Written on Oct, 23, 2016 by in

It is known as sole proprietorship or sole trader also. Under this system only one natural person owns the firm. He/she only takes the decisions relating to all matters relating to the business. Basically, there is no difference between the owner and business firm. The owner controls all the activities of the firm and he is personally liable for all …

Written on Oct, 22, 2016 by in

When business of a firm grows, it opens the branches to increase the sale and to cover more territory. There are various types of branches like dependent branch which is totally dependent on head office and other one is independent branch which is independent to make any deal in respect of business but as per the guidelines given by the …

Written on Oct, 22, 2016 by in

Cost audit may be defined as the verification of the correctness of cost accounts and a check on the adherence to the cost accounting plan. It is the audit process for verification of the cost of manufacture or production of any article on the basis of accounts relating to utilization of material, labor and other items of costs as maintained …

Written on Oct, 22, 2016 by in

Usually every auditor maintains an audit book. This is because it is not possible for an auditor to remember every thing relating to auditing. During audit work, an auditor may come across many difficulties which he notes down in an audit note book maintained for this purpose. He refers to this audit note book whenever he needs it. Accountants differ …

Written on Oct, 22, 2016 by in

Audit working papers are those papers which contain essential facts about accounts which are under audit. This term ‘working paper’ designates the file of analyses, summaries, comments and correspondence build up by the auditor during the course of the field work of an audit engagement. It is the duty of an auditor to maintain his working papers as they support …

Written on Oct, 22, 2016 by in

An auditor has to report that the balance sheet represents the true and fair state of affairs of the business. He can make such a report only if he verifies not only the assets but also the liabilities shown in the balance sheet. Hence the need for verification of liabilities is as important as the verification of assets to form …

Written on Oct, 11, 2016 by in

Divisible profits are those profits which are arrived at after deducting all the expenses including the taxes payable to the s tate by the company. It is very difficult to define the term divisible profit but some general principles are to be followed to decide the divisible profits:- The provisions of section 205 of the companies act should be complied …

Written on Oct, 11, 2016 by in

OBJECT OF VERIFICATION OF ASSETS:- To ensure that the assets were in existence on the date of the balance sheet. The assets had been acquired for the purpose of the business and under proper authority. The right of ownership of the assets vested in or belonged to the undertaking. To verify that they are free from charges or mortgage. To …

Written on Oct, 11, 2016 by in

In vouching, payments shown on cash book, an auditor should see that payment has been made wholly and exclusively for the business of the client and that it is properly authorized by the person who is competent to do so. An auditor should keep in mind the following special points while vouching payments:- PAYMENT OF WAGES:- Payment is properly authorized. …

Written on Oct, 11, 2016 by in

Vouching is an examination and verification of the authority and authenticity of transactions as recorded in the books of account. On the basis of vouchers, an auditor should satisfy himself that documentary and other evidence of sufficient validity is available in  order. It is widely felt that vouching is an essence of auditing. It is the foundation and the first …


Related pages


trial balance sumsbooks and periodicals bills formatsection 80ttasundry payables definitioncommuted value of pension definitionthe post closing trial balance containsincome tax slab for assessment year 2013 14how to do trial balance from ledgerwhat is meant by sundry creditorssales voucher definitionexamples of ledger entries for accountingwhat is the meaning of contra entrytds for interestsample income tax calculationwhat is meant by journal vouchersample cash voucher templatecalculation of book profitdefine cash receiptsundry in accountingsinking fund chargeswhat is the meaning of trial balancedebit memo accounting entrytally erp booktrial balance and balance sheet exampleaccounting treatment for contingent liabilitiessample of debit and credit entrymemo wikitally voucher entryincome tax slab 2014-15 calculatordirect expenses and indirect expenses in accountingadvance expenses journal entrywhat is sundry assetspension received by widowtutorial for accounting for beginnersdescribe the process of preparing a trial balanceincome tax gratuityvat payable calculationsinking fund examplerefreshment expenseswhat is vouchingdebit side of trial balancevoucher specimen definitionpreparing a bank reconciliation statementlearn tally 7.2conveyance charges meaningwhat is a sundry debtdefinition of sundrieswhat is sundry in accountingcommision income definitionvat payable formulasalary tds calculationincome tax 2011-12creditors and debtors definitionsundry deftds deduction on bank interestwhat does accrued interest meanmeaning of voucher in hinditds to be deducted on salarybank cash book formattrial balances definitionaccrued income examplesobjective of trial balanceincome tax slabs for financial year 2013-14tds deductedconsignment in accountingjournal entry for outstanding salarycash ledger examplesimple ledger sheetslab rates for ay 2013-14income tax 80 ttataxable income 2013-14salary from partnership firmwhat does accrued income meandefine sinking fundssundry income definitionp&l and balance sheet examplecash cheque receipt format