Opening Entry Explanation:
In the case of continuing business we are required to pass an entry in the journal for bringing in the new books all assets and liabilities as appearing in the books on the last day of the previous year. This entry is known as ‘opening entry’. It is to record the opening balances of various accounts that are being transferred from the books of the previous year to the books of the New Year. View More Details
Purchase and sales Returns Books explanation:
Quite often goods have to be returned to suppliers and goods are received back from the customers because goods are wrong kind or not up to sample or damaged etc… If returns are numerous, it will be better if separate registers or books are maintained to record returns of purchases (called Return outwards) and returns of sales (called Returns inwards). View More Details
Purchase book, Sales book Definition and Explanation:
Besides cash transactions, purchase and sale of goods account for the bulk of other transactions and, as such, separate books or registers are used to record credit purchases and credit sales. Only credit purchases and sales are recorded in the purchases and sales books because cash purchases and cash sales must have already appeared in cash book. View More Details
We would like to intimate most awaitedforms modified version of Form ST-3 for the Quarter April’2012 to June’ 2012 has been released.
Now all the assesses will be able to file their Service Tax return for the quarter April’2012 to June’ 2012,The last date for filing service tax return for the quarter April-June 2012 has been extended from 25 October 2012 to 25 November 2012 with order no. 3/2012 dated 15-10-2012. View More Details
Subject: Final Report of the Committee constituted for formulating Accounting Standards for the purposes of notification under section 145(2) of the Income-tax Act, 1961.
Section 145 (1) of the Income-tax Act, 1961 (‘the Act’) provides that the income chargeable under the head “Profits and gains of business or profession” or “Income from other sources” shall [subject to the provisions of sub-section (2)] be computed in accordance with either cash or mercantile system of accounting regularly employed by the assessee. View More Details
Cash book Explanation:
The cash book mean by “to record all cash transactions- whatever be their nature”. When cash is received it is entered on the debit or left hand side in cash book and when cash is paid recorded on the credit or right hand side of the cash book.
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Account Equation Explanation:
The financial position of a business is measured by the following items:
Capital: Amounts invested into the business by the owners plus the cumulative net income of the business.
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Subsidiary books definition:
In each separate journal, one particular class of business transaction is recorded, that means that purchase journal may be maintained to record credit purchases of goods, Sales journal may be maintained to record credit sales of goods and
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A Debit Means:
1) In the case of person that he was received some benefit against which he was already rendered some service or will render service in future.
2) When a person becomes liable to do something in favour of the firm, the fact is recorded by debiting that person’s account.
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Journal is first record.” Daily transactions are record in one paper or book in one particular order called journal”. A Voucher is documentary evidence for occurred transaction. (Ex: Receipt voucher, payment voucher, Cash memo, sales invoice etc.).Vouchers should be required at the time of Annual audit and Tax audit.Journal maintain on the basis
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