Issued Share Capital!

The share capital that has been issued to shareholders. This is a part of the company's authorized capital (the maximum amount of capital that can issue legal conditions). The part not yet issued is called free capital. 

Total number of shares held by shareholders. The company can grant new shares to all approved shares of the stock at any time. Register capital is also registered, registered capital is also registered. 

The shares will only share the amount that shares the company's shares actually offering investors. The share of the common stock is generally equal to the amount of the subscribed capital, but it is not worth more than the approved amount. 

Amount of eligible share capital provided by joint holding company to increase capital. This amount is disclosed in our balance sheet. 

Issued share capital shows the initial investment made by the company's shareholders, but this investment often increases when profits are retained in the company and are added to RESERVES rather than being distributed as dividends. Since the market value depends on the price currently being sold at STOCK MARKET.

Amount of eligible share capital provided by joint holding company to increase capital. If an entity shares shares under terms of payment, the amount of payment capital may be less than that of short-term stock. See SHARE-EXPENSES. 

Issued share capital is the amount of the nominal value of shares owned by shareholders. This is the nominal number of shares issued to shareholders. The share capital and the issuing premium provided represent the amount invested by the company's shareholders. It is also called stock capital or registered stock of shares (US distribution capital). 

Capital (shared capital) is comprised of shareholders' equity and is growing. Shares redeemed or repurchased by the Company for holding in consolidated revenue funds do not form part of share capital. 

Previously , issued capital comprised common equity shares as well as all preferred shares However, when sharing a shared share, only the appropriate items are displayed. 

Issued capital consists of shares sold to shareholders in cash or other considerations. For example, if a company sells 100,000 shares with a face value of $ 1 per share, the company gives the share capital of $ 100,000. 

The issued share capital may change. Some companies offer new stocks to existing shareholders or new shareholders. Additional shares will increase the amount of stock. Some companies even even sell their shares. This will reduce the amount of issued shares capital. 

We must assume that a given issued share capital is not affected by market prices. The amount of capital stated in the financial statements is the only number of shares calculated as multiplied by the nominal value of each party. In the case that the Company provides 100,000 shares at a par value of 1 dollar per share, each party's market value is 2 dollars and the share capital is $ 100,000 ($ 200,000). 

The issued share capital may differ from authorized shares of stock. Approved share capital is the highest capital that companies can issue to shareholders. The issued capital may be smaller than the authorized capital but can not exceed it.

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Authorized Share Capital!

Authorized share capital is the number of shares that may be issued in the article of the company or company organization stated in the memorandum of establishment. Authorized share  capital is often insufficiently used by management to create space for the issuance of additional inventories in the future if companies need to quickly acquire capital. Another reason to manage the shares of the Treasury's company is to maintain the company's majority shares.

The authorized  capital share of a corporation (capital, capital, nominal capital, sometimes also called capital in the United States) is the maximum capital that corporations are authorized to issue by statutory documents) to shareholders. Some of the permitted capital remains (and periodically) unrecognized. Approved capital can be reconsidered by approval of shareholders. The portion of approved capital issued to shareholders is called the company's share capital.

We permitted the capital of the shares to change the ability of the directors to limit the issuance of new shares or to affect the management of the company or to change the control among shareholders. The issuance of shares to new shareholders may change the balance of income distribution, for example, when new shares are allocated not by market value but by nominal value.

It is essential for companies to withdraw legitimate capital from Australia in 2001 and to abolish it under the Companies Act 2006.

According to the court, approved authorized share capital is also called "permitted stock", "permitted stock" or "stock of permitted stock". For a complete understanding, the approved share of capital should be reflected in the context related to compensation payment, subscription capital and capitalized capital. Even if all these words are related, they are not synonyms.

Authorized share capital is the broadest term used to describe corporate capital. It consists of one part of each category that you can publish business as needed or as needed. Later share capital represents a portion of approved capital that a potential shareholder has agreed to purchase from the company's Treasury. Paid-in capital is part of the share capital that we receive payment of subscribers. Finally, the given capital is the share that the company really gives to shareholders.

For example, a corporation may have $ 1 million common stock with a value of $ 1 and a total capital of $ 1 million. However, actual given capital is only 100 thousand shares and we can use 900 thousand for the company's finances due to future problems.

In the case of startups, the authorized capital may be very high, but the actual capital is low to enable financial support of the treasurer.

The listed company shares common stock (common stock) and shares listed by offering preferred stock (capital stock).

The approved capital of the company is the maximum amount of securities limited to shareholders by a limited liability company. The capital paid is the nominal capital amount shared by shareholders.

 Calculation:

Authorized capital = Number of shares approved * Nominal value

 Example:

For example, assuming that a company owns 50,00,000 rupees of authorized capital, you can issue shares of 50,00,000 rupiah to shareholders and you can not outsource external items. However, if we are offering 25,000,000 rupees of shares, the remaining capital will be held as unused capital and we can use it at any time.

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Working Capital!

Working capital is a measure of business efficiency and its short-term financial soundness. Employment capital is calculated as follows.

