Mahgyn

Format of the Trial Balance

2022-04-30T14:59:00.007+05:30

Format of the Trial Balance

INTRODUCTION

Arrangement of preliminary equilibrium is the third stage in the bookkeeping system. In the wake of posting the records in the record, an assertion is ready to show independently the charge and credit adjustments. Such a proclamation is known as the preliminary equilibrium. It might likewise be ready by posting every single record and entering in isolated segments the aggregates of the charge and credit sides. However it is ready, the aggregates of the two segments ought to concur. An arrangement shows sensible exactness of the bookkeeping work; on the off chance that the different sides disagree, then, at that point, there is basically a math blunder. This follows from the way that, under the double-entry system, the sum composed on the charge sides of different records is generally equivalent to the sums entered on the credit sides of different records as well as the other way around. Thus, the aggregates of the debit sides should be equivalent to the sums of the credit sides. Likewise, the charge adjustments will be equivalent to the completion of the credit adjustments. When this understanding is laid out, there is sensible certainty that the bookkeeping work is liberated from administrative mistakes; however, it isn't verification of penny-per-cent precision, since certain blunders of guideline and repaying mistakes might in any case remain. For the most part, to check the number-crunching precision of records, a preliminary equilibrium is ready at month-to-month stretches. But since the twofold section framework is followed, one can set up a preliminary equilibrium whenever. However, a preliminary equilibrium can be ready whenever it is desirable over setting it up toward the finish of the bookkeeping year to guarantee the number-juggling exactness of the relative multitude of records before the readiness of the budget summaries. It very well might be noticed that the preliminary equilibrium is an assertion and not a record. We give the format of a trial balance for your knowledge.

OBJECTIVES OF PREPARING THE TRIAL BALANCE

The preparation of a trial balance has the following objectives:

(i) It should, however, be borne in mind that it does not disclose all the errors in bookkeeping but only the arithmetical inaccuracies.

(ii) The trial balance offers a summary of the ledger. The Ledger may have to be referred to only when more details are required in respect of an account.

(iii) The trial balance helps in locating errors in bookkeeping work. It should, however, be borne in mind that it does not disclose all the errors in bookkeeping but only the arithmetical inaccuracies.

(iv) It helps to prepare a balance sheet at the end of the financial year.

The form of the trial balance is simple, as shown below: The undermentioned points may be noted:

(i) A trial balance is prepared on a particular date which should be mentioned at the top.

(ii) After that, the name of the account is to be painted.

(iii) The Total amount of the debit side column is treated as a debit balance under this account.

(iv) In the next column, the total of the credit side of the credit balance is written.

(v) The two columns are totalled at the end.

(vi) The first and third columns need no explanation.

LIMITATIONS OF TRIAL BALANCE

One should note that the agreement of trial balance is not conclusive proof of accuracy. In other words, in spite of the agreement on the trial balance, some errors may remain. These may be of the following types:

(i) The transaction has not been entered at all in the journal.

(ii) A wrong amount has been written in both columns of the journal.

(iii) A wrong account has been mentioned in the journal.

(iv) An entry has not at all been posted in the ledger.

(v) Entry is posted twice in the ledger.

Still, the preparation of the trial balance is very useful; without it, the preparation of the financial statement, the profit and loss account, and the balance sheet would be difficult.

METHODS OF PREPARATION OF TRIAL BALANCE

👉1. TOTAL METHOD

Under this method, every ledger account is totalled, and that total amount (both on the debit side and credit side) is transferred to the trial balance. In this method, the trial balance can be prepared as soon as the ledger account is totalled. Time taken to balance the ledger accounts is saved under this method, as the balance can be found in the trial balance itself. The difference in totals of each ledger account is the balance of that particular account. This method is not commonly used, as it cannot help in the preparation of financial statements.

👉2. BALANCE METHOD

Under this method, every ledger account is balanced, and those balances only are carried forward to the trial balance. Financial statements are to be prepared with the help of this method. It is prepared on the basis of the balances of the ledger accounts.

A SUSPENSE ACCOUNT IS CREATED WHEN AN ERROR OR UNCLEAR ENTRY IS FOUND IN THE TRIAL BALANCE

If the trial balance does not agree after transferring the balance of all ledger accounts, including cash and bank balance, and also errors are not located in a timely manner, then the trial balance is tallied by transferring the difference of debit and credit sides to an account known as a suspense account. This is treated as a temporary account; after finding the error, this entry is to be adjusted in the trial balance.

RULES OF PREPARING THE TRIAL BALANCE

While preparing the trial balance, you should follow this rule properly.

The format of the trial balance is as follows:

Particular	L.F.	Debit (Dr.)	Credit (Cr.)
1. All Assets and Expenses/Losses are debited. Assets of the owner Drawings Debtors Expenses and Losses 2. All Liabilities and Income/Gains are credited. Capital and Other Liabilities Creditors Loans Income and Gains TOTAL		XX XX XX XX	XX XX XX XX
		XXX	XXX

Important Points of Trial Balance:

We are provided the following data, which is to be recorded in the trial balance. It is helpful for the students who want to acquire knowledge about it.

Debit Side Entries

Credit Side Entries

Opening Stock

Plant & Machinery

Furniture & Fixture

Land & Building

Residential Flat & Building

Office Flat & Building

Office Equipment

Office Care & Personal vehicles

Discount Allowed

Staff Wages, Salary & Bonus

Employer Contribution to Provided Fund

All types of Allowances

Purchase

Interest Paid

Payment of EMI

Carriage Outward

Sundry Debtors

Bad Debts

Cash at Bank & Cash in Hand

Commission Paid

Return in word (Sales Return)

Investment

Jewelry & Ornaments

Depreciation

Closing Stock (when adjusted with purchase)

General Expenses

Trade Expenses

Loan Provided to Friends & Relatives

Bank Overdraft

Sundry Creditors

Carriage inward

Sales

Discount Received

Interest Received

Bad Debt Recovery

Capital

Drawing

Commission Received

Return Outward (Purchases Return)

Provision for doubtful debts

Provision for Depreciation

A loan is taken from Friends &

Actual facts of closing stock entry:

If the total purchase amount is to be taken under the trial balance, then you do not need to take the closing stock balance in the trial balance, because when closing stock is adjusted with purchase. It means an additional purchase shown in this question, but its amount is already included under purchase.

What is a trial balance?

Trial Balance is a statement of account that prepairs in the Ledger and cash Book showing either the balance of the total accounts of debit and credit items.

prepared. That isA trial balancebookledgerpreparedthat isA trial balance What is the main objective of preparing a trial balance?

The main objective of preparing a Trial Balance is to verify the arithmetical accuracy of accounting entries.

trial balance trial balanceWhen is Closing Stock Shown in the Trial Balance?

Closing Stock has shown in the trail Balance if the closing stock is adjusted against the purchases.

trial balance istrial balancestock is Why is a suspense account to be opened? Does trial balance balance sheet trial balance, balance sheet, financial yearDoestrial balance helpbalance sheettrial balancebalance sheetfinancial year

Is a Trial Balance helps to prepare a Balance Sheet?

Yes, a Trial Balance helps to prepare a Balance Sheet for the concern at the end of the Financial Year.

journal entries for depreciation with example

2022-04-08T22:08:00.063+05:30

journal entries for depreciation with example

Introduction to this article:

If you have read both the articles carefully which have written on the topic of depreciation, then now we are going to give you practical knowledge of machinery accounts. Which will further enhance your ability. We have covered all the points of depreciation accounts in this article. And for you students, all the journal entries of the machinery account along with the solution to practical problems have also been included in this article. But before this, we urge you to read our previous article completely, then you understood this article better.

ALL IMPORTANT JOURNAL ENTRIES FOR DEPRECIATION WITH EXAMPLE

Sunshine Ltd. Purchase a machine for Rs. 35000 and paid the installation charge of Rs. 10000 to the person. And the company divided to charge depression @ 15% as per the Written Down Value (WDV) method.

Machinery A/c............................................ Dr. 35000

To Bank A/C.................................................... 35000

Installation Charge A/C ....................................... Dr. 10000

To Bank A/C................................................................ 10000

Depreciation A/C........................................ Dr. 6750

To Machinery A/C.......................... 6750

Combined Entries for Machine Purchase

Machinery/ Assets A/C................................ Dr. (Cost Price)

Installation Charge A/C............................ Dr. (Charges Paid)

To Bank A/C.......................................... (Cost Price + Charges Paid)

After a Depreciation of 2 years, the company decided to sell the machine @ Rs. 50000 at profit.

Depreciation A/C ..........Dr. (45000-6750)*15% = 5741.25

To Machinery A/C........................................ 5741.25

Bank A/C .................................................Dr. 50000

To Machinery A/C...................................................50000

Machinery A/C ............... Dr. = 45000-(6750+5741.25)-50000 = 27508.75

To Profit & Loss A/C ...................... 27508.75

Combined Entries for Profit on Sale

An old asset can be sold for purchase of the new assets at the end of the life of an asset or after a period of time. But it is not always possible to sell an asset at book value on the date of purchase. For this reason, profit or loss on the sale of an asset may rise. The journal entries for sale of an asset and profit & Loss on sale are given below:

Bank A/C......................................................... Dr. (Selling Price)

Depreciation A/C.................................. Dr.(Depreciation amount)

To Machinery/ Assets A/C................................. (Book Value)

To Profit & Loss A/C.............................. (Defiance amount)

Suppose Sunshine Ltd. Sold the machine @ Rs. 20000, at loss then how to pass journal entries for this transaction.

Bank A/C Dr.................................................... 20000

To Sales A/C............................................................ 20000

Depreciation A/C....................Dr. =6750+5741.25 = 12491.25

To Machinery. A/C............................ 12491.25

Profit & Loss A/C..................Dr. = (45000-12491.25)-20000 = 12508.75

To Machinery A/C......................................................................12508.75

Combined Entries for Loss on Sale

Bank A/C............................................................ Dr.(Selling Price)

Depreciation A/C............................. Dr.(Current Year Depreciation)

Profit & Loss A/C......................................... Dr.(Difference amount)

To Machinery/Assets A/C.............................................. (Book Value)

On 1 Jan 2018, a Machinery was purchased for Rs. 1,20,000. On 01 Jun 2019 additions were made to the amount of Rs. 50,000. On 31 Mar 2020 machinery was purchased on 1 Jul 2019, costing Rs. 18000 was sold for Rs. 15000 and on 30 Jun 2020, machinery was purchased on 01 Jan 2018, costing Rs. 45000 was sold for Rs. 35200. On 01 Oct 2020 addition were made to the amount of Rs. 25000. Depreciation was provided at 15% p.a. on the diminishing balance method.

Show the Machinery Account for the three years from 2018 to 2020 (Year ended on 31st December)

MACHINERY ACCOUNT

AS ON 31-12-2020

The calculation for Loss of Sales

Date	Particular	Amount
01-07-19	Cost of Machine	18000
31-12-19	Less: Depreciation	1350
	Balance as on 01-01-2020	16650
31-03-20	Less: Depreciation	624.375
	Balance as on selling dated	16025.625
31-03-20	Less: Selling Price	15000
31-03-20	Loss on Sales	1025.625

The calculation for Profit on Sales

Date

Particular

Amount

01-01-18

Cost Price of Machine

     45,000.00

31-12-18

Less: Depreciation

       6,750.00

Balance as on 01-01-2019

     38,250.00

31-12-19

Less: Depreciation

       5,737.50

Balance as on 30-06-2020

     32,512.50

30-06-20

Less: Depreciation

       2,438.44

Balance as on Selling Dated

     30,074.06

30-06-20

Less: Selling Price

     35,200.00

30-06-20

Profit on sale of machine

     (5,125.94)

Depreciation on Remaining Cost of First Machine

Date

Particular

Amount

01-01-18

Cost Price of Machine

   120,000.00

30-06-20

Less: Selling Portion

     45,000.00

Remaining Cost

     75,000.00

31-12-18

Less: Depreciation

     11,250.00

Balance as on 01-01-2019

     63,750.00

31-12-19

Less: Depreciation

       9,562.50

Balance as on 01-01-2020

     54,187.50

31-12-20

Less: Depreciation

       8,128.13

Depreciation of Remaining cost of Second Machine

Date

Particular

Amount

30-06-19

Cost Price of Machine

50000

31-03-20

Less: Selling Portion

18000

30-06-19

Remaining Cost

32000

31-12-19

Less: Depreciation

4800

Balance as on 01-01-2020

27200

31-12-20

Less: Depreciation

4080

Calculation of Total Amount of Depreciation

Date

Particular

Amount

01-10-20

New Machine Purchase

25000

31-12-20

Less: Depreciation on 3 Months

937.5

31-12-20

Total Amount of Depreciation

13,145.63

Conclusions

If you want to make machinery accounts well, then you have to keep in mind how much time you have used your machine in your business. The depreciation value up to that day minus your machinery purchase cost to get the actual remaining cost price. The profit or loss is determined by subtracting the selling price from the actual remaining cost price.

