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Dormant accounts are those accounts in which there are transactions in the recent history (the stipulation may

vary according to the company's rules). Inactive accounts are those accounts in which transactions are being made for long time.

Inactive account means an account had not been in use for a long time and not going to be used in the future.Dormant accounts are those which are presently not in use but it is likely that it may be used in the near future. Service Tax is a form of indirect tax imposed on specified services called Taxable services. Presently it covers 58 services. The service provider but A collected shall pay a service tax from the service receiver. Excise is also a form of indirect tax levied on A goods produced or manufactured in India.

Service Tax is a Indirect Tax which is levied on Service. The Service receiver will pay to the service provider. Ex: Servicing a Vehicle, Delivering goods, outsourcing agencies. etc. Excise Duty is also a form of Indirect Tax but this is imposed on Goods or manufacturing Items. Ex: Steel, Cement, dress Materials, etc
Tally is a financial accounting software package designed by Tally Solutions mainly for small businesses and shops. They claim on their website that Tally is used by over 2 million users, in over 90 countries. Tally 9.0 is the latest version to date. Accounting Standards are formulated with a view to harmonise different accounting policies and practices in use in a country. The objective of Accounting Standards is, therefore, to reduce the accounting alternatives in the preparation of financial statements within the bounds of rationality, thereby ensuring comparability of financial statements of different enterprises with a view to provide meaningful information to various users of financial statements to enable them to make informed economic decisions.ICAI issued a total of 33 accounting standards Accounting Equation- Accounting rotates around three basic terms. These terms are assets, liabilities and capital. the true relationship between these terms is represented as Acconting Equations ie.. Assets= liabilities+ Capital. Department accounting means account prepared separately for the department and here ledger will be opened trial balance will be prepared , also p & l account will be prepared ,and profit or loss is included in the main p&l a/c and shown in the balance sheet.

In perpetual inventory system, the inventory account is adjusted continually throughout the accounting period. Whereas in the Periodic Inventory System: - Recording inventory transactions periodically than recording them continually. Premises is and Fixed Assed in the accounting sense which is shown in the balance sheet in final accounts Vat adjustment is out put tax - input tax the vat which is paid on purchase will be deducted from vat collected from sales this adjustment is known as vat adjustment.

A Bank reconciliation statements are prepared if balance of bank account as shown in cashbook differs from balance as shown in passbook. This statement shows the reasons or transactions because of which balances as shown in cashbook and passbook are not tallying with each .Bank reconciliation statement statement which reconciles the bank balance as per the cash book with balance as per the pass book or bank statement by showing all causes of difference between the two.
DR investments in branch Cr cash Cash sent to branch

Sales collection done by head office from customer on behalf of Branch office In the books of Head Office Dr Bank/Cash Account Cr Branch Office

In the books of Branch office Dr Head Office Cr Customer

Executive Accounting is designed for service type businesses that require a sophisticated accounting system, yet simple to use accounting system. Executive Accounting contains many advanced features such as three styles of invoicing (service, distribution and recurrent), multi-currency capabilities, multiple bank account capabilities and other powerful features. Executive is a single-user system that can be upgraded to an unlimited number of users. Public accounting includes any accounting work that a company performs for another company. Examples would be audits, tax compliance, consulting, etc. The "Big 4" (KPMG, Deloitte & Touch?Price Waterhouse Coopers, and Ernst & Young) are the dominant firms that provide public accounting services.

Private accounting is accounting work that is done for your own company. Every company has some form of an internal accounting department and those employees would be considered private accountants.

Dual aspect concept: Each transaction has two sides. Example: when you buy a shirt, then shirt comes to you while cash leaves you similarly if you sell the same shirt to anyone then cash comes to you while shirt leaves you. Recording both aspects of coming and going is called dual aspect concept.

according to dual aspect concept every business have two concept of business transaction one is debit second is credit transaction.if follow the both aspects (dr,ct) in business that is called dual aspects of business.
Financial accounting refers to accounting for revenues, expenses, assets, and liabilities. It involves the basic accounting processes of recording, classifying, and summarizing transactions. - Cost accounting is the branch of accounting dealing with the recording, classification, allocation, and reporting of current and prospective costs. - Managerial accounting is the branch of accounting designed to provide information to various management levels in the hospitality operation for enhancing controls.

Accounting records the events. Auditing is a process that checks to see whether the events occurred and it is properly recorded.

Accounting means recording of day today transaction whereas auditing means rechecking of that transaction it is properly recorded or not
Retail banking refers to that type of banking where individual customers are offered a variety of service products under one single roof. It is therefore called mass market banking as it covers a vase number of customers having different requirements. The product services may be made available both physically, through its many branches or through technology driven electronic off-site delivery channels like, mobile banking, internet banking, ATMs, etc. M.J. SUBRAMANYAM, BANGALORE

Material facts are documents pertaining to the historical events of the facts being justified.

