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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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 Techniques – tryspring

Auditing – Audit Techniques Evidences are very important for an Auditor to form an opinion regarding financial statements. If Auditor fails to collect proper evidence, it will reduce the reliability of audit report. The method of collecting evidence is called audit technique. Following are a few important audit techniques − Vouching Confirmation Reconciliation Testing Physical… 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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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 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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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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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 Audit Vouching – tryspring

Auditing – Audit Vouching Accounting entries made in the books must be supported by documentary evidence and inspection of that evidence is called vouching. The Auditor judges the authenticity, of the accounting entries using the technique of vouching. In case of unavailability of proper supporting documents, the Auditor may have all reasons to doubt about… Read More »

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Measurement of Business Income – tryspring

Measurement of Business Income One of the most significant accounting concepts is “Concept of Income”. Similarly, measurement of a business income is also an important function of an accountant. In General term, payment received in lieu of services or goods are called income, for example, salary received by any employee is his income. There may… Read More »

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Auditing Audit of Co Operative Societies – tryspring

Auditing – Audit of Co-Operative Societies Any ten persons who are competent to enter into contract may make an application to the Registrar of Co-operative Societies as per section 6 of the Co-operative Societies Act, 1912. By-laws may be framed by each society and should be registered with Co-operative Societies. Effectiveness of change in by-laws… 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 Sole Proprietary Concern – tryspring

Auditing – Audit of Sole Proprietary Concern There is no obligation for a sole proprietor under any law to get the accounts except in case where the turnover of a proprietary business in any financial year exceeds One Hundred Lacs Rupees and gross receipt from profession exceeds Twenty-five Lacs Rupees. In both the cases, the… 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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Stock Exchange Transactions – tryspring

Stock Exchange Transactions Stock exchange is an organized market where sale and purchase of listed securities of all description i.e. shares, stocks, debentures, government securities, etc. are done. It is a government approved market place where buyer and seller of securities of all kind find each other to buy and sell securities on the market… 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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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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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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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 Insolvency Accounts – tryspring

Financial Accounting – Insolvency Accounts Insolvency is a financial stringency i.e. when an individual or an organization/company is no longer capable to pay the debts he/it owes. Insolvency usually leads to insolvency proceedings, in which legal action can be taken against the insolvent, and assets may be liquidated to pay off the outstanding debts. When… Read More »

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