Working Capital = current assets - current liabilities

The working capital ratio indicates whether there are enough short-term assets to cover short-term borrowings. All less than 1 indicate negative W / C (working capital). Those exceeding 2 mean that the company does not invest any excess assets. Most people think that a ratio between 1.2 and 2.0 is sufficient. It is also called "net working capital".

Working capital (WC) is a financial indicator that represents the liquidity available to a company, organization, or other entity, including government agencies. In addition to tangible fixed assets, ,working capital is considered part of working capital. Total working capital equals current assets. Working capital is calculated as current assets less current liabilities. If current assets are smaller than current liabilities, the project is called lack of working capital, lack of working capital.

Companies may have assets and profitability, but liquidity will be insufficient unless assets can easily be converted into cash. Working capital is necessary to ensure that you have sufficient funds to meet both short-term borrowings and future operating expenses. Working capital management is management of inventory, receipts, accruals and cash.

If the current assets of the business do not exceed the current liabilities, there is a possibility that it will be terminated in a short period of time. The worst situation is bankruptcy. A decline in the working capital ratio over a long period may be a red flag that may be a better test. For example, the number of sales companies may decline, and as a result, accounts receivable may decrease or decrease. The acquisition of capital also informs investors of the operational effectiveness of the underlying business. The amount related to the stock or money that the customer pays to the company can not be used to repay the company's obligation. Therefore, if an enterprise does not operate with the most efficient way (slow recovery), it will occur as an increase in working capital. It can be seen by comparing the working capital from time to time. Late collection may indicate problems around the operation of the project.

Things to keep in mind:

• If the ratio is less than 1, it has negative working capital.
• A high working capital ratio is not necessarily a good thing. It may indicate that there are too many shares or not investing surplus cash.

What is "Working Capital Management"?

Working Capital management refers to a corporate management strategy designed to track and utilize the two parts of working capital, short-term assets and current liabilities and is most effective for companies that guarantee financial transactions. The primary objective of working capital management is to continue to ensure sufficient cash flow for the Company to cover short-term operating expenses and short-term obligations.

 Management of capital operations is generally an income ratio consisting of monitoring cash flows, assets and liabilities, based on analysis of the ratio of key operating cost items including working capital ratio, relief rate and relief rate. Effective management of working capital helps smooth the company's financial management and it also helps improve profitability and profitability. Working capital management includes inventory management, accounts receivable management and accounts receivable management.

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Drawing Account!

Drawing accounts are accounting records used to track funds withdrawn by employers. Drawer accounts are mainly used for businesses that are taxed as the sole owner or partnership. Exclusive remuneration for an entity that is taxed as a separate entity should generally be provided as a reward or dividend.

The drawing account is a capital account. However, by reducing the amount of the owner's refund account, the debit balance is forecast in the account number. Debit and credit are included in each deal and the cash withdrawal requires a cash account credit, so the invoice must have the same amount of debit. On the other hand, the owner's primary capital account requires a credit balance.

Drawing accounts are accounting records used in businesses organized as standalone owners or partnerships and list all the benefits for business owners. These are actually signs of funds from companies (so name). Taxes on these withdrawals are paid by individual partners, so there is no tax effect related to withdrawal from business prospects.

The standard accounting transactions displayed in the drawing account are cash account and debiting account debit. The withdrawal account is a stock account. This means that withdrawing the account is a counter-commodity account, resulting in a decrease in total capital in the business. Therefore, reducing the budget deficit reduces the asset's outstanding balance and at the same time reduces the capital aspect.

Creating an account is not a cost, but rather a reduction in business participation. Account withdrawal is aimed at evaluating the profit to the owner within one year. After that, it is closed (by credit) and the balance is transferred to the owner's stock account. Next, we will consider the allocation in the future using the drawings of the accounts of the following year. This means that the drawing of the account is a temporary account, not a permanent account.

You can create a drawing account calendar containing a summary of the benefits and details paid to each trading partner and make final payment at the end of the year and each part follows the terms of the correct partnership agreement, It is important if there is a risk of misunderstanding about the amount of funds to be distributed to.

Companies that are organized as companies are redeemed by salary or dividend, so accounts are not used. In the corporate environment, you can also pay to the owner by resetting shares in cash transactions. However, if only the shareholder who purchased shares again, the relative ownership ratio will also decline. If all stockholders' shares are repurchased under equal terms, there will be no impact on the family property post.

Example of drawing out an account:

The ABC partnership distribution provided $ 5,000 per month for each of the two partners and signed the deal with a $ 10,000 cash account and a $ 10,000 debit account. By the end of the year, this took out a total of $ 120,000 from the partnership. The accountant transfers this balance to the capital account and posts a $ 120,000 debt to the $ 120,000 credit account and the capital account.

Record transaction in Drawing Account:

Normally, the transactions displayed in the drawing account are credit with cash and withdrawal account debit. Withdrawing an account will reduce participation in the company. Since the withdrawal account provides the owner of the distributor within a year, the account is closed with credits and the balance is transferred to the capital account of the owner of the account. It is scheduled to be used for pickup for the distribution of next year's baptism. Because leaving tax is paid by individual partner, there is no tax effect related to company withdrawal funds.

