method of accounting

Basics of Accounting: General Purpose Financial Statements & their Qualitative Characteristics

CA, CS, CMA - General Purpose Financial Statements: Information provided in Financial Statements aims at Informed Decision Making of Existing and Potential Investors, Lenders and other Creditors. Normally their information need can be summarized as i). Information as to Economic Resources of Business and Claims against Business – This need is catered...

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Top Differences Between Management & Financial Accounting

CA, CS, CMA - Many college students dread another semester of debit entries, credits, and reflective journals after completing a monetary accounting course. Fortunately, managerial accounting differs significantly from monetary accounting. Managerial accounting, also known as cost accounting or management accounting, provides information to managers an...

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Basics of Banking: Reconciliations in bank branches & Inter Office Transactions

CA, CS, CMA - Reconciliation in Banks: The problem about reconciliation at the branch level, which has not been resolved by computerization, is that of suspense and sundry deposit accounts. Suspense account balance is included under ’Other Assets’ in the balance sheet. If the accounts are maintained properly and on a timely basis any entry in suspe...

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Basics of Banking: Disclosure requirements in Financial Statements

CA, CS, CMA - Disclosure of Accounting Policies: In order to show that the financial position of banks represent a true and fair view, the Reserve Bank of India has directed the banks to disclose the accounting policies regarding the key areas of operations along with the notes of account in their financial statements for the accounting year ending [&h...

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Basics of Banking: Items of Profit and Loss Account

CA, CS, CMA - Profit and Loss Account: Profit and loss account of a banking company is prepared in vertical form. ‘Form B’ of the Third Schedule of the Banking Regulation Act, 1949 is to be used for preparing Profit and Loss Account. It is Divided into 4 sections: I. Income II. Expenditure III. Profit/Loss and IV. Appropriations (I). [&hell...

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Criteria for classification of Non-company entities for AS applicability

CA, CS, CMA - The Council, at its 400th meeting, held on March 18-19, 2021, considered the matter relating to applicability of Accounting Standards issued by The Institute of Chartered Accountants of India (ICAI), to Non-company entities (Enterprises). The scheme for applicability of Accounting Standards to Non-company entities shall come into effect i...

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Temporary Exceptions to Hedge Accounting for Derivative Contracts

CA, CS, CMA - Announcement providing Temporary Exceptions to Hedge Accounting prescribed under Guidance Note on Accounting for Derivative Contracts due to Interest Rate Benchmark Reform...

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Money laundering and scams “THROUGH” Multi-State Urban Cooperative Credit Societies, Angadia’s & Banks in India/Abroad – Gems & Jewellery Industry

CA, CS, CMA - ICAI Research paper on Money laundering and scams THROUGH Multi-State Urban Cooperative Credit Societies, Angadia’s & Banks in India/Abroad – Gems & Jewellery Industry...

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Money Laundering & Scams “THROUGH” Multi-State Urban Cooperative Credit Societies In India – Cash Deposits

CA, CS, CMA - The Credit Co-operative societies have misused various gaps of the system over period of time by tapping various regulations for commercial purposes which has multiplying effect. The flow of money moves without being monitored seamlessly through various unethical channels and the outcome could be illegal or against the interest of the eco...

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Internal Control System In State Owned Universities: A Study To Formulate Internal Control Manu-al

CA, CS, CMA - The findings of the Research Report on 'Internal Control System in State Owned Universities A Study to Formulate Internal Control Manual' stated that most of the state-owned universities are still following conventional method of accounting and doesn’t have an internal control system / manual, internal financial controls and Standard op...

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Method of accounting can be changed if such change is bona fide and permissible under law

Commissioner of Income Tax II Vs Mapin Publishing Pvt Ltd. (Gujarat High Court at Ahmedabad): Tax Appeal No. 902 of 2013 - Change in method of accounting was bona fide and with the compliance of the Accounting Standard – AS 9 – Revenue Recognition issued by the Institute of Chartered Accountants of India and provisions of S.5 of the Act. ...

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Rejection of Accounting Method followed by Assessee which was accepted in Assessment of earlier Year

CIT Vs. SAS Hotels & Enterprises Limited (Madras High Court) - Method of Accounting regularly followed by the taxpayer which was accepted by the Tax Officer in past cannot be rejected in future years without expressing the dissatisfaction about the correctness or completeness of the accounts of the taxpayer Rec...

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If book results are not rejected, AO has no alternative except to accept the book results

Jai Pulse Mills VS. ITO (ITAT Ahemdabad) - We find that at the time of survey the sample processing was carried out and according to the sample processing, the bi-products consists of chuni, dust, waste, etc. which comes to 8.46% and the books of account reflected the waste and bi-products at 10%. We find from the facts that out of 100 kg. o...

