Accounting Education University

Process Costing in Hindi | Cost Accounting Course ( Preview )

2025-12-31T10:36:00.003+05:30

Section 3: Method of Costing

Lecture 13 : Process Costing in Hindi Certified Cost Accountant - Cost Accounting Course in Hindi - Enroll at Here

Elements of Cost in Hindi | Cost Accounting Course ( Preview )

2025-12-30T10:54:00.004+05:30

Section 2: Cost – Analysis, Concepts and Classification

Lecture 5 : Element of Cost in Hindi ( Preview ) Enroll in Our Certified Cost Accountant – Complete Cost Accounting Course - Enroll at Here.

Introduction of Cost Accounting in Hindi ( Preview )

2025-12-30T10:12:00.003+05:30

Section 1: Nature & Scope of Cost Accounting

Lecture 1 : Introduction of Cost Accounting in Hindi | Cost Accounting Course

🔗 Official Course Page : Enroll Here

10 Powerful Benefits of Reading Our Balance Sheet Made Easy eBook

2025-08-31T15:09:00.006+05:30

Once, I was listening to a motivational talk where a motivator was crying big. “If you want to become rich, you have to learn sales, sales, and sales skill.” Lots of people learn the same motivation from motivators. Sales is one profession which can give you Rs. 50,000 pm, Rs. 1 Lakh pm, Rs. 5 Lakh pm, Rs. 10 Lakh pm, Rs. 50 Lakh pm, while other professions like teacher and accountant cannot earn the same as what they want.

I was thinking inside my mind: I do not have selling skills, but my net worth was more than Rs. 1 Crore on 14th Sept. 2024. I was financially free at the age of 44, and now I am 45. I have already written Financial Freedom Made Easy eBook. I have two more skills where I am a master—one is teaching and the other is accounting. I lack selling skills, but these two skills gave me the power to earn Rs. 250,000 pm in 2015, and today with 10 years of inflation added, it is Rs. 5 Lakh pm, which played a major role in the growth of my net worth.

Now, today I am crying bigger than those motivators.

Anyone who has any skill, and if he is the master of that skill, and if he has passion in his work—no one can stop him from financial freedom. No one can stop him from becoming a rich person in this world. Because with that skill, he can fulfill his weak skills like sales.

For example, today I am not selling you my Balance Sheet Made Easy eBook, but I know accounting and teaching. I have had this skill for the last 20 years, and on this basis, I am here to tell you: whether you are in a job, whether you are a businessman, whether you are an accountant, or whether you are a housewife or a student, this Balance Sheet Made Easy eBook has lots of benefits that can grow your financial net worth and help you reach your biggest financial goals.

You can learn these 10 benefits at no cost, and if you learn the biggest return—which is 100 times more than the investment in this ebook—then you can invest to buy one copy here.

1. Learn Which Company is Strong or Which Company is Weak

It is a fact that today there are 20 Crore Demat Accounts, and this will be 70 Crore in the next 10 years—about half of India's total population.

Today, every educated and middle-class person wants to become rich with share market returns, but no one wants to invest in strong companies.

To earn Rs. 1,00,000 per month from appreciation of share market value and dividend, we assume a 10% return can be given by the share market to investors. For this, you need Rs. 1 Crore investment in the share market. But out of 20 Crore Demat account holders, only 0.1% people have the value of Rs. 1 Crore in their Demat account.

Now, 99.99% are not getting Rs. 1 Lakh from the share market. Then what happened to the investments of 20 Crore people? They just face losses, and only the 0.1% who know the balance sheet and understand which company is strong or which company is weak—through mastery of the balance sheet—are earning Rs. 1 Lakh per month or more consistently for the last 10 years. And this “more” may be Rs. 20 Lakh or even Rs. 2 Crore per month.

I give example, Rekha Jhunjhunwala also holds big stakes in Titan, Metro Brands, Canara Bank, NCC, Tata Motors, etc. All of them declared dividends in 2025 too.

So realistically, her monthly dividend income is much higher than ₹1 crore — probably ₹2–3 crore/month average, once you add the other companies.

Rakesh Jhunjhunwala built massive wealth for her because he had a rare mastery of reading balance sheets—he could decode financial data to spot strong businesses early, invest with conviction, and hold them for decades; this sharp understanding of fundamentals turned his picks like Titan into multibaggers, creating both huge capital appreciation and steady dividend income that today ensures his family earns crores every month, and my Balance Sheet eBook will guide you step by step to build the same mastery.

This ebook will simplify balance sheet assets, liabilities, and company financial data into clear, useful information, helping you make big decisions, grow your wealth, and understand any company’s balance sheet as easily as 5th-class math.

This ebook will give you confidence to take more risk, invest more in share market. Because you are not investing after reading this book on a share but you are investing on a company who is strong from its balance sheet which is prepared by expert accountant and who is audited by expert CAs team.

2. Master the Balance Sheet Analysis

This balance sheet made easy ebook will not give just light to read the balance sheet but it will help to analyze the balance sheet. Analyze the two companies balance sheet.

In Great depression 1929, market loss 90% their value. In dot.com bubble crash 2000-2002, $ 5 trillion loss in global share market. In Covid 19 crash sensex fall 38%. You can estimate how much loss of you and others who invested in share market without balance sheet analysis.

I demand the physical copy of balance sheet in annual report every year because, I read balance sheet and try to analysis. It is simple and can be rewardful in your return. So, first got knowledge and skills from this ebook.

3. Step-by-Step Guidance for Project and Budgeted Balance Sheet

Are you in the accounting profession and want to learn how to make a project or budgeted balance sheet? This ebook will guide you step by step in the simplest possible way. You will discover formulas and techniques to prepare key assets and liabilities in a structured manner. For example, you will learn how to calculate cash from the cash budget, sundry debtors from sales and cash budgets, sundry creditors from purchase and cash budgets, and finished stock assets from production, sales, and purchase budgets. You will also understand how to derive fixed assets from cash budgets and projected plant reports, loan amounts from cash budgets, and accumulated depreciation from overhead budgets. Each formula is broken down into easy steps, saving you hours of confusion. With practice, you will be able to prepare a full project balance sheet without depending on anyone else. Whether you are making financial plans for a company or a project report for business growth, this knowledge will give you confidence and clarity.

By mastering budgeted balance sheets, you take control of financial forecasting, which is the foundation of wealth creation. This ebook is not just about accounting—it is about building your ability to plan the future financially.

👉 This knowledge will open doors to financial clarity you never thought possible.

4. Suitable for All Backgrounds, Including Non-Commerce Students, Housewives, Accountants, Businessmen, and Entrepreneurs

Even if you don’t have a commerce background, this ebook is written in such a way that you can learn assets and liabilities with ease. You may be a student, housewife, professional, or entrepreneur—understanding a balance sheet is the foundation for building a big bank balance. For example, you will learn how current assets are managed, why liabilities matter, and how to read financial data without stress. We have kept the language simple and the concepts crystal clear so that even a complete beginner can follow. Step by step, you will gain the ability to read, understand, and apply balance sheet knowledge to your own finances or business. If you are an entrepreneur, it will help you understand your company’s position better. If you are a housewife, it will help you manage family finances with more confidence. If you are a student, it will prepare you for a brighter career. This ebook builds a strong foundation in balance sheet rules and regulations, making sure you never feel lost.

With every page, you will find yourself growing more confident in handling financial decisions. The best part? You don’t need prior knowledge; all you need is a desire to learn.

👉 Even if balance sheets once felt out of reach, this book makes them simple for everyone.

