Accounting Equation

Accounting Equation

 

 

The glossary of common terms to define some of elementary terms used again and again in accounting such as :

Account:

It is a date wise summarized record of business transactions relation either to a person or thing or any item of income or expenditure.

For Example, accountants of Ahmad and Co., of machines, of wages, or of sales income

Accounting Equation

The equation of financial position is:

                Assets=Liabilities+ Owner’s Equity

Accounting actually measures the performance of a company in meeting with its goals of making a profit.

Assets

These are thing having value, which are possession of a trade or business, e.g., cash, stock, machines, vehicles, buildings etc. These items are owned by the business

Assets leads towards:

Debit (Dr) for increase and Credit (Cr) for Decrease

Assets are increased by debits on the left side of the account and decreased by credits on the right side of account.

Business

It is an activity, which is undertaken for earning profit. Examples are export business, banking, insurance, cloth merchandise, etc.

Capital/ Equity

It is an amount of cash or other property which a man or group of person invests in business in the form of cash and other assets like buildings, machinery, vehicles etc.

It is also called Equity.

Debit (Dr) for Decrease and Credit (Cr) for increase

Owners’ Equity are decreased by debits on the left side of the account and increased by credits on the right side of the account

Credit

It denotes a transaction where cash or another payment is not made immediately in a business transaction. The amount in such a case is payable at some future date. It is opposite of debitor.

Briefly creditor is written as “Cr”.

Drawings

If cash or goods are taken away by the businessman or owner for his personal use, the amount or value of goods is called drawings.

Expenditure

It means spending of money or incurring expenditure\expense to secure some benefits.

Debit and Credit rules for expense and revenue are:

A.      Decrease in revenue or profit accounts are debit; increases are credits;

B.      Increase in expense accounts are debit; decreases are credits

Income

The Earning of a business resulting in gross increase in capital or equity.

Journalizing

It is an act of debiting one account and crediting the other account simultaneously.

Following are the steps involved in the process of journalizing a transaction:

A.      Determine the title of accounts involved

B.      Understand nature of accounts

C.      Apply the rule of debit and credit

D.      Make the necessary journal entry

 

Example:

Bilal Invest Rs.5000/- cash in the business.  Let us analyze the transaction

a.     Title of relevant account  : Cash and Capital

b.     Nature of account             : Assets and Equity

c.      Apply the rule                    : Cash Dr. and Capital Cr.

d.     Journal entry                      : Cash Dr. and capital Cr. 5000

Ledger

The ledger is register in which classified record of all the transactions of the business is posted from the journal.

Liabilities

 These are balance, which a business has to pay either to various parties for loans or supply of goods and service on credit. For Example, Bank Loan, Bank Overdraft, Salaries, wages payable and other creditors.

Liabilities are decreased by debits on the left side of the account and increased by credits on the right side of the account

 

Debit (Dr) for Decrease and Credit (Cr) for increase

 

Trial balance

It is a list of all credit and debit balances of the ledger accounts and cash book at a particular date.

Voucher

It is a document serving as written evidence in support of a business, transaction to be recorded in the Journal, cashbook, or the Ledger.If You Like then Subscribe, if You have Suggestion then Describe, If you want to hire for your project then Contact.

Interview | Top Accounting Questions and Answers in New Era

 Keep your body calm and do not hesitate in answering the HR Questions. Polish your skills on a daily basis

.
(1) How many types of business transactions are there in accounting?

There are two types of business transactions in accounting-

Revenue

Capital.

(2) What is working capital?
Working capital is calculated as current assets minus current liabilities, which is used in day-to-day trading.

(3) How do you maintain accounting accuracy?
A) Maintaining the accuracy of an organization’s accounting is an important activity as it can result in a huge loss. There are various tools and resources which can be used to limit the potential for errors to creep in and address quickly if any errors do arise.


(4) What is TDS? Where do you show TDS on a balance sheet?

TDS (Tax Deducted at Source) is a concept aimed at collecting tax at every source of income. In a balance sheet, it is shown in the assets section, right after the head current asset.

(5) What is the difference between 'accounts payable (AP)' and 'accounts receivable (AR)?

 

Accounts Receivable: The amount a company has the right to collect because it sold I goods or services on credit to a customer.
Accounts receivable are assets.


(6) Are you familiar with the Accounting Standards? How many accounting standards are there?
There are currently 4 Accounting Standards which are usually issued by the Accounting Standards Board (ASB).

