Accounting Education

Take Inspiration From Handicapped Accounting Scholars

2009-11-11T19:03:00.000-08:00

I have seen two video in youtube in which I saw that two great Accounting scholars have cleared their Accounting degree in the form of Bachelor of Commerce and C.A. . Both are physically Handicapped but after this they have succeeded in accounting career .

First Handicapped Accounting Scholar

It is Nick . He has no limbs and no arms . He is now twenty-three years old and has completed a Bachelor of Commerce majoring in Financial Planning and Accounting. He is also a motivational speaker and love to go out and share his story and testimony wherever opportunities become available. He has developed talks to relate to and encourage students through topics that challenge today's teenagers. He is also a speaker in the corporate sector. He is spending his happy life with his family in Melbourne Australia .

you can also see his motivated video

Second Handicapped Accounting Scholar

She is Rajani Gopal . She is blind . With his eyes , she has done Chartered Accountancy Course from ICAI . Now she is practising in his CA firm .

you can also see his motivated video

Our young handicapped and physically challenged students should take inspiration from these two Accounting Scholars and work hard for making their accounting career .

Explanation of Simple two Way to Record Branch Accounts in India

2009-11-11T04:02:00.000-08:00

After Globalization , India becomes market place for world . Top class companies are starting their business in India . So , I am giving explanation to fresh professional accountants how they can record branch accounts in India .

There are two way , you can choose any one of following for keeping record according to the need of your company.

First Way

Open independent branch

It is dependent on your company's business size , if it is so large , then create your branch in company creation by giving the name of company as branch of main company and after this create ledger without writing balance so it will deem zero balance in accounts . After this pass the regular voucher entries .

Second Way

All branches record in Head Office's Tally.ERP 9

If want to record all the transaction of branches in head office . Then you can create cost centers and cost categories .

To create a Cost Category, set Maintain Cost Centres to Yes in F11: Accounting Features and then set More than ONE Payroll/Cost Category to Yes.

Gateway of Tally> Accounts Info.> Cost Centres> Create (under Multiple Cost Centres)

You can also create sub - branches by keeping one branch under parent branch in multiple cost centres . Suppose , If you want to create cost center of Taxation , finance and marketing sub branches , under Delhi branch , then in the creation mode of multiple cost center , choose category Delhi and , then create cost center taxation , finance and marketing , if you have not create cost center already , then create same box by Alt + C .

After this when you pass any voucher entry , you have to record the detail your branches also , suppose you have paid lighting bill , then new pop up window in voucher entry of payment , you have to write the detail of branches' lighting expenses . After this you can find the detail report of everything above revenue and expenses from any particular branch .

Why does Tally.ERP 9 Ask " Overwrite Tally Back."?

2009-11-07T23:18:00.002-08:00

Query : I use tally.ERP 9 register version. I take regular back up in my pen drive. when i take back up tally ask me ' overwrite tally back?. what does it means and why does it ask ?

Reply : If you save you data in the folder in pen drive which have already some data , then tally will not enable to save or back up in that folder in pen drive and ask "overwrite tally backup"
Same situation will happen when you restore the file in the folder where is some other file existed . So please use blank folder for backup or restore otherwise tally delete previous data by overwriting in same folder .
If you have downloaded free Tally.ERP 9 Reference manual and read it deeply , then you will find at the chapter of Restoring Backup, Tally solution company suggest following for smooth restoring backup.

Get Education of Business Environment at MBA Shiksha Blog

2009-11-07T04:23:00.000-08:00

We are happy to announce accounting education users and subscribers who are studying in MBA in India that last week, we launched MBA Shiksha blog for covering Business Environment Topics especially for

Indian MBA students. Like accounting, business environment is tough subject for MBA students. Till today, we have written 3 topics.

1. Social Environment and Its Main Elements

2. Social Responsibility of Business and Points in Favour and Against of it

3. What is Technological Environment and Its Status in India ?

I hope, you will also touch MBA Shiksha for better preparation of Business Environment Subject.

How to Create and Use of Scenario in Tally.ERP 9 ?

2009-11-06T19:29:00.000-08:00

Scenario analysis is a complex business process related to futures studies. So , We can create and Use of Scenario in Tally.ERP 9 . First of all , we learn steps for creating scenario in Tally.ERP .

For Creating Scenario , you have to write yes the option of " Use Reversing Journals & Optional Vouchers " in accounting feature of Tally.ERP 9.
After this you will see a new button in Account info. with the name of Scenario .