If the selling price is higher than your remaining cost price, you will make a profit.

But if your selling price is less than the actual remaining cost price then you will bear the loss on the sale of the machine.

The purchase price of an asset, development expenses, carriage or fright on the asset, duty or tax, and installation expenses are to be included in the determination of the cost of the assets.

How to calculate depreciation, if an installation charge is given?

At First add, the installation charge the cost price of the assets or machinery then charges the percentage of depreciation.

How to calculate 6 months depreciation values?

you can follow this calculation: Cost Price x Rate of depreciation x 6/12

How to calculate 3 months depreciation?

you can follow this calculation: Cost Price x Rate of depreciation x 3/12.

How to calculate the profit on the sale of the machine?

When the selling price is higher than your remaining cost price, you will make a profit.

How to calculate the loss on the sale of the machine?

When the selling price is less than the actual remaining cost price then you will bear the loss on the sale of the machine.

Career in cyber security in India

2022-04-05T19:15:00.009+05:30

A career in cyber security in India

Introduction to a career in cyber security

The Information Technology (IT) industry plays an important role not only in the development of the Indian economy but also in creating new dimensions for other industries. Technocrats are scaling new heights of speed and precision every moment by developing large software and hardware applications. Our generations are heavily dependent on mouse clicks and touch pads to sustain their lives in this expressive digital landscape. An business cannot be setup with out a durable technological infrastructure. Executive information systems and decision-making systems have completely replaced the earlier management's decision-making principles with the more recently developed business vigilance and artificial vigilance tools. Nevertheless, the security of such an information system (IS) is critical and should be considered a top priority by organizational management systems to protect its data and transactions from criminal networks operating from any part of the world. Every technology, tool, method, or algorithm has some loopholes which criminals can catch and misuse the information to accomplish their objectives by infiltrating the network. Another warning in 2017 was that threats to digital security theft could come from new and unexpected sources, Cement—a leading cyber security firm—reported. The number of threats and the nature of threats change with each passing moment, resulting in new challenges for cyber security personnel. These attackers try to find new opportunities for attack and while doing so keep their nets active.

Prospects and Opportunities as a Cyber Crime Investigator

Extremely intense reliability over the Internet, intranets, and extranets poses a challenge for governments and business entrepreneurs to secure information chains to gain the trust of their citizens or customers by designing and implementing highly sophisticated security measures. Can be accomplished by recruiting skilled professionals. According to a Nasscom report, there will be a demand for one million cyber security professionals in India by 2020. Various courses running in India with the help of various public and private institutions/universities/colleges, IT Security Professionals (Network and System Administrators), Police and Armed Forces Professionals, Law Enforcement Professionals (Lawyers serving law students), Chartered Accountants, Company Secretaries, it. Auditors, Web Designers & Developers, E-commerce Portal Developers, I.T. Designed for users, cyber cops, cyber investigators, and cyber spies. Innovation is coming at a rapid pace in technology so there is a dire need for skilled professionals to deal with the cyber crime possibilities.

A career in cyber security in India

Ethical hacker

Ethical hackers are additionally acknowledged as penetration testers. They attempt to work out the possibilities in more than a few records structures and software. His important obligations consist of conducting formal trying out on web-based applications, facts systems, and different interconnected equipment on an everyday basis. They are additionally anticipated to work on the safety of servers, firewalls, databases, PC systems, and networks.

Cryptographer

Cryptographers assist guard personal facts and are concerned with the encryption and decryption of information. They analyze and interpret encrypted statistics to aid regulation and different enforcement businesses in fixing crime, hazards, or safety issues. They additionally enhance algorithms to shield data from attackers.

Computer forensic scientist

Forensic scientists are predicted to work with regulation organizations to gain statistics and records from pc structures in case of damage. Hope to work with enforcement agencies. Due to their mastery of forensic techniques, they are nicely-versed in getting data from storage devices, networking devices, servers, etc.

Security administrator

The protection administrator wishes to have journeyed with bodily protection installations and to pick out how to plan a protection plan, coordinate with the proper personnel, and how operate safety measures, and perceive achievable hazards. Tea. How to take a look at the surroundings They must have a sturdy understanding of getting the right of entry to control, intrusion detection, encryption methods, and information integrity. Other technical know-how consists of incident response and virus shielding. To make sure that an enterprise is capable to gain compliance status, directors want to continue to be on the pinnacle of rising requirements to enforce facts safety plans.

Security architect

A security architect is to blame for designing, building, checking out, and imposing cyber safety constructions in an enterprise. He is envisioned to possess a massive understanding of technological expertise and be up to date with trendy protection standards, authentication mechanisms, and safety protocols. As a senior member of the team, he is expected to create a protection focus and prepare continuous education software programs for the clients to make sure the protection of the organization's IT network.

Safety engineer

Security engineers plan, implement, supervise and enhance laptop protection structures to defend them from unauthorized access. They need to have an understanding of software programs and net development, pc hardware, facts storage devices, protection standards/procedures, and surroundings related to the pc networks.

Security experts

Security experts shield facts from theft, unlawful duplication, and unauthorized access. They are PC networks, records systems, cell devices, price gateways, and IOT. Protects statistics on devices. They analyze such occurrences and enhance techniques to guard against such attacks. They battle to defend statistics from such cyber criminals, folks who use the Internet, and a number of different hacking strategies to steal touchy and non-public records from digital devices.

Methods of depreciation

2022-03-18T21:46:00.041+05:30

Methods of depreciation

The method by which a fixed amount of a fixed asset is charged as deprecation or the amount of depreciation is calculated at a fixed rate on an original coat of fixed assets at the end of each accounting period, i.e. known as the Straight Line Method or Fixed Installment Method.

Under this method, the deprecation is calculated with the help of the following formula.

= V+I-S/ N

Here: V= value of the fixed assets.

I= Installation charge of the fixed assets.

S= Scrap Value of the fixed assets.

N= number of years of expected life.

D= Depreciation of the fixed assets.

Depreciation may be expressed as a rate and this rate on cost can be calculated as under:

R= D/V × 100

R= Rate of the depreciation.

D= Amount of depreciation.

V= Value of fixed asset.

Now we shall discuss which assets the Straight-Line Method or Fixed Instalment Method is applied properly.

This method is applicable to those assets which have equal usefulness in each accounting period, e.g. copyright, trademark, pattern, leasehold property, etc.

It is must be important to note that before charging the depreciation with the help of the following formula

1. The amount of depreciation is the same every year.

2. If the rate of the depreciation is given, depreciation is computed on the original cost.

3. If the asset is purchased in between the year, depreciation is charged for the part of the year, the asset is used.

Advantages or Merits of the straight-Line Method:

1. It is easy to apply and simple to calculate.

2. In this method, assets can be depreciation up to the estimated scrap value or zero value.

3. Every year the profit or loss is debited by the same amount of depreciation.

4. Amount of depreciation is easily found under this method.

Disadvantages or Demerits of the straight-Line Method:

1. There is no arrangement of interest on capital invested in assets in this method.

2. The amount of depreciation is not calculated on the basis of the uses of assets under this method.

3. The calculation process is not so easy.

4. Sometimes the book value of the assets becomes nil. Still, the assets are used in the business.

Example: A firm purchased machinery for ₹200000 on 1st April 2015 and ₹20000 is spent on its installation. Its life was estimated to be of 5 years. Its estimated scrap value at the end of the period was ₹10000. Find out the amount of annual depreciation and rate of depreciation.

Solution:

Depreciation = Value of Asset + Installation charge - Scrap value

/ Estimated Life of the Asset

= (180000 + 20000) – 10000/ 5

= 200000-10000/5

= 190000/5

= 38000

Methods of depreciation

Reducing Installment Method or Diminishing Balance Method: The method of depreciation by which the amount of depreciation is to be calculated on the cost price of the assets after deduction of depreciation of previous accounting periods, is called Diminishing Balance Method, it’s also known as WDV (Written Down Value Method).

Under this method the amount of depreciation is gradually decreased in the passage of time and is to be calculated after ascertaining the scrap value of assets under the following formulas:

The Cost of assets, residual value, and useful life of assets is given, and the rate may be calculated by the following formula:

The cost price of an asset is Rs. 25,00,000 residual value is Rs. 95000, and the estimated life of the assets is 4 years then find out the rate of depreciation with the help of the above formula.

Solution:

Rate of Depreciation = (1-s/c)1/n

= 1- (95000/2500000)1/4
= 1- 1/26
= 26-1/26
= 25/26
= 0.9615384 x 100
= 96%

Advantages of Diminishing Balance Method:

(I) Under this method, the amount of depreciation is charged on the basis of the usefulness of the assets in the passage of time i.e. the amount of depreciation is gradually decreased when the usefulness of assets is gradually diminished.

(II) The calculation of the amount of depreciation is very easy.

(III) Under this method, the depreciation is charged on the assets on the basis of their effectiveness. When an asset is more effective, then more depreciation is to be charged or vice versa.

(IV) The value of assets cannot be eliminated from the books of accounts by charging depreciation under this method.

(V) The total expenditure relating to assets is almost the same under this method. Because the number of repair charges is gradually increased with the passage of time.

Disadvantages of Diminishing Balance Method:

(I) Under this method, the rate of depreciation is higher than any other method. But the scrap value of an asset may not be ascertained correctly at the end of the life of assets.

(II) The method cannot be used where the value of assets is necessary to be reduced to 'Zero' Because the value of assets never is shown 'Zero' under this method.

(III) Under this method, the depreciation is charged on the historical cost of assets. But the historical cost is not effective at the time of replacement of assets.

Rate of Depreciation as per Assessment Year 2022-23

Capital Goods/ Assets	Rate of Depreciation as per IT Act.
Residential Building	5%
Other than Residential Building	10%
Furniture and fittings/electrical fittings	10%
Plant & Machinery	15%
Aero planes	40%
Commercial vehicle	40%
Buses, Lorries, Taxis, Car and Bike	30%
Rubber and plastic goods	30%
Pollution control equipment	40%

Conclusion :

Both methods are very useful to calculate depreciation, but many people used the diminishing balance method in their business according to Income Tax Rate. If any businessmen charged depreciation according to their own rate then the assessing officer does not approve the rate of depreciation. So, if any person wants to claim the loss of depreciation in their business they must be followed the actual rate of depreciation as per the Income Tax (IT) Act, 1961. But it does not mean the Fixed Installment method is not applicable, this method is applicable to the Land & Building, Office Building Capital Goods, etc.

Differences between straight line method and diminishing balance method of depreciation | Depreciation and Fluctuation ✌🤔

2021-11-10T15:24:00.003+05:30

Differences between straight line method and diminishing balance method of depreciation | Depreciation and Fluctuation ✌🤔

Through the medium of this article, we are going to tell you the difference between the 3 important accounts with the Depreciation Account. Like Differences between Depreciation and Fluctuation, Depreciation Account and Provision for Depreciation Account, Straight Line Method, and Diminishing Balance Method.

It is very important for the point of view of your exam. So, kindly read it carefully and suggest me for the next post topic which you want to read from this blog.

Differences between Depreciation and Fluctuation

Depreciation	Fluctuation
Depreciation is charged on fixed assets.	Fluctuation is not charged on fixed assets.
It is expenses of the concern	It may be profit & Loss of the concern.
It is charged on fixed assets.	It is charged on current assets.
It is shrinkage in the value of fixed assets.	It is a rise or fall in the value of assets.
It is a permanent process of accounting.	It is a temporary process of accounting.
It indicates the loss of fixed assets.	It may indicate the profit or loss of the fixed assets.
It Is charged on fixed assets throughout its Life.	It may be charged at any time during its life.
It is charged continuously on fixed assets.	It is not charged continuously on fixed assets.

Differences between Depreciation Account and Provision for Depreciation Account

Depreciation Account	Provision for Depreciation Account
The balance of the depreciation account is to be taken as the depreciation for that accounting period.	The balance of provision for the depreciation account does not represent the depreciation of that accounting period.
The account takes place in the profit and loss account. But not in the balance sheet of an accounting period.	The account takes place in the balance sheet. But not in the profit and loss account.
The amount of depreciation on the fixed assets for an accounting period may be fixed or gradually decreased.	The amount of provision for depreciation is gradually increased during the life of the assets.
The balance of the depreciation account is transferred to the manufacturing/profit and loss accounts or income and expenditure accounts.	The balance of provision for the depreciation account is gradually increased year after year until the asset account is closed.
The balance of the depreciation account is treated as an expense and it has always a debit balance.	The balance of provision for depreciation account is treated as the reduction of value of assets and it has always a credit balance.
It shows always a debit balance before transfer to the related account.	It shows always a credit balance before transfer to the related asset accounts.

