Answer / ameet narayankhedkar

Financial accounting is the collection, recording,
classification and proper presentation of financial
information or date in such a way that all external agencies
such as income tax authorities, government, shareholders,
creditors of a company can understand it easily. From the
data presented by financial accounting, these external
agencies can easily understand what exactly is going on in a
company. They can know the financial strengths and
weaknesses of a firm by the financial data presented through
the process of financial accounting. Managerial accounting
is related to the accounting work done for the better
understanding of facts for the management of the company.
Management accounting is not done for any outside party, but
only for the company management to know where they should
give more attention to post better financial results.

Another difference between these two types of accounting is
that financial accounting is mandatory whereas management
accounting is optional.

Diffrence between Statutory Audit & Internal Audit

2 Answers   Goldman Sachs,

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WHAT IS INTERIM BUDGET

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Particulars Dr Cr Capital 10,000 Machinery 3000 debit 2500 1400 sales - 14,500 drawings 900 purchase 9500 wages 5000 bank 1500 Opening balance 2000 rent 450 salary 200 carriage 150 total ___________ _________ 25,900 25,900 ____________ ________ how to find closing stock as on 31st dec,1998. wages outstanding 200/- sunnery expenses outstanding 100/- rent prepaid 100/-

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please explain all accounting concepts n conventions in detail

0 Answers   DA Vision,

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Case Study: Deepak Hand tools Private Limited DHPL is a small sized firm manufacturing hand tools. It manufacturing plan is situated in Haryana. The company’s sales in the year ending on 31st March 2007 were Rs.1000 million (Rs.100 crore) on an asset base of Rs.650 million. The net profit of the company was Rs.76 million. The management of the company wants to improve profitability further. The required rate of return of the company is 14 percent. The company is currently considering an investment proposal. One is to expand its manufacturing capacity. The estimated cost of the new equipment is Rs.250 million. It is expected to have an economic life of 10 years. The accountant forecasts that net cash inflows would be Rs.45 million per annum for the first three years, Rs.68 million per annum from year four to year eight and for the remaining two years Rs.30million per annum. The plant can be sold for Rs.55 million at the end of its economic life. The company would need to raise debt to the extent of Rs.200 million. The company has the following options of borrowing Rs.200 million: a. The company can borrow funds from a nationalized bank at the interest rate of 14 percent for 10 years. It will be required to pay equal annual installment of interest and repayment of principal. b. A financial institution has offered to lend money to DHPL at 13.5 per annum but it needs to pay equated quarterly installment of interest and repayment of principal. Questions: 1. Should the company expand its capacity? Show the computation of NPV 2. What is the annual installment of bank loan? 3. Calculate the quarterly installments of the Financial Institution loan 4. Should the company borrow from the bank or from the financial institution?

0 Answers   IIRM,

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who will appoint first board of director of the company

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Closing stock not considered in Trial Balance,why?

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we are going to purchase a new office/gala . we are using tally software. in above transction we have to pay stamp duty,ragistration fees etc. my question is uder which heads i enterd above exp in tally.

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Is it necessary after every journal entry to show its treatment in P&L a/c? Eg. if I am asked to show journal entry of purchasing furniture & fixture on 1st Aug 06, i.e. Furniture & fixture a/c Dr. To cash/bank a/c Along with this, I have to pass following journal entry on 31st Mar 07?? P&L a/c Dr. To Furniture & fixture a/c

0 Answers   WNS,

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iam working in small industry there some bills are not having even the shop name and contact.no. whether i should consider that expenses or not if yes, whether that bill attach with the voucher?

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Mr.x gets Rs66000P.M .He told that you donot cut any dedution from my salary.This is possiable please tell some useful investment

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Hi wht r da questions which are mostly asked in an Accounts related job for freshers?

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