5. Covers Comparative Power with Other Concepts of Accounting

A balance sheet does not stand alone—it connects with many other accounting concepts. This ebook will teach you how to compare a balance sheet with a cash flow statement to understand movement of cash. You will also learn to compare it with a trial balance to ensure accuracy of accounts. By doing so, you will develop clarity about the interconnection of financial statements, which is often confusing for beginners. You will see how a trial balance becomes the base for a balance sheet and how the balance sheet complements the cash flow statement. This comparison approach will sharpen your accounting mindset, giving you both clarity and confidence. With practice, you will never get lost between different financial statements. These comparisons will also make your professional work easier and faster. If you are a student, this will help you answer exam questions better. If you are a professional, it will help you explain financials to clients or managers in simple words.

By mastering these links, you will see accounting as a story rather than a set of numbers.

👉 Clarity like this will save you time, reduce confusion, and sharpen your financial decisions.

6. Become an Expert in Making Professional Balance Sheets like Consolidated Balance Sheets of Holding Companies

This ebook will not only help you understand a simple balance sheet but also teach you advanced methods like preparing a consolidated balance sheet of holding and subsidiary companies. You will learn how to merge the assets of the holding company with those of its subsidiaries, and how to align liabilities correctly. Step by step, you will be guided to calculate the minority interest—a crucial part that confuses most learners. You will also learn how inter-company transactions affect the balance sheet and how to eliminate them for accuracy. With practical explanations, you will master the art of consolidation, which is considered one of the most advanced skills in accounting. Once you understand this, your ability as an accountant, auditor, or student will rise to a professional level. You will no longer be afraid of big company balance sheets. Instead, you will feel confident in handling them.

This knowledge alone can increase your demand in the corporate world.

👉 Mastering consolidated balance sheets puts you ahead of most professionals instantly.

7. Enhance Your Career as a Professional Accountant

We have included real-world examples of balance sheets in this ebook to strengthen your practical understanding. You will learn how to prepare a balance sheet directly from ledger accounts, which will increase your speed and accuracy. This will also improve your problem-solving ability in exams, job interviews, or real business work. By practicing these examples, you will move from theoretical knowledge to practical application. This transition is what employers look for in professional accountants. If you are already working, it will increase your productivity and value in your organization. If you are a student, it will prepare you to compete strongly in the job market. Accounting is not just about numbers—it is about presenting the financial health of an organization. With this skill, you can open new opportunities in jobs, freelancing, and even business consultancy.

Every professional accountant who wants growth needs continuous skill improvement.

👉 With these skills, your career path becomes wider, stronger, and more rewarding.

8. Understand the Importance of Accuracy in Your Balance Sheet

This ebook will highlight the importance of accuracy in preparing a balance sheet. Many times, assets and liabilities do not match due to small errors in calculation or omission. This creates a wrong picture of financial health and misguides decision-making. You will learn the most common causes of mismatch and how to fix them. We will also explain the duties and responsibilities of a company to maintain an accurate balance sheet, as accuracy builds trust with stakeholders. With the right steps, you will learn how to ensure your balance sheet is always balanced and reliable. This skill will help you avoid mistakes that can cost you jobs, clients, or even business deals. Accuracy in accounting is equal to credibility in the market. Once you master this, people will trust your work.

This ebook simplifies the process so that accuracy becomes your natural habit.

👉 Accuracy builds trust, and trust builds financial power—this is the key lesson you’ll gain.

9. Learn Basic and Advanced Balance Sheets

This ebook is designed to take you from beginner level to advanced level. You will first learn the simple balance sheet, which gives you a strong foundation. Then, step by step, you will be guided to advanced types like off-balance sheet items, comparative balance sheets, and vertical balance sheets. Each type is explained in simple terms with examples so that you never feel confused. You will see why companies use different types of balance sheets for different purposes. For example, comparative balance sheets help in analyzing growth, while vertical balance sheets present structure clearly. By learning both basic and advanced levels, you will gain a complete understanding. This makes you flexible and capable in both academic and professional work.

Many learners stop at basics, but those who master advanced levels rise to leadership positions in their careers.

👉 This book takes you further than most people ever go in mastering balance sheets.

10. Ideal for Managing Personal Finance

Even if you are not an accountant or businessman, you still have to manage your personal assets and liabilities. This ebook will help you calculate your net worth—the difference between assets and liabilities—without mistakes. Knowing your net worth is the first step to financial planning and growth. You will learn how to track your assets, loans, and expenses with balance sheet knowledge. Once you understand this, you will be more focused on increasing your assets and reducing your liabilities. This will automatically push you toward financial freedom. Housewives can use it for managing family finances. Students can use it to prepare for their financial future. Employees and businessmen can use it to track personal growth. In short, it is useful for every person who wants financial success.

Managing personal finance with balance sheet knowledge is like having a GPS for your financial journey.

👉 If you want true direction in your finances, this book gives you the map.

Want to master balance sheets with ease? Grab your copy of Balance Sheet MADE Easy today and unlock the skills to read, analyze, and grow your wealth. 👉 Get Instant Access Here!

10 Benefits of reading our Journal Entries eBook

2025-01-23T06:42:00.003+05:30

1. Learn journal entries for current business transactions

- Understand how to record day-to-day business transactions

- Learn the basics of journal entries and their importance

- Get familiar with different types of journal entries

- Learn how to classify and record transactions

- Master the art of recording financial transactions accurately

2. Master the basics of double entry system and Accounting

- Understand the fundamental principles of double entry system

- Learn how to record transactions using debits and credits

- Get familiar with the accounting equation

- Understand the concept of assets, liabilities, and equity

- Master the basics of financial accounting and reporting

3. Step-by-step guidance for passing journal entries

- Get a clear understanding of the journal entry process

- Learn how to analyze transactions and pass journal entries

- Understand how to use accounting formulas and equations

- Get familiar with different types of journal entries

- Master the art of passing journal entries with accuracy

4. Suitable for all backgrounds, including non-commerce students

- No prior knowledge of accounting required

- Easy to understand language and concepts

- Suitable for students from non-commerce backgrounds

- Learn accounting concepts from scratch

- Get a solid foundation in accounting principles

5. Covers tax-related journal entries

- Understand how to record tax-related transactions

- Learn how to pass journal entries for tax payments

- Get familiar with tax laws and regulations

- Understand how to account for tax deductions and exemptions

- Master the art of recording tax-related journal entries

6. Become an expert in making transaction journal entries

- Master the art of recording financial transactions

- Learn how to analyze transactions and pass journal entries

- Get familiar with different types of journal entries

- Understand how to use accounting formulas and equations

- Become an expert in making transaction journal entries

7. Enhance your career as a professional accountant

- Get a solid foundation in accounting principles

- Learn how to apply accounting concepts in real-world scenarios

- Enhance your skills in financial accounting and reporting

- Increase your job prospects in the accounting industry

- Advance your career as a professional accountant

8. Understand the importance of accurate journal entries for financial statements

- Learn how to prepare accurate financial statements

- Understand the importance of accurate journal entries

- Get familiar with different types of financial statements

- Learn how to analyze and interpret financial statements

- Master the art of preparing accurate financial statements

9. Learn basic and advanced steps for passing journal entries

- Get a clear understanding of the journal entry process

- Learn how to analyze transactions and pass journal entries

- Understand how to use accounting formulas and equations

- Get familiar with different types of journal entries

- Master the art of passing journal entries with accuracy

10. Ideal for intermediate or beginner level learners and professional accountants

- Suitable for intermediate or beginner level learners

- Ideal for professional accountants looking to refresh their skills

- Learn accounting concepts from scratch

- Get a solid foundation in accounting principles

- Enhance your skills in financial accounting and reporting

"Ready to master journal entries? Download our comprehensive Journal Entries eBook now and start improving your accounting skills! Get instant access

How "Learn Accounting from Scratch - Course" Can Help You Find an Accountant Job

2024-12-27T07:46:00.000+05:30

Welcome to my Udemy course, "Learn Accounting from Scratch"! This course is designed to equip you with fundamental accounting skills, regardless of your educational background. Whether you are from a commerce background or fields like engineering or science, this course simplifies accounting concepts and builds your expertise step by step.

