All About Advance Payments In Tally ERP 9Further, if such taxable perquisite value is not reported in the I-T returns, the I-T department may levy penalty ranging from 50% to 200% of the tax payable on the under-reported income,” Gupta further told T... Read more
Advance from customer — AccountingToolsAdvance paymentAs each month passes, one rent payment is credited from the prepaid rent asset account, and a rent expense account is debited. This process is repeated as many times as necessary to recognize rent... Read more
General and Administrative ExpenseGeneral and administrative expenseAlthough operating expenses include a wide range of costs, certain items do not belong in the section. Any costs directly related to manufacturing inventory or the cost to buy invent... Read more
Part A: Analyze, Record & Post Adjusting Entries, Prepare Adjusted Trial BalanceReversing entries can be set to automatically reverse in a future period, thereby eliminating this risk. The transactions which are recorded using adjusting entries a... Read more
Real, Personal and NominalIn a nutshell, nominal accounts are any revenue and expense accounts that a company has. At the end of each accounting period, nominal account balances are zeroed out so that these accounts can begin the next accounting peri... Read more
Business Startup Costs: It’s in the DetailsFor a company to record advertising expenses as an asset, it must have reason to believe those specific expenses are tied to specific future sales. Then, as those sales occur, those advertising expenses are... Read more
What is a Variable Cost Per Unit?Normal Costing vs. Actual CostingManagers can use these formulas to calculate the total production costs. For instance, managers first need to find out how many hours it took the company to produce the product and how... Read more
Activity-Based ManagementIn traditional product costing system, costs are, first, traced not to activities but to an organisational unit, such as department or plant and then to products. ABC, as compared to traditional cost system is based on one fu... Read more
Financial StatementsDue to fair value treatment for “available for sale” securities, Unrealized gains or losses are included in the balance sheet on the asset side, however, such gains do not impact the net income of the Company. The Unrealized gains... Read more
Accumulated depreciationNet book value is the cost of an asset subtracted by its accumulated depreciation. For example, a company purchased a piece of printing equipment for $100,000 and the accumulated depreciation is $35,000, then the net book valu... Read more
