Tag Archives: quiz

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 »

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 »

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 »

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 »

Auditing Trading Transactions – tryspring

Auditing – Trading Transactions Vouching of Purchase Book The major purpose behind the vouching of purchase book is to confirm that every purchase bill is entered in purchase book and the invoices entered in purchase book are against the actually received goods and payment is made for those actual purchases. We will further discuss the… Read More »

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 »

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 »

Provision and Reserves – tryspring

Provision and Reserves Meaning of Provisions “Any amount written off or retained by the way of providing depreciation or diminution in the value of assets or for providing any known liability of which the amount cannot be determined with substantial accuracy.” – The Institute of Chartered Accountants of India “Liabilities which can be measured only… Read More »

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 »

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 For every accounting transaction, everyone… Read More »

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 The following points need to be considered while conducting Audits of Clubs − An Auditor should decide his scope of work from his appointment letter. He should know whether he is engaged for… Read More »

Auditing Vouching of Ledger – tryspring

Auditing – Vouching of Ledger We will start by discussing the types of ledger accounts and proceed to their verification and also the verification of other accounts. Personal Ledger Accounts All personal accounts are opened under this category. In big organizations where the number of transactions is quite high, a personal ledger may further be… Read More »

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 A large number of educational institutions are registered under the India Society Registration Act, 1860. The purpose behind the formation of educational institutions is to spread education and not just earn profits.… Read More »

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 »

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 »

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 »

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 Two most common… Read More »

Auditing Audit of Hospitals – tryspring

Auditing – Audit of Hospitals Maintenance of Accounts of Hospitals Being non-profit organizations, hospitals prepare Receipt & Payment account, Income & Expenditure account and Balance Sheet; following are various items that fall under income and expenditure in the hospitals. Main Items of Income Room Rent Medical Care Dentistry Charges Delivery Room Charges Anesthesia Charges Laboratory… Read More »

Government Accounting – tryspring

Government Accounting Government accounting is a scientific procedure of collecting, classifying, recording, summarizing, and interpreting all the financial transactions including revenues and expenditures of all the government offices. It keeps the record of public funds. Followings are the main objectives of the Government Accounting − Information about Revenues − One of the most important functions… Read More »

Auditing Tax Audit – tryspring

Auditing – Tax Audit Tax audit is done by an Auditor on behalf of the Government to make sure that every provisions of Income Tax has been compiled by the assesse or not. Practically it is not possible for the Income Tax department to verify each and every detail of the assesse. Tax audit can… Read More »