Gate way of Tally >> Account Info. >> Scenarios

Click Scenarios and then click on create . After this you will see the form of scenarios creation . Give a suitable name to the scenario. In this case, it is Provisional , write provisional and then Set Include Actuals to Yes . Then accept this Scenario creation form .

Now after creating Scenarios we will learn its use :-

Pass the Voucher entry of Transferring Depreciation to Provision for Depreciation account in Reversing Journal

Steps

Gateway of Tally >> Accounting Voucher >> Click Right side button F 10 Rev Jrnl

In reversing journal create ledger of Depreciation ( Under indirect expenses ) by Alt + C and Debit with amount 20000

and then create Provision for depreciation account ( Under provison ) by Alt + C and credit with 20000

After this accept it and then see its in Exceptional Report

Go to Gateway of Tally > Display > Exception Reports > Reversing Journals

You can use scenarios in statements that have the New Column button active . When you click Display the Balance Sheet and Select New Column. In the column details, tab down to Types of Values to Show. Select the scenario named Provisional. After this balance sheet will show actual and provisional report .

Solution of Problem Relating Implementing A Balanced Scorecard

2009-11-06T08:50:00.000-08:00

Today ( 6 /11/2009 ) , I found the email from one student who want to take my help to solve 6 questions relating to cost accounting .
He sent me Pdf file of all accounting problems . After downloading the pdf

file , I have read his questions . Now , I have taken his first question's first first sub-question. Actually , this is relating to strategic management but because cost accounting and finance also helpful for making effective strategy , then , I thing it has include. Read it first this question

In this question , The Rev . Paul Harison is a social worker but he need accounting expert who can tell him how to effective utilize the shelter and its space at the lowest cost . From some resource he has listened about the balanced scorecard . Now , he is interested to know its estimated cost and benefits , if he implementing a balanced scorecard .

Dear , first of all , I am telling briefly about balanced scorecard . The balanced scorecard is a strategic management technique for effective utilization resources in the field of finance , education and marketing and NGO works .

Suppose , If you have to implement the balanced scorecard in the field of finance , you need the services of finance specialist who will find following and analysis . So , cost is only the service charges of finance specialist .

1. Return On Investment

2. Cash Flow

3. Return on Capital Employed

4. Financial Results (Quarterly/Yearly)

If it is implemented in above case , then

Cost will be only the organisation from which you have taken the services , that organisation will all charge him on the basis of no. of team members and time of team activities and other software cost .

Benefit will be in the form of effective utilization of resources , increase the amount of donation .

I think , second part of question can tell the specialize person from whom you will contact for implementing balanced scorecard tool .

How to teach the concept of Debtors, Bad Debt and Provision for Doubtful Debt ?

2009-11-04T09:11:00.000-08:00

Teaching of accounting is not easy, every student is challenge for accounting teacher and many concepts are very difficult to make understand to students. One of those is to teach concept of debtor, bad debt and
provision for doubtful debt.

First of all to introduce students about debtor

Who is debtor?

Debtors are customer of any business organization. They purchase goods from businessman. But all customers are not debtor because if customer gets goods after prompt payment, then he will not become debtor.

So, Relation between businessman and debtor

Businessman has to take the money of goods sold. So, it is his duty to record what amount he has to take from debtor because different debtors take different goods in different quantity at different dates. Every time when a debtor purchases goods from businessman, record of each credit sale will be done by accountant.

After this, your student will realize that why debtors are are so important in business and in accounting. They will understand that businessman will sell more on credit, then more debtors will become and more entries of these transaction will be done in business books .

Bad Debts

Every debtor is not honest and it may possible that some of amount may loss due to not paying by debtor of business. Ram has taken goods from X company of $ 50000 but he does not pay $ 10000 and all other amount he paid, so this amount will become Bad Debt and it is the loss of business. Total value of debtor will decrease with the amount of bad debts.

Because we pass the entry bad debts account debit and debtor account credit , so there is no need to deduct extra but if businessman realize in the end after closing the accounts of his books , then we have to deduct this amount in balance sheet .

Provision for Doubtful Debt

Many accounting teachers have failed to clear the concept of provision for doubtful debt. If accounting teacher will use my technique, then they will easily teach better.

