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What do you mean by NEFT? NEFT stands for National Electronic Funds Transfer. It’s an electronic payment system of India facilitated by RBI (Reserve Bank of India), it helps people with one-to-one money transfers. People using this facility can transfer money electronically from any branch of bank to any other individual or organization within the […]

NSE and BSE A stock exchange or a stock market acts as a service provider, it is one stop shop for traders to buy or sell financial instruments such as shares, bonds etc. A stock exchange can be approached for both issue and redemption of Publicly listed shares. To be able to trade on a stock […]

  Getting your CIBIL Score in India Whether you’re applying for a consumer loan, home loan, credit card, auto loan or just interested in having a look at your CIBIL report, your credit score will play a vital role in the process. CIBIL can be elaborated as Credit Information Bureau India Limited and it keeps […]

Heard about Public Provident Fund (PPF), but don’t know much about it? For details, have a look at the explanation. WHAT IS PPF? Much known as Public Provident fund, PPF a savings instrument introduced by the ministry of finance in India which also helps in tax savings. In 2015 this scheme is more than 45 […]

Secured and Unsecured Loans You need funds to start a new venture? or Require money for education of your children? or Maybe you’re looking out for a new credit card or loan to buy a new car/house? Whatever the requirement, you will need to choose between Secured or Unsecured debt. Each type has its own […]

Steps to become a Chartered Accountant in India? There are two ways to pursue a branded CA career; Foundation Course Route Direct Entry Route The direct entry route takes you directly to the intermediate stage of the course, meaning skipping the CA Foundation exam. The candidates who are eligible to register themselves with the Direct […]

MCOM from Indira Gandhi National Open University So you are done with your graduation and now you may be looking forward to a post-graduate masters degree which focuses on accounting, management, commerce etc. If you’re looking to study regular college then the top regular commerce colleges are the ones you are looking for such as […]

BCOM from Indira Gandhi National Open University After 10+2 you can now head towards graduation which in India is offered by both private and the public sector. Graduation is necessary to apply for a lot of jobs both with private and the public companies. BCOM from IGNOU is suitable for someone who is looking to attain […]

FINANCIAL ACCOUNTING SOFTWARES USED IN INDIA An Accounting software is used by almost all micro, small & medium firms to make it easier and user-friendly for the owners to manage the finances of a company. It helps provide more accurate results with less efforts. Top accounting softwares in india include Tally, Marg, Busy & Quickbooks. Not all […]

Step by Step Guide – Online Passport Application With the information age hitting us, gone are the days when getting a passport was regarded as a daunting task. Now, you can apply for a passport online and avoid the queue. On a busy day to steer clear of this hassle, you might not bother shedding few […]

THE BIG FOUR Big Four is the term given to represent the top four audit companies of the world. Ernst and Young, Deloitte, PricewaterhouseCoopers and KPMG together make the Big Four. These companies conduct the audit of many public and private companies throughout the world. They audit more than 80% of all the public companies […]

Contingent Assets The word contingent or contingency means “possible, but not certain to occur”. Contingent assets are those assets which may or may not become a reality for a business depending on the outcome of a future event. The existence of this kind of asset is completely dependent on the occurrence of a probable event in […]

Journal Entry for Loss on Sale of Fixed Assets Nowadays, businesses sell their assets as part of strategic decision-making. Reasons could vary from up-gradation to new better quality asset, arranging money for a business need, not in use asset etc. there could be any reason to sell an asset. It is common that an asset […]

Discount Received Discounts are common in both B2B and B2C transactions to push both credit and cash sales, they are usually given in lieu of some consideration which can be prompt payments, trade practices, recoveries, etc. While posting a journal entry for discount received “Discount Received Account” is credited. Discount received acts as a gain […]

Return Outwards Return outwards are goods returned by a customer to the seller. They are goods that were once purchased from external parties, however, because of being unsatisfactory they were returned back to them, they are also called Purchase returns. Outward returns reduce the total accounts payable for a business. It is a sales return and […]

Meaning and Overview Examples Prepaid Expenses Journal Entry Prepaid Insurance Journal Entry Prepaid Rent Journal Entry Prepaid Salary Journal Entry Are Prepaid Expenses Assets? Where do Prepaid Expenses Appear? Prepaid Expenses in Profit & Loss Account Prepaid Expense is Which Type of Account? Treatment in Final Accounts Revision Video Quiz Conclusion   Meaning and Overview […]

Current Liabilities Obligations of a company which are payable within a year or an accounting cycle of a business are called current liabilities. They are either settled by current assets or by the introduction of new short-term liabilities. Examples include Overdraft, Creditors, Short-term loans, Outstanding Expenses, etc. They are shown on the Liabilities side of the balance sheet. They play […]

Definition and Meaning In the business world, a lot of sales transactions happen on credit, i.e. after a specified period of time. In this scenario, there are two main types of discounts allowed to customers. One is trade discount and the other is a cash discount. Now, after anticipating the amount of cash discount allowable to debtors, […]

Meaning and Example Doubtful debts, as the name suggests, are those receivables which might become bad debts at some point in future. In other words, they are doubtful in recovery. By analyzing the past trend, a business can ascertain the approximate percentage that becomes uncollectible every year out of the total credit allowed to buyers. This amount, […]

Income Received in Advance Sometimes earned revenue that belongs to a future accounting period is received in the current accounting period, such income is considered as income received in advance. It is also known as Unearned Revenue, Unearned Income, Income Received but not Earned because it is received before the related benefits are provided. This […]

Profit Center Profit Center is a section of a company that is treated as a separate sub-business within a company to which revenues can be traced. It directly adds to the profits of the company, hence it is responsible for its own costs and revenues. Each profit centre or a few are managed by profit centre […]

Definition of Cost Center A function or department in the organization that does not directly add to the profit, but costs the organization money to operate is known as a cost center. The cost center indirectly adds to the profitability of the business. The cost center operates on a budget decided by the organization. By […]

Net Profit VS Operating Profit The term “profit” is divided into different types according to the source of benefit and the stage at which it is calculated during the life cycle of a business. This article illustrates the difference between net profit and operating profit. Some of the most common forms of profit that can […]

Gross Profit Vs Operating Profit Gross Profit The word Gross means “before any deductions”. This implies that profit before any deductions is called Gross profit. It is also called “Sales Profit”. Difference between gross profit and operating profit can be understood from their point of origin, deductions (if any), etc. It is the difference between total revenue earned from […]

Cost Accounting Vs Management Accounting The difference between cost and management accounting is very important to understand as both of them serve different purposes and different audiences. A person from the cost accounting team may not find a piece of information relevant, but a management accountant may not be able to work without it. A […]