Differences between Straight Line Method and Diminishing Balance Method

Straight Line Method	Diminishing Balance Method
The rate and amount of depreciation are always equal under this method.	The amount of depreciation is gradually decreased in the passage of life.
The amount of depreciation is to be calculated by a simple formula.	The amount of depreciation is to be calculated by a harder formula.
The value of an asset may be reduced to ‘zero’ at the end of the life of the asset.	The value of an asset never is reduced to ‘zero’ at the end of the life of the asset.
It is not based on scientific theory, but it is easy to understand and simple to calculate.	It is based on scientific theory, but it is not easy to understand and simple to calculate.
The method is applicable to leasehold property, patent rights, trademarks, copyright, etc.	The method is applicable to buildings, plants, and machinery, furniture, motor car, etc.
It is not approved by the Income Tax Authority.	It is also approved by the Income Tax Authority.
The depreciation of an asset is always charged on the cost price of the asset.	The depreciation is charged on the opening balance of an asset at the end of each accounting period.
An equal amount of depreciation is charged for each accounting period. The total amount of expenses relating to an asset is increased on passage of time.	The amount of depreciation is gradually decreased and repair charges on the asset are gradually in
When further assets are purchased, recalculation of depreciation is necessary.	When further assets are purchased, recalculation of depreciation is not necessary.
The method is most appropriate when an asset is used uniformly from time to time.	The method is suitably used on assets that depreciate slowly and have a large scrap value.

What is Fluctuation?

Fluctuation is the change of price for the changes of demand and supply of goods or assets without any increase or decrease of utilities.

What do you mean by Amortisation?

Amortisation means to show loss in the value of intangible assets.

What is the example of intangible assets?

Like Goodwill, Patrnt, Copyright, Prelimenary Expenses, etc.

How can UGC NET and B.Ed. help to grow the students' careers?

2021-08-04T08:00:00.012+05:30

UGC-NET Vs. B.Ed.

Introduction

In this article, I am going to discuss How can UGC NET and B.Ed help to grow the students' careers? Both the courses are very important for teaching, B.Ed. Compulsory has been made for Higher School Teaching, as well as passing NET Exam has also been made compulsory to become Assistant Professor in the college. But students face problems when government jobs are not available. Which of these two courses should we do so that we can get government jobs soon? This question is not only bothering the students today, but their parents also think that which course will be good for their child's future? If you want to get the solution to all these questions through this article, so I will provide you with the information. I request to all of you that you should read this article completely.

Credit goes to pngtree for this image

All brief details about B.Ed.

B.Ed, the full form Bachelor of Education, is a 2 years bachelor's degree course who wants to be a professional school teacher they surely undertake this course. The National Council of Teacher Education (NCTE) has made the B.Ed degree compulsory for candidates who wish to teach at government or private high schools in India.

The general fees of the B.Ed course are under 1 lakh per annum and B.Ed degree holders earn an average salary after the job around Rs. 3,40,000. So, it is a great deal about your career at present because you get per annum more than 3 times for their initial cost on this course.

Eligibility of B.Ed.

you must pass the graduation exam with a minimum of 50-55% an overall score from a recognized university. In the case of Bachelor of Technology or Postgraduate candidates, the minimum score is up to 55 %.

Those who are belonging to the reserved categories such as SC/ST/PWD are allowed a relaxation of 5% in the overall obtaining score.

Some colleges set the minimum age up to 19 years but besides it, there is no age barrier for doing this course.

The curriculum of B.Ed.

B. Ed.is a 2 years bachelor's degree course, which is divided into 4 semesters each semester has 6 months duration. The institute conducts the exam each semester. In the first year, 30 days of teacher training, and also in the second year 100 days of teacher training provide through the institution. It is objective to enhance the capability of the students during the course. during this period a student gets many experiences like understanding the psychology of the children, moral behavior as well as gets good characteristics from the superior teachers. These abilities improve the personality of the students.

The program shall comprise three broad curricular areas :

1. Perspectives in Education

2. Curriculum and Pedagogic Studies

3. Engagement with the Field

Perspectives in Education

Perspectives in Education include courses in the study of childhood, child development and adolescence, contemporary India and education, theoretical foundations of knowledge and curriculum, teaching and learning, gender in the context of school and society, and inclusive education. The course on ‘Childhood and Growing up’ shall enable student-teachers to engage with studies on Indian society and education, acquire conceptual tools of sociological analysis, and have hands-on experience of engaging with diverse communities, children, and schools. The course on ‘Contemporary India and Education’ shall develop a conceptual understanding of issues of diversity, inequality, and marginalization in Indian society and the implications for education, with analyses of significant policy debates in Indian education. The course on ‘Teaching and Learning’ will focus on aspects of social and emotional development; self and identity, and cognition and learning. ‘Knowledge and Curriculum’ shall address the theoretical foundations of school knowledge from historical, philosophical, and sociological perspectives, with a critical analysis of curricular aims and contexts, and the relationship between curriculum, policy, and learning. The course on ‘Creating an Inclusive School’ shall develop an understanding of the cultures, policies, and practices that need to be addressed in order to create an inclusive school.

Curriculum and Pedagogic Studies

Curriculum and Pedagogic Studies offers a study of the nature of disciplines, critical understanding of the school curriculum; pedagogy as the integration of knowledge about the learner, the discipline and the societal context of learning, and research relating to different aspects of young children’s learning. These courses shall aim to develop in students an understanding of the curriculum, linking school knowledge with community life. A variety of investigative projects, that link with curricular area III given below, shall be included to reconstruct concepts from subject knowledge through appropriate pedagogic processes that communicate meaningfully with children. Optional courses will be offered in areas such as Vocational/Work Education, Health and Physical Education, Peace Education, Guidance and Counselling, or an additional pedagogy course (in another subject at the secondary level or the same subject at the higher secondary level).

Engagement with the Field

This curricular area would have three components :

Tasks and Assignments that run through all the courses as indicated in the year-wise distribution of the syllabus
School Internship
Courses on Enhancing Professional Capacities (EPC)

All brief details about NET Exam

About National Testing Agency (NTA) The Ministry of Human Resource Development (MHRD), which is now known as the Ministry of Education (MoE), Government of India (GOI) has established the National Testing Agency (NTA) as an independent, autonomous, and self-sustained premier testing organization under the Societies Registration Act (1860) for conducting efficient, transparent and international standards tests in order to assess the competency of candidates for admissions to premier higher education institutions. The NTA has been entrusted by the University Grants Commission (UGC) with the task of conducting UGC-NET, which is a test to determine the eligibility of Indian nationals for ‘Assistant Professor’ and ‘Junior Research Fellowship and Assistant Professor in Indian universities and colleges.

NTA conducts the exam on a half-yearly basis. This exam is held twice a year. If you want to be an Assistant Professor, then you must have passed the NET exam. Because the minimum requirement to teach at a college level is a NET pass after Post Graduation.

Eligibility of the NET Exam

General/Unreserved/General-EWS candidates who have secured at least 55% marks (without rounding off) in Master’s Degree or equivalent an examination from universities/institutions recognized by UGC.

The Other Backward Classes (OBC) belonging to Non-Creamy Layer/Scheduled Caste (SC)/Scheduled Tribe (ST)/Persons with Disability (PwD)/Third gender 7 category candidates who have secured at least 50% marks (without rounding off) in Master’s degree or equivalent examination are eligible for this Test.

Candidates who are pursuing their Master’s degree or equivalent course or candidates who have appeared for their qualifying Master’s degree (final year) examination and whose result is still awaited or candidates whose qualifying examinations have been delayed may also apply for this test. If any candidate fails to get the minimum percentage at Post Graduation in the final exam they shall be treated as disqualified.

Pattern of Examination

Paper

Marks

Number of Questions

MCQ

Total duration

100

The questions in Paper I intends to assess the teaching/ research aptitude of the candidate. It will primarily be designed to test the reasoning ability, reading comprehension, divergent thinking, and general awareness of the candidate.

03 hours (180 minutes) without any break. All the questions are compulsory.

200

100

This is based on the subject selected by the candidate and will assess domain knowledge.

Note: The first 60 minutes provide for paper-I and 120 minutes provide for Paper-II, after completion of paper-I, Paper-II will unlock for answering.

Mode of Examination

The Examination shall be conducted in Computer Based Test (CBT) mode only.

Medium of Question Paper

The medium of the Question Paper shall be in English & Hindi only.

Marking Scheme

Each question carries 02 (two) marks.
For each correct response, the candidate will get 02 (two) marks.
There is no negative marking for incorrect responses.
No marks will be given for questions un-answered/un-attempted/marked for Review.
To answer a question, the candidate needs to choose one option as the correct option.
If a question is found to be incorrect/ambiguous during the Key Challenge, only those candidates who have attempted the question and chosen one of the correct answers would be given the credit. Only for dropped question(s), if any, marks will be given to all the candidates.
In case a Question is dropped due to some technical error, full marks shall be given to the candidates who have attempted it.

Conclusion

In my opinion, I think you must set the goal of your life. What do I want to be? ask this question yourself.

If you want to be a school teacher then surely applied for B.Ed.

But if you want to teach in college and universities then you must start the preparation for NET Exam.

According to my experience, I want to you a useful suggestion, if you have belonged to a middle-class family and you must behave a government job, then first you should be completed your B.Ed degree. Because in B.Ed maximum time limit is 2 years.

on the other hand, if you decide to start the preparation for the NET Exam and also you pass the net exam on the first attempt.

Even then you may get delayed in getting a government job because, in India, assistant professors are selected in two ways.

Assistant Professor is selected by giving the Public Service Commission exam through the State College Service Commission.
University selects Assistant Professors through the interview at its level.

If you apply for Assistant Professor through the university, then according to the new rules PhD. is compulsory for all candidates who applied for an assistant professor at the university level.

But it will take a minimum of 5 years to complete a Ph.D. And the vacancies on the College Service Commission are fewer than the school teacher vacancies.

Are NET and JRF the same?

Yes, only 6% of top candidates, who get the higher rank in the NET exam get the certificate of NET with JRF from NTA

Can I become a lecturer without the net?

It is not possible, because MOE pass the rule NET with PhD is compulsory for teaching at university and college level from 2021.

What is the age limit for NET JRF?

30 years for General candidates and SC/ST/OBC can get the age relaxation as per government rules.

Is JRF hard?

The syllabus of NET or JRF is the same. If you get a high score on the Net exam then you are eligible for JRF.

Who is eligible for the NET exam?

General/Unreserved/General-EWS candidates who have secured at least 55% marks (without rounding off) in Master’s Degree or equivalent an examination from universities/institutions recognized by UGC. The Other Backward Classes (OBC) belonging to Non-Creamy Layer/Scheduled Caste (SC)/Scheduled Tribe (ST)/Persons with Disability (PwD)/Third gender 7 category candidates who have secured at least 50% marks (without rounding off) in Master’s degree or equivalent examination are eligible for this Test.

Depreciation Accounting Concept

2021-07-20T21:51:00.020+05:30

Depreciation Accounting Concept (PART-I)

Depreciation Accounting Concept followed by the many businesses to maintain their Capital Goods Account. This account is very necessary for a business to ascertain the actual value of the machinery at the end of the financial year.

Depreciation Meaning: According to AICPA, “Depreciation Accounting is a system of accounting which aims to distribute cost or the basic value of tangible capital assets less salvage value (if any), over the estimated useful life of the unit in a systematic and rational manner.

According to R.N. Carter, “Depreciation is a gradual and permanent decrease in the value of an asset from any cause.”

Characteristic of Depreciation

It is mainly charged on fixed assets.
It is charged against profit. So, it is chargeable even at the stage of loss.
The amount of depreciation will not vary for fluctuation.
It is an internal transaction and it has no outside effects.
It is not the internal source of capital of the concern.
It helps to maintain the physical capital of the concern at the end of each accounting period.

The Types of Depreciation may be discussed below

Internal Causes: The causes of depreciation related to the assets i.e. internal activities of the concern, which call the internal causes of the depreciation.

Wear & Tear: Land and Buildings, Plant and Machinery, Furniture and Fixture etc. damage for their uses and reduced their values, efficiencies, and utilities.

