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How to place journal entry for purchase order in books of account ?
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dhulipala- Member Since Jun-2010 | Jun 24th, 2010
Generally there is no journal entry at the time when one receives a purchase order as this receipt of purchase order cannot be recognized as revenue at this point of time.
But under following circumstance there would be an entry:
when any advance is received:-
Cash/ Bank Dr
Party account
AMOL
- Nov 16th, 2017
What are PO and GRN Journal?
prasoon
- May 14th, 2015
1st Qustn Anw
Received 4000
Discount allowed 1000
Bad debt. 5000
To Debtor. 10000. -
What are the different kind of mis reports
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subhash chandra sharma- Member Since Dec-2008 | Dec 30th, 2008
MIS: Management Information System
There is no pre-defined types of MIS but as per requirements of the management it can be of many type.
Fazal
- Aug 4th, 2015
Management Information System Reports (MIS) is such an information system that very much helpful to take Business Decisions by a Companys top level management. Kinds of MIS may vary as per Business policy of the Company.
kumardurgam
- Mar 12th, 2009
MIS reports are prepared for the management to take key manegerial decisions. It may vary from company to company and industry to industry.
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How many methods are used to calculate depreciation
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kordar- Member Since Jun-2008 | Jun 18th, 2008
3 popular types
1st straightline
2nd declining balance
3rd Sum-of-Years' Digits MethodAbhishek
- Jul 15th, 2015
1. Straightline depreciation
2. Reducing balance depreciation
3. Sum of the year digits depreciation
4. Units of activity depreciationDhananjay
- Nov 12th, 2011
There are two types of method to calculate depreciation 1) Straight line method and 2) Reducing line method
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What are the various items fall in balance sheet
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baubisingh- Member Since Nov-2010 | Nov 15th, 2010
(A)asset side items are
1 cash in hand
2.cash at bank
3.debtor
4.land ,building
5.prepaid expenses
6. bills receivable
(B)liability side
1.capital
2.bank over draft
3.creditor
4.outstanding expenses
5.bills payableSatyanarayana raju
- Jun 14th, 2015
Liabilities side:
Capital
Loans availed
Current liabilities
Duties and taxes
Provisions
Sundry Creditors
Assets side
Fixed assets
Current assets
investments
stock on hand
Cash and bank balances
Deposits
Loans and Advances (Asset)
Miscellaneous expenses(Asset)Anil sharma
- Apr 9th, 2015
Asset side :
fixed assets
current asset and loan in advance
investment
misclinious exp.
p&l if debit bal.
Liability :
share capital
reserve and surplus
secured loan
unsecured loan
c.l and provision -
Contingent Liability
Why are contingent liabilities ever recorded—why not just wait until a lawsuit is settled? What accounting concepts apply to this situation?
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nkamuni_mca- Member Since Dec-2007 | Mar 10th, 2010
Contingent Liability is the liability which may / may not occour in future... So, it is shown as notes rather then in balance sheet... Once, the liability become's real then it will recorded in books.
GIRISH GARG
- Sep 1st, 2014
Contingent liability is a liability that may or may not occur in future. It depends upon an event that will occur in future and can make a company liable to it. Example. when 2 cos A and B are in disp...
chandu
- Mar 28th, 2012
Contingent liability nothing but liability it will occur uncertain future events like product warranty.
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How do you book a letter of credit in your books?
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vijay.rathinavel- Member Since Mar-2010 | Mar 10th, 2010
The Money Behind a Letter of Credit.
A bank promises to pay on behalf of a customer, but where does the money come from? The bank will only issue a letter of credit if they know the buyer will pay. Some buyers have to deposit (or already have) enough money to cover the letter of credit, and some customers use a line of credit with the bank. Sellers must trust that the bank issuing the letter of credit is legitimate.Sandeep Sahu
- Nov 10th, 2011
A letters of credit is a contingent liability of a particular bank and a contingent liability is shown as foot note of the balance sheet
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What is the difference between cash basis and accrual basis Balance Sheet?
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VISWANATHA- Member Since May-2009 | May 2nd, 2009
Under cash system of accounting, transactions are recorded in books on the basis of their actual payment or receipt made.