The "Learn Accounting from Scratch" course can enhance your accountant job prospects by equipping you with essential accounting skills that are highly valued in many industries. Here’s how it can help you:

Fundamental Knowledge: The course provides a strong foundation in accounting principles, such as the accounting equation, financial statements, and basic bookkeeping. This knowledge is crucial for entry-level accounting positions and can set you apart from candidates without formal training.
Practical Skills: You will learn practical skills such as preparing financial statements, budgeting, and analyzing financial data. These skills are applicable in various job roles, including accounting, finance, and managerial positions.
Problem Solving: Understanding how to identify and correct errors in financial records is a key takeaway. Skills in financial analysis and problem-solving enhance your ability to provide valuable insights to potential employers about managing resources and improving financial performance.
Communication of Financial Information: The course emphasizes the importance of clearly communicating financial data to stakeholders, a valuable skill in any job that interacts with finance, budgeting, and management teams.
Career Advancement: With accounting skills, you can apply for roles such as financial analyst, accountant, or even positions in budgeting and forecasting. This course can also serve as a stepping stone towards certification in accounting or finance, further enhancing your employability.

Why This Course is a Game-Changer

Comprehensive Learning:
The course takes you through the entire accounting process, starting from the basics of debit and credit to advanced concepts like preparing final accounts. You’ll understand journal entries, ledgers, trial balances, and financial statements in a structured way.
Real-World Skills:
By mastering accounting fundamentals, you’ll gain the ability to maintain accounts for your own business or any organization you work for. This skill is invaluable in roles requiring financial decision-making, budgeting, or reporting.
Job-Ready Knowledge:
Many employers look for candidates with accounting knowledge, even if the job is not directly in accounting. With this course, you’ll stand out in roles like administrative assistant, business analyst, operations manager, or any position involving financial responsibilities.
Decision-Making Power:
Understanding accounting enhances your ability to interpret financial data, enabling you to make informed decisions and contribute effectively to your workplace.

What You Will Learn

Basics of accounting, including debit and credit principles.
How to create and understand journal entries and ledgers.
Preparing trial balances and financial statements.
Managing adjustments and creating final accounts.

Who Should Take This Course?

This course is perfect for:

Fresh graduates and students from any discipline.
Professionals wanting to add accounting to their skill set.
Entrepreneurs managing their own business accounts.

Ready to Boost Your Career?

Don’t miss this opportunity to master accounting skills and enhance your job prospects. Enroll in "Learn Accounting from Scratch" today and take the first step toward achieving your professional goals.

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Your future in accounting begins here!

Journal Entries for Dividend Income

2024-12-09T08:11:00.002+05:30

Dividend income is the source of earning of shareholders from investment in stocks of all companies. This is expense of company and it is given from company's total income. If you are long term shareholder and invests in stocks for getting dividend, it is good to keep record of dividend income for managing your portfolio better way and manage expenses relating to this. So, today you learn through passing the journal entries.

Following are the main journal entries for dividend income

1. When Dividend is Declared (Accrued Dividend):

Journal Entry:

Dividend Receivable Account Debit

Dividend Income Account Credit

Logic:

When a company declares a dividend, you record it as income because it becomes your have write. It will credit because all your income will credit and increase your intial capital. However, since the dividend amount is not yet received, it is recorded as a receivable (asset) in debit side because you can claim for getting this asset on company.

2. When Dividend is Received in Cash or Bank:

Journal Entry:
Bank Account Debit

Dividend Receivable Account Credit

Dividend Receivable

Logic:

When the company declared dividend is received, the receivable (asset) is converted into cash or a bank deposit. So, your bank asset increased. So, any asset incease must debit and Dividend Receivable has decreased, so, decrease in the asset will credit. So, the earlier receivable is cleared from the books.

3. For Dividend Received Directly (Without Prior Declaration):

Journal Entry:

Bank Account Debit

Dividend Income Account Credit

Logic:

If the dividend is received directly (e.g., without prior notification or accrual), the cash or bank balance increases, and you record the income directly since no receivable was previously recognized.

4. If you do not claim TDS Tax credit in income tax return

Tax Deducted at Source (TDS) on Dividend Income:

Journal Entry:
- TDS Expense Account Debit
- Bank Account Debit
- Dividend Income Account Debit

Logic:

When you receive dividends after tax deduction (e.g., TDS), the amount deposited in the bank is net of tax. The deducted tax amount is recorded as a expense ( If you do not claim the TDS tax credit in annual income tax return.

4. If you claim TDS Tax credit in income tax return

Tax Deducted at Source (TDS) on Dividend Income:

Journal Entry:
- TDS Receivable Account Debit
- Bank Account Debit
- Dividend Income Account Debit

IF can claim tds credit in annual income tax return it later as a refund or adjust it against other taxes. The total dividend income is split between the net cash received and the tax deducted.

Learn this with example

The journal entries with an example

I am receiving a total of ₹10,000 in dividends from infosys company in 2024-2025 and a TDS deduction of ₹1,000 which deduct by company. because if you earned single company's dividend is Rs. 5000 , tds will deduct 10%

1. When Dividend is Declared (Accrued Dividend):

Example:

The infosys company declares a dividend of ₹10,000 for you

Journal Entry:

Debit: Dividend Receivable account ₹10,000
Credit: Dividend Income account ₹10,000

Logic:

When the company declares the dividend, it becomes your right to receive the amount. The dividend income is credited to the Dividend Income account. Since you haven't received the amount yet, it is recorded as a receivable, and the Dividend Receivable account is debited.

2. When Dividend is Received in Bank (After TDS Deduction):

Example:
You receive ₹9,000 after ₹1,000 TDS deduction.
Journal Entry:
Debit: Bank ₹9,000
Debit: TDS Expense ₹1,000
Credit: Dividend Income / Dividend Receivable ₹10,000
Logic:
The Dividend Receivable account is credited to clear the receivable when the amount is received. The Bank account is debited to show the increase in your cash balance. The TDS amount of ₹1,000 is deducted, and this is debited to the TDS expense account ( Remember, you did not claim for tax credit.

If You Claim TDS Tax Credit in Income Tax Return (TDS on Dividend):

Example:
You receive ₹9,000 in your bank account after ₹1,000 TDS deduction and plan to claim the TDS credit in your income tax return.
Correct Journal Entry:
Debit: Bank ₹9,000
Debit: TDS Receivable ₹1,000
Credit: Dividend Income / Dividend Receivable ₹10,000
Logic:
The Bank account is debited with the net amount received (₹9,000).
The TDS Receivable account is debited with ₹1,000, as you can later claim this TDS amount as a credit or refund when filing your tax return.
The Dividend Income account is credited with the total dividend amount (₹10,000), as the income is fully recognized.
If you found the dividend income journal entries helpful, you'll love my Journal Entries MADE Easy ebook! It covers all essential journal entries in a simple, straightforward way to make accounting easier.
Check it out here: Journal Entries MADE Easy
Get your copy today and master the art of journal entries with ease!

Deferred Tax Journal Entries

2024-10-09T17:16:00.008+05:30

Deferred tax arises due to differences between how income and expenses are recognized for accounting purposes versus how they are calculated for tax purposes. These differences create either a deferred tax asset (DTA) or a deferred tax liability (DTL).

When deferred tax is receivable from the income tax department, it is considered outstanding income and will be shown as an asset on the company's balance sheet.

On the other hand, when deferred tax is payable to the income tax department, it is treated as an outstanding expense and will be recorded as a liability in the balance sheet.

