Reference to contents & images provided :-
Google India: http://www.google.co.in/
2.
Wikipedia: http://en.wikipedia.org/
3.
Investopedia: http://www.investopedia.com/
4.
Reference to the Contents
Sunday, July 27, 2014
Credits & Vote of Thanks!
I thank,
i) Firstly, Prof. Dipak Kr. Shukla for being my Faculty Guide for this Summer Internship Program as well as for guiding & motivating me for this project. He encouraged me all the time in internship & taught me many morals & values to consider & implement in myself to be successful in IT Field. I specially thank him since he more focused on how I behave & react while meeting different people & situations so they can trust, be happy & if more good, then praise me for my goodness & behavior. Most Remarkable, he didn't tell me steps or concepts much to work on this project, he taught me how I can get those steps to make an effective project when I enter a new field of working. Like, in this project, till now I just have studied C/C++, & didn't have any good idea about Online Publishing of Websites/Blogs, HTML, XML etc, I just know there introduction but I just found the way by learning from different sites, tutorials on Google, taking idea from HTML Codes of different websites/blogs (we can get by right click choosing 'inspect element' on any desirable web page / sites / blogs in Google Chrome). Shukla Sir increased my knowledge about how to learn new things. Due to this project, I too gathered somewhat a good practice knowledge about how to build & manage a blog or website online. I really appreciate his teachings by heart since its great for us since, with advancement IT Sectors, new software & technology will be always coming, it will help me to cope up from being outdated anytime.
ii) Prof. Sumit Kumar Sinha for supporting me with suggestions & advice regarding Finance & Accounting for the contents of this project whenever required, also mainly & most important since he was my teacher for this subject in my BCA (IInd semaster) who delivered me the knowledge, idea & understanding about Finance & Accounting in today's' world as well as in our Past. He delivered me the knowledge of Financial Systems, Accounting methods & their applications, Shares, Debentures & Bonds & many more which will be very important in future since Money is involved in every feild of this world so to be successful & established in this world, one needs to know about the study of money & its applications i.e through Finance & Accounting.
iii) Prof. Pritha Chaturvedi for her constant advice & care regarding this project, both in content & design. She always reviewed my project, explained me financial concepts & advised me regarding the design. She too praised me for my work. My both wallpapers, the Gold Coins & currently the Gold bars are on her advice only.
iv) Prof. Abhay Kumar Sinha: Well! He was not with me in this project but it was he, who enhanced my programming skills, gave me knowledge about C Programming & Object Oriented concepts of C++ in the last 2 Semasters. Definitely, I didn't used these languages but his teachings improved my understanding & creativity in programming & gave me the feel of using a Computer language to develop things which played a good role while understanding HTML & XML Codes & Concepts. Now also he use to give me Career tips & advice for my future in Technical field.
v) Management of ICFAI University Jharkhand for arranging this Internship Program.
vi) Mr. Naresh Kumar Sinha, my cousin, for reviewing my blog & helping to solve an error occurred while changing the wallpaper for first time i.e by deleting a tag misplaced & solving the error due to a wrong keystroke in the template.
vii) My Parents for their constant financial, physical & every type of support due to which, I'm here today.
Saturday, July 26, 2014
Journal and Ledger
Journals
In accounting, a first recording of financial transactions as
they occur in time, so that they can then be used for future reconciling and
transfer to other official accounting records such as the general ledger. A
journal will state the date of the transaction, which account(s) were affected
and the amounts, usually in a double-entry bookkeeping method.
For an individual investor or professional manager, a
detailed record of trades occurring in the investor's own accounts, used for
tax, evaluation and auditing purposes.
Journalising is an essential part of objective record-keeping
and allows for concise review and records transfer later in the accounting
process. Journals are often reviewed as part of a trade or audit process, along
with the general ledger(s).
A general journal entry
includes:
1.
The date of the transaction;
2.
Titles of the accounts debited
and credited;
3.
The amount of each debit and
credit; and,
4.
An explanation of the
transaction also known as a Narration.
 |
| An Example of a General Journal |
General Ledgers
A general ledger is typically used by businesses that employ the double-entry bookkeeping method - where each financial transaction is posted twice, as both a debit and a credit, and where each account has two columns. Because a debit in one account is offset by a credit in a different account, the sum of all debits will be equal to the sum of all credits.
The ledger is a permanent summary of
all amounts entered in supporting journals which
list individual transactions by date. Every transaction flows from a journal to
one or more ledgers. A company's financial statements are generated from
summary totals in the ledgers.[2]
Ledgers include:
·
Sales ledger,
records accounts receivable. This ledger consists of
the financial transactions made by customers to the company.
·
Purchase ledger records money spent for
purchasing by the company.
·
General ledger representing the 5 main
account types: assets, liabilities, income, expenses,
and equity.
For every debit recorded in a ledger, there must be
a corresponding credit so that the debits equal the
credits in the grand totals.