Sham is a businessman. He is very sad because he has invested $ 100 in his business and he purchased goods $ 60 and sells it to his debtor at $ 100. But he receives only $ 10. Now this amount is less than the cost of good purchase, his tension is how will he purchase same $60 goods, he has only $ 10. One of his friend suggest him sell other assets and purchase the goods . He sells his other asset $ 40 at $ 30 on credit and gets loss of $ 10 and gets only $ 20 dollar and he again purchases goods of $ 30 and sells but he got nothing . What will happen , business will close . He has no money . Now one intelligent friend suggest to businessman to reserve his cash . It must be some receivable amount as doubtful debts . What is benefit of it . If some debtor will not pay , you will purchase goods from your working capital and there is no need to sell fixed asset . So , this amount will be called provision for doubt full debts .

Suppose in above example Sham reserves 10 to 20% of his debtor as estimated loss , then he can use this amount for purchasing raw material . After this there is no need to sell the $ 40 other asset.

After this teacher's duty is to explain the benefits of provision for doubtful debt

• Provision for doubtful debt is helpful to purchase goods in case bad debts will happen in reality.

• Provision for doubtful debt is helpful to effective use of working capital.

• Provision for doubtful debt is helpful to secure the business.

Now, explain how to treat , it . Learn here .

Measurement of Risk and Returns Securities and Portfolios

2009-11-02T18:32:00.000-08:00

Aim

Aim of this topic is to make expert the students and investors in financial analysis.

Explanation : When a person starts his own work, then either he will get profit or loss and this is not sure and the possibility of this uncertainty is called risk. Loss is one of major risk of business and main motive of financial analysis is to reduce risk of loss. It is also general rule higher risk and higher return but modern concept is just opposite this , it is lower risk and higher profit. In financial market, Company issues and also invests in shares and company
Measurement of Risk is with the help of financial mathematics and financial risk management. Company uses modern portfolio theory for getting maximum return on minimum risk.

Reasons of Risk

1. Some longer-term consequences of disasters
2. such as lawsuits
3. loss of market confidence and employee morale and impairment of brand names can take a long time to play out

For this following procedure is adopted for making good Portfolios

1. Calculation the value at Risk

Risk of investment is measured on the basis of Standard deviation . It is variation of actual and standard performance on the investment .

Prof. Razvan Pascalau, Univ. of Alabama has made simple online value at risk calculator which is very helpful for investors

2. Calculation of portfolio

After calculation of Risk , we can make portfolio by applying mathematical formula .

Return is the weighted average of the risk free asset, f, and the risky portfolio, p, and is therefore linear:

Since the asset is risk free, portfolio standard deviation is simply a function of the weight of the risky portfolio in the position. This relationship is linear

http://www.riskwhoswho.com/Resources/WilfordSykes4.pdf
http://cbdd.wsu.edu/kewlcontent/cdoutput/TR505r/page36.htm
http://www.andreassteiner.net/performanceanalysis/?Risk_Measurement
http://en.wikipedia.org/wiki/Modern_portfolio_theory
http://en.wikipedia.org/wiki/Value_at_risk

Read Also above references for more deep study of measurement of risk and return securities and portfolios .

Explanation of Accounts Receivable - Net with Example

2009-11-02T18:06:00.000-08:00

When enterprise sells the goods to customer, then he open his customer’s account and add the amount of credit sale in it and its balance shows total value of account receivables and but due to not receiving all amount of account receivable, it is the duty of businessman to make reserve for not receiving the amount in the form of bad debts, discount or allowance, In many countries like USA and UK , they include allowance’s provision in provision for bad and doubtful debts . So when enterprise also keep the provision of discount to customer and some other provisions like allowance and doubtful debts, and after deducting these provisions, enterprise will enable to find the amount of account receivable net. We can explain it with following way.

Suppose , If A company sells S credit and at the end closing balance shows $ 50000 and co. makes the provision of doubtful debts 10% , provision of discount on debtors 5% and provision of allowance is 2% , at that time calculation can be done after calculation the value of these provisions and passing the journal entries .

This amount is payable by company’s customer and will show ass current asset in balance sheet of company.

Answer of Excise Related Question

2009-11-01T05:46:00.000-08:00

Question :

I am manufacturer of PP HDPE bags which falling chapter hading 39.

I want to manufacture new product ie wood doors, in a same primises and same ECC no. so my question is .

1. Can I manufacture two other varity in same primises ie. PP, hdpe bags and Wood doors.?

2. If my purchase raw material (of wooden doors) is nil rate of duty and send it for job work as per not. no. 214/86. for manufacturing of wooden doors and return back to our comapany. and nothing any process i do on wooden doors. and same it is clear through dutypayment (ie Wood Doors) . so my question is that, can i utilise my cenvat credit which was received on PP hdpe fabric (raw material of PP hdpe bags) on clearance of Wood doors. ?? because none cenvat received on raw material of wooden doors.