Remember

We either calculate the net income as per accounting purpose more than net income for tax purpose. So, if we paid tax on the basis of net income of accounting purpose, this tax may be less or more than tax on the basis of net income for tax purpose.

Deferred Tax Liability (DTL): Arises when taxable net income in future periods will be higher than accounting net income. It means, we have paid less tax and have to pay pending. So, it is our liabilty.

Deferred Tax Asset (DTA): Arises when taxable net income in future periods will be lower than accounting net income. it means, we had paid more advance tax and we have to get refund. So, it is our asset.

1. Deferred Tax Liability (DTL)

A DTL occurs when income is reported in the financial statements before it is taxable, or when expenses are tax-deductible before being recognized in financial reporting.

Now, we learn to pass its journal entries with following 2 examples.

Example Scenario 1: Depreciation Allow for Tax purpose.

For example, we show our expense of depreciation Rs. 10000 as per 10% of our fixed asset but Income tax department has allowed only 5%. So, depreciation allow for tax purpose is Rs. 5000. So, it increases our deferred tax liability. and this difference is Rs. 5000, we have to pay tax on Rs 5000 net income due to decrease allowable depreciation. If tax rate on net income is 10%. Our deferred tax liability is Rs. 500

Income Tax Expenses Outstanding Account Debit 500

Deferred Tax Liability 500

Income tax is expense of our business, so we have to debit it. and and it will transfer to profit and loss account

Profit and loss account Debit 500

Income tax Expenses account Credit 500

We will show in balance sheet's Liability side

Deferred tax Tax Liability 500

Example Scenario 2: Depreciation Allow for Tax purpose.

For example, we show our expense of depreciation Rs. 10000 as per 10% of our fixed asset 100,000 but Income tax department has allowed only 20%. So, depreciation allow for tax purpose is Rs. 20000. So, it increases our deferred tax asset. and this difference is Rs. 10000, we have to receive tax on Rs 10000 net income due to increase allowable depreciation. If tax rate on net income is 10%. Our deferred tax asset is Rs. 1000

Deferred Tax Asset Account Debit 1000

Income tax Receivable Account Credit 1000

Income tax is expense of our business, but it is receivable because we have paid excess. so, it is our income. so we have to credit it. and it will transfer to profit and loss account

Income tax Receivable Account Credit 1000

Profit and loss account Credit 1000

We will show in balance sheet's asset side

Deferred Tax asset 1000

If you found this information helpful and want to deepen your understanding of accounting concepts, check out my ebooks "Journal Entries MADE Easy," "Depreciation MADE Easy," and "Income Statement MADE Easy." These resources break down complex topics into easy-to-understand sections, perfect for both beginners and those looking to refresh their knowledge.

Unlock your accounting potential today!

Related Contents

Deferred Tax Assets and Liabilities Examples

Valuation Account for Deferred Tax Assets

Unlock Free Access to My Udemy Course 'Learn Accounting from Scratch' – Limited Time Offer!

2024-09-18T10:22:00.003+05:30

I’m thrilled to bring you an exciting opportunity to master accounting, and best of all – it’s completely FREE! 🎉 Yes, for the next four days, you can enroll in my Udemy course, Learn Accounting from Scratch, at no cost. This is a limited-time offer, so don’t miss out!

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Fundamental Accounting Concepts: Understand accounting terminology, from assets to liabilities, equity, and everything in between.
Master Financial Statements: Learn how to create and interpret essential financial documents such as balance sheets, income statements, and cash flow statements.
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How to Connect Payoneer to QuickBooks in 4 Easy Steps

2024-09-15T06:46:00.003+05:30

Follow this detailed guide to seamlessly connect your Payoneer account with QuickBooks for efficient financial management.

Step 1: Access QuickBooks

Begin by heading over to the QuickBooks website.
Once on the homepage, locate and click on the "Go to QuickBooks" button to access your account.

Step 2: Sign In to Your QuickBooks Account

Enter your credentials to log in to your QuickBooks account.
- Tip: Make sure you're using the correct login information for the account you wish to connect to Payoneer.
If you’re not yet registered, take a moment to sign up—it’s quick and easy!

Step 3: Search for Payoneer

After logging in, navigate to the "Connections" or "Apps" section of your QuickBooks dashboard.
- This can usually be found under Banking or Integrations.
In the search bar, type Payoneer. You’ll see various options appear.
Select the Payoneer connection that corresponds with your account’s country. This step ensures compatibility and proper connection between QuickBooks and your Payoneer account.

Step 4: Complete the Connection

Once selected, follow the on-screen instructions to finalize the setup. This may include:
- Verifying your Payoneer account details.
- Granting permissions to QuickBooks to access Payoneer data for streamlined transactions.
Upon successful completion, you’ll receive a confirmation, and your Payoneer account will be linked to QuickBooks!

By following these steps, you'll quickly integrate Payoneer with QuickBooks, making your financial management faster, more accurate, and efficient. With this connection in place, you'll be able to sync payments, track transactions, and handle accounting all in one place.

Start Managing Your Finances Efficiently

Looking for more tips on handling business finances? Download our guides:

Read Also :

What is Funds Parked for Buyback of Equity Shares?

2024-08-28T16:20:00.003+05:30

You know that balance sheet of company is mirror to see the real financial position of company. Just reading the balance sheet, we can tell whether company is strong or weak. Whether you should achieve the opportunity to invest or safe yourself from same company. But for this, you should understand the balance sheet. So, we explain its specific terms for better understand it and take better decisions for your own investing success.

Today term is Funds Parked for Buyback of Equity Shares

It means keep bank fund separate from saving account with giving its clear mission that we will use same fund for buyback of equity shares from shareholders. Now understand with common example. You have the car. You have to visit your relative in the emergency ward in the hospital. Hospital has 4 parkings. Near parking is emergency parking. You will park your car in emergency parking because it will easy for you to get back your car when you will return after visiting your patient in emergency ward.

Same in business. If you have the goal to invest your company money for buyback, you have to arrange fund but if same time, you have to make annual reports and you must show in the balance sheet that specific bank balance is parked for buyback of equity shares and when bought, it will zero.

You can see same in the practical example of VRL Balance sheet where he showed the detail of bank balance

Accounting of Indian Politiical Parties in 2024

2024-05-31T12:49:00.003+05:30

In Accounting of Indian Political Parties 2024, we will learn the incomes and expenses of Indian political parties 2024. We know that voting are in the process and will end on 1st june 2024. As voter of this nation, you should know this.

Total Income Sources of Indian political parties

Main source of indian political parties are donation. Electoral bonds was main source but now supreme court rejected to collect donation through electoral bonds because it is violating right to information act and voter's right to know who is donating political parties.

Total Expenditures of Indian political parties

In 2024 voting, political parties are spending highest money in three main expenses.

1. Marketing Expenses

When political party gives the ticket to any leader for MP, political parties starts to spend money on promotion of same leader through marketing.

This marketing will be two sided

One is to promote the prime minister who will make and second spends for local candidate.

2. Travelling Expenses

Main leader who will become pm and local leader both goes for rallies and road shows. So, there is big expenses on travelling for leaders and its team.

3. PM and Candidate Brand Expenses

Actually, people gives vote to see the face of central pm. So, parties pays to show the pm band on facebook, youtube and internet and offline banners.

Total Amound will spend by Political Parties

1. Total amount will spend 1.20 lakh crores in election 2024 and highest portion will spend by indian political parties instead election commission.

2. Limit of candidate expenses is Rs. 95 Lakh but political parties spend unlimited.

3. 2019 total spending was Rs.55000 crore and in 2014 total expenses of election was Rs. 30,000 crore

4. Highest expenses on Media advertisement, publicity, travel, rally and candidate expenses.

5. Now, its cost is Rs. 1000 per voter and the political party who will win the election 2024 will withdraw from the pocket of Aam admi through tax.

