font-size: 14px; line-height: 20px;"><br /></span></span></div>
<div style="text-align: start;">
<span style="font-family: Helvetica, Arial, Lucida Grande, sans-serif;"><span style="font-size: 14px; line-height: 20px;">When the proper account is determined, the amount will be moved from the suspense account to the proper account.</span></span></div>
</div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3310296862485759008.post-42910956856123476012015-07-21T01:56:00.002-07:002015-07-24T20:42:56.777-07:00Tally 9.0 Shortcuts<div dir="ltr" style="text-align: left;" trbidi="on">
<br /><div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<br /></div>
<table border="1" cellpadding="0" cellspacing="0" class="MsoNormalTable">
<tbody>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 147.75pt;" width="197">
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<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Alt+2</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Duplicate Voucher</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
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<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Alt+A</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in;">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Add voucher / To Alter the column in columnar report</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 147.75pt;" width="197">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Alt+C</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in;">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Create a master at a voucher screen (if it has not been
already assigned a different function, as in reports like Balance Sheet, wh</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 147.75pt;" width="197">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Alt+D</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in;">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Delete a voucher To delete Accounting or Inventory master
which is not used by any voucher or elsewhere in the alteration mode. To</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 147.75pt;" width="197">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Alt+E</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in;">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Export the report in ASCII, HTML OR XML format</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 147.75pt;" width="197">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Alt+I</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in;">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Insert a voucher / To toggle between Item and Accounting
invoice</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 147.75pt;" width="197">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Alt+N</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in;">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">To view the report in automatic columns (Multiple Columns
at all reports, Trial Balance, Cash/bank books, Group Summary & Journal
Reg</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 147.75pt;" width="197">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Alt+P</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in;">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Print the report</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 147.75pt;" width="197">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Alt+R</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in;">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Remove a line in a report</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 147.75pt;" width="197">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Alt+S</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in;">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Bring back a line you removed using Alt+R</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 147.75pt;" width="197">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Alt+U</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in;">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Retrieve the last line which is deleted using Alt+R</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 147.75pt;" width="197">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Alt+W</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in;">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">To view the Tally Web browser.</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 147.75pt;" width="197">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Alt+X</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in;">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Cancel a voucher in Day Book/List of Vouchers</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 147.75pt;" width="197">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Alt+Y</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in;">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Register Tally</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 147.75pt;" width="197">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Ctrl+A</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in;">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Accept a form – wherever you use this key combination,
that screen or report gets accepted as it is.</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 147.75pt;" width="197">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Ctrl+Alt+B</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in;">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Check the Company Statutory details</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 147.75pt;" width="197">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Ctrl+G</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in;">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Select Group</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 147.75pt;" width="197">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Alt+I</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in;">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Import statutory masters</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 147.75pt;" width="197">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Ctrl+Q</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in;">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Abandon a form – wherever you use this key combination, it
quits that screen without making any changes to it.</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 147.75pt;" width="197">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Ctrl+Alt+R</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in;">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Rewrite data for a Company</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 147.75pt;" width="197">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Alt+H</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in;">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Help Shortcut</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 147.75pt;" width="197">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Alt+F2</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in;">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Maintain Date for Multiple Years by changing period on
Gateway of Tally / Change of Period for Setting Period</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 147.75pt;" width="197">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Ctrl+M</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in;">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Switches to Main Area of Tally Screen</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 147.75pt;" width="197">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Ctrl+N</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in;">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Switches to Calculator / ODBC Section of Tally Screen</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 147.75pt;" width="197">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Alt+R</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in;">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Recalls the last narration saved for the first ledger in
the voucher, irrespective of the voucher type</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 147.75pt;" width="197">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Ctrl+R</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in;">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Repeat narration in the same voucher type irrespective of
Ledger Account</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 147.75pt;" width="197">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Ctrl+T</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in;">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Mark any voucher as Post Dated Voucher</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 147.75pt;" width="197">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Alt+D</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in;">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Delete any voucher in Day Book/ Deleting</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 147.75pt;" width="197">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Alt+O</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in;">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">To upload the report to the webe</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 147.75pt;" width="197">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Alt+M</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in;">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Email the report</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 147.75pt;" width="197">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Alt+F1</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in;">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Close a Company (At All Menu Screens). View detailed
Report (Report Screens). Explore a line into its details (At Almost all
Screens)</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 147.75pt;" width="197">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Alt+F3</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in;">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Select the company info menu (At Gateway of Tally Screen).
