personal a/c - debit the receiver, credit the giver
real a/c - debit whats comes in, credit whats goes out
nominal a/c - debit all expenses & losses, credit all incomes
Goodwill is an intangible asset of a company which includes company reputation, fame etc., through goodwill company share value may increases
Fund flow deals with transaction within financial year (One
year) whereas Cash flow Statement record only cash
It is deduction of taxes where from the income is generated and regarding services to be taxed there are about 120 services which are taxed in India for provision of service tax
Posting of wages twice can be rectify as follows.
Wages A/c. Dr. XXX
To Cash A/c. Cr. XX
(payment of wages through cash)
Cash A/c. Dr. XXX
To Wages Cr. XXX
(wrongly posted wages entry is rectified)
First we need to write-off the old asset ( by reversing the
asset, accumulated depreciation and depreciation for the
current FY by Cr the Fixed asset Write-off and Dr
Proft/Loss on sale of asset under P&L account )
Next we can capitalised the new asset ( Dr. Asset Cr. Bank )
A Bank reconciliation means cross verifying the entries in the cash book(bank balance)with that of pass book.
generally the reasons for disagreement of cash book with that of pass book are as follows:
1.cheques deposited but not collected by bank.
2.cheques issued but not presented for payment.
3.amounts recorded only in pass book till date (this doesn't mean that they should not be recorded in cash book,they should also be recorded but they are not yet recorded)such as bank charges,incomes received by banks directly by power of standing order etc..
THERE IS NO ENTRY FOR BANK RECONCILIATION.IT IS ONLY A TOOL FOR VERIFYING WHETHER ALL ITEMS ARE PROPERLY RECORDED ARE NOT.AND TO FIND OUT THE WRONG POSTINGS EITHER IN THE CASH BOOK OR THE PASS BOOK.