Accountancy Coach

Types of accounting heads
For a good understanding of the account types is necessary for anyone creating accounts, posting transactions and journal entries, or reading financial reports. We briefly define each account type below.

- Assets: The tangible and intangible that can company owns that have value.

Types of Accounting Heads - The Accountancy Coach For a good understanding of the account types is necessary for anyone creating accounts, posting transactions and journal entries, or reading financial

Objective
The objective of this Standard is to prescribe the accounting treatment for inventories. A primary issue in accounting for inventories is the amount of cost to be recognised as an asset and carried forward until the related revenues are recognised.

International Accounting Standard( IAS) 2 - Inventories - The Accountancy Coach The objective of this Standard is to prescribe the accounting treatment for inventories. A primary issue in accounting for inventories is the amount of cost

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Audit Procedures
Objective
Done by
W. P. Ref.

Test of Controls

1
Assess the reasonableness of design of system of internal control by enquiring relevant client personnel and documenting the same (if not a documented system manual has been developed by the client). A walk through test would be necessary to confirm the understanding as documented.

AUDIT PROCEDURES - LOANS AND ADVANCES - The Accountancy Coach # Audit Procedures Objective Done by W. P. Ref. Test of Controls 1 Assess the reasonableness of design of system of internal control by enquiring relevant

AUDIT PROCEDURES - INVESTMENT PROPERTIES

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Audit Procedures
Objective
Done by
W. P. Ref.

Test of Controls

1
Assess the reasonableness of design of system of internal control by enquiring relevant client personnel and documenting the same (if not a documented system manual has been developed by the client). A walk through test would be necessary to confirm the understanding as documented.

AUDIT PROCEDURES - INVESTMENT PROPERTIES - The Accountancy Coach AUDIT PROCEDURES - INVESTMENT PROPERTIES # Audit Procedures Objective Done by W. P. Ref. Test of Controls 1 Assess the reasonableness of design of system of

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Audit Procedures
Objective
Done by
W. P. Ref.

Test of Controls

1
Assess the reasonableness of design of system of internal control by enquiring relevant client personnel and documenting the same (if not a documented system manual has been developed by the client). A walk through test would be necessary to confirm the understanding as documented.

AUDIT PROCEDURES - FIXED ASSETS - The Accountancy Coach # Audit Procedures Objective Done by W. P. Ref. Test of Controls 1 Assess the reasonableness of design of system of internal control by enquiring relevant

SAMPLE ANUAL STOCK TAKING REPORT


We are please to inform you that we have observed the annual stock taking held on June 28 through June 30, 20X0 as a part of the audit of your organization for the year ended June 30, 20X0



The auditors are required to observe the stock taking in order to:



- Check the “Existence of Inventory”.
- Verify the Internal Control on Inventory.

ANNUAL STOCK TAKING REPORT - The Accountancy Coach ANNUAL STOCK TAKING REPORT October 4, 2021 by admin Spread the loveSAMPLE ANUAL STOCK TAKING REPORT We are please to inform you that we have observed the annual stock taking held on June 28 through June 30, 20X0 as a part of the audit of your organization for the year ended June 30, 20X0   The audi...

Hope you have got clue from word payback. Actually this method tells about minimum time to recover at least investment cost. Every investor wants to know about minimum time in which he can recover at least cost of investment so as to maximize profit time after that period.

PAYBACK METHOD - The Accountancy Coach Hope you have got clue from word payback. Actually this method tells about minimum time to recover at least investment cost. Every investor wants to know

Overheads are sum of indirect costs which cannot identified to specific cost units. E.g rent ,electricity and machine depreciation must be charged to departments to which they relate. In other words they are absorbed in head to which they relate

Production Overheads
Non production overheads

- rent
- electricity
- machine depreciation











- Selling exp
- Admin exp

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REVENUE EXPENDITURE AND CAPITAL EXPENDITURE

Revenue expenditure: The expenses incurred during the course of business or incurred to maintain existing fixed
assets are called revenue expenditures. For example, repairing and service of assets. These are charged to the profit
and loss account as an expense.

REVENUE EXPENDITURE AND CAPITAL EXPENDITURE - The Accountancy Coach REVENUE EXPENDITURE AND CAPITAL EXPENDITURE Revenue expenditure: The expenses incurred during the course of business or incurred to maintain existing fixed

Return on capital EMPLOYED (ROCE)
Return on capital employed abbreviated as ROCE is measure of return on particular investment/capital. It shows how much particular investment will yield to investors (mostly shareholders).
(ROCE)

Return on capital EMPLOYED (ROCE) - Explained - The Accountancy Coach Return on capital employed abbreviated as ROCE is measure of return on particular investment/capital. It shows how much particular investment will yield to

Forecasting for the future depends on trend of costs or sales over time. Practically it is unlikely that past results carry on in future as well due to number of reasons. Variation could occur and these variations could be in different ways.


Time series:
is a set of past Figures taken at equal intervals of time e.g.

TIME SERIES ANALYSIS - The Accountancy Coach Forecasting for the future depends on trend of costs or sales over time. Practically it is unlikely that past results carry on in future as well due to

INTERNAL RATE OF RETURN (IRR)


IRR is basically the rate of return at which NPV is zero(NPV=0)

It shows breakeven point , mean at this rate project is neither making profits nor losses ,both sides are equal. Project is viable if IRR is greater than market interest rate.
IRR

INTERNAL RATE OF RETURN (IRR) - KEY POINTS - The Accountancy Coach IRR is basically the rate of return at which NPV is zero(NPV=0)