6. Four big parties BJP, Congress, AAP and TMC and paid Rs. 60.5 crore within 30 days ads from 31st march to 29th april on Google and facebook. It means, everyday Rs. 2 Crore is paying ads by political parties on google and facebook. This not include ads spending on otehr websites.

My Big 3 Questions to All Political Parties

Question 1. All of you want to remove poverty. With your spending money Rs. 1.20 Lakh crore, it is not going to poor people of India. It is going to only few big media and travelling companies. Instead publicity and marketing and travelling spending, can you not give directly to public? You all are increasing the gap between rich and poor in India as per above accounting?

Question 2. Do you know how will cover your expenses? It is sure, what ever the party, will it cover from tax money, bribe and corruption? If winning party will add tax more, it means, it is increasing product price and again more burdon on poor and middle class due to this election 2024. Answer this.

Question 3. Your source is donation for spending money. Do you know, no one donate without reason? Electoral bonds opens some secret. So, please tell us, what will do for companies for getting next time donation..?

Why Losses in Debit Side of Revaluation Account and incomes in credit side of revolution account.

2024-01-18T12:02:00.003+05:30

When a new partner comes, we need to prepare revolution account.

1. This account is prepared to transfer the profit or loss from business to old partner before firm's reconstruction. So, all losses will debit in this account and All incomes will credit in this account.If incomes more than losses, net profit will transfer to old partner in their profit and loss sharing ratio.

2. If we will debit all losses, and credit all incomes in this account, it will easy for us to compare and reach net loss or profit.

3. Losses (Debit Side):

When there is a loss on the revaluation of assets or liabilities, it represents a decrease in the overall value of the business. To record this decrease, the loss is debited to the Revaluation Account. This aligns with the general rule that increases in expenses and losses are recorded on the debit side.

Incomes (Credit Side):

Conversely, when there is a revaluation that results in an increase in the value of assets or a decrease in liabilities, it represents a positive impact on the business. This increase is credited to the Revaluation Account. Incomes and gains are typically recorded on the credit side in accounting.

The convention helps maintain the accounting equation:

Assets=Liabilities+Equity

By recording losses on the debit side and incomes on the credit side, the equality of debits and credits is maintained, ensuring accurate financial reporting and adherence to accounting principles. It's a standardized approach that facilitates consistency and clarity in financial statements.

Revaluation account

Dr. side

To Asset ( decrease in the amount of certain asset )

To Liabilities ( increase in the amount of any certain liabilities )

To Liabilities ( if any liability have but not recorded in books )

To transfer of profit to partner in old ratio

(if credit side is more than debit side )

Cr. Side

By Asset ( increase in the amount of certain asset )

By Liabilities ( Decrease in the amount of any certain liabilities )

By Asset ( if any asset have but not recorded in books )

By transfer of profit to partner in old ratio

(if debit side is more than credit side )

Solution of the Problem Relating to Trading, Profit and Loss account and Balance Sheet from Kenya

2023-11-25T11:38:00.005+05:30

Today, morning, I have checked my whatsapp and I got the above problem screenshot and told, help me to solve this question.

For solving this question, I want to give 3 important message.

1. We respect school, college and university exams. If your teacher gave the exam. for checking your ability in accounting, it is your responsibility to give your exam. If we help you to solve it, it will cheating with you and all the teachers who are checking your ability. Yes, you fail and then again prepare the exam. We help to prepare the exam. More detail our desclaimer policy.

2. We Encourage you to download and study our Accounting eBooks and notes like Journal Entries MADE Easy Financial Accounting, Cost Accounting, Management Accounting, Corporate Accounting and Balance Sheet Made Easy.

3 We Encourage You to Join in Our Accounting Course

Now, we are trying to solve this question

Solution

Trading Account:

Particulars	Debit (Pound)	Particulars	Credit (Pound)
Opening Stock	290,114	Sales	1,606,086
Purchases	810,613	Closing Stock	317,426
Carriage Inwards	2,390
Gross Profit ( Balance)	820,395	Total	1923512
Total	1923512

Profit & Loss Account:

Particulars	Debit (Pound)	Particulars	Credit (Pound)
Carriage Outwards	13,410	Gross Profit	820,395
Salaries	384,500
Business Rates	1700 +14800
Office Expenses	245+ 9100
Sundry Expenses	2360
Depreciation: Buildings	40,000
Depreciation: Equipment	48,000
Directors' Remuneration	119,200
Total Expenses	633315

Net Profit ( Balance)	187080

Balance Sheet as at 31 December 20X2 :

Liabilities	Amount (Pound)	Assets	Amount (Pound)
Current Liabilities		Current Assets
Creditors	237,516	Bank	8,100
Business Rates Owing	1,700	Debtors	321,219
Office Expenses Owing	245	Stock	317,426
Total Current Liabilities	239,461	Total Current Assets	646,745
Non-current Liabilities		Non-current Assets
Proposed Dividend	80,000	Buildings at Cost	800,000
Total Non-current Liabilities	80,000	Equipment at Cost	320,000
Provision for Dep.	80000+96000
Equity Share capital + Net profit + General Reserve + Foreign exchange reserve= 800000+187080+136204+120000+30000	12,73,284

Now it is your duty to total of asset side and liability side and prove our solution is ok if match.

Journal Entries of Merge

2023-10-06T11:19:00.009+05:30

Like demerger in Corporate level business, merge or merger is also common. One of good example we can see in public sector banks. All state bank of patiala merges in State bank of India. Syndicate bank merge into Canera Bank. Oriental bank of commerce (OBC) and United bank of India (UBI) merged into PNB. So, it is necessary for you to pass the journal entries of merge or merger.

Before this understand merge or merger

Merge means combine two or more companies into one. All assets and liabilities combines and whole business combines. In other word, in merge one powerful company takes over two or more weak companies. It is also called amalagamation or acquisition. So, if you are shareholder of a company who merged into other, you will get share also in new company.

Suppose there is merge of A company and B company into C company, so

A and company is merged company into C company

C company is resulting company

So for new accountant and also old accountant who do not know about what journal entries will pass at the time merger, this content will be useful.

1. In the Books of Shareholder

Remember : the shareholders of Transferor Company will become the shareholders of Transferee Company or resulting company.

Investment in Resulting Or Transferee Company Account Debit

Profit and Loss Account (If Loss after merge or there is less market value than your invested value) Debit

Investment in merged or Transferor Company Account Credit

Profit and Loss Account (If Gain after merge or If profit after merger or there is more market value than your invested value) Credit

Logic of Above Journal Entry

a) Now, your asset changed, so, for showing asset at true name with current company, you need to show debit of resulting or transferee company

b) Loss always debit because resulting or transferee company has decision to give less as per current market situation, you have to show loss in your financial result reports and balance sheet. This may be gain and gain always credit

c) Old company investment is no more after merged and new company has came in the existence. so, old company your asset decrease. So, it will credit

2. In the books of Resulting or Transferee Companies

There are two method of recording this event in the books of resulting or transferee company.

(A) Pooling of interest Method

(A) All the assets and liabilities of Transferor Company will become the assets and liabilities of Transferee Company.

(B) All the shareholders of Transferor Company will become the shareholders of Transferee Company.

