Timing Of Filing Of VAT Return Once a business is registered for VAT, the interval at which returns are to be made is decided between the trader and the Customs and Exisce.The usual period are: Monthly or Quarterly Two factors to consider whether monthly or quarterly: Convenient to file every quarterly instead of monthly If … Read more
Note that the registration of VAT is compulsory if turnover of a business is over the threshold. However, in situation where a business’s turnover has not reached the VAT’s threshold, there are some advantages to register for VAT. Following Advantages to apply for VAT voluntarily even when the turnover threshold for VAT has not … Read more
This article seeks to define waste, scrap, spoilage, obsolescence, rejects and stock losses. Irrespective of the nature, Management needs to keep tight control over waste, scrap, spoilage, obsolescence, rejects and stock losses through specific control reports. Generally, normal losses will be charged to the cost of production and abnormal losses will then charge into a … Read more
Question: XYZ Ltd has an Ordinary Share Capital of 1,000,000 ordinary share of $1 each and 100,000 6% preference shares of $1 each. The net profits for the first three years of business ended 31 Dec were: 20X1 $200,000 20X2 $250,000 20X3 $350,000 Transfers to reserves were as follows: 20X1 Transfer to General Reserve $20,000 … Read more
The Profit And Loss Appropriation Account For A Sole Trader : The net profit is the entitlement of the owner and it is accordingly added to capital. Any drawings are deducted from capital However for a Limited Company, a typical Profit And Loss Appropriation Account will look like below: Profit And Loss Appropriation Account … Read more
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 Account XXX Capital Reduction Account XXX (3) Being Amount Written Off … Read more
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 … Read more
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. … Read more
Company Reconstruction:- · A term used to describe the drastic formal changes in a company’s capital structure as a result of certain circumstances. Type of Reconstruction:- · Divided into two(2) types namely: · Internal reconstruction · External reconstruction Internal Reconstruction:- · Undertaken by companies that have surplus capital or companies whose capital has been eroded … Read more
The planning and designing of an Accounting System will culminate into an overall schematic Company’s Chart Of Accounts.This article deals with the following: Definition of the chart of accounts & salient points to note Given a sample of the Overall Schematic View of A Typical Chart Of Account & salient points to note Sample of … Read more