To create a calendar from a drawing account, display details and summary of distribution with each business partner. Proper final payment can be made at the end of the year, ensuring that each partner receives the appropriate part of the company's income according to the partnership agreement.

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Going Concern!

Going concern are related to the premise that companies have a way to continue in the near future. A bankruptcy company or a company close to bankruptcy is against the active business.

Going concern is the basis of basic accounting. It is a premise that a company or other entity can work for a sufficient period of time to fulfill its obligations, obligations, purpose, etc. In other words, the company does not need to liquidize or fail in the future.

Going concerns give certain logic to the cost principle: Why does it report the current value of an asset in the long run since it makes no sense if a company is constantly concerned? However, if the value of the asset is an obstacle, the value of the asset may be less than the carrying amount.

Go refers to the accounting period of an enterprise with resources to operate indefinitely until the company prove different things, and this term refers to the ability of a company to earn enough revenue. Avoid bankruptcy. If the company is not concerned, this means that the company was bankrupt and the asset broke up..

The accountant uses current business principles to determine what kind of financial statement report should be made. Compared to quarterly earnings, companies can delay the possession of long-term property at a more appropriate time, like the annual report. Companies are still concerned if asset sales are not harmful to the ability to continue operations, such as closing small branches that assign employees to other departments within the company.

An accountant who considers a company as a permanent concern generally thinks that the company is wisely using the asset and does not need to liquidate it. Accountants can also use the current business principles to decide how to continue to incorporate business, reduce costs and move to other products, following asset sales.

principle of going concern:

Principles of basic accounting accepted by companies are continued in the near future. The meaning of this principle becomes apparent when the value of a running business is compared with the value of an injured person.

When an enterprise declares liquidation, all obligations that are perceived immediately immediately are tangible assets only sold for auctions or fires, and intangible assets (such as goodwill) are irrelevant. An ongoing business is the only type of commercial bank to borrow and suppliers earn credits. Directors of listed companies must explicitly state that they are taking all reasonable steps to ensure the company's survival opportunities (audited by independent audits).

 Concepts of going concern:

If an entity is accepted as a project in the near future, the entity will prepare financial statements on fundamental concerns. 

 Concept of concern is an approach to the preparation of financial statements. An entity is assumed to have no intention or need to expand or expand the scope of its business. If management insists that an entity has no alternative to liquidate or reduce the scope of its business, the ongoing enterprise base can not be used and the financial statements are subject to various criteria such as "burst" .

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Double Entry System!

Double entry is a fundamental concept underlying current accounting and accounting. Double entry accounting is based on the fact that each financial transaction is equal and counterfeits securities in at least two different accounts. It is used to satisfy the expression Assets= Liabilities + Equity. Here, each entry is saved to maintain the ratio.

A double accounting or accounting system means that each business transaction contains two (or more) accounts. For example, if a company borrows from a bank, the company's cash account will increase and the liability of the account will increase the fee. If a company pays $ 200 for advertising costs, cash accounts will decrease and advertising costs will increase.

The double entry also foresees that the accounting equation (asset = liability + participation) is always balanced. In the example of cost advertising, the accounting equation is balanced because cost leads to a reduction in ownership cost. In this example, the asset is reduced in cash and the capital account of the owner's interested owner is also reduced.

The third aspect of double entry is that the amount included in the ledger account is included as a debit because the debit must be the same as the amount entered for credit.

In a Double entry system, transactions are recorded from the point of view of debit and credit. Since account credit is credited to another account, the sum of all the debit must be exactly the sum of all credits. Dual entry accounting or accounting system makes it easy to set up accurate financial statements from accounting records and detect errors.

Concept of double entry system:

The basic idea of ​​double entry is to record business transactions using debit and credit. Total flow is always equal to total credit. In principle, assets, expenses, lost accounts are displayed on the left side of the brochure based on accounting and accounting. The accounts, stocks, profits and profit accounts are displayed on the right side and the same amount of reserves are displayed on both sides. At least one account's credit must be attached to one or more account's accounts. The balance of both accounts will increase or decrease. Otherwise, the same credits are balanced on both sides by flows on both sides.

Advantage of double entry system

In the modern world a double entry system is recognized as the best accounting tool. The main advantages of a dual input system are as follows.

According to this procedure, both aspects of each transaction are recorded. So you can think about the whole account.

1-Since both aspects of the transaction are recorded, equal credit equivalent amount is required for each debit. Therefore, the total flow must be equal to the total credit. Indeed, it is possible to verify the accounting accuracy of accounting records by defining whether the two are equal, by tests known as test reports.

2-This system allows you to easily accumulate the income statement by collecting all accounts related to income, profit, cost or loss and identifying the results.

3-You can create a balance sheet by assembling all accounts related to assets and liabilities and evaluating the company's financial condition.

4-In this system, errors and distractions are found, and moral pressure is placed on accountants and staff.

5-In this system, important statistics are readily available so that management can make appropriate decisions and effectively manage the business.

6-You can quickly and easily obtain all details about the transaction.

7- You can easily identify the total amount of debt and the total amount to be paid to the lender.