Material facts means the bills, vouchers and any relevant document on the basis of which the accounts books prepared and get audited.
"Purchase returns" is the entry made in the journal that refers to "Unsatisfactory or defective merchandise/goods which is returned back to the supplier". To pass the entry Dr the Supplier Cr the Purchase returns ledger Debit and credit note: while making entry in your books of accounts you need the documentary voucher. Therefore, the voucher made stating what entry and why it is made is called debit/credit note. Proper accounting for property that is entrusted to the fiduciary acting under the conditions set forth in a deed Operative Accounts means Account is running/operating regularly, transaction is running from the account (debit/credit and deposit/withdrawal from account) this is known as Operative Account. Accounting chart of accounts is where you have all the codes for expenses LC (Letter of Credit) is a set of documents which are very essential for goods being transported from one country to another. This set includes that of invoices, shipping documents, grantees and others.

Capital Budgeting is a way to justify capital expenditures. It was done to see if the added benefit of a capital purchase, i.e. increased revenue or decreased expense, exceeds the cost of capital.

capital budget is a process of analyzing and deciding of investment on long term project
Cash float is the time between when you authorize a bank to disperse funds from your bank account and when it actually leaves your account. Fair Value accounting is an accounting term that requires a company to place a value on all of the assets on its balance sheet that, it is the price at which the assets could be sold. This is easy to do when the asset has a quoted market price. However, it is often the case that there is no liquid market for an asset, and thus the company has to make an estimate of fair value. When the marketplace is in turmoil and illiquid, as it has been for much of 2008, companies are sometimes forced to place a very low value on an asset, resulting in a substantial markdown from the prior value. See related links for complete explanations. Assets, Liabilities, and Stockholder's Equity are all permanent accounts.

Every transaction must be supported by any document. A trade bill is a supporting document of business activities like purchases, sales, receipts, payments etc.. Cash flow and funds flow: cash flow means direct entry of cash in your business and exit of the same funds flow means entry of funds (cash funds or non cash funds) and their exit non cash funds may mean rise in current assets or fall in current liabilities which was not due to any cash movement. Financial accounting:The main purpose this accounting is to record buiness transcations in the books of accounts in such way that operating results for a particular period and financial condition on a particular date can be known for the information of the various of groups of persons. Cost Accounting: It is the provision of such analysis and classification of expenditure as well enable the total cost of any particular unit of production or service to be ascertained with reasonable degree of accuaracy and the same time to disclose exactly how such total cost i.e, the value of material used, the amount of labour and expenses incurred. So as to control and reduce its cost. Management Accounting.It relates to the use of accounting data collected with the help of financial and cost accounting for the purpose of policy formulation, planning, control and decesion making by the management.

This depends on the nature of the account and the thing you wish to achieve. For example, to increase cash you would debit the cash account, but if you wanted to decrease it, you would credit it. There are all sorts of accounts and they have different normal balances. The thing to remember is that every journal entry must have equal debits and credits. So for example to increase a contra asset account like Allowance for Doubtful debts you would credit Bad Debt Expense to increase it and credit Allowance to increase that!

Debit side: 1.Asset account 2.Expenses and loss account 3.Drawings 4.Cash or Bank account Credit side: 1.Liability account 2.Income account 3.Profits 4.Capital
Show your understanding of the invoice verification process. Go through each step in detail such as checking that goods have been received in proper condition or services rendered in a satisfactory manner. Explain the importance of each step.

In income tax act method of depriciation allowed in written down value method, while company act allows both written down value method and straight line method of depriciation
The one reduces the gross amount of another account to derive a net balance. Accumulated depreciation, which is a contra account to fixed assets to obtain book value, is an example of an offset account. One of the main disadvantages of the system is that it only works under some quite strict requirements. If these are not met, the system will become unbalanced and may be quite unusable, or a nightmare to maintain. Standard costs must be reliably estimated and variances kept to a minimum. The premise of the system is that a sale triggers the manufacturing process, therefore buildup of work in progress or finished goods needs to be avoided Another drawback is that detailed information for management purposes may not be available where needed, and the production control therefore needs to be all the stronger. The cost accounts used in back-flush accounting may be more difficult to reconcile to financial accounts needed for reporting First, of all post all the journals in the ledger and then post in the trial balance and from that prepare trading account and manufacturing account (if necessary) and profit and loss account. And then prepare profit and loss adjustment account and with the help of the trial balance prepare balance sheet and also show the profit under reserves after deducting the previous year losses and show contingencies (if any) in the notes to accounts. When any employer provides any service to his customer, which income is excess under the tax then company liable for the pay tax. Service tax charged at rate 12 %( India) + 3% E.Cess & H. & E.Cess =12.36% In addition, service tax deposited of in under 5 days who you charged service tax to his customers. In the payment of Service tax amount you can Credit availed during of the month. Moreover, if any company purchased of any item that has Excise duty & E.Cess with E.Cess then you can credit availed when you received excise form to your seller.

Provisions are created in books as they are anticipated. Example: provision for depreciation Reserves are created in books as a part of profits, which might used to purchase assets or to declare dividends.