Accounting Equation
Definition:
The equation that is the foundation of double entry
accounting. The accounting equation displays that all assets are either
financed by borrowing money or paying with the money of the company's
shareholders. Thus, the accounting equation is: Assets = Liabilities +
Shareholder Equity. The balance sheet is a complex display of this equation,
showing that the total assets of a company are equal to the total of
liabilities and shareholder equity. Any purchase or sale by an accounting
equity has an equal effect on both sides of the equation, or offsetting effects
on the same side of the equation. The accounting equation is also written as
Liabilities = Assets – Shareholder Equity and Shareholder Equity = Assets –
Liabilities.
Example:
A student buys a computer for $945. This student borrowed $500 from his friend and spent another $445 earned from his part-time job. Now his assets are worth $945, liabilities are $500, and equity $445.
A student buys a computer for $945. This student borrowed $500 from his friend and spent another $445 earned from his part-time job. Now his assets are worth $945, liabilities are $500, and equity $445.
The
formula can be rewritten:
Now
it shows owners' interest is equal to property (assets)
minus debts (liabilities). Since in a corporation
owners are shareholders, owner's interest is called shareholders' equity.
Every accounting transaction affects at least one element of the
equation, but always balances. Simplest transactions also include:[2]
Transaction
Number |
Assets
|
Liabilities
|
Shareholder's
Equity |
Explanation
|
|||
1
|
+
|
6,000
|
+
|
6,000
|
Issuing stocks for
cash or other assets
|
||
2
|
+
|
10,000
|
+
|
10,000
|
Buying assets by borrowing money (taking a loan from a bank or
simply buying on credit)
|
||
3
|
−
|
900
|
−
|
900
|
Selling
assets for cash to pay off liabilities: both assets and liabilities are
reduced
|
||
4
|
+
|
1,000
|
+
|
400
|
+
|
600
|
Buying assets by paying cash by shareholder's money (600) and by
borrowing money (400)
|
5
|
+
|
700
|
+
|
700
|
Earning
revenues
|
||
6
|
−
|
200
|
−
|
200
|
Paying expenses (e.g. rent or professional fees) or dividends
|
||
7
|
+
|
100
|
−
|
100
|
Recording
expenses, but not paying them at the moment
|
||
8
|
−
|
500
|
−
|
500
|
Paying a debt that you owe
|
||
9
|
0
|
0
|
0
|
Receiving
cash for sale of an asset: one asset is exchanged for another; no change in
assets or liabilities
|
|||
These
are some simple examples, but even the most complicated transactions can be
recorded in a similar way. This equation is behind debits, credits, and
journal entries.
This
equation is part of the transaction analysis model,[3] for
which we also write
Owners equity = Contributed Capital + Retained Earnings
Retained Earnings = Net Income − Dividends
and
Net Income = Income − Expenses
The
equation resulting from making these substitutions in the accounting equation
may be referred to as the expanded accounting equation, because it yields
the breakdown of the equity component
of the equation.
Applications:
The accounting equation is fundamental to the double-entry
bookkeeping practice. Its applications in accountancy and economics are
thus diverse.
Financial Statements
A
company’s quarterly and annual reports are basically derived directly from the
accounting equations used in bookkeeping practices. These equations, entered in
a business’s general ledger, will provide the material that eventually makes up
the foundation of a business’s financial statements.
This includes expense reports, cash flow, interest and loanpayments,
salaries, and company investments.
Double Entry Bookkeeping System
The
accounting equation plays a significant role as the foundation of the double
entry bookkeeping system. This accounting system ensures that a company’s
accounts are always balanced and that all financial transactions are documented
in detail. The primary aim of the double entry system is to keep track of debits and credits,
and ensure that the sum of these always matches up to the company assets, a
calculation carried out by the accounting equation.
Income
and Retained Earnings
Use
of the accounting equation is also an essential component in computing,
understanding, and analyzing a firm’s income statement. This statement reflects profits and lossesthat are themselves determined by the
calculations that make up the basic accounting equation. In other words, this
equation allows businesses to determine revenue as
well as prepare a statement of retained earnings. This then allows them to
predict future profit trends and adjust business practices accordingly. Thus,
the accounting equation is an essential step in determining company
profitability.
Company
Worth
Since
the balance sheet is founded on the principles of the accounting equation, this
equation can also be said to be responsible for estimating the net worth of
an entire company. The fundamental components of the accounting equation
include the calculation of both company holdings and company debts; thus, it
allows owners to gauge the total value of a firm’s assets.
Investments
Due
to its role in determining a firm’s net worth, the accounting equation is an
important tool for investors looking to measure a company’s holdings and debts
at any particular time, and frequent calculations can indicate how steady or
erratic a business’s financial dealings might be. This provides valuable
information to creditors or
banks that might be considering a loan application or investment in
the company.
Monday, July 21, 2014
Monday, July 14, 2014
Accounting Standards
List of Indian Accounting Standards(Currently Applicable)
The following are
the mandatory Accounting Standards (AS) as on July 1, 2012 as listed on the
site of The Institute of Chartered Accountants of
India (ICAI)
AS 1
Disclosure of Accounting Policies: It is a method of applying those
principles by the enterprises in the presentation and preparation of financial statements.