8-The sale, purchase, inventory, revenue, expenses and profit and loss of various years are equivalent and the success or failure of the project is measured. Then there are the steps necessary to ensure success and successful cause of failure and commercial success.

Disadvantage of double entry system:

The double entry system can have the following disadvantages:

1. In this procedure, each transaction is recorded in two phases (journal and report) and two aspects (debit and credit). This leads to an increase in the number and size of books, and complications.

2.This requires time, work and money. Therefore, small concern is impossible to maintain account under this system.

3. Expertise is required to maintain account on this system.

4. Because the system is complex, it increases the probability of errors and errors.

From the above discussion it is clear that the advantages of double capture capability are more than disadvantages of the system. Therefore, it is considered the best system in the modern world.

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Single Entry System!

A single entry bookkeeping system or single entry accounting accounting system is a single accounting-based accounting method for maintaining financial information. 

A single entry system records each accounting transaction with a single entry in the accounting record, not a dual entry extended system. The single entry system focuses on the company's performance reported in the income statement. The basic information observed in one subscription system is cash payment and cash receipt. Account and account records usually do not exist in a single registry system. These things must be followed separately. The main way to store records in one registry system is the cash register which is essentially an extended registry register. You need to open a column page listing specific source and cash usage and display the final balance. 

Of the major problems related to single entry systems, 

Assets. Since Bates are not detected, it is easy to lose or fly. 

Audited financial statements. It is impossible to obtain an audit opinion on the company's financial performance using a single entry system. To be able to verify, the information needs to be converted to double input format. 

crime. It is easier to create a desktop error with a single entry system, as opposed to a dual entry system where separate entries of different accounts must match. 

load. Since no load is detected, a single system is needed to determine what this is on the due date. 

Report. Because there are few information available to build the company's financial situation, management can not fully understand the company's performance.

Because all computerized systems use dual entry systems instead, manual accounting systems use a single line writing system strictly. 

It is possible for a qualified accountant to compile a set of dual bid accounts from a single introductory accounting record even though the time required is important. This allows you to rebuild balances and cash flow statements.

Advantage: 

Several single entry systems are used for simplicity. They generally have lower maintenance costs than double entry systems that require expertise. If you need a dual input system, the service of the trained person is often needed. 

According to the US Internal Revenue Service, "a single entry system is based on the income statement (income statement), which is simple when starting a small business using: It will be a convenient system. 

1. Daily overview of currency receipt 

2.Summary of monthly receipts and cash payments. " 

In addition, the US Internal Revenue Manual [2] 

1. Registration of the single entry system for individual registration does not include equal debit and balance credits and income statement. The single entry accounting system is not balanced. Therefore, it is common with mathematical errors in gross accounts. Adjusting books and return records is an important step in auditing. 

2. The single entry System only includes transactions that are displayed in books, journals, or journals. However, it may include a complete set of large books and magazines including accounts for all the important things. 

3. Including small business postal checks in a single entry system, issuing newspaper logs, recording daily monthly cash summaries, engagement certificates, debtors and books and credits. 

Disadvantage: 

1. For effective planning and commercial management, data for management may not be available. 

2. The lack of systematic and accurate accounting may lead to inefficient management and poor management of the company's business. 

3. Single registered asset records may be managed. 

4. Theft and other losses are likely to be monitored.

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Bookkeeping!

Bookkeeping is a record of financial transactions and is part of corporate accounting treatment. Transactions include purchases, sales, receipts and payments made by individuals or organizations / companies. There are a few general accounting processes such as accounting for a single accounting system and input for a double accounting system, but if it can be considered as actual accounting, it implies a process including accounting records. 

Bookkeeping is usually done by an accountant. A custodian (or accountant) is a person who records the daily financial transactions of a business. He is often responsible for writing newspapers, including purchase, sales, receipts, payment records. Bookkeeper are responsible for ensuring that all transactions are recorded in the correct journal, supplier's supplier, customer support regardless of cash transactions or margin transactions and General Ledger Accountants are accountants' registered financial instruments Can be reported.

Bookkeeper can create income statements and balance sheets using test reports and accounting records created by accountants.

History:

Although the sources of Bookkeeping are lost in the dark, recent investigations have shown that one way to maintain an account is in front of time. Babylonian records are returned in 2600 BC. J.-C., written in the style of a small plate of clay. The term "garbage" is used in colonial America, which refers to accounting in the United States. The objective is to document daily transactions including revenue and expenses. It is recorded in chronological order, the purpose is only for temporary use. Everyday transactions are counted in one day's log or account, and the account balance is adjusted. The name "waste book" comes from the fact that when the waste data log is moved to the current log, the discarded book can be discarded.

Process:

The bookkeeping  process basically records the financial impact of the transaction. The difference between the manual and the electronic accounting system is the result of the initial separation of records of financial transactions and issuance to the relevant accounts. Delay in the absence of an electronic accounting system due to instant access to the relevant account is a financial transaction that is an essential feature of a manual system that provides important accounts such as cash registries, bank books, purchase books and books Record the immediate effect of.

