Auditing Audit of Educational Institutions – tryspring

Auditing – Audit of Educational Institutions In this chapter, we will discuss the Audit of Educational Institutions. Maintenance of Accounts of Educational Institutions Main Source of Collection Types of Expenses / Payments Preliminary Audit of Educational Institutions Internal Control System Audit of Assets and Liabilities Audit of Income of Educational Institutions Audit of Expenses of… Read More »

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Depreciation, Reserves and Provision – tryspring

Depreciation, Reserves and Provision In this chapter, we will discuss auditing related to Depreciation, Reserves and Provision. We will proceed by discussing Depreciation and move on to discussing Reserves and Provision further. What is Depreciation? Reason of Depreciation Wear and Tear Exhaustion Obsolescence Effusion of Time Other Causes Need for Depreciation Basis of Depreciation Depreciation… Read More »

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Financial Accounting Single Entry – tryspring

Financial Accounting – Single Entry As we know, there are two systems of recording transactions in our books of accounts. In the previous chapters, we have learned about the double entry system, now let’s discuss another system of accounting i.e. Single Entry System (SES). Meaning and Silent Features of SES Difference between SES and DES… Read More »

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Accounts of Private Individuals – tryspring

Accounts of Private Individuals Most of the private individuals never keep their accounts to record earned income or expenditure incurred by them. It is advisable for everyone to maintain an account to know what he has earned during a particular period, what he spent, and what was his saving out of that income. It is… Read More »

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Auditing Audit of Charitable Institutions – tryspring

Auditing – Audit of Charitable Institutions The following points need to be considered by an Auditor while conducting audit of Charitable Institutions − He should know about the constitution and the legal status of Charitable Institutions. An Auditor should study the Rules and Regulations of the State Government, Central Government and other applicable law to… Read More »

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Auditing Internal Control – tryspring

Auditing – Internal Control In this chapter, we will discuss how Internal Control works in Auditing. Internal Control system is one of the basic and essential factors for efficient and effective management. It covers the whole management system of an organization, both financial or non-financial. Internal control system is helpful for the management and also… Read More »

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Auditing Audit of Partnership Firms – tryspring

Auditing – Audit of Partnership Firms Although no compulsory audit is provided by the Indian Partnership Act, 1932 but in practice most of the partnership firm get their accounts audited. As per the Income Tax Act, 1961, Tax Audit of partnership firm is mandatory if the turnover/ gross receipt exceeds Rupees One Crore in case… Read More »

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Financial Accounting Co Operative Societies – tryspring

Financial Accounting – Co-Operative Societies Any ten persons who are competent to contract may file an application to the Registrar of Co-operative Societies as per Section 6 of the Co-operative Societies Act, 1912. By law, may be framed by each society and should be registered with the Co-operative Societies. Effectiveness of change by the law… Read More »

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Analysis of Changes in Income – tryspring

Analysis of Changes in Income The purpose of preparing a financial statement is not only to know the net income or losses of concern for the current year, but also to know the change in net income or losses of a firm in comparisons to the preceding years. There are two types of financial statements,… Read More »

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Auditing Types of Evidence – tryspring

Auditing – Types of Evidence In this chapter, let us understand the different types of evidence used in Auditing. Accounting System Physical Evidence Documentary Evidence Journals and Ledgers Oral Evidence Subsequent Events Circumstantial Evidence Ratios Computerized Records Accounting System Accounting System of an organization must be reliable. On the basis of flow chart, the Auditor… Read More »

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Financial Accounting Joint Venture – tryspring

Financial Accounting – Joint Venture An association of two or more persons or we may say temporary partnership combined for the carrying out a specific business, and divide profit or loss thereof in agreed ratio is called a Joint Venture. Concerned parties to joint venture are known as co-venturers. The liabilities of co-venturers are limited… Read More »

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Auditing Vouching of Cash Transactions – tryspring

Auditing – Vouching of Cash Transactions Vouching of Cash Receipts (Debit Side of Cash Book) Opening Balance of Cash Book Cash Received from Debtors Repayment of Loan by Others Rent Received Sale of Investments Subscription Sale of Fixed Assets Interest and Dividend Received Commission Received Installments Received on Hire-Purchase Sale Vouching of Cash Payments (Credit… Read More »

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Auditing Trading Transactions – tryspring

Auditing – Trading Transactions Vouching of Purchase Book Internal Control for Purchase Duties of Auditor Vouching of Purchase Return Book Vouching of Goods sent on Consignment Basis Vouching of Credit Sale Internal Control for Credit Sale Duties of Auditor Vouching of Sales Return Goods Sold on Sale or Return Basis Goods Sold on Hire Purchase… Read More »

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Auditing Audit of Hotels – tryspring

Auditing – Audit of Hotels In this chapter, we will discuss the Audit of Hotels. There are many types of facilities that are provided by the hotels to their customers these days. Hotels generate their income from room rent, room service, laundry, restaurants, swimming pool, bar-room, sports room, health clubs, conference halls and banquet hall… Read More »

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Auditing Mechanized Accounting – tryspring

Auditing – Mechanized Accounting In the traditional manual system of accounting, a lot of steps were involved in recording the Accounting transactions. In the present day business scenario a lot of information can be fetched in very less time, without spending a lot of workforce and resources. Therefore, various machines are doing the work of… Read More »

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Accounting for Consignment – tryspring

Accounting for Consignment Due to increasing size of market, it is quite obvious that manufacturers or whole sellers cannot approach directly to every customer around the state or nation. To overcome this limitation, manufacturers normally appoint reliable agents at every desired location to reach the customers directly. He makes an agreement with local traders who… Read More »

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Financial Accounting Final Accounts – tryspring

Financial Accounting – Final Accounts Final Accounts are the accounts, which are prepared at the end of a fiscal year. It gives a precise idea of the financial position of the business/organization to the owners, management, or other interested parties. Financial statements are primarily recorded in a journal; then transferred to a ledger; and thereafter,… Read More »

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Auditing Audit Sampling – tryspring

Auditing – Audit Sampling These days, auditors may not go for detailed examination and verifications of records. With the introduction of efficient internal control system in organizations, Auditors pick selective portion of entries out of complete data for making judgement on the complete data. Checking of all transaction and verifying entries and record of the… Read More »

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Financial Accounting Capital and Revenue – tryspring

Financial Accounting – Capital and Revenue One of the major aspects of preparing a correct financial statement is to distinguish revenue and capital in regard to revenue income, revenue expenditure, revenue payments, revenue profits, and revenue losses of the company with capital income, capital receipts, capital profit, or capital losses. In fact, without differentiating, we… Read More »

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Financial Accounting Contract Account – tryspring

Financial Accounting – Contract Account Contracts are undertaken to customer’s requirements, which is generally of constructional. For example, construction of buildings, ships, Bridges, Roads, etc. In all the above cases, contract account is opened. A unique number is allotted to each contract and a separate account is maintained for each individual contract. Features of Contract… Read More »

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