Tag Archives: #AccountingStandards

What is the meaning of accountancy?

Meaning of accountancy Accountancy is a field of study and practice that deals with the measurement, processing, analysis, and communication of financial information about a business or organization. It involves the recording, classifying, summarizing, and interpreting of financial transactions to provide useful information for decision-making.The meaning of accountancy is very clear. To visit: https://www.incometax.gov.in Accountancy… Read More »

Is depreciation expense or loss?

Depreciation expense or loss Depreciation is considered an expense in accounting, but it is not the same as a loss. In accounting, depreciation is the process of allocating the cost of a long-term asset over its useful life. It is an expense that represents the reduction in the value of the asset over… Read More »

Current assets to proprietor’s fund ratio?

Current assets to proprietor’s fund ratio The current assets to proprietor’s fund ratio is a financial metric used to assess the liquidity and financial health of a business. It measures the relationship between the current assets, which are assets that expect to convert into cash within one year, and the proprietor’s fund, which represents the… Read More »

What is the difference between prepaid expenses and preliminary expenses?

Prepaid expenses vs preliminary expenses Prepaid expenses vs. preliminary expenses are two different types of expenses in accounting. It refer to the expenses that have been paid in advance but will incur in the future. Examples of prepaid expenses include prepaid rent, prepaid insurance and prepaid advertising. These expenses record as assets on the balance… Read More »

Is input tax is an asset or liability?

What is Input Tax? Input tax refers to the VAT (Value Added Tax) or GST (Goods and Services Tax) that a business pays on its purchases of goods and services. This tax is paid to suppliers and is recoverable against the VAT or GST a business collects from its customers. Essentially, input tax is the… Read More »

TDS compliance in tax audit report?

TDS compliance in tax audit report TDS compliance in tax audit report, In the context of a tax audit report, ensuring compliance with TDS (Tax Deducted at Source) is a vital factor that requires attention. Here are some key considerations regarding TDS compliance in a tax audit report: Verification of TDS Deductions: The tax auditor will… Read More »

Do I need to file the balance sheet with the income tax return in India?

Balance sheet filing with income tax return

ITR with Balance sheet No, it is not mandatory to file the ITR with balance sheet in India. However, certain taxpayers such as companies, firms, and LLPs require to file a copy of their balance sheet along with their income tax return. Individuals and HUFs (Hindu Undivided Families) generally do not require to file their… Read More »

Is it mandatory to create deferred tax asset or liability?

Is it mandatory to create deferred tax asset or liability In the realm of financial reporting and tax accounting, the concepts of deferred tax assets (DTA) and deferred tax liabilities (DTL) play a crucial role. But is it mandatory to create them? Let’s break down this important question. What Are Deferred Tax Assets and… Read More »

Is provision a long-term liability?

Is provision a Long-Term Liability Is provision a Long-Term Liability: It is a liability that is recognize when there is a probable obligation or liability that may result from a past event, and the amount of the obligation can be estimate with reasonable accuracy. Provisions can be either short-term or long-term depending on the time… Read More »

Can a supplier issue a credit note without GST charges?

Credit Note without GST Charges Credit note without GST charges, Yes, a supplier can issue a credits note without GST charge under certain circumstances. A credit note is typically issue to adjust or rectify an incorrect invoice or to provide a refund to the buyer. If the original invoice did not include Good and… Read More »