Explanation of important Accounting termsAssetsAn asset may be defined as anything
of use to future operations of the enterprise and belonging to the enterprise.
For example, building, land, machinery, cash, debtors (amount due from
customers) goodwill etc.
EquityIn broad sense the term equity
refers to total claims against the enterprise. It is further divided into two
categories:
(i) Owners claim-capital and (ii) Outsiders' claim-liability. (i) Liability: Amounts owed by the
enterprise to the outsiders i.e. to all others except the owner. For example,
trade creditors, bank overdraft etc.
(ii) Capital: The excess of assets over liabilities of the enterprise. It is the difference between the total assets and the total liabilities of the enterprise. For example, if on a particular date the assets of the business amount to Rs. 1,00,000 and liabilities to Rs. 30,000 then the capital on the date would be Rs. 70,000. It is also known as net worth. RevenueIt is the monetary value of the
products or services sold to the customers during the period. It results from
sales, services and sources like interest, dividend and commission,
etc.
Expenses/ CostsExpenditure incurred by the
enterprise to earn revenue is termed as expenses or costs. Distinction between
expense and asset is that the benefit of the former is consumed by the business
in present whereas in latter case benefit will be available for future
activities of the business. Examples of expenses are raw materials consumed,
salaries etc. .
LossThe term is used to convey, at
least, two different meanings. First it refers to the result of the business for
a period when expense exceed the revenue. For example, if sales are Rs. 10,000
and expenses are Rs. 11,000 the loss will be Rs. 1,000. Second- It describes
those efforts which fail to earn revenue. For example-un saleable stock, loss
due to fire, theft, accident etc.
Proprietor/ OwnerThe person who invests his money or
money's worth and bears the risk of the business.
DrawingsMoney or value of goods belonging
to business used by the proprietor for his personal use.
GoodsIncludes all merchandise
commodities which are purchased by the business for selling.
(Trade) DebtorPerson who owes money to the
business. It happens when goods are sold on credit.
(Trade) CreditorPerson to whom the business owe
money. It happens when goods or materials are purchased by the business on
credit.
TransactionAny exchange (dealing) of goods or
services, for cash or on credit by the business with any other
business.
EventsThere are the occasions which cause
changes in the value due to time element. Outsiders are not directly concerned.
For example, interest accrued, depreciation in the value of assets
etc.
EntryThe record of a transaction or
event in the books of accounts is known as entry.
EntityAll elements of financial
statements are in relation to a particular entity which may be business
enterprise, an educational or charitable organization, a government unit, a
natural person or the like. An entity may comprise two or more affiliated
entities and may not necessarily correspond, with 'legal entity'. Thus, the
accounting information is recorded, compiled and presented with reference to
identifiable entity. The term 'other entity' refers to a subsidiary company that
is a part of the same entity as its parent company in consolidated financial
statements but is an 'other entity' in the separate financial statements of its
parent.
Net worthIs also known as "ownership equity"
or "stockholders', equity" or "capital". It is the difference between total
assets minus outside liabilities. Alternatively net worth is the sum of capital
plus retained earnings.
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Many business use services of Tax Consultants and Chartered Accountants for filing the Tax Return and the tax return of the software is not used. To assist such activity you can export all reports from the software to MS Excel or MS Word and submit it to your tax adviser for financial figures for the business . The software will perform all Inventory Control, Vouchers, Nominal Ledger Accounts along with Working/Trading and Profit & Loss account that will give you all figures ready for export for filing Tax Return. As soon as you are sure about the changes you want in the visual interface and printing regarding your GST requirements we will modify the software software as per your GST requirements. To get any of the off-the-shelf software modified for visual interface and printing please Contact Us Now. We will carry out all required customization for GST as per your requirements in the existing software in professional and timely manner . For any required customization as per GST in any of the off-the-shelf software, please contact us now. We will carry out required customization for GST as per your requirements in the existing software at nominal additional charges. Give us details of required customization for a man-hour or work estimate. For official reference to GST refer to following links:GST (Goods and Service Tax) Circular by Central Board of Excise and Customs (CBEC), Department of Revenue, Ministry of Finance, Government of India. Finance Act 2016 of Government of India HSN codes for Goods and Service Tax (GST) in India Central Board of Excise and Customs - HSN Codes Circular by CBEC, Government of India - About HSN Codes.
Central Goods and Services Tax (CGST) Rules, 2017 Draft government Approved Format Under Goods and Services Tax - Invoice Rules What is GST Compliant Business? What are the specific mandatory fields in an GST compliant invoice? Why the invoice an important financial instrument? What are Registered and Un-Registered Dealers? There is a lot for your business to catch up on those links along with online tax filing and registration for trading. Give us the details of required work you want in the off-the-shelf VAT accounting system and we shall make it GST compliant invoicing and accounting for your business at nominal additional charges. Cheers. Happy Accounting. If you want to know the details of for making VAT/CST system compliant to GST system: Standard rate of $15 per man hour shall be applicable for making any of off-the-shelf VAT based accounting software systems into CGST/SGST Compliant Accounting. Give the details of customization required in any of our off-the-shelf VAT accounting systems made for various business to get a quote of additional charges. See demo of software on website. See official Indian Government CGST/SGST Specification on the panel above here. Click for more information on Value Added Tax (VAT). Free Download of Full Featured Software - Try Full Featured Software Before Order - Time Limited 30 days Full Featured Version of these software are available for download from our website www.freeaccounting.in. HiTech Billing, Accounting Software Off-the-Shelf versions are available for Business, Traders, Industry, Hospital, Hotel, Petrol Pump, Medical Store & Distributor, Automobile or Motorcycle Dealers, Newspaper or Magazine Publishers, VAT Accounting & Billing and Commodity Brokers. | ||||||
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