Bank Overdraft & Cash Credit Bank overdraft and cash credit facilities are both forms of short-term borrowing provided by financial institutions to individuals and businesses. Here’s a detailed explanation of each: 1. Bank Overdraft: i. An overdraft is a financial arrangement where a bank allows an account holder to withdraw funds from their account even… Read More »
Can LLP Take Loan From Outsiders A Limited Liability Partnership (LLP) is a relatively recent business structure that combines the benefits of both partnerships and companies. It offers the flexibility of a partnership while providing the limited liability protection of a company. One of the key concerns for LLPs, especially for those looking to… Read More »
Preparing Projections for BalanceSheet Preparing projections for a balancesheet involves forecasting the financial position of a business at a future date based on anticipated data and assumptions. Here are the steps to prepare projections for a balance sheet: 1. Gather Historical Financial Data: Collect the past financial statements, including balance sheets, income statements, and… Read More »
How LLP can raise funds Points under how LLP can raise funds: Capital Contributions: LLP partners can contribute capital to the LLP in the form of cash, assets, or property. These contributions increase the LLP’s capital and provide funds for the business. How LLP can raise funds. Loans and Credit Facilities:… Read More »
NetWorth V/s LiquidCapital NetWorth v/s LiquidCapital are both financial terms used to assess an individual’s or organization’s financial position, but they represent different aspects of financial resources. Here’s a comparison between the two: Net Worth: Net worth refers to the total value of an individual’s or organization’s assets minus its liabilities. It provides a snapshot… Read More »
Amalgamation of companies Amalgamation of companies “Tax Planning in Company Amalgamations”: Tax planning, within the context of amalgamation of companies, refers to the strategic approach of structuring the transaction in a way that minimizes the tax implications for the participating companies and shareholders. Here’s a unique perspective on tax planning with reference to company amalgamations:… Read More »
Preparing financial statements Preparing financial statements: The objectives of preparing financial statements are as follows: 1. Providing Information: Financial statements aim to provide relevant and reliable information about the financial performance, position, and cash flows of an entity. They offer insights into the organization’s financial activities, enabling stakeholders to make informed decisions. 2.Assessing Performance: Financial… Read More »
Qualifies as Liquid Net Worth Qualifies as Liquid Net Worth, Liquid net worth is the term used to describe the part of someone’s or an organization’s total net worth that comprises assets which can be easily convert into cash without experiencing substantial depreciation in value or time delay. The specific assets that qualify as… Read More »
Assets Valuation of a Company Assets Valuation of a Company involves assessing their worth based on their market value, replacement cost, income generation potential, or other relevant factors. The process of asset valuation can vary depending on the type of assets involved. Here are general steps to perform asset valuation for a company: 1.Identify… Read More »
Are Certificates of Deposit (CDs) Liquid Assets When managing personal finances, understanding what constitutes a liquid asset is essential. Liquid assets are assets that can be swiftly and effortlessly converted into cash without a loss in value. Common examples include cash, checking accounts, and some types of investments. But where do Certificates of Deposit… Read More »
