Archive about 'Stock Write Off and Provision'

Answer To Question On Cash Versus Accrual Accounting

Earlier topic on accruals concept and profit versus cash concept refers.
Basically, a majority of small businesses use the cash method of accounting since it is simple to understand.

The business records the earnings only when the cash is received and records all its expenses when the check or cash is issued. [ Payments are considered [...]

Basic Understanding Of Islamic Accounting, Its Objectives and The Differences Between Convention Accounting

Below is a snapshot of the definition, similarity and differences between Islamic Accounting and Conventional Accounting.
 

Definition Of Islamic Accounting

 

the “accounting process” which provides appropriate information (not necessarily limited to financial data) to stakeholders of an entity which will enable them to ensure that the entity is continuously operating within the bounds of the Islamic Shari’ah [...]

Sending Free Greeting Cards

Greeting cards are important social networking tools!!
Send the below lovely greeting cards to your loved one, your contacts, your teachers, your friends, relatives on all different types of occasions. Build your social networking both for your friendship and careers. There is no cost at all !
 
 

Anniversary

At Work
 

Birthday
 

Cute

Daily Celebration

Events & Holidays

Everyday_

Family

Flowers [...]

Basics-International Business

Globalization is a theme in International Business for many local organization who wish to expand overseas whether regionwise or worldwide.
Below explains what is International business, its purposes and some of the major challenges:

International Business:

Defined as a transaction across international borders, where business is conducted between countries.

Purposes of International Business:

Firms and governments conduct international business in [...]

Dictionary Of Auditing Terms-Alphabet C

Append below is a table of glossary in alphabetically sequence.

A B C D E F G H I J K L M N O P [...]

Audit Evidence: Using Compliance Procedures For Audit Work

Append below are some notes pertaining to understand what are  Compliance Procedures:- 

Compliance Procedure In Obtaining Audit Evidence
·          Compliance Procedures are tests designed to obtain reasonable assurance that those internal controls on which audit reliance is to be placed are in effect
·         The auditor needs to ensure that internal control exist  and that the internal control [...]

Delegation And Its Process

Delegation is a process of devolution of authority or simply the dispersal of authority for decision making from superior to subordinates.
It is common to see that the more decentralized an organization, the more you can see the process of delegation. Effective delegation can improve the behavioral aspects:-freedom to make decision, to make mistakes and make [...]

Internal Company Reconstruction-Accounting Entries For Capital Reduction Where Capital Is Not Represented by Available Assets

 
    Accounting Entries Used In Capital Reduction Where Capital Is Not Represented By Available Assets

(1) Being Amount Written Off From Share Capital Account

 

Debit

Credit

Share Capital Account

XXX

 

Capital Reduction Account

 

XXX

 

 

 

(2) Being Reserves Utilized For Capital Reduction Scheme

 

Debit

Credit

Reserve [...]

Internal Company Reconstruction-Capital Reduction Where Capital Is Not Represented by Available Assets

Situations In Capital Reduction Where Capital Is Not Represented by Available Assets:-

large amount of accumulated losses and or

some of the assets are overvalued/overstated

some of the assets are fictitious

Illustration:

Balance Sheet Of XYZ Ltd

$

Total Assets
500,000

Less:Current liabilities

(450,000)

Net Assets
50,000

Ordinary Share of $1 each
600,000

Accumulated Losses
(550,000)

Equity/Shareholder Funds
50,000

The above illustrates that XYZ Ltd has unwisely eroded its paid up share capital from [...]

Internal Company Reconstruction-Capital Reduction By Refunding Surplus Capital To Shareholders (Part B)

Internal Company Reconstruction-Capital Reduction

As described, basically there are three situations

refunds any surplus capital

cancel paid up capital not represented by assets

reduces/write off uncalled capital on any of the shares

 

Accounting For Company Reconstruction- REFUND OF SURPLUS CAPITAL

 
   In this case, it is merely a cash outflow where money are return to the shareholders.  
   Company A has 100,000 shares [...]