Asset valuation certificate An Asset Valuation Certificate for companies is a document that provides an official assessment of the value of a company’s assets. This certificate is often required for various purposes, including financial reporting, mergers and acquisitions, loan applications, or legal and regulatory compliance. Here are the key components typically included in an… Read More »
Fixed Asset Depreciation charge on a fixed asset when it is put to use, and not when it is ready for use. Depreciation is a method of allocating the cost of a it over its useful life, and it begins when the asset is available for use in the business. The asset is considered to… Read More »
Types of Reserves There are typically two types of reserves that can appear on a corporate balance sheet: revenue reserves and capital reserves. Revenue reserves are create from profits earn by the company and not distributed as dividends to shareholders. These reserves can be used for a variety of purposes, such as reinvesting in… Read More »
Is Depreciation the Loss of the Value of Fixed Assets When managing a business’s finances, understanding the concept of depreciation is crucial, especially regarding fixed assets. Many people wonder: Is depreciation simply the loss of the value of fixed assets? we’ll explore what depreciation is, how it relates to the value of fixed assets, and… Read More »
Is depreciation a current liabilities No, Depreciation is a technique in accounting that spreads the cost of a tangible asset across its useful lifespan. It represents the wear and tear, usage, or obsolescence of the asset over time. For more information to visit: https://www.incometax.gov.in Here are the key points to understand about depreciation and its… Read More »
Relationship between QA and CA Quick assets are those current assets that can be easily converted into cash, such as cash, marketable securities, and accounts receivables. Current liabilities, on the other hand, are those obligations that are due within one year. Such as accounts payable, short-term loans, and accrued expenses. The relationship between quick assets… Read More »
How do I calculate the interest on GST liability The interest on GST liability is calculated at a specific rate on the amount of tax liability that is overdue or unpaid for a particular period. The interest rate is currently set at 18% per annum and is calculated on a monthly basis. To calculate the… Read More »
Accounting treatment of an asset When an asset has been fully depreciated but is still in use, it should be recorded on the balance sheet at its net book value, which is the original cost of the asset minus the accumulated depreciation. The accumulated depreciation account will continue to increase as depreciation is charged each… Read More »
Difference between current assets and current liabilities The measure that reflects the difference between current assets and current liabilities is called working capital. Working capital is calculated by subtracting the total current liability of a company from its total current asset. It is an important metric for businesses to monitor, as it indicates their ability… Read More »
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 »