(7) Is it possible for a company to show positive cash flows and still be in grave trouble?
 Yes, if it shows an unsustainable improvement in working capital and involves lack of revenue going forward in the pipeline

(8) Have you ever helped your company to save money or use their available financial resources effectively?
Explain if you have proposed an idea which has affected the company's finances positively. Tell how you have optimized the process and how you came to such a decision through historical data reviewing


(9) If our organization has three bank accounts for processing payments, what is the minimum number of ledgers it needs?

 Three ledgers for each account for proper accounting and reconciliation processes.


(10) What are some of the ways to estimate bad debts?

 Some of the popular ways of estimating bad debts are- a percentage of outstanding accounts, aging analysis, and percentage of credit sales. i


(11) What is deferred tax liability?
 Deferred tax liability signifies that a company may pay more tax in their future due to current transactions.

(12) What is the equation for Acid-Test Ratio in accounting?

 

The equation for Acid-Test Ratio in accounting=Acid-Test Ratio *(Current assets- Inventory) / Current Liabilities

(13) What is a deferred tax asset and how is the value created?

A deferred tax asset is when the tax amount has been paid or has been carried forward but has still not been recognized in the income statement. The value is created by taking the difference between the book income and the taxable income.

(14) What are the popular accounting applications?

I am familiar with accounting apps like C Gram Software, Financial Force, Microsoft Accounting professional, Microsoft Dynamics AX, and Microsoft Small Business Financials.


(15) Which accounting application you like the most and why?

 Find Microsoft Accounting Professional the best as it offers reliable and fast processing of accounting transactions, thereby saving time and increasing proficiency.


(16) Tell me something about GST.
 GST is the acronym for Goods and Service Tax and it is an indirect tax other than the income tax. The seller charges it to the customer on the value of the service or product sold. The seller then deposits the GST to the government. i

(17) What is a bank reconciliation statement?
A bank reconciliation statement or BRS is a form that allows individuals to compare their personal bank account records to that of the bank. BRS is prepared when the passbook balance differs from the cashbook balance.


(18) What is tally accounting?
It is accounting software used by small business and shops to manage routine accounting transactions.


(19) What are fictitious assets?
Fictitious assets are intangible assets and their benefit is derived over a longer I period, for example, goodwill, rights, deferred revenue expenditure, miscellaneous expenses, preliminary expenses, and accumulated loss, among others.


(20) What is retail banking?
 Retail banking or consumer banking involves a retail client, where individual customers use local branches of larger commercial banks. i


(21) What has offset accounting?
 Offset accounting is a process of canceling an accounting entry with an equal but opposite entry. It decreases the net amount of another account to create a net balance.


(22) What are the trade bills?
These are the bills generated against each transaction. It is a part of the documentation procedure for all types of transactions. i


(23) What is fair value accounting?
As per fair value accounting, a company has to show the value of all of its assets in terms of price on the balance sheet on which that asset can be sold. I

(24) What happens to the cash, which is collected from the customers but not recorded as revenue?
 It goes into "Deferred Revenue" on the balance sheet as a liability if no revenue has been earned yet.


(25) What is an MIS report, have you prepared any?

 Yes, I have prepared MIS reports. It is an acronym for Management Information System, and this report is generated to identify the efficiency of any department of a company.


(26) What is the company's payable cycle?

 It is the time required by the company to pay all its account payables. i

(27) What is the meaning of purchase return in accounting?

      As the name suggests, purchase return is a transaction where the buyer of merchandise, inventory or fixed assets return these defective or unsatisfactory products back to the seller.


      (28) What are the different branches of accounting?

 There are three branches of accounting-
Financial Accounting

Management Accounting

Cost Accounting


     (29) What is Scrap Value in accounting?
A) Scrap Value is the residual value of an asset that any asset holds after its estimated lifetime.

     (30) What is the company's payable cycle?

It is the time required by the company to pay all its account payables. i

      (31) Which account is responsible for interest payable?

 Current liability account is responsible for interest payable.

Final Conclusion on Accounting Interview:

The bottom line is this:

be prepared,

do your research,

and understand

the job you are being interviewed for and how your skills, personality and experience match the job's requirements. Keep your body calm and do not hesitate in answering the HR Questions. Polish your skills on daily basis. Practice, again and again, these questions in front of the mirror .Personally , I Suggest giving a demo to anyone your relative or friend Close the interview with questions, pass on your calling card if you have one, thank them for their time and give a firm handshake before smiling and saying goodbye.