 Physical Consumption: As a result of excavation of minerals from mines, collection of wood from forest etc. the natural wealth reduce for physical consumption.

External Causes: The causes of depreciation that are not related to the assets of the business call external causes of depreciation.

Efflux of Time: Leasehold Property, patent rights, copyrights, etc. are decreasing their value, utilities and effectiveness on passage of time. At the end of life, these values become Zero.

Obsolescence: The plants, machinery, and other fixed assets that are to be substitute more powerful and effective machines in the modern world and effective machinery become useless due to time, i.e. the value of assets will decrease. If any fixed assets may be useless due to an accident. The loss due to obsolescence considers as depreciation.

Permanent Fall in Market Price: The value of assets which depends on the market price, decreased if the market price falls e.g. shares, bonds, debentures etc.

Accident: The assets of concern may demand natural calamities as, earth-quick, fire, flood, and riots. Then the full value of lost assets writes off as depreciation.

Decay: Certain fixed assets are losing their services, qualities or strengths by the effects of nature such as moisture, sunlight, storms etc. The decay considers as depreciation.

Inadequacy: Due to the development of modern technology and productions procedure, the old and used fixed assets can not meet the production needs. So, new and better assets should replace in place of old assets. The loss due to inadequacy considers as depreciation.  

Objective of Depreciation

There is the following objective of depreciation discuss below:

To find out the real profit or loss: The depreciation on fixed assets charge to Profit & Loss Account. if the depreciation on fixed assets is not charged in a profit and loss account of the accounting period.

To find out the correct value of assets: At the end of each accounting period, if depreciation on fixed assets is not charged to the profit and loss account. The correct value of fixed assets is not to find out. So, the provision for depreciation is necessary to find out the correct value of assets at the end of each accounting period.

To find out the real cost of production: The depreciation on Plant & Machinery, Furniture & Fixture, Land & Building etc. Which use in production, is a part of factory overhead. If the depreciation is not charged on the assets, i.e. It does not include the cost of production; the real cost of production cannot ascertain. So, it is necessary to find out the real cost of production.

To replace the assets: The fixed assets are useless in the passage of time and a huge amount of money is necessary to replace the assets at a time. If depreciation is charged against profit, a portion of the profit is retained in the business in form of depreciation.

To maintain the financial capital: The financial capital is reduced for the purchase of assets. The recovery of that financial capital from income is essential. If the amount of financial capital is not recovered from the profit, it is distributed to related persons from the business. So, the creation of provision for depreciation is necessary for a business to maintain the financial capital intact.

To ascertain Profit or Loss on sale of assets:  Any fixed assets may be sold at the end of effective life or based on the requirement. The profit or loss on sales of assets is ascertained by the differentiating between written down value and sale value of the related assets. But the written down value cannot be ascertained if depreciation is not changed.

To avoid over payment of income tax: If depreciation is not charged in the profit and loss account, the amount of profit will increase. As a result, income tax is to be paid for more profit. To avoid over payment of income tax reasonable depreciation is to be charged in the Profit & Loss account.

To abide by the legal restrictions: Under Section 205 of the Companies Act,1956. Dividends cannot be distributed among the shareholders before charging depreciation on fixed assets. So, the charging of depreciation is essential to abide by the legal restrictions.

Create a provision for discount on debtors and creditors

2021-07-16T18:32:00.011+05:30

What is the provision for discount on debtors?

The provision which is created on sundry debtors to allow a discount on receipt of cash from them in the next accounting period is called provision for discount on debtors. Generally, the discount is allowed on the trade debtors.

The balance of the debtor's account is an asset; because cash in realisable from the debtors. If they pay their debts before the date of the due date, they may claim discounts. Again, the discount may be allowed to debtors for prompt payment in a traditional way. The details of goods and services sold on credits in an accounting period are recorded in the debtors' account but the amount of debtors may not be realised in that accounting period. For this reason, efficient concern creates a provision for discounts on debtors at an estimated rate.

It is to be created by debiting the Profit & Loss account and crediting the provision for discount on debtors account.

It is recorded by the following journal entry.

PARTICULAR

AMOUNT

Profit & Loss A/C……………………………… Dr.

To Provision for Discount on Debtors A/C

(Being Provision for discount on debts provided for)

XXX

The amount of provision for discount on debtors, which is created according to the information in adjustments of final accounts is to be deducted from debtors in the assets side of the balance sheet. If the balance of provision for discount on debtors and the balance of debtors are given with ledger account balances, the provision for discount on debtors may be created in three methods, which are used in the case of provision for doubtful debts.

Again, if there is an information to write off bed debts from debtors, to creat a provision for doubtful debts and to creat a provision for discount on debtors, the provision for discount for discount on debtors will be created on the balance of debtors after deduction of above mentioned bed debts and provision for doubtful debts.

Example: The sundry Debtors stood at Rs. 5000 on 31 December 2020. Provision for discount on debtors is to be created @ 5 % and Rs. 250 was allowed for discount during the year. The provision for discount on debtors showed a credit balance of Rs. 200 on 1^st January 2020.

In the Books of ……………………….

JOURNAL ENTRY

DATE

PARTICULAR

AMOUNT

2020 Dec. 31

Profit & Loss A/C………………Dr.

To Discount Allowed A/C

(Being balance of discount allowed transferred.)

250

2020 Dec. 31

Profit & Loss A/C ………………… Dr.

To Provision for Discount on Debtors A/C

(Being the additional amount required for provision for discount on debtors Rs. 5000@5% i.e. 250-200 charged to the profit & loss account.)

What is the provision for discount on creditors?

The provision which is created on creditors for discount, which is to be received on payment of cash in the next accounting period is called provision for discount on creditors.

The balance of creditors is the liability of a concern. The details of credit purchase of goods are recorded on the credit side of the creditors' account. the discount may be received on payment of cash to creditors. It is the income of the receiving person and is transferred to the profit & loss account. The balance is to be shown on the liability side of the balance sheet. In the next year, the discount may be received on payment of cash to credit. Then it will be the income of the present year but realised in the next accounting period. For this reason, many concerns want to create a provision for discounts on creditors. It is recorded by the following journal entry.

PARTICULAR

AMOUNT

Provision for Discount on Creditors A/C…… Dr.

To Profit & Loss A/C

(Being the amount required for the creation of provision for discount on creditors.)

XXX

The amount of provision for discount on creditors, according to the information in adjustment of the final accounts, is to be deducted from the sundry creditors in the ledger account balances and there is an information to creat a provision for discount on creditors in the adjustments entries.

Example: On the 1^st January 2020, the provision for discount on creditors was Rs. 5000 and the discount received during the year was Rs. 4000. The balance of creditors was Rs. 50000 on 31^st December 2020. The rate of provision for discount on creditors was fixed @ 12%.

In the Books of ……………………….

JOURNAL ENTRY

DATE

PARTICULAR

AMOUNT

2020 Dec. 31

Discount Received A/C………… Dr.

To Profit & Loss A/C

(Being balance of discount allowed transferred.)

4000

2020 Dec. 31

Provision for Discount on Debtors A/C..Dr.

To Profit & Loss A/C

(Being the additional amount required for provision for discount on creditors Rs. 50000@12% i.e. 6000-5000 charged to the profit & loss account.)

1000

Bad Debts Journal Entry-mahgyn

2021-07-06T18:03:00.044+05:30

Bad Debts Journal Entry-mahgyn

Bad Debts

Meaning of Bad Debts: The amount which is receivable from a person or a concern for the sale of goods or otherwise is called debt. The person or concern to whom the amounts are receivable is called a debtor.

Goods are sold on credit or in cash. Generally, maximum goods of a large–scale industry are sold on credit. The amount is receivable on the sale of goods from a customer. On receipt of cash or acceptance of Bill, the amount of debts is decreased according to their nature.

TYPES OF BAD DEBTS

Bad Debts: The debt which is difficult or impossible to collect is called Bad Debts. The debtors' account is to be debited on credit sale of goods. The amount, which is realised, is to be credited to the debtors' account. But fully amount of debtors is not realised, i.e. a position of the debtors remains unrealised. The portion of debtors is called bed debts and it is the loss of the concern.

The following journal entry is to be made for bad debts written off

PARTICULAR

AMOUNT

Bad Debts A/C……………………………… Dr.

To Sundry Debtors

(Being bad debts written off.)

XXX

The following journal entry is necessary for the transfer of bed debts to the profit & loss account

PARTICULAR

AMOUNT

Profit & Loss A/C……………………………… Dr.

To Bad Debts

(Being bad debts transferred.)

XXX

Doubtful Debts: A debtor or a part of debtors, whether it is responsible or not, cannot be ascertained on a particular date is called doubtful debts. It cannot have treated as a loss on that particular date; so it cannot be written off. But a provision for doubtful debts is to be charged against the profit & loss account.

Differences Between Bad Debts and Doubtful Debts

Bad Debts	Doubtful Debts
Bad debt is a certain loss, so provision is not necessary.	A doubtful debt is a probable loss so; a provision is necessary for the doubtful debt.
It is a loss of business.	It is a possible loss
It is directly charged to the profit and loss account.	It is not directly charged in the P/L account. But it is to the P/L account in form of provision for doubtful debts.
It is deducted from the balance of sundry debtors account.	It is not deducted from the balance of sundry debtors account. It is recorded under the provision for doubtful debts account.
After preparation of final accounts, there is no existence of bad debts in ledger balance.	After the preparation of final accounts, there is an existence of doubtful debts in form of provision for doubtful debts.

Good Debts: The debts, which are not to be bad, i.e. there is no possibility of bad debts on realisation or no doubt about realisation, are called good debts. These are the liquid assets. The creation of provision for doubtful debts on good debts is not necessary.

Provision for Doubtful Debts

Definition: A provision, which is made for doubtful debts, is called provision for doubtful debts. It is said a reserve for doubtful debts. But it is charged against profit, so it is to be called a provision for doubtful debts.

Provision for Doubtful Debts Journal Entry

PARTICULAR

AMOUNT

Profit & Loss A/C………………………… Dr.

To Provision for Doubtful Debts A/C

(Being Provision for doubtful debts raised.)

XXX

Differences Between Bad Debts and Provision for Doubtful Debts

Bad Debts	Provision for Doubtful Debts
The Bad Debts is a Loss.	The Provision for doubtful debts is the provision for future loss.
On the accounting period, the full amount of bad debts charge under the P/L account.	After adjustment of opening balance, the amount of provision for doubtful debtors are to be charged on the P/L account.
During the accounting year, the balance is to be closed.	Its balance is generally shown at the end of the accounting period.
Next year’s balance impact is influenced by the current year.	The financial result and position of the next accounting period are influenced by the provision for doubtful debts of the current accounting period.

Recovery of Bad Debts

Definition: The bad debts which were previously written off and transferred to the profit & loss account, but it is realised in another accounting period is called the recovery of bed debts. The balance is to be transferred to P/L account at the end of each accounting period as a loss.

Journal Entry of Recovery of Bad Debts

PARTICULAR

AMOUNT

1. For receipt of cash for recovery of bad debts

Cash/ Bank A/C……………………………… Dr.

To Bad Debts Recovery A/C

(Being the amount recovered for the debtors previously written off as bad debts.)

2. For transfer of the balance of bed debts recovery

Bad Debts Recovery A/C………………………… Dr.

To Profit & Loss A/C

(Being the balance of bad debts recovered is to be transferred)

XXX

Career in Account Executive

2021-07-01T17:47:00.015+05:30

A Career in Account Executive

Introduction

My dear readers, through this article, I am going to tell you about a very good career option. That is Account Executive. If you are from a commerce background, then this career will be very good for you in the future. If you want to build a career as an Account Executive, you get to learn many types of skills, which further enhances your career. This gives you the opportunity to do different things. Due to this, you can reach your statement to many people. And you must know very well that, without good consumer relations, no business can reach a good position. To get this post, you have to learn some new skills along with your personality. So, let's know more about this career.

Duties and Responsibilities of Account Executive Post

Customer support: A successful account executive provides all kinds of customer support to the customer which is related to his business. Customer Satisfaction is very important to reach any business in the present time.

Collaborate with other Department: An account executive always works together with their all department, because in this job you always have to take the help of sales department, management department and data analytics department.

Sell Additional Services\Products: The main aim of an account executive is not only to sell the main product but also to sell other related products. In this profession, you will be able to impress other people with the help of your communication skills. We understand this through an example.

Let's assume that you are on the post of Account Executive in a printer company. So, your target will not be only to sell printers, you will also have to sell related products to the customer by showing your skills. Like printing ink, printing paper, etc. As well as such a relation must have been formed for the future, if he wants to any information about this type of products, then he will come to you first. Then you will be able to become a successful account executive.