Under the accrual basis of accounting, the transaction are record on their occurrence in the business regardless of actual payment or receipt is made, and recognizes the assets and liabilities accordingly. provisions are made for all known losses and obligations are recorded for the period to which it relates to in the books.Sowmya
- Oct 29th, 2011
Cash basis transaction is recorded when the cash moves from hand to hand, Ex:Rs.200.00 stationery purchased and paid. Accrual basis means transaction is recorded with out flow of funds from our hand, Ex:Raw material purchased on credit basis, all payables are comes under accrual basis.
SAMISR KUMAR
- Jul 12th, 2011
In the cash basis account transaction are recorded only cash in flow or outflow (cash paid or received ). but in the accrual basis we consider as a actual paid or received in this case we consider rent due,outstanding rent, outstanding salary, prepaid rent, etc considered.
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What is Budgeting?
How does it help to management in taking the decisions?
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kothari625101- Member Since Jul-2009 | Jul 25th, 2009
It is forecasting of expenses/income of company which can made by our past records or by some assumption.
sowmya
- Oct 29th, 2011
It is nothing but estimating future based on past
paresh
- Oct 19th, 2011
Decision depends on the budget.
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What is difference between forecast and budget
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praveenpotturi- Member Since Aug-2010 | Aug 20th, 2010
A Budget is a plan that outlines an organization's financial and operational goals. So a budget may be thought of as an action plan; planning a budget helps a business allocate resources, evaluate performance, and formulate plans.
Forecast: Due to some operational reasons or managment decision plan maynot be followed as it was done in the begining of the year. So this is changed accordingly to comply with the organisations objects. This change in plan is called forecast.sowmya
- Oct 29th, 2011
Budget means planning future based on past, it is short period i.e., one year
Forecasting means estimating future for making planning,generally it is long period.praveenpotturi
- Aug 20th, 2010
A Budget is a plan that outlines an organization's financial and operational goals. So a budget may be thought of as an action plan; planning a budget helps a business allocate resources, evaluate...
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Explain Variance Analysis with Example?
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jaimyjobish- Member Since Apr-2010 | Apr 16th, 2010
Variance analysis in budgeting or management accounting in general is a tool of budgetary control by evluation of performance by means of variance between budgeted amount, planned amount or standard amt and the actual amt incurred/sold.
Variance can be carried out for both revenue & cost. Variance analysis hepls the management to know the present cost & then control the future cost.
Examples includes sale price variance, sales quantity variance, sales mix variance.
praveenpotturi
- Aug 20th, 2010
Its is the analysis done on Actual Vs Plan or Forecast.This analysis can be done in terms of how plan is done and how actuals have arrived.
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How to prepare funds flow statement?
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MohitJindal- Member Since May-2009 | May 1st, 2009
A fund flow statement or a cash flow statement records the changes in monetary funds over a period of time, usually by comparing the latest position at balance sheet date with the corresponding monetary position a year ago.
There are various elements of business that affect fund/cash flow. These include such things as increased sales, reductions or increases in debtors, longer or shorter times in paying creditors, repayments of loans, etc., a summary of which should be shown on separate lines of the statement. It can start with a section listing the elements that contribute to an increase in cash, then the next section lists those items which have contributed to a decrease in cash.
Space (and time!) does not permit more comprehensive details of what is needed and how to do it. You should consult a text book on Financial Accounting and look at the fund/cash flow statement of a company similar to the one for which you wish to prepare such a statement.
At the end of the fund/cash flow statement, if you have done all your calculations correctly, and taken everything that affects cash movement into account, your final figure will equal the cash figure in the balance sheet.MohitJindal
- May 1st, 2009
A fund flow statement or a cash flow statement records the changes in monetary funds over a period of time, usually by comparing the latest position at balance sheet date with the corresponding moneta...
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What is Gross Profit Margin?
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kumardurgam- Member Since Feb-2006 | Oct 17th, 2008
Gross Profit Margin = Gross Profit/Sales or Revenue
Gross Profit = Sales or Revenue - Cost of Goods Soldkumardurgam
- Oct 17th, 2008
Gross Profit Margin = Gross Profit/Sales or RevenueGross Profit = Sales or Revenue - Cost of Goods Sold
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What is accounting report
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kumardurgam- Member Since Feb-2006 | Oct 17th, 2008
Periodic statemets showing financial position of a firm/company for a specific period, resulted from its business tranasctions and operations
kashyap.brijmohan
- Apr 10th, 2009
Trading / Profit and Loss A/C and Balance Sheet are accounting report of a Company.
kumardurgam
- Oct 17th, 2008
Periodic statemets showing financial position of a firm/company for a specific period, resulted from its business tranasctions and operations
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