In normal business, trading is done each time a transaction is made. Normally, sales and purchase will include an invoice or a receipt. Deposits will be made when funds are deposited in the bank account. The check (spelling checks in many countries including the UK) was written to pay money from the account. Bookkeeping  includes recording the details of all source documents in many newspapers (also called books in the first registry book). For example, all credit sales are recorded in the sales log. All cash payments will be recorded in the cash payment log. Each line in the log usually corresponds to an account. In a single entry system, each transaction is saved only once. Most people balancing their check books monthly use this system and most personal finance software follows this approach.

After a certain period, usually one month, each column increases in each column, and a summary of that time is provided. With dual entry rules, these magazine summaries are transferred to their respective books or accounts. For example, sales log entries are taken and you can enter credit entries in the "Class 2 widget sale" account, where each customer's account is debited (confirming that the customer is paying now) ( It shows that this activity produced revenue for us). A summary or process of transferring individual ledger transactions appears. Once the investment process is completed, the account used in the T format will be affected by the prognosis.

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Accounting!

1- Accounting is a systematic and complete record of financial transactions related to the company, included the synthesis of these transactions to the regulatory bodies and the actual tax collection, referring to the analysis and reporting.

2-Accounting is a systematic investigation, reporting and analysis of corporate financial transactions 

Accounting can be described as a means of communicating the financial soundness of a company or organization to stakeholder. This is way to assess the assets, liabilities and cash flows of all currents and future investor, or the future prospectus of the business. The Accounting department is responsible for recording and reporting the cash flows transactions of a company. This department has some key rules and responsibilities. including accounts receivable, accounts payable, payrolls, financial reporting, and maintaining financial control.

Function of Accounting:

Accounting includes business transactions, financial flows, the process of creating assets within the organizations, and preparation of financial record of the business financial situation at any point in time.

Accounting data:

Accounting data is information and data obtained from journals, accounting record and other departments supporting financial statement. e.g spreadsheet.These can be computer readable or paper readable.

Purpose of Accounting:

The purpose of accounting is to summarize and reporting financial information on performance, financial conditions, and cash flow. This information is used for money management, investment and borrowing decision.

Systems of Accounting:

(1) Cash system of accounting (2) Trade or commerce or actual system of accounting 

Cash system of accounting is an accounting method in which receipts are recorded, when they are received and expenses are recorded during the period in which it was actually paid. Cash accounting in which two types of accounting. Others are actual accounting whose revenue and expenses are recognized when they occurs. SMEs tend to use cash accounting, as it is very easy and easy. Its seems to give a clear image of how much money the company is really close. Company, however, need to comply with generally accepted accounting principle of actual accounting. Actual accounting is the basis current accounting treatment. It is also know as the trademark system of accounting. 

Branches of Accounting: 

There are three main branches in accounting which consist financial accounting, cost accounting and management accounting, accounting is based on systematic way to recorded business transactions on accounting principle. This is the original form of billing process. 

Principle of Accounting: 

Accounting principle are rules and regulated that company must obey when financial data is presented. The general scope of accounting principles is based on generally accepted accounting principles in united state of america. 

Concept of Accounting: 

Accounting policies used used to create accounts and financial statements. There are Four basic concepts in accounting. 

Accrual Concept: Revenue or expenses when received or paid in cash are not recognized when the occurs. 

Consistency Concept: The method should be used unless there is valid reason to do if a billing method is selected or not. 

Continuity Concept: Accounts are preparing business in good condition in the foreseeable future profit organizations.

Prudence Concept: This method should be used when income or profit are included in the balance sheet.

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Trial Balance!

In all the debit and credit statements of the double entry account, the discrepancy indicates an the error.

The trial balance is a brochure that sets the credit for all the books credit and loans set. Companies usually prepare trial balance periodically at the end of the each reporting period. The general purpose of the trial balance to ensure that the entries to the accounting system of the company are the mathematically correct.

By creating an enterprises the trial balance, You can detect the mathematical errors that occurs in a dual input accounting system. If the total amount of the borrower money is equal to the total credit, the balance of the trial balance is deemed to be the outstanding and should be no mathematical error in the accounting record. However, this does not means that there is no error in the company's accounting system. For Example, a transaction that is no properly classified or a transaction that is missing from the system may be an accounting material error that can not be tracked by the balance.

Evaluation of the trial balance and roles in accounting process:

The balance of the trial balance is an internal report at the end of the accounting period and the final balances is recorded in the each account. The report is mainly used to ensure that the of all the debit equal the sum of all the credit. In short, There are no impossible entries in the accounting system, so accurate the financial statement. Judges typically ask for the end-of- the year the trial balance when initiating audit to moves the account balance in to the audit report. They can request an electronic version that can be easily copied in to the software.

Although the balance of trial balance can also be used to prepare financial statement, the dominant use of the computer accounting system will automatically create a report to be used for this purpose.

Essentially, there is no need to use the trial balance report in the accounting activities.

When the initial balance of the trial balance is pressed down, it is called unbalance trail balance equilibrium. Next, if the accounting team corrects the errors and the adjust them to displayed the financial statement according to accounting standard ( such as GAAP and IFRS), this report is called a fixed balance trial balance. Appropriate trial balance report are usually printed on the year- end book and stored. Finally, after the period is called the trial balance after the closure.