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Latest Classification of Currency of all over World

Latest Classification of Currency of all World

 

All Countries + Current Classification of Currency exists in which country
(dd-mm-yyyy)

Euro:
1. France.
2. Germany.
3. Netherland.
4. Spain.
5. Italy.
6. Greece.
7. Belgium.
8. Luxembourg.
9. Estonia.
10. Finland.
11. Portugal.
12. Ireland.
13. Kosovo.
14. Cyprus.
15. San Marino.
16. Aland Islands.
17. Andorra.
18. Malta.
19. Monaco.
20. Slovakia.
21. Slovenia.
22. Montenegro.
23. Austria.
24. Latvia.
25. French Guiana.
26. Reunion.
27. Guadeloupe.
28. Martinique.
29. Saint Barthelemy.
30. Saint Martin
31. Saint Pierre and Miquelon.

US Dollar $:
1. USA.
2. British Virgin Island.
3. US virgin Island.
4. El Salvador.
5. Panama (also have "Panamanian balboa")
6. Puerto Rico.
7. Sint Eustatius.
8. Turk and Caicos Island.
9. Marshal Island.
10. Zimbabwe (It have other multiple currencies declared as official currencies).
11. Ecuador.
12. Palau.
13. Micronesia.
14. East-Timor.
15. Bonaire.
16. Saba.

*Dollar $:
1. Liberia.
2. Namibia (also Rand)
3. Bahamas.
4. Barbuda.
5. Belize.
6. Bermuda.
7. Canada.
8. Cayman Island.
9. Jamaica.
10. Trinidad and Tobago.
11. Guyana.
12. Suriname.
13. Burnie.
14. Singapore.
15. Taiwan

*East Caribbean Dollar:
1. Anguilla.
2. Antigua and Barbuda.
3. Domenica.
4. Saint Kitts and Nevis.
5. Saint Vincent and Grenadines.
6. Montserrat.
7. Grenada.
8. Saint Lucia.

Franc:
1. France (FF and Euro)
2. Liechtenstein (SF)
3. Switzerland (SF).
4. Benin.
5. Burundi
6. Cameroon.
7. Central African Republic.
8. Chad.
9. Comoros.
10. Congo.
11. Côte d'ivoire.
12. Djibouti.
13. Equatorial Guinea.
14. Gabon.
15. Guinea.
16. Ivory Coast.
17. Madagascar.
18. Mali.
19. Mayotte D and Mamoudzou (WAF).
20. Niger (WAF).
21. Rwanda.
22. Senegal (WAF).
23. Togo.
24. Burkina Faso.

Pound
1. United Kingdom UK.
2. Egypt.
3. Lebanon.
4. Syria
5. Isle of man.
6. Gibraltar.
7. South Georgia and South Sandwich Island.
8. Jersey.
9. Sudan.
10. South Sudan.
11. Guernsey.
12. Falak Island.
13. St. Helena.

Peso:
1. Argentina.
2. Columbia.
3. Uruguay.
4. Chile.
5. Dominican Republic.
6. Cuba.
7. Philippines.
8. Mexico.

Dinar
1. Iraq.
2. Kuwait.
3. Bahrain.
4. Jordan.
5. Serbia.
6. Libya.
7. Tunisia.
8. Algeria.
9. Macedonia.

Rupee
1. Pakistan (Islamic Republic)
2. India.
3. Nepal.
4. Sri Lanka.
5. Indonesian (Rupiah).
6. Mauritius.
7. The Seychelles.

Krone:
1. Czech Republic.
2. Denmark.
3. Norway.
4. Svalbard (Norwegian Krone).
5. Greenland (Danish Krone).

Shillings
1. Kenya.
2. Somalia.
3. Uganda.
4. Tanzania.

Krona:
1. Faroe Island.
2. Sweden.
3. Iceland

Rial:
1. Iran.
2. Oman.
3. Yemen.

Ruble:
1. Russia.
2. Transnistria
3. Belarus.

Riyal:
1. Saudi Arabia.
2. Qatar.

Won:
1. North Korea.
2. South Korea.

Som:
1. Kyrgyzstan
2. Uzbekistan.

Manat
1. Turkmenistan.
2. Azerbaijan.

Dirham
1. UAE.
2. Morocco.

New Israel Shekel
1. Israel.
2. Palestine.

Leu:
1. Romania.
2. Moldova.

Kwach:
1. Malawi.
2. Zambia.

Netherland Antillean Guilder
1. Curacao.
2. Sint Maarten.

Miscellaneous:
1. Albania (Lek).
2. Bosnia and Herzegovina (Mark).
3. Bulgarian (Lev).
4. Hungary (Forint).
5. Lithuanian (Litas).

