Comments for The Happy Accountant http://happyaccountant.wordpress.com Accounting Information for the SME Tue, 25 Nov 2008 17:12:12 +0000 http://wordpress.com/ hourly 1 Comment on The VAT Fraction by Happy Accountant http://happyaccountant.wordpress.com/2007/08/30/the-vat-fraction/#comment-599 Happy Accountant Tue, 25 Nov 2008 17:12:12 +0000 http://happyaccountant.wordpress.com/2007/08/30/the-vat-fraction/#comment-599 The new VAT fraction is 3/23. The new VAT fraction is 3/23.

]]> Comment on The VAT Fraction by graham http://happyaccountant.wordpress.com/2007/08/30/the-vat-fraction/#comment-598 graham Tue, 25 Nov 2008 11:36:56 +0000 http://happyaccountant.wordpress.com/2007/08/30/the-vat-fraction/#comment-598 help !!! What is the new fraction for VAT at 15% help !!!

What is the new fraction for VAT at 15%

]]> Comment on What do you need to set up a company by kiran http://happyaccountant.wordpress.com/2007/04/17/what-do-you-need-to-set-up-a-company/#comment-595 kiran Sat, 01 Nov 2008 06:00:24 +0000 http://happyaccountant.wordpress.com/2007/04/17/what-do-you-need-to-set-up-a-company-2/#comment-595 it's very good and informative for me it’s very good and informative for me

]]> Comment on The Business Equation by Happy Accountant http://happyaccountant.wordpress.com/2007/05/03/the-business-equation/#comment-586 Happy Accountant Wed, 20 Aug 2008 10:03:45 +0000 http://happyaccountant.wordpress.com/2007/05/03/the-business-equation/#comment-586 Profit = increase in capital + drawings - extra capital introduced Profit = Assets - liabilities + drawings - extra capital. Basically, it means that you can view profit (in any given year) as being the same as the increase in capital (less any new capital introduced into the business) because the business equation and accounting equation are mathematically linked. (If you really wanted, you could do a mathematical "proof" of this, or you could substitute numbers in and see for yourself). Going the "other way", profit is the business assets less its liabilities plus drawings and less capital introduced. (You have to include drawings and capital introduced in the equation to allow for capital coming in or going out of the business which didn't come about through profit generation) Profit = increase in capital + drawings – extra capital introduced

Profit = Assets – liabilities + drawings – extra capital.

Basically, it means that you can view profit (in any given year) as being the same as the increase in capital (less any new capital introduced into the business) because the business equation and accounting equation are mathematically linked. (If you really wanted, you could do a mathematical “proof” of this, or you could substitute numbers in and see for yourself).
Going the “other way”, profit is the business assets less its liabilities plus drawings and less capital introduced.

(You have to include drawings and capital introduced in the equation to allow for capital coming in or going out of the business which didn’t come about through profit generation)

]]> Comment on The Business Equation by Flustered http://happyaccountant.wordpress.com/2007/05/03/the-business-equation/#comment-585 Flustered Wed, 20 Aug 2008 08:16:09 +0000 http://happyaccountant.wordpress.com/2007/05/03/the-business-equation/#comment-585 can one explain it wth reference to the accounting equation????????? can one explain it wth reference to the accounting equation?????????

]]> Comment on What do you need to set up a company by Happy Accountant http://happyaccountant.wordpress.com/2007/04/17/what-do-you-need-to-set-up-a-company/#comment-579 Happy Accountant Sat, 07 Jun 2008 19:00:23 +0000 http://happyaccountant.wordpress.com/2007/04/17/what-do-you-need-to-set-up-a-company-2/#comment-579 Hi Jin, Thanks for reading! Unfortunately, I can only comment on UK companies; the situation in India may be different. Hi Jin,
Thanks for reading!
Unfortunately, I can only comment on UK companies; the situation in India may be different.

]]> Comment on What do you need to set up a company by Jin http://happyaccountant.wordpress.com/2007/04/17/what-do-you-need-to-set-up-a-company/#comment-578 Jin Sat, 07 Jun 2008 17:52:53 +0000 http://happyaccountant.wordpress.com/2007/04/17/what-do-you-need-to-set-up-a-company-2/#comment-578 This is an Excellent Article. Thanks a lot for the informations. And I would be glad if you could tell me the minimum capital or value for starting a Limited Company in India. Thank you Regards, Jin This is an Excellent Article. Thanks a lot for the informations. And I would be glad if you could tell me the minimum capital or value for starting a Limited Company in India.

