Accountancy Tutors in Kalyanpuri, Delhi

                                               Table showing Adjusted Profit for the last 3 years.

           Year       Particulars                                                                    Adjustment             Adjusted Profit

           2014      Net Profit as per P/L A/c.                                                        20,000

                        Less: Abnormal Gain (Insurance claims)                              (35,000)                (15,000)      

           2015     Net Loss as per P/L A/c.                                                        (15,000)

                        Add: Abnormal Loss (Retirement Compensation)                1,05,000                  90,000          

           2016     Net Profit as per P/L A/c.                                                         75,000

                        Less: Abnormal Gain (Profit on sale of Fixed Assets)           (30,000)                  45,000      

                        Adjusted Total Profit of Last 3 Years (1,35,000 – 15,000)                             1,20,000   

                        Average Profit =Total Profit of Last 3 Years / No of Years  = 1,20,000 / 3 = 40,000

                       Therefore Goodwill = Average profit   X  No of years of Purchase

                                                        = 40,000  X  2    = Rs. 80,000

Note:

(i) Abnormal Gain (Profit) should be Subtracted from the Net Profit or Net Loss.

(ii) Abnormal Loss should be Added with the Net Profit or Net Loss.

Ramesh A/C. Dr. Bank Charges A/C Dr. To Bank Account (Being cheque dishonoured and bank charges deducted from Bank account)

The seasonal wind of the Indian ocean and Southern asia,blowing from the southwest in summer and from the Northeast in winter(in Indian and nearby land) is called Monsoon.

Salary outstanding is the salary due in the current year but not paid. This outstanding amount is shown in the Balance sheet as a Current Liability of the firm. Also added to the concered expense Salary in the Income/ Profit & Loss Statement. This is actually an accrued expense.

The journal entry will be:

Salary A/c Dr

     To Outstanding salary a/c

Manual accounting - it is a system of accounting that uses only physical books, registers for recording the neccessary day to day transactions or fiancial records. 

All the transactions and calculations recoreded manually.

speed is low.

computerised accounting is an accounting system that uses accounting softwares for recording the financial transactions electronically.

Transactions are recorded in computer and calculations are performed by computer system electronically.

speed is comparatively faster than manual accounting. 

Loose tools are the current assets of an orgainsation and shown on asset side of balance sheet.

LEASEHOLD PROPERTY IS A REAL A/C AND APPEAR ON THE ASSET SIDE IN THE BALANCE SHEET AND DEPREACIATION SHOULD BE CHARGED ON IT AS IT IS NOT A FREEHOLD PROPERTY.

SALARY OUTSTANDING IS A LIABILITY AND SHOWN ON THE DEBIT SIDE OF PROFIT & LOSS A/C BECAUSE THE AMOUNT HAS TO BE PAID IN FUTURE AND ALSO SHOWN ON THE LIABILITY SIDE OF THE BALANCE SHEET.

IN CASE OF FORFEITURE OF SHARES WHERE THE FULL VALUE WAS NOT CALLED FOR IN THIS CASE RS.7/- WAS CALLED UP AGAINST RS 10/-THEN THE SHARE CAPITAL WILL BE DEBITED WITH NO.OF SHARES FORFEITED X AMOUNT CALLED UP AND NOT THE FACE VALUE OF SHARES. IN THIS CASE IT WILL BE RS.7/- AND RS.10/-.

FOR SMALL BUSINESS THE APPROPRIATE ACCOUNTING SOFTWARE WILL BE TALLY(ERP7/ERP9 ETC.)