(B) purchase consideration

When a company purchases other company at this time company will pay purchase consideration to its shareholder under following method.

a) Fixed and lump sum amount is given by purchasing company to amalgamating company

Suppose A company is amalgamate into B co. and under agreement B Co. will pay $ 5000000. This is purchase consideration under lump sum method.

b) Net word method

Under this method a company who purchase other company calculates the net word of company and on the basis of net worth, purchase price is determined on basis of net worth ( Total assets -outside liabilities)

Assets ( at Takover or market value or net worth basis ) Account Debit

Goodwill (If more consideration to shareholders more than market value - Balancing figure) Account Debit

Outside Liabilities ( Current value of debt Takover) Account Credit

Shareholder of merged or transferor company 's Capital Account (Consideration to Shareholders of merged or transferor company ) Credit

Capital reserve (If more Less consideration to shareholders than market value - Balancing figure) Account Credit

Logic of Above Journal Entry

1. When resulting company or transferee takeover assets, it means its consideration must be given to old shareholders, means old shareholder will get benefit instead consideration to Company's CEO

So, takeover asset is coming of asset in new resulting company, so, it will debit

it may current asset and non current assets

2. outside liabilities are coming in resulting company, so increasing liability must credit as per journal entry rule.

3. Now, merged or transferor company's shareholders get consideration for this. So, it will credit

if it is consideration is less than actual market value, it will be the balancing figure as capital reserve.

In the books of merged or Transferor Companies

merged or transferor company is just like seller who sell his own company to other. So, when new company will take of his assets and liabilites.

His liabilities will decrease to zero by debit all and his ownership on assets will decrease by credit all assets.

Merged company's shareholder's liability is also takeover by giving the new shares of new company, so, in merged company, we will debit this share capital by writing resulting company share capital account.

If merged company get less componsation to shareholder, then it will transfer to profit and loss account as in the accounts of old transferor company.

if merged company get more componsation to its shareholder, then it will transfer to Goodwill as credit in the accounts of merged or transferor company

Outside Liabilities ( Current value of debt given ) Account Debit

Resulting Company Share capital Account (Consideration to Shareholders of merged company) Debit

Capital reserve or profit and loss account (If Less consideration to shareholders than market value - Balancing figure) Account Debit

Assets ( at given or transferred at market value ) Account Credit

Goodwill or reserve or profit and loss account (If more consideration to shareholders than market value - Balancing figure) Account Credit

Read Also

[Journal Entries of Demerge]

[Journal Entries of Buy Back]

[Accounting treatment for amalgamation under AS - 14]

Buy back of shares journal entries

2023-09-01T10:08:00.013+05:30

Buy back of shares means to buy own shares. It is the purchase of own shares from shareholders. It is the great tool to increase EPS and showing high performance for each shareholder. With this, company's liability for shareholders' decreases and its positive impact on ERP.

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##a-solid fa-landmark## In the Books of Company

Company journal entires process starts when shareholder will take action on its offer.

1. When shareholder accept the offer of buy back and payment due to shareholder

Equity share capital ( Buy-back shares) Dr

Premium on buyback Dr

Equity shareholders' account Cr

Logic of Journal Entires : Share capital is liability of company when shareholder accepts the buy back offer, it means, shareholder is selling his share and company is payable to directly to individual shareholer. So, for decreasing share-capital from balance sheet liability, it is necessary to debit the equity share capital as ledger account impact on balance sheet. Shareholder will attract this offer if buy back offer price is more than market price. So, this premium is loss of company will debit and total liability of equity shareholder will increase will credit.

2. When payment made to Equity Shareholder

Equity shareholder account dr

Bank account cr

3. When premium on back back deducted from Reserves and surplus

Reserve and surplus account Dr.

primium on buy back account Cr.

4. When expenses paid for buy back paid

Expenses for buyback account Dr.

Bank account Cr.

5. Transfer of expenses to profit and loss account

Profit and loss account Dr.

Buy back expenses account Cr.

[message]

##fa-solid fa-user## In the Books of Shareholder

Shareholder journal entires process starts when shareholder will take action on its offer means sell his shares to company .

1. When shareholder accept the offer of buy back and payment due to shareholder

Company's Account Dr

Gain on buyback Cr

Investment in Company Shares's account Cr

Logic of Journal Entires : It is the entry of receivable amount from company. and Investment account of company shares will credit because asset of investment will decrease and gain on Buyback account credit

2. When payment received from company

Bank Account Dr

Company account Cr

3. When Gain on back back transfer to profit and loss account

Gain on Buyback Account Dr.

Profit and loss Account Cr.

Journal Entries for Demerger

2023-08-14T15:10:00.036+05:30

Recently, we are seeing the Demerger in corporate level business. NIIT Ltd became NIIT Ltd and NIIT Learning System Ltd after demerger and Reliance industry has also demerger into reliance and jio finance ltd.

Before this understand Demerge

Demerge means dividing one company into two. All assets and liabilities division and whole business division. So, if you are shareholder, you will get share also in new company. Ratio may be different which may decide by board of directors.

Suppose there is demerge of A company into B company and C company, so

A company is demerged company

B and C company is resulting company

So for new accountant and also old accountant who do not know about what journal entries will pass at the time demerger, this content will be useful.

1. In the Books of Shareholder

Investment in Resulting Company Account Debit

Profit and Loss Account (If Loss after Demerger or there is less market value than your invested value) Debit

Investment in Demerged Company Account Credit

Profit and Loss Account (If Gain after Demerger or If profit after Demerger or there is more market value than your invested value) Credit

Logic of Above Journal Entry

a) Now, your asset changed, so, for showing asset at true name with current company, you need to show debit of resulting company

b) Loss always debit because company has decision to give less as per current market situation, you have to show loss in your financial result reports and balance sheet. This may be gain and gain always credit

c) Old company investment is no more after demerged and new company has came in the existence. so, old company your asset decrease. So, it will credit

Example

See My DEMAT Account. KNow when NLS showed in my DEMAT Account

In invested Rs. 32888.09 with buying 120 shares of NIIT ltd and after demerged new companies is NIIT and NIIT Learning system whose total market value is

Resulting company NIIT Ltd Rs. 9516

Resulting company NIIT Learning system Ltd Rs. 44310

Total = 53826

Net profit to me after demerged = Rs. 20937.91

So, I will show this journal entries at the time when it show me in my DEMAT account

Investment in NIIT Learning System Ltd Account Debit Rs. 44310

Investment in NIIT Ltd Account Debit Rs. 9516

Investment in Demerged NIIT Ltd Company Account Credit Rs. 32888.09

Profit and Loss Account (If Gain after Demerger or If profit after Demerger or there is more market value than your invested value) Credit Rs. 20937.91

2. In the books of Resulting Companies

Assets ( at Takover or market value ) Account Debit

Goodwill (If more consideration to shareholders than market value - Balancing figure) Account Debit

Outside Liabilities ( Current value of debt Takover) Account Credit

Shareholder of demerged company 's Capital Account (Consideration to Shareholders of demerged company ) Credit

Capital reserve (If more Less consideration to shareholders than market value - Balancing figure) Account Credit

Logic of Above Journal Entry

1. When resulting company takeover assets, it means its consideration must be given to old shareholders, means old shareholder will get benefit instead consideration to shareholder

So, takeover asset is coming of asset in new resulting company, so, it will debit

it may current asset and non current assets

2. outside liabilities are coming in resulting company, so increasing liability must credit as per journal entry rule.

3. Now, demerged company's shareholders get consideration for this. So, it will credit

if it is consideration is less than actual market value, it will be the balancing figure as capital reserve.

In the books of Demerged Companies

Outside Liabilities ( Current value of debt given ) Account Debit

Resulting Company Account (Consideration to Shareholders of demerged company) Debit

Capital reserve or profit and loss account (If more Less consideration to shareholders than market value - Balancing figure) Account Debit

Assets ( at given or transferred at market value ) Account Credit

Goodwill or reserve or profit and loss account (If more consideration to shareholders than market value - Balancing figure) Account Credit

Above journal entry is simple,

but

[tab]

you must Know What will Debit

you must know resulting company account as debit - It just like decreasing the liability of shareholder of demerged company.

