Where the directors conclude that the going concern basis of accounting is not appropriate in the circumstances, disclosure should be made on the accounting basis adopted (for example, break-up basis). · The use of the going concern basis is appropriate but there are material uncertainties related to events or conditions that may cast significant doubt about the ability of the company to continue as a going concern. The good news is that there are a number of industries that are consistently making profits and increasing in size. 2 Will be debited at the time of making payment (With employer’s share). 11C. PF payable 1 Will be credited at the time of monthly closing ,by employer’s share of PF . 10C. ESI payable 1 Will be credited at the time of monthly closing ,by employer’s share of ESI . 10B. Employees’ contribution to ESI payable 1 Will be credited at the time of making provision for salary payable. 2 Bonus 1 Bonus expense for the year as per provision made at the year end. 11B. Employees’ contribution to provident fund payable 1 Will be credited at the time of making provision for salary payable.

4 House Rent Allowance 1 House rent allowance portion of total salary payable to employees. 5 Transport Allowance 1 Transport allowance portion of total salary payable to employees. 1 Basic salary 1 Basic portion of total salary payable to employees excluding any reimbursement part. As you have read the use debits and credits are very important as a basic accounting principle. · The use of the going concern basis of accounting is appropriate because there are no material uncertainties related to events or conditions that may cast significant doubt about the ability of the company to continue as a going concern. According to International Accounting Standards Board (IASB), non-current asset is on intended for use on a continuing basis in the company’s activities and it is not intended for resale. The general rule is that for every liability, there must also be a corresponding asset so that a balance will be achieved.

Fixed assets must be revalued regularly to ensure that the right cost is included in the accounting books. What Does Cost Accounting Mean? The guidance also recognises that the extent of the review period is a matter of judgement which is to be based on facts and circumstances which may mean that obtaining information for longer periods may be required. But that doesn’t mean you should ever be turned away easily. For example, you may want to add a ‘Pay now’ menu option or button to an invoice, and only for an invoice. For example, if the company has a large outflow of cash due to take place in the year, directors should assess how this outflow of cash can be matched with inflows of cash. This is particularly important if the company has a large tax liability to be settled or if loan repayments are falling due. It is more then obvious that the IRS and the DOJ does and will use the information on your Tax return to be entered into evidence in any civil or criminal case brought against you.

Tax Authourities: for determining the credibility of the tax returns filed on behalf of the company. Management accounting increases the efficiency of operation of company. 100,000 from the bank, that’s obviously not revenue from customers, even though it increases cash. Normally Spreadsheets are only as accurate as the person entering the information and studies show the error rate increases with the complexity of the spreadsheet. Indeed, some entities are finding it increasingly more difficult to obtain finance or even renew existing borrowing facilities as banks and other financial institutions ‘tighten their belt’. First, accountants will use increasingly sophisticated and smart technologies to enhance their traditional ways of working, and these technologies might even replace the traditional approach (see “The End of the Accounting Profession as We Know It?”). They are more concerned with forward-looking and taking decisions that will affect the future of the organization, than in the historical recording and compliance (score keeping) aspects of the profession. He is also the author of ‘The Core Aspects of IFRS and IAS’ and lectures on financial reporting and auditing issues. Its continued involvement in the enforcement of auditing standards, particularly for public companies. Many of our portfolio companies use these concepts as part of their operating process to keep tabs on their growth and evolving product-market fit.

Where companies have frequent disputes with suppliers, the scope for contingent liabilities, which may result in legal proceedings giving rise to large outflows of cash in the future, is much higher than a company who does not have many disputes. Intuition refers to the gut instinct which one may have to guide you to the appropriate direction as of where your investigation should start from. Most businesses have more than one bank account, and accounting software with more extensive features can keep track of all of them and reconcile them. One of the reasons to assemble a non-profit chart of accounts and keep an accurate general ledger is to stave off some of the problems that come about from poor record keeping. Financial statements are the accounts of organizations or persons. If a transaction has been created between two different balancing segments belonging to the same legal entity for the ledger, then intracompany lines are created for balancing. Cost accounting will first measure and record these costs individually, then compare input results to output or actual results to aid company management in measuring financial performance. Management: for analyzing the organization’s performance and position and taking appropriate measures to improve the company results.