AS 2
Valuation of Inventories: It is to formulate the method of
computation of valuation of stock, determining the closing stock is to be shown
in balance sheet till it is not sold and recognized as revenue.
AS 3 Cash Flow
Statement: It is an additional information
statement exhibits the flow of incoming and outgoing cash.It assess the ability
of the enterprise to generate cash and utilize.One of the tools for assessing
the liquidity or solvency of the enterprise.
AS 4 Contingencies and Events Occurring after the Balance Sheet Date: This concept is for
preparing financial statements accounting is done by the following accrual
basis of finding profit or loss account(p\l) for the year and recognise assets
and liabilities in balance sheet.
AS 5 Net Profit or Loss for the period,Prior Period Items and Changes
in Accounting Policies: profit or loss account is a
period statement covers the items of income and expenditure of particular
period and also deals with change in accounting policy
Others are as follows:-
·
AS 6 Depreciation
Accounting
·
AS 7 Construction
Contracts (revised 2002)'''
·
AS 8 Accounting for
Research and Development (AS-8 is no longer in force since it was merged with AS-26)
·
AS 9 Revenue
Recognition
·
AS 10 Accounting for
Fixed Assets
·
AS 11 The Effects of
Changes in Foreign Exchange Rates (revised 2003),
·
AS 12 Accounting for
Government Grants
·
AS 13 Accounting for
Investments
·
AS 14 Accounting for
Amalgamations
·
AS 15 Employee Benefits
(revised 2005)
·
AS 16 Borrowing Costs
·
AS 17 Segment Reporting
·
AS 18 Related Party
Disclosures
·
AS 19 Leases
·
AS 20 Earnings Per
Share
·
AS 21 Consolidated
Financial Statements
·
AS 22 Accounting for
Taxes on Income.
·
AS 23 Accounting for
Investments in Associates in Consolidated Financial Statements
·
AS 24 Discontinuing
Operations
·
AS 25 Interim Financial
Reporting
·
AS 26 Intangible Assets
·
AS 27 Financial
Reporting of Interests in Joint Ventures
·
AS 28 Impairment of
Assets
·
AS 29 Provisions,Contingent
Liabilities and Contingent Assets
·
'AS 30 Financial
Instruments: Recognition and Measurement and Limited
Revisions to AS 2,
AS 11 revised 2003, AS 21, AS 23, AS 26, AS 27, AS 28 and AS 29
·
AS 31 Financial
Instruments: Presentation
·
AS 32 Financial
Instruments: Disclosures, and limited revision to Accounting Standard
List
of Indian Accounting Standards (IND ASs):
IND ASs are
converged with International Financial Reporting Standards. Following is the
list of IND ASs hosted on MCA's website. The date on which these come into
force is yet to be notified.
·
Ind AS 101 First-time Adoption of Indian Accounting Standards *
·
Ind AS 102 Share based Payment *
·
Ind AS 103 Business Combinations *
India d
·
Ind AS 104 Insurance Contracts *
·
Ind AS 105 Non current Assets Held for Sale and Discontinued Operations
*
·
Ind AS 106 Exploration for and Evaluation of Mineral Resources *
·
Ind AS 107 Financial Instruments: Disclosures *
·
Ind AS 108 Operating Segments *
·
Ind AS 1 Presentation of Financial Statements *
·
Ind AS 2 Inventories *
·
Ind AS 7 Statement of Cash Flows *
·
Ind AS 8 Accounting Policies, Changes in Accounting Estimates and Errors
*
·
Ind AS 10 Events after the Reporting Period *
·
Ind AS 11 Construction Contracts *
·
Ind AS 12 Income Taxes *
·
Ind AS 16 Property, Plant and Equipment *
·
Ind AS 17 Leases *
·
Ind AS 18 Revenue *
·
Ind AS 19 Employee Benefits *
·
Ind AS 20 Accounting for Government Grants and Disclosure of Government
Assistance *
·
Ind AS 21 The Effects of Changes in Foreign Exchange Rates *
·
Ind AS 23 Borrowing Costs *
·
Ind AS 24 Related Party Disclosures *
·
Ind AS 27 Consolidated and Separate Financial Statements *
·
Ind AS 28 Investments in Associates *
·
Ind AS 29 Financial Reporting in Hyper inflationary Economies *
·
Ind AS 31 Interests in Joint Ventures *
·
Ind AS 32 Financial Instruments: Presentation *
·
Ind AS 33 Earnings per Share *
·
Ind AS 34 Interim Financial Reporting *
·
Ind AS 36 Impairment of Assets *
·
Ind AS 37 Provisions, Contingent Liabilities and Contingent Assets *
·
Ind AS 38 Intangible Assets *
·
Ind AS 39 Financial Instruments: Recognition and Measurement *
·
Ind AS 40 Investment Property *
·
ind as 41 Golden role of accounting