7. Poland (Zloty).
8. Ukraine (hryvnia).
9. Angolan (Kwanza).
10. Botswana (Pula).
11. Cape Verde (Verdiana).
12. Eritrea (Nakfa).
13. Ethiopia (Birr).
14. Gambia (Dalasi).
15. Ghana (Cedi).
16. Guinea-Bissau
17. Lesotho (Lodi).
18. Mauritania (Ouguiya).
19. Mozambique (Metical).
20. Nigeria (Naira).
21. Sao Tome and Principe (Dobra).
22. Sierra Leone (Leone).
23. South African (Rand).
24. Aruba (Florin).
25. Costa Rican (Colon).
26. Guatemala (Quetzal).
27. Haiti (Gourde).
28. Honduras (Lempira).
29. Nicaragua (Córdoba).
30. Bolivia (Boliviano).
31. Brazil (Real).
32. Peru (Nuevo Sol)
33. Paraguay (Guarani).
34. Venezuela (Bolivar Fuerte).
35. Afghanistan (Afghan Afghani).
36. Armenia (Dram).
37. Bangladesh (Taka).
38. Bhutan (Ngultrum).
39. Cambodia (Riel).
40. China (Yuan).
41. Georgia (Lari).
42. Japan (Yen).
43. Kazakhstan (Tenge).
44.Laos (Lao Kip).
45. Myanmar (Kyat).
46. Mongolia (Tugrik).
47. Tajikistan (Somoni).
48. Thailand (Baht).
49. Turkey (Lira).
50. Vietnam (Dong)

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HUMAN BIOLOGY Summary

HUMAN BIOLOGY Summary

 

 

Human is the best and the modified nature of Allah, If we See human body deeply we can see that there are numerous things in every part of human body and every part of human body is connected with a strong communication system. Let you show and example of human hand.
1: Number of Bones *206*
2: Number of Muscles *639*
3: Number of Kidneys *2*
4: Number of Milk Teeth *20*
5: Number of Ribs *24 (12 pair)*
6: Number of Heart Chamber *4*
7: Largest artery *Aorta*
8: Normal blood pressure *120/80mmHg*
9: Ph of Blood *7.35-7.45
10: Number of vertebrae in the Spine *33*

 As we have made progress in the passing with time we discover something new and amazing about human biology
11: Number of vertebrae in the Neck *7*
12: Number of Bones in Middle Ear *6*
13: Number of Bones in Face *14*
14: Number of Bones in Skull *22*
15: Number of Bones in Chest *25*
16: Number of Bones in Arms *6*

17: Number of Muscles in Human Arm *72*
18: Number of Pumps in Heart *2*
19: Largest Organ *Skin*
20: Largest gland *Liver*
21: Biggest cell *female Ovum*
22: Smallest cell *male Sperm*
23: Smallest Bone *Stapes*
24: First transplanted Organ *Heart*
25: Average length of Small Intestine *7m*
26: Average length of Large Intestine *1.5m*
27: Average weight of new Born baby *2.6kg*
28: Pulse rate in One Minute *60-100
29: Normal body temperature *37 C° (98.4 F°)*
30: Average Blood Volume *4 to 5 liters*
31: Life Span of RBC *120 days*

 

 

 

 

32: Life Span of WBC *10 to 15 days*
33: Pregnancy Period *280 days (40 week)*
34: Number of Bones in Human Foot *33*
35: Number of Bones in Each wrist *8*
36: Number of Bones in Hand *27*
37: Largest Endocrine gland *Thyroid*
38: Largest Lymphatic Organ *Spleen*
39: Largest part of Brain *Cerebrum*
40: Largest & Strongest Bone *Femur*
41: Smallest Muscle *Stapedius (Middle Ear)*
41: Number of Chromosome *46 (23 pair)*
42: Number of Bones in new Born baby *306*
43: Viscosity of Blood *4.5 to 5.5*

 

 

 

44: Universal Donor Blood Group O negative
45: Universal Recipient Blood Group *AB*
46: Largest WBC *Monocyte*
47: Smallest WBC *Lymphocyte*
48: Increase RBC count called *Polycythemia*
49: Blood Bank in the Body is *Spleen*
50: Non Nucleated Blood cell is *RBC*
51: RBC produced in the *Bone Marrow*
52: River of Life is Called *Blood*
53: Normal Blood Cholesterol level *250mg/dl*
54: Fluid part is Blood!