In simple, provision is a charge against the profit whereas reserve is an appropriation of profit. Accrual Accounting refers to the recording of financial transactions once an economic event has happened and it is not based on the movement of cash. For example, in Accrual Accounting if you have office rent of $1000 per month, you would record the expense of $1000 each month, regardless if you have actually paid the rent or received an invoice from the property owner. Most individuals live our daily lives in the cash basis of accounting. We get our paychecks we have revenue, when we pay our car note we have expense.

Simply, adjusting entries are classified as either deferrals or accruals. Deferrals: Prepaid Expenses. Expenses paid in cash and recorded as assets before they are used or consumed. Unearned Revenues. Cash received and recorded as liabilities before revenue is earned. Accruals: Accrued Revenue. Revenues earned but not yet received in cash or recorded. Accrued Expenses. Expenses incurred but not yet paid in cash or recorded. Information Cited: Weygandt, Kieso, Kimmel; Accounting Principles; 8th Edition; Pg. 95
MIS is management information system. In addition, MIS report is reporting information of reports like efficiency of wing or a department of a company. IF we take BPO (Call center) sector as example, MIS consists of efficiency of agents, Average time taken hold time etc, and passing this to the management level for their analysis. The Cash Basis of accounting reports only transactions that have been completed in the current reporting period - or - what has "hit" the checking account (assuming all funds are deposited and disbursed only from that account) - The Accrual Basis of accounting reports all transactions that the entity has entered into and includes the asset, liability, income and expense related them. In addition, the Cash Basis of accounting is considered OCBOA (Other Comprehensive Basis of Accounting ~ Other than GAAP) and the Accrual Basis (when implemented properly and fully) is considered GAAP (Generally Accepted Accounting Principles). EDIT - The Accrual Basis is more desirable from a user's standpoint as it includes transactions that may

exist were completed after the report dates that were initiated prior to the report date. It is generally more complete and more reliable than the cash basis - however, that does assume that the person preparing the statements has expertise of, not simply a cursory working knowledge of, GAAP and the accrual basis. For example, a set of financial statements printed out of QuickBooks are not necessarily GAAP compliant (or correct) although they may appear to be at first glance or to a layperson.

The marginal cost of an additional unit of output is the cost of the additional inputs needed to produce that output. More formally, the marginal cost is the derivative of total production costs with respect to the level of output. Marginal cost and average cost can differ greatly. For example, suppose it costs $1000 to produce 100 units and $1020 to produce 101 units. The average cost per unit is $10, but the marginal cost of the 101st unit is $20The Econ Model applications Perfect Competition and Monopoly emphasize the roles of average cost and marginal cost curves. The short movie Derive a Supply Curve (40 seconds) shows an excerpt from the Perfect Competition presentation that derives a supply curve from profit maximizing behavior and a marginal cost curve Definition of 'Conditional Prepayment Rate - CPR' A loan prepayment rate that is equal to the proportion of the principal of a pool of loans that is assumed to be paid off prematurely in each period. The calculation of this estimate is based on a number of factors such as historical prepayment rates for previous loans that are similar to ones in the pool and on future economic outlooks. Adoption of international accounting standards is extremely costly. Developing counties usually use accounting standards that are most beneficial to them (based on who they trade with to ease accounting for transactions) or just another country's GAAP that works for the developing country. Ex. Mexico very closely resembles U.S. GAAP because of NAFTA and the quality of U.S. GAAP. Should IFRS be implemented in developed counties, developing counties might be forced to adopt them as well in order to maintain trade relations. This could be extremely costly for smaller developing counties. Shadow Balance in bank accounts is the balance unto which the subsequent debits can be posted. Shadow Balance = Book Balance - Debit (yet to be authorized for posting). Example: Book balance is 1000. There is a debit of 500. The debit is posted in the system and is sent for authorization. Now the Account shows a Shadow Balance of 500. Nine accounting cycles 1. Collecting and Analyzing Data from the occurred transaction. 2. Journalize Transaction. 3. The general journal entries are posted to the General Ledger, which is organized

by account. 4. Prepare an unadjusted trial balance .At the end of the period, double-entry accounting requires that debits and credits recorded in the general ledger be equal. 5. Prepare adjustments Period-end adjustments are required to bring accounts to their proper balances after considering transactions and/or events not yet recorded. 6. Prepare an adjusted trial balance: As with an unadjusted trial balance, this step tests the equality of debits and credits. 7. Prepare financial statements: Financial statements are prepared using the corrected balances from the adjusted trial balance. 8. Close the accounts: Revenues and expenses are accumulated and reported by period, a monthly, either quarterly, or yearly 9. Prepare a post-closing trial balance: fold: to determine that all revenue and expense accounts have been closed properly and to test the equality of debit and credit balances of all the balance sheet accounts. Push down accounting A method of accounting wherein the financial report of the subsidiary reflects the parents cost incurred in acquiring the sub.