We have designed a course for accounting learners. It will be very helpful for basic and midway learners for their education and career. Why pay for Hefty Tuition Fees, when Tutor Accounts is ready to teach you!
Keep visiting us !
Wednesday, May 1, 2013
11:04 AM
Why Pay for Learning Accounting? Tutor Accounts is ready for you!
We have designed a course for accounting learners. It will be very helpful for basic and midway learners for their education and career. Why pay for Hefty Tuition Fees, when Tutor Accounts is ready to teach you!
Keep visiting us !
10:42 AM
Learn Accounting by DEBITS & CREDITS - No mistake in double entry
It is often said that if you have learnt the basic rules of DEBITS and CREDITS, accounting is no more difficult. I am writing this to make the most confusing topic easy for you.
Remember there are 5 elements of Financial Statements, these are;
Asset : Increase in Asset >>> Debit
Decrease in Asset >>> Credit
If you have purchased a property by paying cash of $100,000, then it means You have in fact made an increase in your asset by corresponding decrease in asset i.e cash.
Entry would be:
Property Dr
Cash Cr
Liabilities: Opposite of Assets
Increase >>>>Cr
Decrease>>>>Dr
If you have taken a loan of $100,000 for paying to supplier. Means you have increased your bank liability for decreasing liability towards supplier
Entry would be:
Supplier Account >>>> Dr
Bank Loan>>>>>>>>> Cr
Capital: Same as Liabilities
Expenses: Same as Assets
Income: Same as Liabilities/ Capital
Conclusion: Just remember two scenarios
1) Assets & Expenses >>>>>>>>>>Same Treatment
2) Liability, Capital and Income >>>Same Treatment
Be confident! you will never make an error in double entry. Best of Luck!
Remember there are 5 elements of Financial Statements, these are;
- Assets
- Liabilities
- Capital
- Expenses
- Income
Asset : Increase in Asset >>> Debit
Decrease in Asset >>> Credit
If you have purchased a property by paying cash of $100,000, then it means You have in fact made an increase in your asset by corresponding decrease in asset i.e cash.
Entry would be:
Property Dr
Cash Cr
Liabilities: Opposite of Assets
Increase >>>>Cr
Decrease>>>>Dr
If you have taken a loan of $100,000 for paying to supplier. Means you have increased your bank liability for decreasing liability towards supplier
Entry would be:
Supplier Account >>>> Dr
Bank Loan>>>>>>>>> Cr
Capital: Same as Liabilities
Expenses: Same as Assets
Income: Same as Liabilities/ Capital
Conclusion: Just remember two scenarios
1) Assets & Expenses >>>>>>>>>>Same Treatment
2) Liability, Capital and Income >>>Same Treatment
Be confident! you will never make an error in double entry. Best of Luck!
Monday, April 8, 2013
11:10 AM
Financial Statement Analysis - Introduction
The way of understanding the risks and profitability of the company/ firm through reported figures in financial statements is Financial Statements Analysis. Various types of analysis may be conducted but the most commonly uses is 'Financial Statements Ratio Analysis'. Two types of ratios are calculated that are Profitability ratios & Risk ratios.
Profitability Ratios:
Profitability ratios calculates the utilization of capital invested to generate profits.
1) ROE ' Return on Equity': Earnings
Average Equity
Equity means the total capital invested plus retained profits.
2) Gross Margin ratio
3) Net profit margin Ratio
Net Profit/ Sales
4) Gross Profit margin ratio
Gross profit/ Sales
Apart from the above mentioned there are various profitability ratios.
Credit Risk Ratios:
These ratios calculates underlying credit risk of the company. Liquidity analysis and solvency analysis. Liquidity analysis returns the efficiency of working capital cycle.
Working Capital:
Working capital represents the net current assets. Net current asset means the current assets less current liabilities.
Profitability Ratios:
Profitability ratios calculates the utilization of capital invested to generate profits.
1) ROE ' Return on Equity': Earnings
Average Equity
Equity means the total capital invested plus retained profits.
2) Gross Margin ratio
3) Net profit margin Ratio
Net Profit/ Sales
4) Gross Profit margin ratio
Gross profit/ Sales
Apart from the above mentioned there are various profitability ratios.
Credit Risk Ratios:
These ratios calculates underlying credit risk of the company. Liquidity analysis and solvency analysis. Liquidity analysis returns the efficiency of working capital cycle.
Working Capital:
Working capital represents the net current assets. Net current asset means the current assets less current liabilities.
Monday, April 1, 2013
10:58 AM
Excel Tips n Tricks - Conditional Formatting
Conditional Formatting in Excel 2007 is one of the most powerful data validation tool.
10:56 AM
Understand Inventory Accounting
There are three types of inventory/ stock in an organization.
Raw Material Inventory
Finished goods
Consumables
Raw material inventory is used to manufacture finished goods.
Finished goods inventory is held for sale.
Work In Process: Semi Finished goods.
lets take a scenario of Potato Chips Factory;
Raw Material : Potatoes, Vegetable Oil
Finished goods: Potato Chips
Work in process: Potato chips peeled and half fried
Accounting Entries:
Purchase of Raw material:
Raw Material Inventory DR
Bank/ Cash CR
Work In Process:
Work In Process DR
Raw material Inventory CR
Finished Goods
Finished Goods DR
Work In Process CR
Raw Material Inventory
Finished goods
Consumables
Raw material inventory is used to manufacture finished goods.
Finished goods inventory is held for sale.
Work In Process: Semi Finished goods.
lets take a scenario of Potato Chips Factory;
Raw Material : Potatoes, Vegetable Oil
Finished goods: Potato Chips
Work in process: Potato chips peeled and half fried
Accounting Entries:
Purchase of Raw material:
Raw Material Inventory DR
Bank/ Cash CR
Work In Process:
Work In Process DR
Raw material Inventory CR
Finished Goods
Finished Goods DR
Work In Process CR
Tuesday, March 19, 2013
8:06 PM
Rich Dad Poor Dad Author Robert's book has changed my perspective of education. I have made my strategy to come out of RAT RACE and have started working on it. To leave a Monthly fixed pay Check hurts initially, but it gives you the financial freedom.
Robert's new book "Why A students work for C Students" is the must read book for those who like to come out of this RAT RACE !
http://www.facebook.com/photo.php?fbid=10151564330426788&set=a.199144716787.170571.33416011787&type=1&theater
Robert's new book "Why A students work for C Students" is the must read book for those who like to come out of this RAT RACE !
http://www.facebook.com/photo.php?fbid=10151564330426788&set=a.199144716787.170571.33416011787&type=1&theater
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