Handle Contracts: In this profession, you have to think not only from the point of view of the company but also from the point of view of the customer's income. Because as much as the budget of the customer, he will buy his product accordingly. When you understand the terms and conditions of the company, then you also have to keep in mind that does not affect the income of the consumer, and if he has to pay EMI, then try to reduce their mental pressure. Remember, if your customer is satisfied in this profession, then he will become a lifetime user of your products and services. This is a great achievement for not only a company but also an account executive.

Network with Potential customers/investors: In this profession, you always have to target new customers. You are always required to attend seminars or workshops. To do all these things well, you have to have complete information about the company. So that you can attract your potential customers for the company's product and service. People will have to talk about the goals and success factors of the company in a motivational way. This is a good way to attract investors apart from your customers. This will also increase the FDI in your company.

Required Skill for Account Executive Career

Personal Skill

Improve your communication and networking power

Develop your storytelling capacity

Improve your motivational power

Enhance your thought process

Develop your personality

Enhance your quick learning capacity and apply that knowledge.

Technical Skill

Working knowledge of related sales industry.

Working knowledge in Microsoft Office Basic to Advance Levels and also in CRM Software.

Appropriate knowledge of Market Research.

Time-Management and Organisational Skill.

Learn proper knowledge in Accounting Software Like SAP and Tally Prime.

Salary in an account executive post

Salary does not fix this post, it depends on your knowledge and ability to work. But on average, you can get Rs. 20000 to 25000 PM for this post.

15 IMPORTANT ADJUSTMENT ENTRY IN FINAL ACCOUNTS

2021-06-27T18:56:00.013+05:30

15 IMPORTANT ADJUSTMENT ENTRIES IN FINAL ACCOUNTS

Important Adjustment Entry in Final Account: Many students are the gatting problem when starting to prepare a final account here are some difficult entries provided by us for the students. Now read all the posts carefully and after getting the knowledge you can apply for all these entries in your work.

Closing Stock

Closing stock means the unsold or unused stock of goods remaining at the end of the accounting period. Its entry is useful to prepare a final account.

Example: Mr Ram Purchase 100 kg sugar @ Rs. 30 per kg. on 01-01-2021. He sold 80 Kg. sugar to Mr Ramesh @ Rs. 40 per kg. on 15-01-2021. The closing stock will remain in the hand of Mr Ram is 20 Kg. @ Rs. 30 per kg. the end of the year.

Particular

Amount

Closing Stock, A/C………………. Dr.

To Trading A/C

(Being closing stock remain 20 Kg @ Rs. 30 per Kg.)

600

Outstanding Expenses

Those expenses which have been incurred and are due for payment i.e., not paid as yet, are called outstanding expenses.

Example: Rs. 5000 /pm paid as salary to staff but during the year 2021. But two months’ salary i.e., Rs. 10000 which is due but not paid i.e. called outstanding expenses.

Outstanding Expenses = Due but not paid

Particular

Amount

Salary A/C………………. Dr.

To Outstanding Salary A/C

(Being two months outstanding salary due but not paid @ Rs. 10000)

10000

Prepaid or unexpired expenses

which expense is to be paid in advance or paid for the future period which is not set over or not yet expired such expenses are called prepaid or unexpired expenses.

Example: Mr Kapil took one-year fire insurance @ Rs. 2000 for Jan to Dec 2021. And also, he pays Rs. 2000 for the next year, which amount is to be paid for the next year i.e., called Prepaid or unexpired expenses.

Particular

Amount

Prepaid Insurance A/C………………. Dr.

To Insurance A/C

(Being Insurance amount @ Rs. 2000 paid for next year)

2000

Accrued Incomes

Which income that has been carried but not received during the accounting year is called accrued income. Income like interest on investments, rent of property, sublet, etc.

Example: Mr Ramesh deposit Rs. 50000 in SBI Bank @ 7% Interest on 1^st April, 2021

During the financial year Rs. 3500 will be credited in his account as interest. But Mr Ramesh has not received interest till the closing date.

Particular

Amount

Accrued Interest A/C………………. Dr.

To Interest A/C

(Being accrued interest @ Rs. 3500 credited but not received at the end of financial year)

3500

Unearned incomes or income received in advance

Income received but not earned during the accounting, the year is called income received in advance.

Example: Mrs Sharma has been given her house to a tenant on Rs. 5000 P.M. But she received 15000 for the whole year, under yearly amount Rs. 3000 extra received by Mrs Sharma.

Particular

Amount

Rent A/C………………. Dr.

To Unearned Income A/C

(Being unearned income received Rs. 3000 by a tenant)

3000

Drawing

A purchase of goods or assets in a business for the private use of a proprietor is treated as a Drawing.

Example: Mr Kamal purchases a car as business assets @ Rs. 500000. But he decided to the car for personal purposes.

Particular

Amount

Drawings A/C………………. Dr.

To Cash/Creditors A/C

(Being business assets purchase for personal use)

Capital A/C …………………. Dr.

To Drawing A/C

(Being Capital with drowning for personal use)

500000

Goods delivered for donation

The rules of recording of goods delivered for donation but not entered in the books of account in Journal Proper, Final Accounts, and The balance sheet is given below.

Example: Mr Raju is a mobile store; he gives an android set as a donation to his father the cost price of the mobile is Rs. 15000 only.

Particular

Amount

Donation A/C………………. Dr.

To Purchases A/C

(Being mobile phone give as donation)

Profit & Loss A/C …………………. Dr.

To Donation A/C

(Being mobile phone give as donation purpose)

15000

Stock in showroom included in opening stock

If the stock of goods uses in business at a current year as opening stock.

Example: Mr Ram purchases 200 TV sets @ Rs. 5000 each. He stores 80 TV sets in her showroom and used 120 TV sets as opening stock for selling purposes. During the year he sold 100 TV sets after the closing date again in next year he uses 200 TV sets as opening stock (including 80 TV sets which was a store in the showroom, and new purchase 100 TV sets)

Particular

Amount

Stock in Showroom A/C………………. Dr.

To Trading A/C

(Being reserved goods use as an opening stock)

400000

Goods in Transit

If goods are on the way, it does not enter in the godown.

Example: Mr Kapil purchase the goods from ABC Company @ Rs. 5000.

But the goods do not reach in the godown of Mr Kapil till now.

Particular

Amount

Stock in transit A/C………………. Dr.

To Trading A/C

(Being goods are on the way)

5000

Closing Stock

If some goods are left during the accounting period, remains goods treated as closing stock.

Example: Mr Anil purchase 50 pieces of computer @ Rs. 15000 each, during the year he sold only 30 pieces @ Rs. 20000. 20 pieces of unsold goods during the accounting year.

Particular

Amount

Closing Stock, A/C………………. Dr.

To Trading A/C

(Being goods are on the way)

300000

Sale of Waste Paper/Material or any type of waste product

Example: Mr Sharma Purchase Purchases a goods @ Rs. 5000, the sale these goods @ Rs. 3000. But Rs. 2000 goods have been destroyed these goods sold as a scrap/waste material.

Particular

Amount

Sales A/C………………. Dr.

To Waste Products A/C

(Being Waste products sold)

Waste Products A/C …………………. Dr.

To Profit & Loss A/C

(Being mobile phone give as donation purpose)

2000

Wages for repairing assets included in productive wages

Example: Mr Hari Purchases an asset @ Rs. 50000 and he will be paid repairing charge with productive wages @ Rs. 5000.

Particular

Amount

Repair Charge A/C………………. Dr.

To Wages A/C

(Being Wages paid for repair the assets/Machine)

Profit & Loss A/C …………………. Dr.

To Repair Charge A/C

(Being mobile phone give as donation purpose)

5000

Normal Loss of Goods

Which loss is not recovered under general insurance these losses are called Normal Loss, like material cut by the mouse, any liquid leakage in go down or tangiest.

Example: Mr Ranjit is a garment seller he purchases 1000 pieces of garments @ Rs. 100 each. Under these garments closing stock will be included @ Rs. 25000. The portion of closing stock value up to Rs. 2000 has been treated as Normal Loss.

Particular

Amount

Trading, A/C………………. Dr.

To Closing Stock A/C

(Being Normal Loss occurred @ Rs. 2000)

2000

Deferred Revenue Expenditure

The expenditure which is paid in an accounting period, but its activities or effects will continue more than one accounting period is called deferred revenue expenditure. It is to be treated in the books of account as an expense paid in advance.

Example: Mr Suresh has taken general insurance for 2 years @ Rs. 5000 for his business building and office.

Particular

Amount

Deferred Revenue Expenditure, A/C………………. Dr.

To Expenditure A/C

(Being general insurance taken for 2 years @ Rs. 5000)

5000

Set off Debtors and Creditors

A person may be included in debtors and creditors balances of a business.

Example: Creditor will be received from debtors @ Rs. 5000 and debtors also found the amount from creditors @ Rs. 4000, and the balance amount is paid in cash by the creditor.

To determine the correct financial position of the business, the net amount payable to that person, or net amount receivable from that person is to be determined. The lowest amount, which is included in debtors or creditors, for the same person is to be deducted from debtors and creditors.

Particular

Amount

Creditor, A/C………………. Dr.

To Debtors A/C

(Being common amount is setoff i.e., Rs. 4000)

Cash A/C……………………. Dr.

To Debtors A/C

(Being Balance amount Rs. 1000 Pay by the creditor)

4000

1000

4000

1000

Capital Expenditure and Revenue Expenditure Examples

2021-06-20T13:54:00.014+05:30

Capital Expenditure and Revenue Expenditure

Introduction

Capital Expenditure and Revenue Expenditure: Accounting aims in ascertaining and presenting the results of the business for an accounting period. For ascertaining the periodical business results, the nature of transactions should be analyzed whether they are of capital or revenue nature. The Revenue Expense relates to the operations of the business of an accounting period or to the revenue earned during the period or the items of expenditure, benefits of which do not extend beyond that period. Capital Expenditure, on the other hand, generates enduring benefits and helps in revenue generation over more than one accounting period. Revenue Expenses must be associated with the physical activity of the entity. Therefore, whereas production and sales generate revenue in the earning process, the use of goods and services in support of those functions causes expenses to occur. Expenses are recognised in the Profit & Loss Account through matching principle which tells us when and how much of the expenses to be charged against revenue. A part of the expenditure can be capitalised only when these can be traced directly to definable streams of future benefits.

The distinction of the transaction into revenue and capital is done for the purpose of placing them in the Profit and Loss account or in the Balance Sheet. For example, revenue expenditures are shown in the profit and loss account as their benefits are for one accounting period i.e. in which they are incurred while capital expenditures are placed on the asset side of the balance sheet as they will generate benefits for more than one accounting period and will be transferred to profit and loss account of the year on the basis of utilisation of that benefit in particular accounting year.

Example (A)

State with reasons whether the following are Capital or Revenue Expenditure

(l) Expenses Incurred in connection with obtaining a license for starting the Company?

(2) 50,000 paid for the removal of Inventory to a new site.

(3) Rings and Pistons of an engine were changed at a cost of 25,000 to get fuel efficiency.

(4) Money paid to Reliance JIO 1,00,000 for installing Wi-Fi Connection in the office.

(5) A Company Building constructed at a cost of 10,00,000. A sum of 15,000 had been incurred in the construction of temporary huts for staying the guards.

SOLUTION

(1) Money paid 30,000 for obtaining a license to start a Company is a capital expenditure. This is an item of expenditure incurred to acquire the right to carry on business.

(2) 50,000 paid for the removal of Inventory to a new site is revenue expenditure. This is neither bringing enduring benefit nor enhancing the value of the asset.

(3) 25,000 spent in changing Rings and Pistons of an engine to get fuel efficiency is capital expenditure.
This is an item of expenditure on the improvement of a fixed asset. It results in increasing the profit-earning capacity of the business by cost reduction.

(4) Money deposited with JIO for installation of Wi-Fi Connection in the office is not expenditure. This is treated as an asset and the same is adjusted over a period of time against actual Internet bills.

(5) Cost of construction of the building including the cost of temporary huts is capital expenditure. The building is a fixed asset that will generate enduring benefits to the business over more than one accounting period. The construction of temporary huts is incidental to the main construction. Such cost is also capitalised with the cost of building.

Difference Between Capital Expenditure and Revenue Expenditure

Capital Expenditure

Revenue Expenditure

For any other trade, the purchase of furniture should be treated as capital expenditure

But for a trader dealing in furniture, purchase of furniture is revenue expenditure

If non-recurring expenditure is infrequent in

nature and do not occur often in an accounting year.

