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Posting From Journal to Ledger The procedure of transferring an entry from a journal to a ledger account is known as posting. It involves transferring of debits and credits from the journal book to the ledger accounts, if an account in a journal entry has been debited it will be posted in the ledger account […]

Promissory Note A promissory note is a financial instrument, in which one party promises in writing to pay a pre-determined sum of money to the other party subject to agreed terms. It can either be payable on demand or at a specific time. It may be paid to or to the order of the authorized […]

Authorized Capital Maximum value and amount of total shares that a company is authorized to issue legally is termed as authorized capital or authorized share capital. It is the maximum amount a company can raise as capital in the form of both equity shares and preference shares during its lifetime. This amount is decided during the […]

Reserves in Accounting At the end of a financial year when a company earns a profit certain portion of it is retained in the business to meet future contingencies, growth prospects, etc. This amount of money kept aside is termed as reserves. Reserves are a component of retained earnings. They help in fortifying the financial […]

Balance Sheet Accounts While looking at a company’s financials there are 2 types of general ledger accounts which are found, Income statement (a.k.a Profit and Loss accounts) and Balance sheet accounts. Balance sheet accounts are those which are related to assets, liabilities and capital. In other words all accounts which are related to balance sheet […]

The Answers To Your Retirement Questions As a pre-retiree in your 50s, you may be facing some challenging financial choices and some of them may be the most important ones you make in your lifetime. Here we’re diving into some of the most common situations you may be looking at and providing retirement planning solutions. […]

Rectification Entries, With Examples When an error is committed in the books of accounts the same should be corrected to show true numbers in financial statements. If the error is immediately identified it may be fixed by striking out the wrong entry and replacing it with a correct one. However, if the error is identified […]

Closing Entries, With Examples At the end of an accounting period when the books of accounts are at finalization stage, some special journal entries are required to be passed. In accounting terms, these journal entries are termed as closing entries. The main purpose of these closing entries is to bring the temporary journal account balances […]

SIDBI – Small Industries Development Bank of India Small Industries Development Bank of India (SIDBI) is a financial institution which is headquartered in Lucknow, India. It was established in 1990 on April the 2nd and is mainly responsible for promotion and development of micro, small and medium-scale enterprises (MSMEs). These small enterprises contribute about 45% […]

Sundry Expenses The word “Sundry” is used for items which are irregular and insignificant to be listed individually. Sundry expenses are costs incurred during business operations that are not listed separately because they are usually small, rare, and do not relate to other general expenditures. They are comparatively small, miscellaneous in nature & can not […]

Personal Loans You need money for almost everything. To tackle emergencies, to fulfil wishes, to get a higher education, to buy any amenity for your home or to get the best treatment for a health condition, money is all you want. And in these situations, Personal Loan comes to our rescue.     Definition A […]

Moneylender Loans  Moneylenders provide small personal loans for a short time period at high rates of interest. In other words, risks and repayments are high. There are many different types of moneylenders. Some give a small number of loans that are to be repaid over a number of days. Some offer a heavy sum of […]

Foreigner Loans A foreigner loan is a type of loan which can easily be accessed by someone who is not the citizen of the country from which he/she is acquiring the loan. Let us say if you need money to set up your business, buy some goods etc. however, you don’t have enough cash then […]

Limited Liability Partnership – India In India, a business organization can take many forms such as an LLP (Limited Liability Partnership), Private Limited Company, Public Company etc. On 7th January 2009 with the assent of the President the Limited Liability Partnership Act, 2008 came into effect. LLP has been a successful business vehicle since then […]

REIT (Real Estate Investment Trust) REIT stands for Real Estate Investment Trust, it can be seen as a mutual fund that instead of investing in stocks invests in real estate. It is an organisation that deals in securities which may be sold like shares on major exchanges. REIT invests in real estate either directly or […]

Meaning and Definition As we know, final accounts are prepared at the end of an accounting period, by that time ledger balances also change due to day-to-day business transactions. Therefore, ledger balances are also required to be updated with relevant adjustments. Examples of such transactions are depreciation, closing stock, accruals, deposits, etc. Adjustment entries relating […]

Journal Entry for Cash Discount 100 keyboards are sold for the invoice price of 300 each with payment terms 1/10, Net 30 days. Journal entry for a cash discount, in this case, will depend on the terms that the buyer will get 1% cash discount from total invoice price if the payment is made within the first […]

Non-Performing Assets or NPA Non-performing assets or NPA are the loans provided by the banks to retail or institutional clients which are no more performing up to the mark or a preset standard. These are basically loans turned bad. It is all form of credit which is extended by a bank or NBFC and is […]

Reasons to Invest in Blue Chip Stocks Blue Chip is a stock recognized for features such as stable earnings, high quality, less volatility and good returns. Thanks to Oliver Gingold of Dow Jones, In the early 1920s he termed such stocks as “blue chips” as he related them with the highest denomination in poker which […]

Commercial Real Estate CRE (Commercial Real Estate) is also called Commercial property, investment property or income property. It is mainly related to all real estate which is used for business purposes to generate income. Examples of such real estate include shopping malls, restaurants, business offices, hotels etc. Commercial real estate includes any type of property […]

FDI (Foreign Direct Investment) FDI stands for Foreign Direct Investment. When a company from a particular country invests in another company based in a different country in a way that it acquires some (generally 10% as per OECD) controlling stake is known as Foreign Direct Investment. Like in the example info graphic shown below, Company […]

Tax Benefits for Small Business Owners You can be an entrepreneur who is running a start-up, a home-based business or a small firm that is trying to make a mark. While playing the lead in this role of your life you are wholly responsible for your actions i.e. generating income, profits, paperwork, legal requirements, taxes […]

What is RBI (Reserve Bank of India)? RBI stands for Reserve Bank of India & it is headquartered in Mumbai, Maharashtra. It is the Central Bank of India, controlling monetary values. It came into being on 1st April 1935. On 1st January 1949 RBI was nationalized. The share capital was divided into 100 shares owned […]

MNREGA On September 5th 2005 with assent of the president of India a new policy came into existence which worked towards providing livelihood security in rural areas of India. It started with the name “NREGA” which stood for National Rural Employment Guarantee Act and then an additional letter “M” was prefixed making it “MNREGA” Mahatma Gandhi […]

Assets A thing, person, or quality which is useful or beneficial is termed an asset. In the financial world, assets are things tangible or intangible that hold an economic value and are held by businesses to extract future benefits. Their value is adjudged by the amount they can fetch in monetary terms & that number […]