Second Important Learn

No, shareholder claim that his market value has decreased because this takeover by resulting company.

Never forget to

[Download journal entries ebook ##fa-download##]

What can do Accountant When Physical Stock does not Match with Actual Stock

2023-07-09T16:40:00.003+05:30

When the company owner finds that physical stock does not match with book value of stock, it is important to audit this with expert.

1. Check the Accounts Record for Mistakes

Sometime, there may be mistakes in accountant's made account. Instead accountant taking tension, he should self audit of accounts before independent audit. There may be lack of accuracy in purchase records or sales record or closing stock book value. In this process, mistake can be found by him.

2. Count the Stock Again

Sometime, stock may be big and there may mistake in our counting system, So, count again and compare it with accounts. For example, we have counted in books in Kg but we are counting physical stock in units. So, please keep equal units both side for getting equal results.

3. Note the Differences of Physical and Book quantity of Stocks

Investigate whether some stock destroy due to dead or waste due to production process or theft somebody or misplace.

If theft, there may be clue. If misplace, see other place, your may find stolen stock.

4. Co-operation with Independent Auditor

Sometime, owner can appoint independent auditor to audit this. So, accountant should help in his investigation and inform what he knows.

5. Try to Find Weakness of Internal Control System

If accountant has any doubt, he can note the owner these internal weakness in control system. Like

No security guard near store.

Store is in lonely place

Lack of proper employees to complete the task

Software hacking issue which shows wrong data even record proper.

6. Connect with Other Department

Accountant should connect with sales, production, marketing, repair and other branch department. To give notice whether they take any stock without record. If get any fact, note it to show to boss.

Final Words

Whether accountant or owner, this event is stressful both has to accept it. Do action what they improve in future. Both wants to become happy. If both wants to happy, they need to know its secret at here.

Is Hindenburg Report True Regarding Accounting Fraud of Adani Company

2023-02-14T21:32:00.019+05:30

Hindenburg company has recently published the report that Adani Company is doing accounting fraud and share and market manipulation. It asked 88 questions from Adani Company. I read also Adani response. Before writing this content, I told, I am not favoring anyone of both. This earth is stand on Gravity which is truth. God love truth and justice. But what I research and what I understood, I am writing here.

I read the report but Why is Very Clear Hindeburg company, It is not social worker or NGO for the benefit of investor. It is profit making company of USA. 9 People are working in this company and it has the business of short position. Means,

It is Speaking Load,

Dear Investors FEAR FEAR FEAR and Sell the shares whose company we are telling which is doing cheating business at low price because soon, it will waste your hard earned money

Will investors be fearful. Never

But If I will focus

and I will give you fear through logical fact and you believe and it will be fear.

FEAR Means Fake evidence appear real

Fear is also evidence.

and if investors accepts through its believe system and sell then next secret

Secret

We are ready its all share at low price through Short Selling

FINAL RESULT

Whether sell at low price

I am ready to buy it

Loss to final investor

because he is fearful for further loss

When he will not sell

Manipulated company baloon will burst

and you will loss,

you are seeing stock are decreasing very fast rate of ADANI

Loss to final investor

Both situation loss is of Investor

and both side benefit of Others. It is not help to Investor

Never satisfy own growth

but real growth, to think all growth is own growth.

IS Investor fool who bought the share

Not,

Investor is smart

But

FEAR and GREED

and lack of self commitment

Investor remember

I will never sell share before 10 years due to fear and greed which may be through any news or information and compel me to taking wrong decision. If still face long term loan from any share, I will follow this 3 major strategy

WHY Clear

I cleared his why

and you will also clear

So, Will it tell all the truth in the report.

In Indian Culture, it is general saying

Before believing on Other,

we have to see the purpose of his action

If it is

SAM

DAM

DAND

BHED

to achieve personal purpose

Every Indian must understood

Do you know who is behind murder of LAL Bahadur Shastri

See Movie Tashkand FILE

OK, I asked some questions from Hindenburg Research

1. Are you feeling Jealousy Indian Adani Came 2nd position from 600 Position in Rich list or Top 1 to 559 richest people feeling jealousy why adani had crossed us.

2. You told, Adani has short audit firm. Who gave you authority to show his personal ID Card and you are told CA age was just 23 and 24.

I think, HIndenburg research team did not read MAHABHARAT

Abhimanu was ZERO age and he learned to cut the Chakrviyu before birth through listening from father in stomach of his mother.

3. You told they have less team of 11 people and they are paying Rs. 32000 rent of office,

Is it logic whether audit of adani is true or not.

You are team of 9 as per wikipedia. Still, you are giving full energy in this report.Yes . Adani is doing business 34 years and you are just started your business 6 years ago.

4. Are you telling through report, only small audit company have lack of knowledge to do better audit but large audit company may also fraud. Is it right?

5. Did you Read Indian Accounting Standard 24? and you are living in USA, do you know difference between IAS and IFRS.

6. Do you know Indian Audit Standard.

In End, I only say

If you want to smart

Give answer of Question in Question

Moreover, I always advice

Every investor asks question from himself

1. Are you investor or trader?

2. Why did you buy shares? Shares is buying of own property or asset.

3. If you will sell the share, know why is other buying

4. Are you agree Corruption, Bribe and cheating is not only in India but there three type people every where

Satoguni, rajoguni and tamsik people

Instead Blam on other person,

Have your own character strong

5. Will you have the capacity like chanakya to remove corruption and bribe from your nation. Will you born the students who will do like Chandergupt.

6. Our Real wealth is Indian Cows. Are you agree, because it gives milk, butter and pure oil and give us brain to think better. Are you agree

7. Our Real wealth is our health physical and mental.

8. Do you think All USA Media Speak truth? Do you think Indian Media speaking truth?

9. Instead taking any fast decision, is not better Hindenburg Report learning and Adani Financial Statement Learn

10. Is it good to take loan.

11. Do you know overvaluation and undervaluation shares and dollar cost averaging

12. Will you keep the share of any company who do not give dividend to you from last 2 years. Because dividend is the earning of business of every investor not selling price appreciation.

13. Are you agree when scams reports come, company fears and takes wrong decision which decreases its value more

Thank You

Read Also

Outstanding Expenses

2022-12-17T11:43:00.004+05:30

Outstanding expenses are those whose reward, we have consumed this current year but still did not pay current year, such expenses are called outstanding expenses. At the end of financial year, it is very necessary to pass its adjusted entry and keep it in accounts. So, we can reach account net profit and accurate financial position of business. All indirect and direct expenses may be outstanding expenses if we got its benefit but not paid in financial year.

For example, we have taken 3 months work from labourer but at the end of financial year, 3 months wages are payable to labourers. So, it will decrease our gross profit when we add it in wages account in profit and loss account

So, first pass the journal entry

If outstanding wages is Rs. 10,000 for three months

wages account debit 10000

outstanding wages account 10000

Trading and profit and loss account

To wages Rs 1,00,000

Add outstanding

wages RS. 10,000

====================

Rs. 110,000

====================

Balance Sheet

Liability side

Outstanding Wages Rs. 10,000

Related Contents

Closing Stock

2022-11-01T10:37:00.003+05:30

Closing stock is the stock which is the part of purchased stock and produced stock but did not sold upto end of the year. Stock at the end date at our store or production department or sale department which is unsold will be closing stock.

Its calculation and adjustment is must in the final accounts because we do not record it, so, it does not come in the book of accounts and only at the end of year, it is calculated, so, trial balance will not show this closing account balance.

We can calculate gross profit if we will calculate the closing stock in our final accounts.

Now, first question is how to calculate the closing stock.

For calculating closing stock, we must have the physical quantity and we multiply it with its cost price or market price whichever is less.