As per excise inspector we can not use cenvat of PP hdpe fabric on Wooden doors because wooden doors raw material is nil rate of duty.

It means in RG23A part II credit balance shown and i have to pay through PLA cash for Wooden doors. it is possible??

So pls. advice me in this matter. and if possible give me notification no. or circular no. or any public notice so i see that to my excise range officer.

Answer :

I read your question and Of course , you can manufacture new product ie wood doors, in a same primises and same ECC no .

I also agree with excise inspector because , you have purchased raw material of woods doors at nil rate of central excise duty so , other raw material PP HDPE bags's centvat credit is not adjusted in it . If you study the Rules 2004 relating to credit of CENVAT deeply , then you will clear that there is no possibility that of nil rated credit adjustment with others .

List of Bloggers with an Interest in Accounting

2009-10-31T08:10:00.000-07:00

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

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

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

2009-10-29T17:53:00.000-07:00

Problem

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

Solution

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

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

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

How to Operate Tuition Centre Successfully

2009-10-29T02:51:00.000-07:00

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

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

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

First Step

Clear written contract with student

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

Tuition fees

Time of tuition

Period of Tuition

Second Step

3 days Demo Class Only

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

Third Step

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

Banner ads near schools and colleges .

Cable ads .

Pamphlets in daily newspaper .

Google AdWords Ads ( At very minimum cost )

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

For this fill following form

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Make your own Portfolio More Quickly with Google Finance

2009-10-28T06:39:00.000-07:00

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

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

Learn Account System Used in Hospital at Suresh's Blog

2009-10-28T05:27:00.000-07:00

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

Importance of Standard Costing

2009-10-28T01:34:00.000-07:00

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

Increase the efficiency

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

Effective utilization of resources

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


Name of Item                Actual Cost

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

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

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

x - material                          $ 35000
y - material                          $ 20000
z - material                          $ 15000
```
Now company will face the total loss due to not utilization his resources effectively and standard costing is only way to effective utilization for reducing cost .
Use in Budgetary Control
Standard costing can also use in budgetary control . We know that budgetary control is the part of management and in controlling , it can be used . In budgetary control , not only standard cost is calculated but after comparing relative actions of improvement are taken . With standard costing , effective control of cost can be possible .
Proper decisions
Standard costing is also helpful for taking proper decisions for deciding cost. There are large number of expenses and there are many alternatives of these expenses . When standard cost is decided at that time , best alternative from different expenses is chosen and it will reduce extra cost burden .

Role of Information Technology in Accounting

2009-10-26T09:53:00.000-07:00

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

Meaning of IT

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

Present Scenario of IT

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

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

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

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

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

Major Role of IT in Accounting

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

Simplified Accounting Standard 28 - AS 28 – Impairment of Assets

2009-10-25T18:47:00.000-07:00

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

Formula for Calculating Impaired loss

=Carrying Amount of Asset – Net Selling Price

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

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

Related : Steps of Calculating Impairment Loss of Goodwill

Attend Free Webinar of Google on Email Account Security Event

2009-10-23T10:49:00.000-07:00

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

Is Your Email Account Secure ?

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

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

Accounting Education Loans in India

2009-10-23T08:32:00.000-07:00

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

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

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

1. Basic Eligibility Criteria for Students

Students seeking education loans should be an Indian National.

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

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

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

Age between 18 to 35

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

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

3. Other Rules

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

How to Divide Journal in Subsidiary Books ?

2009-10-22T21:15:00.000-07:00

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

1. Cash Book

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

2. Purchase Book

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

3. Sale Book

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

4. Purchase Return Book

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

5. Sale Return Book

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

6. Bill Receivable Book

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

7. Bill Payable Book

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

8. Journal Proper

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

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

Can Students and Teachers Help a Billion Hungry People ?

2009-10-21T23:59:00.000-07:00

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

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

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

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

2009-10-21T09:08:00.000-07:00

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

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

Q: What is backup ?

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

Q:- What is restore ?

Restore means bringing deleted company from backup copy and use it

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

There are following benefits for using these tools :-

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

Simple Steps for using backup and Restore tools

Step # 1

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

Step# 2

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

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

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

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

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

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

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

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

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

2009-10-21T04:23:00.000-07:00

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

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

2009-10-21T03:35:00.000-07:00

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

How To Solve Difficult Adjustments And Journal Entries In Financial Accounts

View more presentations from Augustin Amaldas.

Related : Procedure of Journalising