Create/ alter / shut a company (At Gateway of Tally Screen)</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 147.75pt;" width="197">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Alt+F5</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in;">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">View sales and purchase register summary on a quarterly
basis</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 147.75pt;" width="197">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Alt+F12</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in;">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">View the filters screen where the range of information can
be specified</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 147.75pt;" width="197">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Alt+Z</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in;">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Zoom</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 147.75pt;" width="197">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Ctrl+Alt+C</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in;">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Copy the text from Tally (At creation and alternation
screens)</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 147.75pt;" width="197">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Ctrl+Alt+V</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in;">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">To paste the text from Tally (At creation and alternation
screens)</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 147.75pt;" width="197">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Shift+Enter</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in;">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">To view the next level of details and / or condense the
next level of details</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 147.75pt;" width="197">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">F2</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in;">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Change the date</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 147.75pt;" width="197">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">F4</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in;">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Contra Voucher (All voucher creation and alteration
screens). View list of Groups (Reports groups summary, group voucher screen,
cash/ bank summary)</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 147.75pt;" width="197">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">F5</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in;">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Select Payment Voucher. Switch between Grouped and
Ledger-wise Display</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 147.75pt;" width="197">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">F6</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in;">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Receipt Voucher</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 147.75pt;" width="197">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">F7</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in;">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Journal Voucher</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 147.75pt;" width="197">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">F8</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in;">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Sales Voucher</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 147.75pt;" width="197">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">F9</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in;">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Purchase Voucher</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 147.75pt;" width="197">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Ctrl+F9</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in;">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Select Debit Note Voucher</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 147.75pt;" width="197">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">F10</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in;">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Navigate between Accounting Reports</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 147.75pt;" width="197">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">F11</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in;">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Modify Company features specific to current company only</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 147.75pt;" width="197">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">F12</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in;">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Master Configurations, which will affect all companies in
same data directory.</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
<tr>
<td style="padding: 0in 0in 0in 0in; width: 147.75pt;" width="197">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Ctrl+L</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
<td style="padding: 0in 0in 0in 0in;">
<div class="MsoNormal" style="margin: 0in 0.75in 0.0001pt 0in;">
<span style="font-family: "Times New Roman","serif"; font-size: 10.0pt; mso-fareast-font-family: "Times New Roman";">Mark a voucher as Optional or Regular</span><span style="font-family: "Times New Roman","serif"; font-size: 12.0pt; mso-fareast-font-family: "Times New Roman";"><o:p></o:p></span></div>
</td>
</tr>
</tbody></table>
<div class="MsoNormal" style="margin-right: .75in;">
<br /></div>
</div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3310296862485759008.post-49201619303755538682015-06-30T04:17:00.000-07:002015-07-21T01:43:53.565-07:00Accounting Quiz<iframe src="https://docs.google.com/forms/d/16zHEiiltw6-iTg-caPpGs5regSvJIxS0S0u0Xywz5SE/viewform?embedded=true" width="500" height="400" frameborder="0" marginheight="0" marginwidth="0">Loading...</iframe>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3310296862485759008.post-55925423174111846332015-03-31T22:34:00.004-07:002015-03-31T22:36:29.830-07:00What is the need of depreciation account?<div dir="ltr" style="text-align: left;" trbidi="on">
<h3 style="background: white;">
<div class="MsoNormal">
<span style="line-height: 115%;"><span style="color: #444444; font-family: Times, Times New Roman, serif; font-size: large; font-weight: normal;">According
to the matching principle of accounting, the costs incurred in the accounting
year should be matched with the revenue or income earned during the same
accounting year. Thus, it is necessary to spread the cost of fixed asset less
scrap or realizable value after the useful life of the fixed asset is over and
this process of ascertain the same is called depreciation accounting. Thus,
depreciation account is needed for mainly two purposes:<o:p></o:p></span></span></div>
<div class="MsoNormal">
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<span style="line-height: 115%;"><span style="color: #444444; font-family: Times, Times New Roman, serif; font-size: large; font-weight: normal;">To
ascertain due profits and to represent the value of the fixed asset at its
unexpired cost i.e book value of the asset less depreciation.<o:p></o:p></span></span></div>
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Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3310296862485759008.post-82300677117826876072015-03-31T22:31:00.000-07:002015-03-31T22:32:02.361-07:00What is depreciation? What are the causes of depreciation? Is it a cost? Why?<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="font-family: 'Times New Roman', serif; font-size: 12pt;">Depreciation is a permanent, gradual and
continuous reduction in the book value of the fixed asset. Except Land all the
fixed assets e.g. Car, Machinery, Furniture etc depreciates in value making the
asset useless after the end of a certain period.<o:p></o:p></span></div>
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<b><span style="font-family: 'Times New Roman', serif; font-size: 12pt;">Following are the causes
of Depreciation:</span></b><span style="font-family: 'Times New Roman', serif; font-size: 12pt;"><o:p></o:p></span></div>
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<span style="font-family: 'Times New Roman', serif; font-size: 12pt;">-Wear and Tear due to
regular use of the asset<o:p></o:p></span></div>
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<span style="font-family: 'Times New Roman', serif; font-size: 12pt;">-Deterioration occurs
with the passage of time, whether the asset is in use or not<o:p></o:p></span></div>
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<span style="font-family: 'Times New Roman', serif; font-size: 12pt;">-Damages done to the
assets due to an accident like fire, mishandling etc.<o:p></o:p></span></div>
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<span style="font-family: 'Times New Roman', serif; font-size: 12pt;">-Depletion of Asset<o:p></o:p></span></div>
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<span style="font-family: 'Times New Roman', serif; font-size: 12pt;">-Obsolescence i.e. due
to new technology in use, new inventions, innovations etc.<o:p></o:p></span></div>
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<span style="font-family: 'Times New Roman', serif; font-size: 12pt;">Yes, depreciation is a
cost. It is a historical cost, which is charged against profits of the
organisation reducing the profitability. It is a non-cash cost as it is never
paid or incurred in cash.<o:p></o:p></span></div>
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Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3310296862485759008.post-77426051296968501022013-10-01T04:47:00.004-07:002013-10-01T20:32:53.884-07:00Accounts Quiz<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="font-size: x-large;"><br /></span>
<span style="font-size: x-large;">Accounts Quiz</span><br />
<span style="font-size: x-large;"><br /></span>
<span style="font-size: x-large;"><a href="https://docs.google.com/forms/d/1CNH4QyPKMMcucIgZjtwRLysuqYkvWG9z3ifaNNVARHY/viewform" target="_blank">Please click here to attempt the Quiz</a></span><br />
<br />
<div style="text-align: right;">
<span style="font-size: x-large;">- Lasya Ramakrishna</span></div>
</div>
Unknownnoreply@blogger.com2