Financial Statements

Asset.

No. They are a product cost/factory overhead cost

yes it do effect it should be credited in your profit and loss a/c

In any project, Cash flows of year two is dependent with cash flows of year one so it is called time dependency of cash flows. For example: if public reacted positively high in the market for a new product that introduced by a company, resulting high initial cash flows, then cash flows in future periods are also likely to be high. Therefore, it is time dependency of cash flows.

S0193585

Book value of company is the book value of equity of company which can be found from balance sheet of business or book value of business is the book value of assets of business.

[Debit] Accumulated depreciation

[Debit] New Asset

[Debit] Loss on disposal (if any)

[Credit] Old asset

[Credit] Profit on disposal (if any)

[Credit] Cash paid (if any)

Preliminary expenses are those expenses which incurred before start of actual operations so these are assets of business and shown in asset side of balance sheet as other assets and then amortized over period of time through income statement.

yes

20%

Yes this is right statement as if some expenses are forgot to record it overstated the net income and reduces the expenses but in actual there is less net income then shown in income statement.

just chur

Balance sheet is prepared to show the overall performance of business from it's inception to till date.

It is a contra asset account; thus, an ASSET

breaking point

Depending on the credit terms, the accounts used may vary slightly but it is a basic entry.

If the credit terms are where the account will be paid off in one year or less the accounts are:

Account Receivable (debit)

Revenue (credit)

If the terms end up being more than one year then the only account that changes is the accounts receivable and you use Notes Receivable.

Notes Receivable (debit)

Revenue (credit)

*note, some companies may list revenue as Sales, Sales Revenue, Income, etc. For general purposes Revenue is most commonly used.

(GAAP)

Some countries require research costs to be expensed and development costs to be capitalized

You do..?

Freight Inwards should be included in the costs of goods sold, as it is a direct cost in getting your goods ready for sale. After you have calculated all your COGS (opening + purchases - closing (-freight inwards (expenses))), it should be subtracted from your sales figure to get your gross profit....I think..?

debit cash /bank
credit loan payable

Import tally data to tally 7.2 ? from which version

if your import tally data from 5.4,6.3 just copy the data folder and past in 7.2 data folder (* note: data folders in numerics 4 digits same folders will be overrite)

if your export date one company to other company export in XML & IMPORT

(GATE WAY TALLY) -> Import of dat -> Master now give the xml path for master

for voucher -> Gateway of tally -> Import date-> voucher now give the xml path for voucher.

befor doing this pls take backup first

take backup every day.

No. The choice of depreciation method has an impact on net asset value and taxation. A simplistic example follows for a generic corporation:

* The company has a fixed asset that cost $1,000, has a useful life of 5 years and no salvage value

* Corporate earnings before interest, taxes, depreciation and amortization (EBITDA) is $500 which is represented in a cash asset

* The company does not have any debt, interest expense or interest income

* The company does not generate/lose cash flow from financing or investing

For the first year, the following key metrics are noted for the company

Item Using Straight-Line Using Double-Declining

EBITDA $500 $500

Depreciation ($200) ($400)

EBT/PBT $300 $100

Taxes at 40% ($120) ($40)

PROFIT $180 $60

EBIT $300 $100

+ Depreciation $200 $400

- Taxes ($120) ($40)

CASH FLOW FROM OPS $380 $460

Non-Cash Net Assets $800 $600

Cash $380 $460

TOTAL NET ASSETS $1,180 $1,060

So, in the first year, the book value of the business is higher by using straight line depreciation.

The following results are summarized for all five years of useful life:

Item Using Straight-Line Using Double-Declining

BOOK VALUE yr 1 $1,180 $1,060

yr2 $1,360 $1,216

yr3 $1,540 $1,430

yr4 $1,720 $1,678

yr5 $1,900 $1,900

So to summarize, the different techniques produce different book values on a year-to-year basis, however, by the end of the useful life of the asset, the book values are the same. All things being equal, if one earns interest on the cash balances, the double-declining method produces a higher book value by the end of the useful life of the asset.

an Administrative expense

I know the answer to this question because I am an auditor and I have audited inventories all over the world. I am a certified Internal Auditor.

There are two steps, given the wording of your question.

Step 1: 'Taking inventory" or "A physical count of inventory" or "stock taking". There is no one universal English phrase. Name it as you like it. Step 1 consists of assembling a group of people, giving them written instructions and probably using paper pre-printed cards with labeled spaces for data (called a "count ticket"). Give the people verbal instructions as well. Send them out into the warehouse or factory and have them count the goods on hand. More detail: You need to record at least 2 things: the name or stock number of the item being counted, and the quantity that is physically sitting there on the floor or in the rack. The goods need to be labeled with a stock number, or the counters (people) need a way to determine what they are looking at and look up a stock number. So after you determine what you are looking at, you write the stock number on the card. Then you COUNT how many units are on hand. It is not rocket science. It is just common sense. You need to record what is there and how many units are there. You will have a "unit of measure" for each item: piece, unit, pair, assembly, kit, feet, pounds, yards, etc. You need to have a unit of measure already established for each item. It is best to have the inventory labeled with a paper (or something) label, that shows the description, stock numner and unit of measure. If you get the unit of measure wrong, your count will be wrong, so unit of measure is important. Some things are counted by weighing them, and the unit of measure is pounds or kilograms. Once you get everything counted, you collect all the count ticket cards (which each have a serial number, so you can place them in physical order and see if you got back all the tickets, which is important). You will probably have a computer program where you can key each count ticket, and the software will sort all the counts into order by stock number, and add up a total where there is more than one ticket for a given stock number. So you get a report or computer file of what is on hand and how many.

Stpe 2: Costing the inventory. Once you have the number of units on hand for each item (as above), then you need to applpy a "unit cost' to each stock number, multiply the quantity on hand times the unit cost, and get total $ on hand for each item, then add up all of the $$ on hand and get a total inventory $ on hand, which you enter into your inventory account on your accounting general ledger. There are various methods to establish a unit cost for an item. I manufacturing, you will already have some sort of "inventory costing method" where you set up a unit cost for each ingredient in the product, each labor operation required to fabricate the unit, the amount of labor (in minutes or seconds or hours) and a price for each unit of labor based on the wage rate, plus employee benefits costs, so you get a cost per hour of labor. Then you need to calculate a rate of "overhead $ per labor hour (or machine hour)", which is an allocation of overhead costs to each labor hour (or machine hour). You take all your overhead expenses for the year, and add them up (property tax, maintenance, cost of the building, cost of machinery, indriect labor, etcetea) and divide the total $ by a budgted number of labor hours you expect to have the workers work for the entire year. This gets you an "overhead rate of $ per labor hour". This becomes part of your unit cost. The unit cost consists of material, labor and overhead. // In retail or wholesale, your unit cost is the price you pay the supplier to but the merchandise, so it is much easier to determine a unit cost in retail or wholesale than in manufacturing. Email me at david49586@yahoo.com and I can give you more detail.

ongoing repairs are not relevant, the other three are all essential...

Sales is generally considered "Revenue" or "Income" and therefore are an Owners Equity Account. Sales affect Retained Earnings and Retained Earnings affects Owners Equity.