Accounting Equation with Business Terms

Accounting Equation

 

 

The glossary of common terms to define some of the elementary terms used again and again in accounting such as :

Account:

It is a date wise summarized record of business transactions relation either to a person or thing or any item of income or expenditure.

For Example, accountants of Ahmad and Co., of machines, of wages, or of sales income

Accounting Equation

The equation of financial position is:

                Assets=Liabilities+ Owner’s Equity

Accounting actually measures the performance of a company in meeting with its goals of making a profit.

Assets

These are thing having value, which are possession of a trade or business, e.g., cash, stock, machines, vehicles, buildings, etc. These items are owned by the business

Assets lead towards:

Debit (Dr) for increase and Credit (Cr) for Decrease

Assets are increased by debits on the left side of the account and decrease by credits on the right side of the account.

Business

It is an activity, which is undertaken for earning profit. Examples are export business, banking, insurance, cloth merchandise, etc.

Capital/ Equity

It is an amount of cash or other property which a man or group of person invests in business in the form of cash and other assets like buildings, machinery, vehicles, etc.

It is also called Equity.

Debit (Dr) for Decrease and Credit (Cr) for increase

Owners’ Equity is decreased by debits on the left side of the account and increased by credits on the right side of the account

Credit

It denotes a transaction where cash or another payment is not made immediately in a business transaction. The amount in such a case is payable at some future date. It is the opposite of the debtor.

Briefly, the creditor is written as “Cr”.

Drawings

If cash or goods are taken away by the businessman or the owner for his personal use, the amount or value of goods is called drawings.

Expenditure

It means spending money or incurring expenditure\expense to secure some benefits.

Debit and Credit Rules for expense and revenue are:

A.      A decrease in revenue or profit accounts are debit; increases are credits;

B.      Increase in expense accounts are debit; decreases are credits

Income

The Earning of a business resulting in a gross increase in capital or equity.

Journalizing

It is an act of debiting one account and crediting the other accounts simultaneously.

Following are the steps involved in the process of journalizing a transaction:

A.      Determine the title of accounts involved

B.      Understand nature of accounts

C.      Apply the rule of debit and credit

D.      Make the necessary journal entry

 

Example:

Bilal Invest Rs.5000/- cash in the business.  Let us analyze the transaction

a.     Title of relevant account:       Cash and Capital

b.     Nature of account:                Assets and Equity

c.      Apply the rule:                    Cash Dr. and Capital Cr.

d.     Journal entry:                      Cash Dr. and capital Cr. 5000

Ledger

The ledger is a register in which classified record of all the transactions of the business are posted from the journal.

Liabilities

 These are balance, which a business has to pay either to various parties for loans or supply of goods and services on credit. For Example, Bank Loan, Bank Overdraft, Salaries, wages payable, and other creditors.

Liabilities are decreased by debits on the left side of the account and increased by credits on the right side of the account

 

Debit (Dr) for Decrease and Credit (Cr) for increase

 

Trial balance

It is a list of all credit and debit balances of the ledger accounts and cashbook at a particular date.

Voucher

It is a document serving as written evidence in support of business, transaction to be recorded in the Journal, cashbook, or the Ledger.

What is Accounting?

What is Accounting?

 

Definition:

                          Accounting is an information system   for measuring, processing and communicating information that is useful in making economic decisions.

         Accounting provides the techniques for gathering and communicating economic to different individuals and institutions. The “Raw Materials” of

         Accounting are composed of business transaction data. Its “primary finished products” are composed of various summaries, analyses and reports.

  

Accounting has been defined broadly as:

“The process of identifying, measuring and communicating economic information to permit informed judgement and decisions by users of business information.”

 

Users of Accounting:

the major reason for studying accounting is to acquire relevant knowledge and skills to participate in important economic decisions.

All Government and Private agencies rely on accounting data evaluating tile efficiency of operations and for appraising the feasibility of purposed taxation and spending measures. Thus, every adult engaged in business transactions must necessarily be concerned with the financial aspects of life.

 Accounting as a provider of Information to users to illustrated in the following diagram.

 

 

 

 

 

Objective:

The objective of accounting is that all transactions relating to business be recorded in such a way that owner or firm of the company may at any time know the position of expenses, income, profits, losses, assets and various liabilities etc. These Points are tackled in accountancy by means of systematic recording of business truncations.

In conclusion,

Accounting can be termed to be a tool used for providing information that is useful in making reasonable choices among alternative uses of scares resources in the conduct of business and economic activities to maximize profits.