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If AO assume concealment without considering the actual payments made in the subsequent years, such attempt would be premature

Surrel Enterprise Pvt. Ltd. Vs. ACIT (ITAT Ahmedabad) - We have heard both the sides in detail. Thrust given by the C1T(A) on the mens rea reflected in the conduct of the assessee does not survive with usual force, since the judgment of the Hon'ble Supreme Court in the case of Union of India & Others Vs. Dharmendra Textiles Processors & Ors., 306 1TR 277...

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Change of method of accounting of overdue charges from mercantile basis to cash system does not create any income

CIT Vs. Annamalai Finance Ltd. (Madras High Court) - In the instant case, learned counsel for the Revenue is not in a position to demonstrate or satisfy us that due to the change of accounting method adopted by the respondent/assessee , which is permissible in law as per the ratio laid down in (i) CIT v. Matchwell Electricals (I.) Ltd. (2003)263 ITR 2...

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Basics of Accounting: General Purpose Financial Statements & their Qualitative Characteristics

General Purpose Financial Statements: Information provided in Financial Statements aims at Informed Decision Making of Existing and Potential Investors, Lenders and other Creditors. Normally their information need can be summarized as i). Information as to Economic Resources of Business and Claims against Business – This need is catered...

Read More
Posted Under: CA, CS, CMA |

Top Differences Between Management & Financial Accounting

Many college students dread another semester of debit entries, credits, and reflective journals after completing a monetary accounting course. Fortunately, managerial accounting differs significantly from monetary accounting. Managerial accounting, also known as cost accounting or management accounting, provides information to managers an...

Read More
Posted Under: CA, CS, CMA |

Basics of Banking: Reconciliations in bank branches & Inter Office Transactions

Reconciliation in Banks: The problem about reconciliation at the branch level, which has not been resolved by computerization, is that of suspense and sundry deposit accounts. Suspense account balance is included under ’Other Assets’ in the balance sheet. If the accounts are maintained properly and on a timely basis any entry in suspe...

Read More
Posted Under: CA, CS, CMA |

Basics of Banking: Disclosure requirements in Financial Statements

Disclosure of Accounting Policies: In order to show that the financial position of banks represent a true and fair view, the Reserve Bank of India has directed the banks to disclose the accounting policies regarding the key areas of operations along with the notes of account in their financial statements for the accounting year ending [&h...

Read More
Posted Under: CA, CS, CMA |

Basics of Banking: Items of Profit and Loss Account

Profit and Loss Account: Profit and loss account of a banking company is prepared in vertical form. ‘Form B’ of the Third Schedule of the Banking Regulation Act, 1949 is to be used for preparing Profit and Loss Account. It is Divided into 4 sections: I. Income II. Expenditure III. Profit/Loss and IV. Appropriations (I). [&hell...

Read More
Posted Under: CA, CS, CMA |

Basics of Banking: Schedule 3 – Deposits & Schedule 4 Borrowings

Schedule 3 : Deposits  (A). I. Demand Deposits i. From Banks ii. From Others II. Saving Bank Deposits III. Term Deposits i.From Banks ii. From Others Total (I+II+III) (B). (i). Deposits of branches in India (ii). Deposits of Branches outside India Comments on Schedule 3 – Deposits Items : (I). Demand Deposits: i. From Banks […]...

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Posted Under: CA, CS, CMA |

Treatment of the Expesnes of Non-Operative Mines/Plants

Case Study: – Absorption of expenses related to non-operating mines/plants to operating mines/plants and expenses of closed mines/plants are merged with operating & running mines/plants under Consolidated Cost Statement for product company as whole or expenses related to non-operating mines/plants to be shown in Reconciliation S...

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Posted Under: CA, CS, CMA |

Basics of Banking: Schedule 8 – Investments

Comments on the Constituents of Schedule 8 – Investments : (I). Investments in India : 1. Government securities : Includes Central and State Government securities and Government treasury bills. These securities should be shown at the book value. However, the difference between the book value and market value should be given in the notes...

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Posted Under: CA, CS, CMA |

Basics of Banking: Schedule 5 Other Liabilities & Provisions & Contingent Liabilities (Schedule 12)

Schedule 5 : Other Liabilities and Provisions i. Bills Payable ii. Inter Office Adjustment (Net) iii. Interest Accrued iv. Others (Including Provisions) Comments on presentation of Other Liabilities and Provisions : (I). Bills Payable: The bank provides the facility of remitting funds from one place to another by means of bank drafts, tel...

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Posted Under: CA, CS, CMA |

Basics of Banking: Schedule 10 – Fixed Assets & Schedule 11- Other Assets

Comments on the Constitution of The Fixed Asset Schedule : (I) Premises: i. At the cost as on 31st March of the preceding year; ii. Addition During the year; iii. Deduction during the year; iv. Depreciation to date Premises wholly or partly owned by the banking company for the purpose of business including residential premises […]...

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Posted Under: CA, CS, CMA |

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