For more detail, you must read : At what rate will we calculate closing stock ?

Now, when we will find the closing stock value, we will pass the adjustment entry

Closing stock account Debit

Trading Account Credit

We will open Two accounts after this adjustment entry

Closing Stock account

and its debit side, we will show trading account

and balance C/d its credit side

We will open next account is Trading account

and its credit side, we will show

By closing account

In balance sheet

In balance sheet, we will show closing stock under current asset.

Adjusted Purchase

If adjusted purchase account is showing in the trail balance, then we will not show closing stock in the credit side of trading account because all adjustment done in adjusted purchase account

adjusted purchase = opening stock of purchase + new purchase - purchase return - closing stock

now we will its balance in the trading account's debit side only

Opening stock will be in the trade balance debit side which is closing stock in the balance sheet in the end of previous year.

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What is Provision for Litigation

2022-10-02T10:34:00.003+05:30

When a company grows, some competitors starts to play a bad game to win this competition because they think love and war, everything is possible. So, create the barrier through law. At that time, same company has to keep his defensive mood for bounce back. So, it is normal to enroll the process of taking legal action. This is called litigation.

Now, what is provision for litigation. Provision means keeping secret reserve or keep specific fund set aside from gross profit for this purpose. Means, you have earned Rs. 100,000 net profit and you kept its 10% as provision for litigation. It will be Rs. 10,000. If actual payment done from this provision Rs. 5000. Now, total provision will decrease with Rs. 5000 and balance will be liability. It is liability of company because it must be payable to advocate or other legal expenses.

So, how to show it in Financial Statement

In Profit and Loss Account

We will show in expenses side for calculating net profit.

In Balance Sheet

We will Show it as liability in balance sheet. If there are lots of provisions, we add it in other provisions and total provision will show in liability side.

Following are common provisions in which provision fol litigation will add

provision for bad debts

provision for guarantee

provision for pension

provision for depreciation

provision for loan commitments

provision for employee benefits

a gratuity

b compensated absences

provision for taxation

provision for other assets

provision for litigation

In Cash Flow Statement

For calculating Cash flow from Operation

We will add it in net profit because, it is also cash inflow which is deducted in profit and loss account from our gross profit. We can compare it also with previous year cash flow statement. Previous year provision is 2.04 million and this year 54.64 million.

Because if it is not used for legal purpose, it is the part of cash from operation.

Read also

Provision Vs Reserve

Accounting for provision for loan loss

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How to Show Accumulated Amortization on Balance Sheet

2022-09-04T11:34:00.005+05:30

Before understanding about "How to Show Accumulated Amortization on Balance Sheet?", you should know 3 simple definition of "amortization, amortization charge and and accumulated amortization"

amortization meaning

Amortization is the depreciation of intangible asset. It means decrease in the value of intangible asset. For example, we have bought the software but time to time advancement in software in the industry, value of our software will decrease. So, it must decrease from specific intangible asset

amortization charge

It means, current year depreciation charge on specific intangible asset.

accumulated amortization

Accumulated amortization is the total of depreciation on intangible asset from beginning of intangible asset to the balance sheet date. So, we will add the current year and previous year amortization charge in the beginning balance of accumulated amortization.

Now, we give simple answer "How to Show Accumulated Amortization on Balance Sheet?"

In simple words, it must be deducted from intangible asset on the balance sheet's asset side. But if there are lots of intangible assets or if there is big amount, the size of balance sheet will become big. So, we makes the notes below the balance sheet and where we show total amount of each tangible asset, add new intangible asset and disposals. After this, we have to deduct total accumulated amortization and we find the net balance of intangible asset and same is shown in the balance sheet.

Reason of this

When we deduct the accumulated amortization from historical intangible asset, we are try to show in the balance sheet today value of our intangible asset. We also, show the true balance sheet to our shareholder. With this, our shareholder can decide, whether he can keep our share or sell or other new investors can decide to invest in our company or not.

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Related Topic

What is Negative Amortization

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How to Show Cash Flow Hedge in Financial Statements

2022-08-12T07:17:00.003+05:30

To show cash flow hedge in financial statements is the part of hedge accounting Learn part 1 and part 2.

When company enters in cash flow hedge contract, it will open cash flow hedge reserve account. All hedging adjustment will be in this account.

1. When transfer money in this fund like we pay premium for Life insurance ., we have the reserve for such premium

Cash flow Hedge reserve account Debit

Cash account credit

2. When I invest in cash flow hedge

cash flow hedge investment dr.

Cash flow reserve account cr.

This investment may be in future contracts, option contracts, put option, swap, derivatives, or diversify investment instruments.

3. When actual loss happens

Loss on asset or liability due to happening of risk Account dr.

asset or liability account credit

( Asset may decrease or liability more increase)

4. When your cash flow hedge will support to you

Asset increase or liability decrease account debit

Earning with cash flow hedge investment Credit

5. When loss on cash flow hedge due to fair value change

Fair value change of cash flow hedge loss account debit

cash flow hedge investment Credit

In balance Sheet

in asset side

cash flow hedge investment

Net Adjusted increase in the value of asset or decrease in liability

{ cash flow hedge profit - loss due to cash flow risk happened}

In the liability side

Net Adjusted increase in the value of asset or decrease in liability

{ cash flow hedge profit - loss due to cash flow risk happened}

In profit and loss

because profit and loss adjustment already done in the balance sheet, we can not show in profit and loss account. It will be duplicate. Yes, if not show above adjustment in the balance sheet, we can show here

In expenses side

actual loss due to cash flow risk happened

in the income side

Gain due to cash flow hedge investment

If risk does not happened and there is change of fair value of cash flow hedge

so, it will show

in expenses side of profit and loss account

Fair value change of cash flow hedge

See example,

Who is bookkeeper

2022-08-03T17:10:00.001+05:30

Do you know, after writing 3400+ contents, why am I writing the simple meaning of book-keeper when there are lots of accounting complex terms like present value, IRR, consolidated balance sheet, and rules which I can write today. So, before telling the meaning of bookkeeper.

(A) I told, you in your and my life. Never under-estimate small accounting words. Single word can change your life.

(D) Do you know John D. Rockefeller he started his career as assistant book keeper. He understood this book keeper meaning practically. He earned maximum $ 58 as book keeper and this knowledge helped him to biggest oil company in USA and becoming richest person of USA in 1916 because he did not under estimate the value of book keeping and book keeper work.

(E) Here, our Accounting Education university aim is also to make you rich, to make rich your company, to make strong our accounting students and employees through our sharing of accounting knowledge. I am in this mission since 2008. From my this efforts, if a single person achieved their dream, I feel happy.

Ok, know understand the meaning of Bookkeeper.

Bookerkeeper is the person who records own or his boss's business transactions. He collects all the bills, invoices, evidence documents and on this basis, he records daily all the transactions of business and events of business. He records expenses, he records incomes, he records purchase and sales, he records tax transactions.

He prepare daily journal by passing journal entries. Bookkeeper works as assistant for accountant. Accountant makes income statements and balance sheet on the records by book keeper. Bookkeeper gives the trial balance to accountant and accountant completes the final process of accounting.

Main aim of bookkeeper is to help accountant to track the performance of business and financial position of business. In the age of 16 by doing this practical duty of assistant bookkeeper, John D. Rockefeller became CA and started his business at the age of 20 when students of India are doing B.Com. He used his assistant bookkeeper skill in business for tracking the performance of his oil business. On this basis, he checked which product or service is best and on this basis, he caught new opportunity to grow his business and in end his growth of wealth has increased upto 1st billionaire of USA in 1916

So, learn this if you are student. Do honest duty of bookkeeper if you have job. Track performance and financial position for becoming own boss in your business and catch opportunity in the business. No one can stop your success. Thanks.

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