The balance of the trial balance is the strictly a report accumulated from the account book. However, as a result of the review of the report, this can be done, but the balance sheet accounting contains a configuration process the convert the unadjusted trial balance is in an adjusted trial balance equilibrium state.

Trial balance equilibrium format >

The first trial balance report has the following column:

1. Account number
2. account name
3. Final flow balance (if applicable)
4. Balance of credit period ( if applicable)

Each line contains only one the final account balance. All the account with final balance are listed in the trial balance. Normally the accounting software automatically includes all known account with the zero balance.

In a modified version of the trail balance, you can combine debit and credit in single column and add column to display the corresponding entries and correct balance.

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Ledger!

A ledger is a major book or computer file for recording and preparing economic transactions accounted by accounts items, There are debit and credit in individual column, start of balance indicates the end of the money balance of the each account.

The general ledger is a permanent summary of all accounts included in the supports views and list the individual transactions in daily order. Each transaction moves from one magazine to one or more accounts. The company financial statement are generated summarizing the book's total.

General ledger is a collection of company's accounts of accounting record. The general ledger provides a comprehensive list of the financial transactions in the business life cycle. The general ledger contains account information necessary for financial reporting and includes accounts of assets, liabilities, exclusive interest, income and expenses.

The use of general ledger is the part of t he system the account uses to prepare the company financial statement. The transaction is posted to the general ledger account and the accountant creates a report showing the test balance, all the accounts of each account and multiply account. The balance of the test is adjusted by adding additional entries and the balance of the test is used to generate the financial statement.

The business organization card is the model of the system number of the ledger that contains all the department account used in the business. Each general account is assigned to the number that is available in all the department. Number are also assigned to individual accounts within each department.

Most small business enter-or-four -digit number for each account, depending on the of the transactions. At the end of the accounting cycle, the amount amount of individual account in each department is added and used for preparing the financial statement.

In the account book:

• Sales ledger, receivable notes. This book is made up of financial transactions performed by the customers of the company.
• Book saves money for corporation acquisition.
• General ledger representing accounts of five main types of assets, liabilities, revenue, expenses and the capital.
• A scattered ledger once called a shared ledger is a copy of the copied, distributed, and synchronized digital geographic data distributed across multiples sites, countries and institution.
• For each digital recorded in the ledger, the equivalent credit must be made so that the debit is equal to the total credit.

The general accounts are the accounts or recorded used to start and store balance and the revenue transaction. Example of general ledger accounts includes the assets accounts such as cash, accounts receivable, inventory , investment, land and equipment. Example of general account liabilities includes accounts payable, accrued expenses and and the customer deposit. Example of general ledger income statement including sales, service fee, salary cost, lease expenses, advertising expenses, interest expenses, and the loss of sales assets.Some accounts in the general ledger summarize record called accounts checks. Detail supporting each control account are outside the general ledger called a large back book. An account is an example of the general ledger management account and there is a registration of a subsidiary that includes credit activities of the each customer. Inventory,equipment and accounts of the general account are controlled to be paid and subsidiaries in the book contain supplementary document for each.

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Journal!

Journal is a record holding accounting transaction in a sequential order and its means how it is displayed.Ledger is a record that provides the accounting transactions. A accounting is a unit that record and summarizes accounting transactions.

Journal accounting is record of accounting journal transactions.The daily input can consist of the several investigation, each of which is debit or credit. The sum of the debit must equal to the total credit and the entry pf the account is considered "imbalanced".

Journal entries are the method used to the enter accounting transaction in the company's accounting record. Accounting record are combined in the journal ledger. Here, you enter daily entries in various subordinate accounts and do so in the journal ledger. This information is used to compile the financial statement at the end of the reporting period.

There is no upper limit on the number of the rack items included, but at least two coil entries are required for the journal entries. An entry in a paired journal is known as a single log entry, but entries that contains many items in a row are called composite log entries. The company can use many journal entries in a single posting period. Therefore it is desirable to use more log entries as a small number of compiled journal entries to ex[plain why the entries is the created. This is the useful, in particular, when examining  the daily entries at the later date when the auditor is checked.

When you create an accounting transaction, at least two accounts are always assigned, one account entry is created in the one account. and one credit entry is created for another account.

The debit and total credit of all transactions must always be equal, accounting transactions are always considered " balanced". If the transaction is not outstanding, you can not write financial statement. Thus the use of debit and credit in a two - digit transactions record format is the most essential of all the accounting controls.

In small accounting environment, the accountant can record log entries, In large enterprises, a large general accountant may control how to the record journal entries and record the daily entries.

Journal entries format >

At a minimum, the journal entries must contain the following:

• Accounts where debit and credit are recorded.
• Subscription date.
• The fiscal period in which the entry are recorded.
• The name of the person logging the entries.
• All administrative authorities.
• A unique number that the identifies the log entry.
• If the subscription is a single subscription, subscription return entry.
• It may be necessary to include the extensive documentation in the journal entries to prove the reason recorded. Please give at least a brief description of the log entry

Special type of accounting journal entries:

The conversion log entries is changed manually during the next accounting period or the accounting software is automatically changed in the next period.

