8 Purchase management and the steps involved in the purchase management.

Purchase Management Purchase Management is a process of managing the whole purchase and related activities in an organization. The purchasing of an organization is highly depends on the re order level of the stocks for the further process of business activities. In the case of manufacturing companies the purchase is about 70 percent of the turn over of the business but in the case of service organizations it is limited to 40 percent of the turn over of the company.  Process or Steps involved in the purchasing Basically the purchase management process involves three major things such as (1) Purchasing planning (2) Purchasing...

15 Strategic Business Planning and steps involved in the Strategic Planning process.

Strategic Business Planning Strategic planning is a process of identifying the important things which we need to accomplish in the future course of business as per the priority basis. This planning will bring the entire organization in to a single set of ideas for the effective execution of plans and procedures  Strategic planning helps to improves the performance of the organization and solves major issues at a macro level. Strategic planning should have the following qualities:- (1)     It should be Specific (2)    It should be Measurable (3)    Strategic planning should...

7 Meaning of Financial Statements- Need or Importance and Limitations of Financial statements.

Financial Statements Financial statements are those statement which includes the income statement, balance sheets, statement of retained earnings and the statement of sources and uses of funds. The income statement includes the trading account and the profit & loss account of the business concern and the balance sheet includes the assets and liabilities of the business. The financial statement provides the vital information relating to the profitability, liquidity and solvency of the business.  The main aim of the financial statement is to provide reliable information relating to the economic resources, business obligations,...

3 Meaning of Depreciation in accounting with the Objectives, the causes and Methods of depreciation.

Depreciation Depreciation refers to the decline of the value of any kind of property due to use, normal wear and tear, obsolescence or efflux ion of time. Depreciation of any kind of assets or property are allocated so as to charge a reasonable proportion of the depreciable amount in each accounting period during the expected useful life time of the asset. Objectives  of providing Depreciation The main objective of providing depreciation to the concerned property are as follows:- 1.      To ascertain true profit of the business. 2.      To show the proper value of assets. 3.     ...

8 Meaning of Balance sheet and Classifications of Assets and Liabilities.

Balance Sheet Balance sheet is a statement of assets and liabilities as on a particular date.  The balance sheet shows the sources and applications of capital. On the left hand side of the balance sheet shows the liabilities and capital and the right hand side of the balance sheet shows all the assets. Both sides of the balance sheet should be always equal, that means, assets must be equals with liabilities. Format of Balnce sheet Format of Balance Sheet Classification of Assets and Liabilities The classification of different assets and liabilities are as shown below; Classification of Assets Assets represents the possession...

50 Meaning and Types of accounting Errors and procedure for rectifying accounting errors.

Accounting Errors Accounting errors are those mistakes which occurs in the book keeping or accounting, relating to a routine activity or relating to the principle of accounting. The Accounting errors happens in entering the transactions in journal or subsidiary books or at the time of posting of entries in to the ledger. The accounting errors may happen because of the omission, commission, principle or as a compensating of errors. Classification of Accounting errors Accounting errors are classified in to four types on the basis of nature of Errors. They are (1) Errors of Omission, (2) Errors of Commission, (3) Errors of Principles...

10 Meaning and Types of Subsidiary books detailed study report.

Subsidiary Books Most of the big companies are recording the business transactions in one journal and the posting of the same to the concerned ledger accounts are very difficult tasks and which require more clerical labour also. For avoiding such kind of difficulties most of the business organizations are subdividing the journal in to subsidiary journals or subsidiary books.  Subsidiary books are those books of original entry in which similar nature of transactions are recording in a chronological order. Kinds of Subsidiary Books There are different kinds of subsidiary books which includes purchase day book, Sales day book,...

20 Rules for Double entry system of Accounting with examples.

Double Entry System of Accounting Double entry system of accounting is based on the dual aspect concept. It includes two aspects, they are Debit aspects and Credit aspects. Debit Aspects- This includes either Receiving aspects, incoming aspects or Expenditure aspects, these are known as Debit aspects. Credit Aspects- The another aspects may be Giving aspects, outgoing aspects or income aspects. These are known as Credit aspects. Stages of Double Entry System There are three distinct stages are includes a complete system of double entry. i)        Recording of transactions in the journal. ii)      Posting...

66 Functions of financial management as well as financial manager.

Financial Management         Financial management is a process which involves planning, organizing, controlling and directing of financial activities such as the procurement, development and maximum utilization of the funds in an organization. Finance is the lifeblood of every business and it is the study of how the investors allocate the assets in the competitive business environment. In simply we can say that, financial management is the process of applying general management principles to the resources available in the business enterprises. Functions of Financial management Financial Management...

11 Systems of Accounting : single entry and double entry system of Accounting

Systems of Accounting There are mainly two kinds of system of accounting for recording business transactions. They are Cash System of accounting and Mercantile system or Accrual system of Accounting. 1.       Cash System of Accounting Under the cash system of accounting, only actual cash transitions are recording in to the account. That means actual cash received and cash paid are recoded properly and no entry for any due of receipts and outstanding expenses. 2.       Mercantile system or Accrual system of Accounting Under Mercantile system of accounting, all the cash transactions...