Thank you

Regards,

Jin

]]> Comment on Purchase Day Book and Purchases Returns Day Book by Happy Accountant http://happyaccountant.wordpress.com/2007/06/19/purchase-day-book-and-purchases-returns-day-book/#comment-574 Happy Accountant Sat, 15 Mar 2008 11:16:47 +0000 http://happyaccountant.wordpress.com/2007/06/18/purchase-day-book-and-purchases-returns-book/#comment-574 Hi, This sounds more like a textbook question!! If you are running a business and making these kinds of errors, this suggests that you need to consider computerising your bookkeeping . This will enable you to correct these errors without having to know much about double-entry. Even if you are running a manual system, you could probably correct these errors without journals simply by correcting your original entries rather than using journals, especially if you are an accounting novice. You should be able to correct these errors without using a suspense account once you have presumably you have the original documentation (invoices etc...) to refer back to. Hi,
This sounds more like a textbook question!!

If you are running a business and making these kinds of errors, this suggests that you need to consider computerising your bookkeeping . This will enable you to correct these errors without having to know much about double-entry.

Even if you are running a manual system, you could probably correct these errors without journals simply by correcting your original entries rather than using journals, especially if you are an accounting novice.

You should be able to correct these errors without using a suspense account once you have presumably you have the original documentation (invoices etc…) to refer back to.

]]> Comment on Purchase Day Book and Purchases Returns Day Book by hamad http://happyaccountant.wordpress.com/2007/06/19/purchase-day-book-and-purchases-returns-day-book/#comment-572 hamad Wed, 12 Mar 2008 21:28:11 +0000 http://happyaccountant.wordpress.com/2007/06/18/purchase-day-book-and-purchases-returns-book/#comment-572 (1) The total of the Sales Return Day Book** was under-cast by $2000 (2) A contra entry for $2000 recorded in both the individual customer's and Supliers accounts has not been recorded in either of the control acounts. (3) Apurchase invoice for $3000 was incorrectly entered in the Purchase Day Book** as $300. (4) The "receivables"column on the recipts side of the analysed Csh Book which tottaled $28000 was mistakely posted to the appropriate account in the nominal ledger as 20800. OK now could sombody plz tell me the correct Journal entries for these errors/mistakes 1,3 & 4(does these three entries have to do somthing with the SUSPENSE Acount specialy the **) (1) The total of the Sales Return Day Book** was under-cast by $2000
(2) A contra entry for $2000 recorded in both the individual customer’s and Supliers accounts has not been recorded in either of the control acounts.
(3) Apurchase invoice for $3000 was incorrectly entered in the Purchase Day Book** as $300.
(4) The “receivables”column on the recipts side of the analysed Csh Book which tottaled $28000 was mistakely posted to the appropriate account in the nominal ledger as 20800.

OK now could sombody plz tell me the correct Journal entries for these errors/mistakes 1,3 & 4(does these three entries have to do somthing with the SUSPENSE Acount specialy the **)

]]> Comment on What is a Limited Company by bob http://happyaccountant.wordpress.com/2007/04/16/what-is-a-limited-company/#comment-570 bob Tue, 26 Feb 2008 15:40:25 +0000 http://happyaccountant.wordpress.com/2007/04/16/what-is-a-limited-company/#comment-570 thanks, we are learning thanks, we are learning

]]> Comment on Disadvantages of Double Entry Bookkeeping by bob http://happyaccountant.wordpress.com/2007/07/04/disadvantages-of-double-entry-bookkeeping/#comment-569 bob Tue, 26 Feb 2008 15:33:18 +0000 http://happyaccountant.wordpress.com/2007/07/04/disadvantages-of-double-entry-bookkeeping/#comment-569 thanks. coz s learners need these things. thanks. coz s learners need these things.

]]> Comment on The Prudence Concept by Justin http://happyaccountant.wordpress.com/2007/04/11/the-prudence-concept/#comment-568 Justin Tue, 12 Feb 2008 06:40:37 +0000 http://happyaccountant.wordpress.com/2007/04/11/the-prudence-concept/#comment-568 So what would be the entry if we dispose of an asset at original cost after it had been partly depreciated? As an invoice is raised as a sale the income is currently recorded in a "income" account. But how to I write down to value of current assets? So what would be the entry if we dispose of an asset at original cost after it had been partly depreciated?
As an invoice is raised as a sale the income is currently recorded in a “income” account. But how to I write down to value of current assets?

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