Report journal entries are repeated for successive period up to the end date.This can be done manually or it can be configured to run automatically on the accounting system. 

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Credit.Cr!

Credit is a contractual agreement that the borrower has a foundation and agree to pay back to the lender with the interest at any time at a later date. Credit refers to accounting that reduces assets or increase debt and equity in the company's balance sheet. In addition, in the income statement, net income decrease, while credit increase net income.

The abbreviation of credit: The abbreviation is used for credit is "Dr".
Types of credit >>>

There are several kinds of the credit. If a bank provides a car loan, mortgages, loan signature, credit facilities to the customer, these are all credit forms. Essentially, the will credit the borrowers that the amount of the borrower will have to pay it later. For Example, when someone at a local shopping mall receive purchase of a VISA card, the payment is considered a kind of credit because it is necessary to purchase the items and pay it later.

However, these loan are not the only types of credit. If a supplier provides products or services to individual but does not pay the later, this a kind of credit. For example, if a restaurant received a truck from the the seller, but the seller does not demand payment until the one month later, the seller will provides credit form to the restaurant.

In accounting, credit is a subscription that includes the amount received. Custom credit are displayed on the left side of the debit card on the right. For Example, if a person search his expenses with an expenses report, he refer to deposit such as credit, and has deposited money on to amount as the debt.

In accounting,the credit balance is the final amount on the right side of the G/L account.

The credit amount is the normal and is expected in the general account and the following branch accounts.

Accountability account:These include accounts payable, trade notes, salary payment, interest expenses, accrued income taxes, customer deposit, deferred taxes, etc. For Example,  the credit balance of the payment account indicates the value of the supplier. ( Therefore, it show that the debt account balance is paid more than debt amount, bad account, etc). Since the liability account is permanent account, the balance will not be settled at the end of the year.

Equivalent account:Four example of stocks accounts are general account, monetary redemption principle, residual income and smith capital. These are the permanent accounts and the balance ends at the end of the fiscal year.

Accounts and revenue account: Example are income, income, interest income, equivalent acquisition and collection. Because of the provisional account, transferred to retained earning or owner's capital account is done at the end of the each accounting year.

Contribution account:Two example include reserve and cumulative amortization of suspicious accounts. The credit outstanding of these account recognize the aggregate and net of the account receivable and real estate, equipment and significant assets. As these are permanent accounts, the balance is not closed at the end of the posting period.

Cash payment account:This includes purchase, income, income on discount, employees expenditure, etc. The credit balance of these accounts allow a company to report both net assets and net worth. The balances of these interim accounts are transferred to the capital accounts of the owner's or owner at the end of the fiscal year. 

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Debit Dr!

A debit is an accounting item that result in an increase in assets or decrease in corporate the liabilities. In basic accounting, debit is the credit balance that act in the opposite direction. For Example, if a company has to pay debts at the time of the equipment purchase, fixed assets and creditors are charged to the liabilities account according to the nature of the loan.
Debit is a function that found all double entry accounting system. For common log entry, all rates are placed as headlines, and all creditors are called debit lines. When using a T card, the debit rates is on the left side of the chart and the credit is correct. Debit and credit are used in the balance of the test, adjust the balance of the tests and make sure that all the entries are balanced. The total dollar amount of all debit must equal to the total dollar amount of all debit.
For accounts items, the debit balance is the financial amount on the left side of the G/L account.
Abbreviation of Debit balance:The abbreviation used for debit balance is "Dr".The debit balance is normal and is expected in the following accounts.
Assets account |Cash, accounts receivable, inventory, prepaid expenses, assets such as the building, land, furniture, equipment, etc. For example cash balance are the positive amount. ( Therefore, the cash deposit balance indicates the negative amount that could be a written check with an amount greater than the currently available amount).
Expense accounts and loss accounts |Problem of accounts and accounts losses such as cost of sales, salary cost, lease expenses, interest cost, loss of equipment sales, lost court proceeding. ( The debit balance of these accounts is the transferred to the owner's remaining revenue or the owner capital at the end of the each fiscal year).
Contra- revenue account |Cash accounts ( including the sales reviews, returns etc). (Debit balance in these accounts include of the report of the total sales and sales are transferred to capital account at the end of the each accounting period).
Contra- Liability account |Possible account such as the discount on effects toolbox. ( This debit balance stipulates the presentation of the same fair values as the crying value or the crying amount of the security and an the indication of the cost).
Contra- equity account |Equity accounts such as the owner's drawing and treasury shares.( The balance of the debiting account of the redemption account is not the principle of the owner's accounts, but the balance at the end of the each year decrease).
The term debit balance has several definition.These are as follow:
Accounting: The debit balance is the balance of account with balance of account balanced positive. Account that generally have account balance includes assets, expenses, and losses. Foe Example, of these accounts are fixed assets ( salaries, expenses and losses) on assets disposition (loss).
Bank account: Debit balance is the negative cash balance of current checking of banks. Such an account is called an overdraft and therefore can not be balanced in a negative way- refuses to borrow a debit balance refusing to borrow the check presented in the account. Alternatively, the current account balance is set to zero with an overdraft agreement.
Debt: The debit balance is an excellent principle of loan from a lender by a borrower.
Investment: Debit balance is the amount of cash lent to the investor margin account from the broker to buy the security and the amount the investor needs to pay before entering the purchase transactions.

