Thoughtful Finance Archives - CommerceAngadi.com

Negotiation of Salary

January 19, 2024January 19, 2024 Admin

Points involved in the Negotiation of Salary I am writing here to the point article on Negotiation of Salary to understand in a better way. What are the criteria on which the compensation / salary is structured? The salary is always based on, Your Qualification. Your Experience in the Job title for which You applied. Your designation in the previous organisation / company. Your last drawn salary in the previous organization. The most important part is, your Age – Qualification – current Salary (3-way match) should be a reasonable match.…

Depreciation | Meaning and its Greed for use

March 13, 2022 Admin

What is Depreciation? When an entity acquires a Capital Asset, it will be a Balance Sheet Item. There is wear and tear of an Asset in use and results in a reduction in the value of the same. The deduction is in the form of Depreciation and is available over the life of that respective Asset. The deduction is allowed in the form of allowance every year, called Depreciation. In brief, depreciation is a Capital Allowance towards Fixed Assets and allowed as a deduction from the Revenue/Income before arriving at…

Cash Flow Statement

February 13, 2022 Admin

What is a Cash Flow Statement? It is also a financial statement that shows an inflow and outflow of Cash and Cash Equivalents. A Cash Flow statement is like a tool in the hands of users to know the sources and uses of Cash and Cash Equivalents of an enterprise over a period of time from various activities of an enterprise. Methods of calculation of the Cash flow statement. ⇒ Direct Method of calculation of cash flow statement The company receives & pays the cash in day-to-day business. The…

Write off | Write off debt

June 18, 2021 Admin

What is Write off? In simple, Write off is a process of reducing non-recoverable balance lying on the Asset Side of the Balance Sheet. The write-off in Accounting will happen by Debiting the Expense & Crediting underlying Assets, of which value is getting reduced. Write off Debt In Business / Profession, several transactions took place in regard to Purchase & Sales. Usually, the Sale of Goods or Supply of Service is on credit. All the Credit Sales are recorded as Receivable on the Asset side of the Balance Sheet. In…

Bad Debts | Bad Debts Accounting

March 16, 2021March 25, 2021 Admin

Well, First of all, there is a Debt. If getting paid in time, it is a Good Debt. And if not got paid, it became Bad Debts. What is Debt? The company sells on credit to its customers and allows them some time as a credit period to pay off their dues, which is called a debt owed by a Debtor/purchaser to its Creditor/supplier/provider of service. What is Bad Debt? There are some customers/debtors who taken the supplies on credit and after some time due to some reason…

Deferred Revenue

February 6, 2021February 9, 2021 Admin

We know Revenue which is also called Sales or Income. Then the question comes, What is Deferred Revenue? The Revenue for the year gets recognized to the extent it Accrues or Arises in the particular Year / Period. There are possibilities that a Company may receive the Revenue in Advance for the Sale or Services or events that are to be rendered in the future. It pertains to the next Year / Period and will get recognized only in the next Year or upon happening of an event. It means…

Accrued Expenses | Provision for Expenses

August 8, 2020February 11, 2022 Admin

Meaning of Accrued Expenses In the mercantile system of accounting, expenses are recorded on an Accrual basis. The expenses pertaining to any particular year must get Debited to the respective year. Therefore the expenses incurred in the current year, but the invoice is not received from Vendors are Accrued Expense or the Provision is made for these expenses. What is Accrual Accounting? In the mercantile system of Accounting, the expenses must get accounted for or Debited in the same year/period, for which those are pertaining. And will not get Debited…

Deep Discount Bond or Zero Coupon Bond

May 5, 2019December 31, 2019 Admin

What is a Deep Discount Bond? or a Zero Coupon Bond? Bonds are issued by the Company as a security against the debt raised or loan is taken. Normally bonds are issued with a specific rate of interest. It means the interest payable is at a rate specified at the time of the issue. For example, A 10-year bond issued with a coupon rate of 6.5% means, the debt is raised payable after 10 years with the interest rate of 6.5% per annum. Some times, the company does not…