Accounting

Inventory management is an automated process of managing the stock of products and the various things involved with it Involves a retailer seeking to acquire and maintain a proper merchandise assortment while ordering, shipping, handling, and related costs are kept in check. Systems and processes that identify inventory requirements, set targets, provide replenishment techniques, and report actual and projected inventory status.

Partitioning is nothing but grouping based on the cluster, which is similar kind of response by a system.

Dividend is the part of profits payable to the owners of the company i.e., Shareholders. Some companies issues warrants to its shareholders instead of paying dividends in the form of cash in the form of document by mentioning the Warrant Price and other details.

The price mentioned in it is also called exercise price. Some times company may not specify the name of the holder. The holder of the document can fill it.

Advantages: It helps to the issuing company from paying the Tax.

It is easy to transfer from one person to other without any formalities

It helps to increase the share/capital of the company

In double entry book, keeping method a journal entry is posted to both respective accounts for each transaction.

Let us say for sales transaction, debit entry posted to cash account credit entry posted to sales account.

Therefore, it is one of the methods to post accounting transactions.

Every transaction must be supported by any document. A trade bill is a supporting document of business activities like purchases, sales, receipts, payments etc...

LC (Letter of Credit) is a set of documents which are very essential for goods being transported from one country to another. This set includes that of invoices, shipping documents, grantees and others.

Assets in Banks are Loans and Advances given to borrowers. These Assets are divided into 4 categories. They are

1. Standard Assets: These accounts are good and the borrower is repaying the loan as per stipulation and the security extended in good.

2. Substandard Asset: These accounts are good as per the security extended is good but the loans repayment is not up to the mark.

3. Doubtful Asset: These accounts have both the security as well the repayment stipulation in irregular method.

4. Bad Asset: These accounts are where the repayment is not forthcoming and the security extended becomes bad.

Provisions are created in books as they are anticipated. Example: provision for depreciation

Reserves are created in books as a part of profits, which might used to purchase assets or to declare dividends.

In perpetual inventory system, the inventory account is adjusted continually throughout the accounting period.

Whereas in the Periodic Inventory System: - Recording inventory transactions periodically than recording them continually.

Adjusting entries are those entries that passed to rectify an error or wrong entry already made some accounting soft wares have disabled edit function in the accounts, so the only way to undo the mistake is to pass a correction entry or adjusting entry.

Items GAAP does not want us to record in Income Statement. GAAP does not want financial statements provider to mislead users. Ex. items will record in comprehensive income are Unrealized gain or loss on available-for-sales securities; Unrecognized net gain or loss; Unrecognized prior service cost (credit); Unrecognized net gain or loss.

Financial ratios express relationships between financial statement items. Although they provide historical data, management can use ratios to identify internal strengths and weaknesses, and estimate future financial performance. Investors can use ratios to compare companies in the same industry. Ratios are not generally meaningful as standalone numbers, but they are meaningful when compared to historical data and industry averages.

An account balance that, based on certain factors or classifications, is expected of that particular account. Also called normal balance.

Assets Side: Advance In-Come Tax Ledger in current year

In Assets Side: Advance In-Come-Tax A/c Dr with TDS received Amount and Party A/c Cr with TDS received Amount

Personal-

Debit the receiver

Credit the Giver

Real-

Debit what comes in

Credit what goes out

Nominal-

Debit all expenses and losses

Credit all income and gains

Yes, you can take tax on freight outward. Because you are paid freight inclusive of service, tax so you can full credit availed on any expenditure where you paying service tax amount.