While the frequency of an expense is quite often in an accounting year than it is said to be an expenditure of revenue nature

Expenditure incurred for major

repair of the asset so as to increase its productive capacity is capital in nature.

On the other hand, expenses for repairs of the machine may be incurred in the course of normal maintenance of the asset. Such expenses are revenue in nature.

If expenditure helps to generate revenue over more than one

accounting period, it is generally called capital expenditure.

On the other hand, the expenses which help to generate income/ revenue in the current period is revenue in nature and should be matched against the revenue earned in the current period.

The value of the existing assets is to be added under the Capital Expenditure.

But the value of the existing assets is to be added under the Revenue Expenditure.

CAPITAL RECEIPTS AND REVENUE RECEIPTS

Just as a clear distinction between Capital and Revenue expenditure is necessary, in the same manner,

Capital Receipts must be distinguished from Revenue Receipts. Receipts that are obtained in course of normal business activities are revenue receipts (e.g., receipts from the sale of goods or services, interest income, etc.). On the other hand, receipts that are not revenue in nature are capital receipts (e.g., receipts from the sale of fixed assets or investments, secured or unsecured loans, owners' contributions, etc.). Revenue and capital receipts are recognised on an accrual basis as soon as the right of receipt is established. Revenue receipts should not be equated with actual cash receipts. Revenue receipts are credited to the Profit and Loss Account.

On the other hand, Capital receipts are not directly credited to the Profit and Loss Account. For example, when

a fixed asset is sold for 1,00,000 (cost 95,000), the capital receipts 95,000 is not credited to Profit and Loss Account. only Profit or Loss on sale of fixed assets is calculated and credited to Profit and Loss Account as follows:

Particular

Amount

Sale Proceeds

Less: Cost

Profit

1,00,000

(95,000)

5,000

Example (B)

Good Pictures Ltd., constructs a cinema house and incurs the following expenditure during the first year ending 31^st March 2021.

(i) Second-hand furniture worth 15,000 was purchased; repainting of the furniture costs (5,000. The furniture was installed by own workmen, wages for this being 500.

(ii) Expenses in connection with obtaining a license for running the Auditorium worth 25,000. During the course of the year, the company was fined 3,000, for contravening rules. Renewal fee 4,000 for next year also paid.

(iii) Fire insurance, 2,500 was paid on 1^st October 2020 for one year.

(iv) Temporary huts were constructed costing 3,200. They were necessary for the construction of the cinema. They were demolished when the cinema was ready.

SOLUTION

(i) The total cost of the furniture should be treated as 20,500 i.e., all the amounts mentioned should be capitalised since without such expenditure, the furniture would not be available for use. If e 5,000 and 500 have been respectively debited to the Repairs Account and the Wages Account, these accounts will be credited to the Furniture Account.

(ii) License for running the Auditorium house is necessary, hence its cost should be capitalised. But the fine of 3,000 is revenue expenditure. The renewal fee for the next year is also revenue expenditure but pertains to the next year; hence, it is a prepaid expense.

(iii) Half of the insurance premium pertains to the year beginning on 1st April 2021. Hence such an amount should be treated as a prepaid expense. The remaining amount is revenue expense for the current year.

(iv) Since the temporary huts were necessary for the construction, their cost should be added to the cost of the cinema hall and thus capitalised.

Some Other Example

Classify the following expenditures and receipts as capital or revenue:

(i) 20,000 spent as travelling expenses of the directors on trips abroad for the purchase of capital assets.

(ii) Amount received from Trade receivables during the year.

(iii) Amount spent on the demolition of building to construct a bigger building on the same site.

(iv) Insurance claim received on account of machinery damaged by fire.

SOLUTION

(i) Capital expenditure.

(ii) Revenue receipt.

(iii) Capital expenditure.

(iv) Capital receipt.

Are the following expenditures capita/ in nature?

(I) Sunsing &Co. run a restaurant. They renovate some of the old cabins. Because of this renovation, some space was made free and the number of cabins was increased from 10 to 13. The total expenditure was 20,000.

(ii) M/S Kolkata Mart Co. sold certain goods on an instalment payment basis. Five customers did not pay instalments. To recover such outstanding instalments, the firm spent e 20,000 on account of legal expenses.

(iii) M/S Jaiswal & Co. of Durgapur purchased machinery from M/S Agarwal & Co. of Gujrat. M/S Jaiswal & Co. spent 50,000 for transportation of such machinery. The year-end is 31st Dec 2021.

SOLUTION

(i) Renovation of cabins increased the number of cabins. This has an effect on the future revenue-generating capability of the business. Thus, the renovation expense is capital expenditure in nature.

(ii) An expense incurred to recover instalments due from customers does not increase the revenue-generating capability in the future. It is a normal recurring expense of the business. Thus, the legal expenses incurred in this case are revenue expenditure in nature.

(iii) Expenses incurred on account of transportation of fixed asset is capital expenditure in nature.

3 Best Professional Courses After B.Com

2021-06-16T22:01:00.078+05:30

3 Best Professional Courses After B.Com

Introduction

I want to tell you through this educational article about the 3 best professional Courses After B.Com, that your lifestyle will change after doing these courses.

But this does not mean that I am telling these courses as inferior to each other. Everyone has their own value. Here we discuss the similarity and differentiation of these courses. With the help of this article, you can easily understand the full course details. If you have wanted to do these courses then must be read this article carefully. we are collected all valuable data about the courses from the official websites of the institution. these institutions are ICAI, ICWA, and ICSI.

All statutory the body established by an Act of the Indian Parliament

3 Best Professional Courses After B.Com

The Institute of Chartered Accountants of India (ICAI) is a statutory body established by an Act of Parliament, viz. The Chartered Accountants Act, 1949 (Act No. XXXVIII of 1949) for regulating the profession of Chartered Accountancy in the country. The Institute functions under the administrative control of the Ministry of Corporate Affairs, Government of India. The ICAI is the second largest professional body of Chartered Accountants in the world, with a strong tradition of service to the Indian economy in the public interest.

The Institute of Cost and Management Accountants of India (erstwhile The Institute of Cost and Works Accountants of India) was first established in 1944 as a registered company under the Companies Act with the objects of promoting, regulating, and developing the profession of Cost Accountancy.

On 28th May 1959, the Institute was established by a special act of Parliament, namely, the Cost and Works Accountants Act, 1959 as a statutory professional body for the regulation of the profession of cost and management accountancy

The Institute of Company Secretaries of India (ICSI) is the only recognized professional body in India to develop and regulate the profession of Company Secretaries in India? It is a premier national professional body set up under an act of Parliament, the Company Secretaries Act, 1980. ICSI functions under the jurisdiction of the Ministry of Corporate Affairs, Government of India. The Institute provides top-quality education to the students of Company Secretaries (CS) Course and best quality set standards to CS Members.

SIMILARITY OF CA/CMA/CS

Similar Points	CA	CMA	CS
Both the Exam Conduct by statuary governing bodies	ICAI	ICMAI	ICSI
Currently UGC approved both the courses as Degree Courses	Postgraduate Degree (PG)	Postgraduate Degree (PG)	Postgraduate Degree (PG)
After the complication of CA/CMA/CS, any candidates give National Exam for Higher Study	NTA-NET Exam	NTA-NET Exam	NTA-NET Exam
All Institute provided If you get a problem then take tuition at your own cost	self-study	self-study	self-study
Institute responsible only for	Registration Conduct Exam and Provided Degree	Registration Conduct Exam and Provided Degree	Registration Conduct Exam and Provided Degree
Registration or Examination Fees	Compulsory	Compulsory	Compulsory
Age Limit on both the courses	No Limit	No Limit	No Limit
Both the Degree courses have the same eligibility criteria	HS Exam	HS Exam	HS Exam
If you decided to appear in both the exam after the B.com (Having 55% Marks)	Foundation or Entrance Exam do not compulsory	Foundation or Entrance Exam do not compulsory	Foundation or Entrance Exam do not compulsory
Students can get both the degrees at minimum Cost if they appear in the exam on the self-study basic	1,00,000	1,00,000	1,00,000
Passing or Examination Criteria Basically	Same	Same	Same
Both the institutes run a campus program But it is not very effective as per the passing percentages	Quite Good	Quite Good	Quite Good

Distinguish Between for CA, CMA, and CS Courses

Differ Points	CA	CMA	CS
Foundation or Entrance Exam Conduct by the institution	2 Time in a year	2 Time in a year	4 Time in a year
Institute deeply focus on the following subject, but contents are mostly same in both the degrees	Accounting, Audit, and Taxation	Cost Accounting	Company Law
Mainly focus on the following contents	Practical Content	Practical Content	Theoretical Content
Career Option after Completion of the Courses mostly same, but common difference varies as per working experiences in CA/CMA/CS	Statuary Auditor, Tax Auditor, and GST Auditor has only done by a CA	Cost Auditor and GST Auditor only done by a CMA	Sectorial Auditor and key managerial person
Duration of the courses, if you cleared all the exams in the first attempt	4.5 years	3 years	4 years
Course Levels on the CA/CMA/CS	Foundation Intermediate Final	Foundation Inter Final	Foundation Executive Professional
Course fees (It is varied from time to time)	9800	4000	3600
Foundation	9800	4000	3600
Intermediate/Inter/Executive	18000 Both group, single group the charge is 13000 only	20000 both groups’ charges	7000 both groups’ charges
Final/Professional	22000	17000	12000
Artisanship/Internship compulsory in both the courses	Period 3 Years	Period 3 years	Period 1 year 9 months
You can give the final exam during the internship period, but the minimum internship is required before they appear on the final levels	Period 2.5 Years	Period 6 Months	Periods 9 Months
Exam Frequency on both the Courses	2 times in a years May & November	2 times in a years June & December	2 times in a years June & December
On an Average Annually Starting Salary	3 to 7 lakhs	3 to 6 lakhs	3 to 6 lakhs

NOTE: Average Annual salary in both the degrees the holder is around 6 to 8 Lack but must ensure that it varies on the deeply knowledge and practical experiences.

Syllabus for CA, CMA, and CS Courses

Number of papers in levels wise		CA	CMA	CS
Level: 1	Foundation/Entrance Exam	4	4	4
Level: 2	Group/Module: 1	4	4	4
Level: 2	Group/Module: 2	4	4	4
Level: 3	Group/Module: 1	4	4	3
	Group/Module: 2	4	4	3
	Group/Module: 3			3
In CA or CMA Papers are divided into groups, but in CS all the papers are divided into modules.

Conclusion

In my opinion, all the courses have the same work but some areas will differ in these courses. All the courses are highly demanded in the corporate field if you have time to do these courses then surely complete it without any hesitation.

Can I do CA in 2 years?

The minimum duration of the CA course is 3 Years if you pass all attempts at first chance.

What is the requirement for CA?

12th Pass students can start the preparation for the CPT exam. it is an entrance exam for CA, but if you have 55% on the B.co exam then CPT is not compulsory. The second phase is IPCC and the last phase is CA Final.

What is the CA salary?

Average Annual salary in both the degrees the holder is around 6 to 8 Lack but must ensure that it varies on the deep knowledge and practical experiences.

Which course is easy CA or CMA?

Both courses have their own value. we cannot say clearly which is easy or hard. Bus according to the syllabus in CA mainly focus on the practical portion of Auditing and taxation. But in CMA mainly focus on the Cost Accounting portion.

Advantages and Disadvantages of Financial Accounting

2021-06-14T22:18:00.011+05:30

Advantages and Disadvantages of Financial Accounting

Advantages and Disadvantages of Financial Accounting

There are certain misconceptions regarding financial statements. A common man presumes that an income statement shows the correct income or loss of the enterprise and that a balance sheet depicts a perfectly true and fair picture of the financial standing of that enterprise. It must be recognised that accounting as a language has its own advantages and limitations. The figures of profit or loss generated by the accounting process are subject to various constraints within which the accounting works. The assumptions and conventions, on which the accounting is based, become the limitations of accounting. The financial statements are never free from the subjectivity factor as these are largely the outcome of the personal judgment of the accountant with regard to the adoption of the accounting policies. Following are certain instances:

ADVANTAGES OF FINANCIAL ACCOUNTING

Financial Information about Business: Financial Performance during the accounting period, i.e., profit earned or loss incurred and also the financial position at the end of the accounting period is known through accounting.

Assistance to Management: The management makes business plans, takes decisions and exercises control over the affairs on the basis of accounting information.

Replaces Memory: A systematic and timely recording of transactions obviates the necessity to remember transactions. The accounting record provides the necessary information.

Facilitates Comparative Study: A systematic record enables a businessman to compare one year’s results with those of other years and locate significantly factors leading to change if any.

