How to work with a balance sheet,
components needed to prepare a balance sheet

Chandan Kumar Singha Roy

• Nov 22nd, 2012

Balance Sheet is Prepared with the compliance of Accounting Equation A=L+C and Accounting Standards and Schedule Vi of companies Act 1956.

saththar

• Nov 13th, 2012

Balance sheet is prepared by the accounting equation. ie Assets=Capital+Liabilities .

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If a company change its depreciation method from Straight line method to another method than what will be the impact for the difference?

prashant

• Sep 11th, 2012

It should be adjusted in only that assests account by charging extra dep. or charging less dep........

steadyshot23

 Profile Answers by steadyshot23 Questions by steadyshot23

• Mar 18th, 2010

No Journal entry is needed. You just use the method that you changed to.

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VINOD KUMAR

• Jul 9th, 2012

Contingent liabilities are subjected to occurrence or not of a future event. Means a liability may be arise in future or not , it all depends on a future event. So these are not actual liabilities and shown as a foot note after balance sheet .

mahesh,dilip

• Jun 22nd, 2012

Contingent liability refers to liabilities which may or may not occur in the future. eg:court case

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Your client is preparing financial statements to show the bank. You know that he has incurred a computer repair expense during the month, but you see no such expense on the books. When you question the client, he tells you that he has not received the official bill, although he knows the expense was $1,250. Your client is on the accrual basis of accounting. He does not want the computer repair...

Misfer

• Jun 8th, 2012

Its depending on the basis he based on whether its monetary or accrual basis

SANTOSH KANDEL

• May 29th, 2012

As we are already aware about one of the concept of accounts i.e. prudence concept, which explains that all the expenses and losses which are to be held in near future should be recognized in advance ...

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kailash

• May 31st, 2012

Once TDS deducted in current year, we cannot reverse the same in next year. According to Income tax act, TDS has to deduct from Vendor Account, at time of accounting of bill or at time of payment whic...

kumar

• Feb 3rd, 2012

Provision entries are entries that are made to account for expenses that have not been accounted in the period for which it relates. Hence the provision is created by debiting the expenses and crediting the party account or liability account.

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What are some of the methods used to allocate support costs?

Mohamed Darwesh

• Apr 30th, 2012

1- Direct method
2- Step - down metod
3- Reciprocal method

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What are the advantages and disadvantages of the following methods of depreciation?1. Straight line method2. Reducing balance method3. Revaluation method4. Usage method5. Sum of digits method

khurram

• Mar 7th, 2012

You can choose whichever method you like however make sure you use according to the business you are running. If you want to use your expense in current period to generate extra income use double declining method. If you are not concerned about extra income use straight line method

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Describe and discuss the relevance of the Fisher Effect and the Purchasing Power Parity theories to a foreign currency dealer in a merchant bank

vinay kidangan

• Mar 1st, 2012

Fisher Effect An economic theory proposed by economist Irving Fisher that describes the relationship between inflation and both real and nominal interest rates. The Fisher effect states that the real...

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What difference between retail invoice and tax invoice?

AJAY

• Feb 10th, 2012

Retail invoice is a normal invoice given to a customer at the time of sales, it is not concerned with tax-credit. Whereas tax invoice is a mandatory invoice precribed by the tax authorities containin...

Lokesh M

 Profile Answers by Lokesh M Questions by Lokesh M

• Feb 7th, 2012

Whenever sales transaction does not involve any tax component, then retail invoice is issued. Such type of invoice is also known as cash memo. No VAT credit can be claimed on retail invoices. Wheneve...

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Lokesh M

 Profile Answers by Lokesh M Questions by Lokesh M

• Feb 7th, 2012

Evaluated Receipt Settlement also known as ERS is a business transaction process between trading parties. In this type of process, the PO information as well as the goods receipt information is used to make direct payment to the supplier without even receiving an invoice.

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What is the treatment of Depreciation on Gift Items?

Lokesh M

 Profile Answers by Lokesh M Questions by Lokesh M

• Feb 7th, 2012

It may depend and differ based on what the gift items are.

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Lokesh M

 Profile Answers by Lokesh M Questions by Lokesh M

• Feb 7th, 2012

- Gather, transfer and transmit complete information and details related to credit claims such as identification, assessment and valuation - Assign of identification numbers for the claim - Check eli...

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Lokesh M

 Profile Answers by Lokesh M Questions by Lokesh M

• Feb 7th, 2012

Some methods to allocate support cost are:

1. Direct Allocation Method
2. Step-Down Method (also known as Sequential Allocation Method)
3. Reciprocal Method

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Lokesh M

 Profile Answers by Lokesh M Questions by Lokesh M

• Feb 7th, 2012

Chargeback means refund / return of funds to the buyer. Here the bank reverts back the transaction between the buyer and seller when chargeback is initiated. A chargeback is initiated by the buyer w...

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Lokesh M

 Profile Answers by Lokesh M Questions by Lokesh M

• Feb 7th, 2012

Freight charges is the cost of transporting the goods from the seller place to the purchasers location. This cost shall include packing, loading / unloading, carriage, shipping cost etc.,

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sk.khadar mohiddin

• Feb 2nd, 2012

At first I would like to know what is the defective conditions the industry faced now. After that make to change the condition with effective manner. If i make the situations effective, automatically set the position of accountancy also.

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How many types of fixed asset in accounting? What are they?

sk.khadar

• Feb 2nd, 2012

The immovable assets are called fixed assets

ajay

• Dec 26th, 2011

5 types of fxed assets are there

Land
Plant & Machinery
Vehicles
Buildings
Furniture

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cyberfrau

 Profile Answers by cyberfrau Questions by cyberfrau

• Dec 2nd, 2011

As they would anywhere - problems arise when we do not conform to requirements. Having said that, sometimes problems arise because the requirements are not correct. Root cause analysis recommended.

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What would you do if upper management issue a new policy and it was questionable to you? Would you follow the new policy?

sameer khan

• Nov 2nd, 2011

One should follow the policies of the company because it is an employee duty bt in case a particular policy is questionable then report the same to upper management and suggest them that if we amend this policy then our company will get more benefits.

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Mohamed Gazzali

• Oct 9th, 2011

The reason why rule of nominal account is opposite with the rule of personal and real account is that Nominal Accounts CANNOT be SEEN & TOUCHED. So it has a different application in Accounting logic. ...

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