Audit of Electricity Supply Company – tryspring

Audit of Electricity Supply Company The following points need to be considered by an Auditor while conducting Audit of Electricity Supply Company − He should carefully study the internal control system related to billing, payment collection, collection of debts and payments of wages, electricity charges, etc. He should be well versed with the Provisions of… Read More »

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Auditing Audit Verification – tryspring

Auditing – Audit Verification Verification means the inspection of assets appearing in financial statements, whether the assets are according to legislation or not. Verification of assets and liabilities are done to confirm the following − Existence Ownership Proper valuation Possession Freedom from encumbrances Proper recording Objectives of Verification Vouching and Verification Verification of Liabilities Confirmation… 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 Investment Account – tryspring

Financial Accounting – Investment Account Anyone can buy and sell securities from a stock exchange with the purpose to increase his/her (monetary) assets. Sale and purchase of the securities is done through banks. The stockbrokers help people in trading by paying the amount of commission, stamp duty, and brokerage on it, which are the essential… 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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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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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 Audit of Doctors – tryspring

Auditing – Audit of Doctors The following points need to be considered by an Auditor while conducting an Audit of Doctors − The auditor should first list out books of accounts, register, document, etc. as maintained by the doctor. He should note down the fees charged by the Doctor to attend patient at his clinic,… Read More »

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Financial Accounting Leasing – tryspring

Financial Accounting – Leasing In the field of real estate, leasing is a popular term because it is advantageous to own land and building. Today, most of the businesses run their offices on the leased premises. A Lease is an agreement under which lessee (the person/entity, who takes possession of the property) get the right… Read More »

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Financial Accounting Rectification of Errors – tryspring

Financial Accounting – Rectification of Errors Financial accounting deals with recording and maintaining every monetary transaction of an organization. However, sometimes, a few entries might be either incorrect or used at the wrong place. In financial accounting, the process of correcting such mistakes is known as Rectification of Errors. Types of Errors Error which Effect… 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 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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Provision and Reserves – tryspring

Provision and Reserves Meaning of Provisions Meaning of Reserves Distinction between Provisions and Reserves Secret Reserves Advantages of Secret Reserves Limitations of Secret Reserves General and Specific Reserves Sinking Fund Investment of Reserves Nature of Reserve Meaning of Provisions “Any amount written off or retained by the way of providing depreciation or diminution in the… Read More »

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Auditing Capital and Revenue – tryspring

Auditing – Capital and Revenue In this chapter, we will discuss the Auditing of Capital and Revenue. It is essential to distinguish revenue expenses and capital expenditure to prepare correct financial statements. The absence of these will lead to misleading results where no one can conclude anything. As per this principle, revenue item should be… Read More »

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Auditing Audit of Clubs & Theatre – tryspring

Auditing – Audit of Clubs & Theatre In this chapter, we will discuss the Audit of Clubs and Theatre. Audit of Clubs Internal Control System Audit of Income and Expenditure of Club Audit of Cinemas and Theatre Audit of Expenses of Cinemas and Theatre Internal Control System Audit of Clubs The following points need to… Read More »

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Auditing Management Audit – tryspring

Auditing – Management Audit Management audit is a new concept in auditing. Area of Management audit is beyond conventional audit; it reviews all aspects of management. It is an audit of overall performance of management. It covers planning, organizing, co-ordination and control, etc. Management audit detects and diagnoses the problem and suggests various means to… Read More »

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Financial Accounting Non Trading Accounts – tryspring

Financial Accounting – Non-Trading Accounts Some of the organizations or institutions are constituted to provide valuable services to the society with the objective not to earn profit. These organizations normally offer the services such as education, medical, social clubs, charitable trusts, trade unions, etc. However, we can summarize these organizations in the following three types… Read More »

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Auditing Audit of Shipping Company – tryspring

Auditing – Audit of Shipping Company The following points need to be considered while conducting audit of Shipping Company − As per appointment letter Auditor should know the scope of his audit work along with legal requirements to prepare his audit Program accordingly. An Auditor should study the Articles of Association. He should also study… 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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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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