Facilitates Settlement of Tax Liabilities: A systematic accounting record immensely helps in the settlement of income tax, GST, and Excise Duty liabilities.

Facilitates Loans: Loan is granted by the banks and financial institutions on the basis of growth potential which is supported by performance.

Facilitates Sale of Business: If someone desires to start his business, the accounts maintained by him will enable the ascertainment of the proper financial reports.

Helps in Decision Making: Accounting helps in taking a large number of decisions like the amount to be withdrawn by the proprietor, the price at which goods should be sold. Etc.

DISADVANTAGES /LIMITATIONS OF FINANCIAL ACCOUNTING

The factors that may be relevant in assessing the worth of the enterprise don't find a place in the accounts as they cannot be measured in terms of money. The balance sheet cannot reflect the value of certain factors like loyalty and the skill of the personnel which may be the most valuable asset of an enterprise these days.

Balance The sheet shows the position of the business on the day of its preparation and not on the future date while the users of the accounts are interested in knowing the position of the business in the near future and also in long run and not for the past date.

Accounting ignores changes in some money factors like inflation etc.

There are occasions when accounting principles conflict with each other.

Certain accounting estimates depend on the sheer personal judgment of the accountant, e.g., provision for doubtful debts, method of depreciation adopted, recording certain expenditure as revenue expenditure or capital expenditure, selection of the method of valuation of inventories, and the list are quite long.

Financial statements consider those assets which can be expressed in monetary terms. Human resources although a very important asset of the enterprise are not shown in the balance sheet. There is no generally accepted formula for the valuation of human resources in money terms.

Different accounting policies for the treatment of the same item add to the probability of manipulations Though through various laws and Accounting Standards, efforts are made to reduce these options to a minimum but certainly could not be reduced to one.

Accounting Principles (Meaning And Scope of Accounting)

2021-06-12T17:43:00.010+05:30

Accounting Principle (Meaning And Scope of Accounting)

INTRODUCTION:

Accounting Principles are related to every individual life, they perform some kind of economic activity daily. Which is related to these accounting concepts. A salaried person gets a salary and spends to buy provisions and clothing, for children’s educations, construction of the house, and other necessary product. A social club formed by a group of individuals, a business run by an individual or a group of individuals, a local authority body like WBBSE, WBCHSE, CBSE, Municipal Corporation, Governments, either Central or State. All are carrying some economic activities. Such economic activities may create social benefit i.e., benefit for the whole population, at large. Anyway, such economic activities are performed through “transaction and event”. The transaction is used to mean a business performance of an act, an agreement while the event used to mean a happening, as a consequence of the transaction, a result.

Examples: An individual invests 300000 for starting a Food Shop. On 1 April, he purchases goods for 200000 and sells for 230000during the month of April. He pays shop rent for the month 10000 and Staff salaries 15000, after that he finds that still, he has goods worth 25000 in hand. The individual performs an economic activity. He carries on a few transitions and encounters with some events during the economic activities.

we see the individual, who starting the Food Shop. How much he earns the surplus during the Economic Activity period.

PARTICULARS	Amount	Amount
Goods Sold Goods in hand Less: Goods Purchased Pay Shop Rent Staff Salaries Surplus	200000 10000 15000	230000 25000
	200000 10000 15000	255000 (225000)
		255000 (225000)
		30000

Earning of 30000 surpluses is an event; also having the individuals in hand is another the event, while purchasing and sale of goods, investment of money and payment of rent is a transaction.

Similarly, Your Father’s Salary is 50000. He purchases a laptop for you @ 35000, and the balance in hand of your father is 15000. These are also transactions and events.

MEANING OF ACCOUNTING

As per the American Institute of Certified Public Accountants formulated the following definition of accounting in 1961:

“Accounting is the art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions, and events which are, in part at least, of a financial character, and interpreting the result thereof.”

“The the function of accounting is to provide quantitative information, primarily of financial nature, about economic entities, that is needed to be useful in making economic decisions.”

PROCEDURAL ASPECTS OF ACCOUNTING

Generating Financial information:

RECORDING: This is the basic function of accounting. All business transactions of a financial character, as evidenced by some documents such as sales bills. Passbook, salary slip, etc. are recorded in the books of account, Recording is done in a book called “Journal”.

CLASSIFYING: Classification is concerned with the systematic analysis of the recorded data, with a view to group transactions or entries of one nature at one place so as to put information in compact and usable form. The book containing classified information is called “Ledger”.

SUMMARISING: It is concerned with the preparation and presentation of the classified data in a manner useful to the internal as well as the external users of financial statements.

ANALYSING: The term ‘Analysis’ means the methodical classification of the data given in the financial statement.

INTERPRETING: This is the final function of accounting. It is concerned with explaining the meaning and significance of the relationship as established by the analysis of accounting data. The recorded financial data is analysed and interpreted in a manner that will enable the end-users to make a meaningful judgment about the financial condition and profitability of the business operations.

COMMUNICATING: It is concerned with the transmission of submission of summarised, analysed and interpreted information of the end-users to enable them to make rational decisions.

OBJECTIVE OF ACCOUNTING

Systematic recording of transactions: The basic objective of accounting is to systematically record the financial aspects of business transactions i.e., book-keeping. These recorded transactions are later on classified and summarized logically for the preparation of financial statements and for their analysis and interpretation.

Ascertainment of results of above-recorded transactions: Accountant prepares profit and loss accounts to know the results of business operations for a particular period of time. If revenue exceeds expenses, then it is said that the business is running profitably but if expenses exceed revenue, then it can be said that the business is running under loss. The profit and loss account helps the management and different stakeholders in taking rational decisions. For example, if the business is not proved to be remunerative or profitable, the cause of such a state of affairs can be investigated by the management for taking remedial steps.

Ascertainment of the financial position of the business: A businessman is not only interested in knowing the results of the business in terms of profits or loss for a particular period but is also anxious to know that what he owes (liability) to the outsiders and what he owns (assets) on a certain date. To know this, an accountant prepares a financial position statement popularly known as the Balance Sheet. The balance sheet is a statement of assets and liabilities of the business at a particular point in time and helps in ascertaining the financial health of the business.

Providing information to the users for rational decision-making: Accounting as a 'language of businesses communicates the financial results of an enterprise to various stakeholders by means of financial statements. Accounting aims to meet the information needs of the decision-makers and helps them in rational decision-making.

To Know the Solvency Position: By preparing the balance sheet, management not only reveals what is owned and owed by the enterprise, but also it gives the information regarding concern’s ability to meet its liabilities in the short-run (Liquidity Position) and also in the long run (Solvency position) as and when they fall due.

THE MAIN FUNCTIONS OF ACCOUNTING

MEASUREMENT: Accounting measures past performance of the business entity and depicts its current financial position.

FORECASTING: Accounting helps in forecasting future performance and financial position of the enterprise using past data and analyzing trends.

DECISION-MAKING: Accounting provides relevant information to the users of accounts to aid rational decision-making.

COMPARISON & EVALUATION: Accounting assesses performance achieved in relation to targets and discloses information regarding accounting policies and contingent liabilities which play an important role in predicting, comparing and evaluating the financial results.

CONTROL: Accounting also identifies weaknesses of the operational system and provides feedbacks regarding the effectiveness of measures adopted to check such weaknesses.

GOVERNMENT REGULATION AND TAXATION: Accounting provides necessary information to the government to exercise control on the entity as well as in collection of tax revenues.

BOOK-KEEPING

Book-keeping is an activity concerned with the recording of financial data relating to business operations in a significant and orderly manner. It covers procedural aspects of accounting work and embraces the record-keeping function. Obviously, book-keeping procedures are governed by the end product, the financial statements. The term 'financial statements' means Profit and Loss Account, Balance Sheet, and cash flow statements including Schedules and Notes forming part of Accounts.

Book-keeping also requires a suitable classification of transactions and events. This is also determined with reference to the requirement of financial statements. A bookkeeper may be responsible for keeping all the records of a business or only of a minor segment, such as the position of the customers' accounts in a departmental store. Accounting is based on a careful and efficient book-keeping system.

RELATIONSHIP OF ACCOUNTING AND BOOK-KEEPING:

Some people mistake book-keeping and accounting to be synonymous terms, but in fact they are different from each other. Accounting is a broad subject. It calls for a greater understanding of records obtained from book-keeping and an ability to analyses and interpret the information provided by book-keeping records. Book-keeping is the recording phase while accounting is concerned with the summarizing phase of an accounting system Rook-keeping provides necessary data for accounting and accounting starts were book-keeping ends.

DISTINCTION BETWEEN BOOK-KEEPING AN ACCOUNTING

Book-keeping

Accounting

It is a process concerned with recording of transactions.

It constitutes a base for accounting.

Financial statements do not form part of this process.

Managerial decisions cannot be taken with the help of these records.

There is sub-field book-keeping.

The financial position of the business cannot be ascertained through book-keeping records.

It is a process concerned with summarizing the recorded transactions.

It is considered as a language of the business.

Financial statements are prepared in this process on the basis of book-keeping records.

Management makes decisions on the basis of these records.

It has several sub-fields like financial accounting and management accounting, management accounting, etc.

The financial position of the business is ascertained on the basis of the accounting reports.

Career Opportunities for NET/JRF

2020-07-21T23:51:00.003+05:30

UGC NET/JRF

Students getting ready for the UGC NET examination regularly face a lot of queries, such as, what after qualifying UGC-NET or what profession choices are on hand if I clear the UGC NET exam? With the assist of this article, we intend to inform college students in this regard and assist them to apprehend professional possibilities after the UGC NET exam.

UGC-NET opens up several job possibilities in the area of educating and research. However, qualifying UGC NET is now not restrained to these possibilities only. Apart from these two profession options, candidates can additionally be part of many reputed PSUs which reflect on consideration on the UGC-NET examination rating to rent candidates for positive posts. Let us discover all these choices in element now.

UGC NET Career Options after qualifying For Assistant Professor

Candidates who qualify for Assistant Professor via UGC NET can pick out the alternative to pursue a profession in the education field.

• UGC-NET examination makes the candidate eligible for the publish of Assistant Professor.

• They can discover the great institutes throughout u. s . and begin making use of for the publish of Assistant Professor with their legitimate scorecard.

• Candidates can anticipate beneficial pay in the vary of Rs. 25,000/- to 40,000/- per month in the starting section primarily based on the scores, skills, and colleges.

• The qualifiers can additionally avail different profession selections by way of becoming a member of as a college at a teaching institute to educate the aspirants for the UGC-NET Exam.

UGC NET Career Options after qualifying JRF (Junior Research Fellowship)

Candidates who qualify for JRF have the alternative to pursue lookup in their respective postgraduate topics and can pick the universities and/or schools amongst the NET coordinating institutes. They can join themselves for the Ph.D. direction presented via universities and IIMs.

• After qualifying NET-JRF and enrolling in a Ph.D. course, the candidate is awarded a fellowship for 5 years.

• For the first two years, the fellowship of Rs. 31000/- + HRA per month (depends on distinctive institutes) and for the subsequent three years, the fellowship of Rs 35000/- + HRA per month (depends on exclusive institutes) is provided.

• In addition to it, various different gives you might also additionally be supplied relying on the coverage of the worried university. The fellowship provided by using personal universities and IIMs varies relying on their respective application policies. You can search for the direction in-depth on the website of respective institutions.

• Qualifying JRF gives twin advantages i.e. stipend like a normal job and a Doctorate Degree.

• The subsequent choice is to work as a researcher in a company firm. Some of the businesses recruit JRF-qualified candidates to lift out the lookup work for the advantage of their company

Career Options in Public Sector Undertakings After Qualifying UGC NET

Qualifying UGC-NET Exam opens the doorways to a number of prestigious PSUs (Public Sector Undertaking) for the certified candidates.

• Some of the pinnacle PSUs such as ONGC, NTPC, EdCIL, etc. shortlist the candidates for a variety of positions thru this exam.

• Candidates who aspire to work in authorities organizations can practice for the recruitment manner with their UGC NET scorecard.

• These groups recruit on the whole in the fields of HR, Finance, and Marketing.

• You can refer to the authentic internet site for extra important points related to dates and determination procedures.

Basic Rule Of Tense

2020-04-09T19:47:00.001+05:30

PART-1

Basic Rule Of Tense

This rules are very use full to all students who are facing problem to understand the "Tense". It is my first part we will quickly post part-2 after the request of my viewer.

