ACCOUNTINGDOSE

Journal entry for Bad debts & Provision for Bad debts Hello everyone, here we are going to learn how to pass journal entry for bad debts and provision for bad debts, let us understand the difference between bad debts and provision for bad debts. BAD DEBTS : - A bad debt is debt that is not collectible and therefore treated as worthless. This usually occurs after all attempts are made to collect but failed. The debtor may going to bankrupt. This is treated as loss in books. PROVISION FOR BAD DEBTS : - On the basis of previous year bad debts the percentage of bad debts are considered as provision for bad debts and it is a balance sheet item shown as liability. The provision for bad debts is treated as expense in income statement.

THE COMPANIES ACT 2013: SCHEDULE III The presentation of financial statements of companies registered under the companies Acts is now governed by schedule III of companies Act 2013.The format is same as per schedule VI of the companies Act 1956. Identifiable difference from previous format only one format has been prescribed in earlier there were two alternatives formats. PROFIT AND LOSS ACCOUNT was renamed as STATEMENT OF PROFIT AND LOSS. The 'liabilities' side stand was renamed as "Equity and Liabilities" In the statement of profit and loss, the threshold level for disclosure of expenditure items has increased from Rs. 5,000 to Rs. 1,00,000. remaining changes are very minute.  FOLLOWING IS THE FORMAT OF BALANCE SHEET AS PER SCHEDULE III

Journal entry for Salary: - Salary paid company includes allowances and deductions. Allowances are many types I am giving you some examples: - Types of allowances:- Dearness Allowance : - It is a cost of living adjustment allowance paid to employees in India. It is calculated as a percentage of basic salary to moderate the impact of inflation on employees. The DA vary according to areas (whether rural or urban) House Rent Allowance : - It is given by employer to the employee to meet the rent expense. Performance Allowance : -It is given to employee when they achieve the target given by the employer. Transport Allowance : -It is given to employee in order to meet the expense to come to office from employee residence. Children Education Allowance : -It is paid for education of employees children. Medical Allowance : -It is given to employees to medical expenses. Uniform Allowance : -It is given to employees for the expenditure. incurred on purchase or main...

Journal entry for foreign exchange fluctuation (Exports) As per Accounting standard 11 : The effects of changes in foreign exchange rates A foreign currency transaction should be recorded ,by applying the foreign currency amount the exchange rate as on date of purchase. Foreign exchange fluctuation is difference between the rate of currency at the time of sale and the rate at the time of receipt. The rate of currency in the market will varies daily it causes loss or gain to entity.  Let us see a simple illustration:- Computation of foreign exchange loss or Gain Currency Rate as on purchase less Currency rate as on payment =  If difference is negative then it is treated as loss, If difference is positive it is treated as Gain. There are different situations in foreign exchange as follows: - 1)    Sale&Receipt within same financial year. 2)    Sale in one financial year &Receipt in next financial year.

Journal entry for foreign exchange fluctuation (Imports) As per Accounting standard 11 : The effects of changes in foreign exchange rates issued by ICAI A foreign currency transaction should be recorded ,by applying the foreign currency amount the exchange rate as on date of purchase. Foreign exchange fluctuation is difference between the rate of currency at the time of purchase and the rate at the time of payment. The rate of currency in the market will varies daily it causes loss or gain to entity.    Computation of foreign exchange loss or Gain Currency Rate as on purchase less Currency rate as on payment = If difference is negative then it is treated as loss, If difference is positive it is treated as Gain. Journal Entry for foreign exchange (Purchase & Payment made within financial year) A ltd purchased material of $15000 on 01 st February 2015 from BUK CO. The Due date is on 15 th march 2015.  $ is quoted at market as on 01/02/2...

Journal Entry for custom duty on purchase import Custom duty is applicable on purchase imports, the importer is liable to pay duties on import of material. Duties include Custom duty, Excise duty, Additional Excise duty & cess (Education cess, Secondary higher education cess) on both custom duty & excise duty. The duty details are available in Bill of Entry document issued by Custom authorities at import location. The entry will be as follows: -Import of 100000/- worth material.                                Custom Duty A/C                         Dr      7500                     ...

Hi friends, here we are going to learn how to do balance sheet and statement of profit and loss in less than ten minutes. Let us begin the topic with trail balance. Trail Balance is a statement of debit and credit balances of various ledger accounts at the end of the financial year or any given date.As it is prepared by taking all ledger account balances , both debit and credit sides of the trail balance are always equal.T rail balance is used to prepare final accounts of entity.