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Branches of Accounting!

Different accounting firms seems to examine different types of accounting information required by different kinds of peoples. There are three major accounting department : Financial accounting, cost accounting, accounting such as owners, shareholder, management teams, suppliers, creditor, tax authorities and various state agencies.

Financial Accounting >

Financial accounting is based on a systematic way to withdraw ant business transactions based on principle accounting. This a first accounting process. The primary functions of financial accounting is to calculated the profit and loss of the business over a period of time and accurately grasps the company financial condition on a specific date. Test balance, income statement and company balance are based on financial accounting applications. This is used by lender, bank, financial institutions to evaluate the company's financial situations. In additional, tax authorities can not calculates taxes on these registers.

Cost Accounting >

The cost evaluates the transaction with the value of the products or the service being offered. Calculate the cost that takes in to the accounts all factors contributing to productions ( both manufacturing and administrative factors). The purpose of cost is to help management determined prices and management products costs. This is also means waste, dumping, and defects in manufacturing and marketing process.

Management Accounting >

The accounting department provides management information to better manage the business. This makes it possible to make important decision and to control various activities of the company. Management can effective decision using a variety of information management system such as budget, expected cash flow statement, analysis of variance analysis, cost effectiveness analysis reports, etc Quantity, OTC calculates etc.

In additional to the above three accounting department, there are many branch operations, which will be extremely useful for various purposes as the shown below: 

Auditing: Auditing is a part of accounting when a certified public accountant know as auditor examines the company accountant and proves its accuracy and consistency. Internal audit are also carried out if the company regular audit account and management assistance employees have stored specific reports for the audit purposes. 

Tax Accounting:Tax accounting contract includes tax element. Preparation and presentations of the various tax returns, management of legal influence, and so on. The accountant will reduce the tax payment and help the financial accounts collect the financial statement of the tax returns of the various jurisdiction. Tax accounting includes the impact of taxation on the various aspect of the business, legal tax credit and consultation on the verification of the impact of the taxable taxation. 

Fund Accounting:Fund accounting communicates with the registration of fund from unprofitable entities isolated fund accounts are maintained for separate acts such as social assistance plan of different nature and ensure proper use of fund. 

Government Accounting: Government accounting is performed through the use of remuneration aggregation of the central government and state government financial statement. Respects the accurate and effective use of various budget allocation and the safety of public funds. 

Forensic Accounting: Forensic accounting also known as the statutory accounting, help to calculate or resolve misunderstanding of damage. A survey is conducted and calculation are made to correct damage. 

Trustee Accounting: Trustee accounting is the accounting and evaluation of the business and the property of the third party under the control of the another person.

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The Difference between Internal & External Audit!

Auditing:

Auditing is an inspection, modification and check business record conducted by an independent qualified public accountant

Auditor:
An auditor is a person who checks the accuracy or correction and verification of business record.
The auditor is a person who the financial record of the company or organizations.
Jobs in the audit industry have brought many careers opportunities. Audit roles are generally classified in to two camps, indoor and outdoor. It is important to fully understand to the audit role before carefully looking at experts and niches.

Internal Audit:

In the internal audit, the practical work and risks of our business.

Internal audit is independent of other departments, but it is a function to report directly to the audit committee that resides in the organization (i.e employees). As stated in the annual audit plan, I am responsible for a wide range of the audits ( finance and non finance). Internal audit focuses on the critical business disasters and action that effectively manage risks to help organization to achieve its objective. For Example, you can investigate the risks of corporate reputation. Such as the use of overseas Inexpensive workers and strategic risks such as the production of so many products. Available resources etc.
External Audit:

External audit examine the company, balance sheet and financial statement.

External audit is an independent agency outside the organization to review. They are focused on the financial and financial risks designated by the financial account s and the company shareholder. The main responsibility of the external audit is to carry out annual audit of the financial accounting law and to judges whether its reflects the financial condition of the company in truth, As the part of this process, the external audit is examines and evaluate the risks that the many effect the financial account and determines the internal control that are the generally defined to the determined whether they are operating as planned considered.

The difference between internal audit and external audit function is as follow:

Internal auditors are employees of the company, and external audit work at external auditing firm.

External auditors are appointed by the shareholder voting, but internal auditor are approved by the company.

Internal auditor should not be CPAs, VPAs should direct the activities of external audit.

The internal auditor is the responsible for management and the external auditor is the responsible for share holder.

Internal auditor can report result in any types of reports format, but external auditor must use a specific format for audit opinion and management point.

The internal audit report are used by administrator and the external audit report are used by clients such as investors, lander, and the borrowers. 

The internal auditor can be used to provides advice and other services to advisers, but the external auditor need to the supports audit clients.

The internal auditor survey business practices and risks related issue, the external audit review financial account and the provide advice on the financial statement.

The internal auditor are conducted through out the year, while external auditor annual annual audit. If the client is open, the external auditor also provide the audit services three time a year.

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