PERSON

First Person Second Person Third Person
I/We You He, She, They, Any Name

NUMBERS

Singular Plural

First Person I We

Second Person You You

Third Person He, She, It, Any Name They, Any Names

FORMS OF VERB

(V1) ( V2 ) ( V3 ) ( V4 ) ( V5 )

Do Did Done Doing Does

Ship Shipped Shipped Shipping Ships

Be (is/are/am) was/were Been

Deal Dealt Dealt Dealing Deals

NOTE V1, V2, V3 are need to learn properly, V4 make after adding (ing) in V1 and V5 make after adding s/es in V1.

If V1 end with ‘A, I, O, U’ letter then add “es” under V1 and except it you can add “S” under V1 to make V5.

If any Verb end with “E” letter then remove it before adding “ing”.

Basic Rule Of Tense

SIMPLE

CONTINUOUS

PERFECT

PERFECT CONTINUOUS

PRESENT

TENSE

ता, ते, ती, तो|

रहा है, रही है, रहे हो|

चुका है, चुकी है, किया है, लिया है, दिया है|

रहा है, रही है, रहो हो, तथा समय का बोध हो|

P: S+V1+S/ES+O.

P: S+IS/AM/ARE+VI

(ING)+O.

P: S+HAS/HAVE+

V3+O.

P: S+HAS/HAVE+

BEEN+V1(ING)+O+

FOR/SINCE+TIME.

N: S+DO/DOES+

NOT+V1+O.

N: S+IS/AM/ARE+

NOT+VI(ING)+O.

N: S+HAS/HAVE+

NOT+V3+O.

N: S+HAS/HAVE+

NOT+BEEN+V1(ING)+

O+FOR/SINCE+TIME.

I: DO/DOES+S+

V1+O?

I: IS/AM/ARE+S+V1

(ING)+O?

I: HAS/HAVE+S+

V3+O?

I: HAS/HAVE+S+

     BEEN+V1(ING)+O

      +FOR/SINCE+TIME?

I+N:DO/DOES+

    S+NOT+V1+O?

I+N: IS/AM/ARE+

S+NOT+V1(ING)+O?

I+N: HAS/HAVE+S+

            NOT+V3+O?

I+N: HAS/HAVE+S+

NOT+BEEN+V1(ING)

+O+FOR/SINCE+TIME?

PAST

TENSE

था, थे, थी|

रहा था, रही थी, रहे थे|

चुका था, चुकी थी, किया था, लिया था, दिया था|

रहा था, रही थी, रहे थे लेकिन समय का बोध हो|

P: S+V2+O.

P: S+WAS/WERE+

V1(ING)+O.

P:S+HAD+V3+BEFORE

+S+V2.

P: S+HAD+BEEN+

V1(ING)+O+FOR/

SINCE+TIME.

N: S+DID+NOT

+V1+O.

N: S+WAS/WERE+

NOT+V1(ING)+O.

N: S+HAD+NOT+V3

+BEFORE+S+V2.

N: S+HAD+NOT+

BEEN+V1(ING)+O

+FOR/SINCE+TIME.

I: DID+S+V1+O?

I: WAS/WERE+S+V1

(ING)+O?

I: HAD+S+V3+

BEFORE+S+V2?

I: HAD+S+BEEN+V1

(ING)+O+FOR

/SINCE+TIME?

I+N: DID+S+NOT

+V1+O?

I+N: WAS/WERE+

S+NOT+V1(ING)+O?

I+N: HAD+S+NOT

+V3+ BEFORE+S+V2?

I+N: HAD+S+NOT

BEEN+V1(ING)+O

+FOR/SINCE+TIME?

FUTURE

TENSE

गा, गे, गी|

रहे गा, रहे गी, रहे गे|

चुका होगा , चुकी होगी , किया होगा , लिया होगा

रहे गा, रहे गी, रहे गे| लेकिन समय का बोध हो|

P: S+SHALL/WILL

      +V1+O.

P: S+SHALL/WILL

   +BE+V1(ING)+O?

P: S+SHALL/WILL+

       HAVE+V3+O.

P: S+SHALL/WILL+

       HAVE+BEEN+V1

       (ING)+O.

N:S+SHALL/WILL

       +NOT+V1+O.

N: S+SHALL/WILL

NOT+BE+V1(ING)+O?

N: S+SHALL/WILL+

   NOT+HAVE+V3+O.

N: S+SHALL/WILL+

      HAVE+NOT+BEEN

     +V1(ING)+O.

I: SHALL/WILL+S

    +V1+O?

I: SHALL/WILL+S+BE

    +V1(ING)+O?

I: SHALL/WILL+S+

     HAVE+V3+O?

I: SHALL/WILL+S+

      HAVE+BEEN+V1

       (ING)+O?

I+N: SHALL/WILL

   +NOT+S+V1+O?

I+N: SHALL/WILL+S

+NOT+BE+V1(ING)+O?

I+N: SHALL/WILL+

            S+NOT+HAVE+

             V3+O?

I+N: SHALL/WILL+

            S+HAVE+NOT+

    BEEN +V1(ING)+O?

P= positive, N= negative, I=interrogative, I+N= interrogative and negative, S=subject, O=object.

	SIMPLE	CONTINUOUS	PERFECT	PERFECT CONTINUOUS
PRESENT TENSE	ता, ते, ती, तो\|	रहा है, रही है, रहे हो\|	चुका है, चुकी है, किया है, लिया है, दिया है\|	रहा है, रही है, रहो हो, तथा समय का बोध हो\|
	P: S+V1+S/ES+O.	P: S+IS/AM/ARE+VI (ING)+O.	P: S+HAS/HAVE+ V3+O.	P: S+HAS/HAVE+ BEEN+V1(ING)+O+ FOR/SINCE+TIME.
	N: S+DO/DOES+ NOT+V1+O.	N: S+IS/AM/ARE+ NOT+VI(ING)+O.	N: S+HAS/HAVE+ NOT+V3+O.	N: S+HAS/HAVE+ NOT+BEEN+V1(ING)+ O+FOR/SINCE+TIME.
	I: DO/DOES+S+ V1+O?	I: IS/AM/ARE+S+V1 (ING)+O?	I: HAS/HAVE+S+ V3+O?	I: HAS/HAVE+S+ BEEN+V1(ING)+O +FOR/SINCE+TIME?
	I+N:DO/DOES+ S+NOT+V1+O?	I+N: IS/AM/ARE+ S+NOT+V1(ING)+O?	I+N: HAS/HAVE+S+ NOT+V3+O?	I+N: HAS/HAVE+S+ NOT+BEEN+V1(ING) +O+FOR/SINCE+TIME?
PAST TENSE	था, थे, थी\|	रहा था, रही थी, रहे थे\|	चुका था, चुकी थी, किया था, लिया था, दिया था\|	रहा था, रही थी, रहे थे लेकिन समय का बोध हो\|
	P: S+V2+O.	P: S+WAS/WERE+ V1(ING)+O.	P:S+HAD+V3+BEFORE +S+V2.	P: S+HAD+BEEN+ V1(ING)+O+FOR/ SINCE+TIME.
	N: S+DID+NOT +V1+O.	N: S+WAS/WERE+ NOT+V1(ING)+O.	N: S+HAD+NOT+V3 +BEFORE+S+V2.	N: S+HAD+NOT+ BEEN+V1(ING)+O +FOR/SINCE+TIME.
	I: DID+S+V1+O?	I: WAS/WERE+S+V1 (ING)+O?	I: HAD+S+V3+ BEFORE+S+V2?	I: HAD+S+BEEN+V1 (ING)+O+FOR /SINCE+TIME?
	I+N: DID+S+NOT +V1+O?	I+N: WAS/WERE+ S+NOT+V1(ING)+O?	I+N: HAD+S+NOT +V3+ BEFORE+S+V2?	I+N: HAD+S+NOT BEEN+V1(ING)+O +FOR/SINCE+TIME?
FUTURE TENSE	गा, गे, गी\|	रहे गा, रहे गी, रहे गे\|	चुका होगा , चुकी होगी , किया होगा , लिया होगा	रहे गा, रहे गी, रहे गे\| लेकिन समय का बोध हो\|
	P: S+SHALL/WILL +V1+O.	P: S+SHALL/WILL +BE+V1(ING)+O?	P: S+SHALL/WILL+ HAVE+V3+O.	P: S+SHALL/WILL+ HAVE+BEEN+V1 (ING)+O.
	N:S+SHALL/WILL +NOT+V1+O.	N: S+SHALL/WILL NOT+BE+V1(ING)+O?	N: S+SHALL/WILL+ NOT+HAVE+V3+O.	N: S+SHALL/WILL+ HAVE+NOT+BEEN +V1(ING)+O.
	I: SHALL/WILL+S +V1+O?	I: SHALL/WILL+S+BE +V1(ING)+O?	I: SHALL/WILL+S+ HAVE+V3+O?	I: SHALL/WILL+S+ HAVE+BEEN+V1 (ING)+O?
	I+N: SHALL/WILL +NOT+S+V1+O?	I+N: SHALL/WILL+S +NOT+BE+V1(ING)+O?	I+N: SHALL/WILL+ S+NOT+HAVE+ V3+O?	I+N: SHALL/WILL+ S+HAVE+NOT+ BEEN +V1(ING)+O?

Mahgyn

Format of the Trial Balance

OBJECTIVES OF PREPARING THE TRIAL BALANCE

The form of the trial balance is simple, as shown below: The undermentioned points may be noted:

LIMITATIONS OF TRIAL BALANCE

METHODS OF PREPARATION OF TRIAL BALANCE

A SUSPENSE ACCOUNT IS CREATED WHEN AN ERROR OR UNCLEAR ENTRY IS FOUND IN THE TRIAL BALANCE

RULES OF PREPARING THE TRIAL BALANCE

Important Points of Trial Balance:

Actual facts of closing stock entry:

journal entries for depreciation with example

Combined Entries for Machine Purchase

Combined Entries for Profit on Sale

Combined Entries for Loss on Sale

MACHINERY ACCOUNT

The calculation for Loss of Sales

The calculation for Profit on Sales

Depreciation on Remaining Cost of First Machine

Depreciation of Remaining cost of Second Machine

Calculation of Total Amount of Depreciation

Career in cyber security in India

Introduction to a career in cyber security

Prospects and Opportunities as a Cyber ​​Crime Investigator

A career in cyber security in India

Ethical hacker

Cryptographer

Security experts

Methods of depreciation

Under this method, the deprecation is calculated with the help of the following formula.

= V+I-S/ N Here: V= value of the fixed assets. I= Installation charge of the fixed assets. S= Scrap Value of the fixed assets. N= number of years of expected life. D= Depreciation of the fixed assets.

Depreciation may be expressed as a rate and this rate on cost can be calculated as under:

Advantages or Merits of the straight-Line Method:

Disadvantages or Demerits of the straight-Line Method:

Rate of Depreciation = (1-s/c)1/n

Advantages of Diminishing Balance Method:

Disadvantages of Diminishing Balance Method:

Rate of Depreciation as per Assessment Year 2022-23

Conclusion :

Differences between straight line method and diminishing balance method of depreciation | Depreciation and Fluctuation ✌🤔

Differences between Depreciation and Fluctuation

Differences between Depreciation Account and Provision for Depreciation Account

Differences between Straight Line Method and Diminishing Balance Method

How can UGC NET and B.Ed. help to grow the students' careers?

All brief details about B.Ed.

Eligibility of B.Ed.

The curriculum of B.Ed.

The program shall comprise three broad curricular areas :

Perspectives in Education

Curriculum and Pedagogic Studies

Engagement with the Field

All brief details about NET Exam

Eligibility of the NET Exam

Pattern of Examination

Mode of Examination

Medium of Question Paper

Marking Scheme

Conclusion

Depreciation Accounting Concept

Characteristic of Depreciation

The Types of Depreciation may be discussed below

Objective of Depreciation

Create a provision for discount on debtors and creditors

What is the provision for discount on debtors?

It is recorded by the following journal entry.

JOURNAL ENTRY

What is the provision for discount on creditors?

JOURNAL ENTRY

Bad Debts Journal Entry-mahgyn

Bad Debts

The following journal entry is to be made for bad debts written off

The following journal entry is necessary for the transfer of bed debts to the profit & loss account

Differences Between Bad Debts and Doubtful Debts

Provision for Doubtful Debts

Differences Between Bad Debts and Provision for Doubtful Debts

Recovery of Bad Debts

Career in Account Executive

Duties and Responsibilities of Account Executive Post

Required Skill for Account Executive Career

Salary in an account executive post

Top MNCs in India for this post

Prospects and Opportunities as a Cyber Crime Investigator

= V+I-S/ N

Here: V= value of the fixed assets.

I= Installation charge of the fixed assets.

S= Scrap Value of the fixed assets.

N= number of years of expected life.

D= Depreciation of the fixed assets.