Technical questions

Write basic accounting equation?

Assets= equity + liability

assets = liability + capital

● Amalgamation
An ​amalgamation​ is the combination of one or more companies into a new entity.

● Depreciation

Decrease the value of assets

● Contingent liability

A potential loss that may occur in the future depending on the outcome of a specific event.
● Amortization

It is a technique used to lower the cost value of an intangible assets

● Bad dept
It is a loss that cannot be recovered.

● Advance expences

payment​ that is made before goods or services are provided. The company used the money to
make an ​advance payment​ to the project's owner against future delivery of the product.

● Prepaid rent
Prepaid rent​ is rent paid in advance of the rental period. 

● Trade discount
a discount on the retail price of something allowed or agreed between traders or to a retailer by
a wholesaler.

● Bills receivables
Bills receivables are part of company assets . ​the ​bills​ of ​exchange​ that
a ​company​ will ​receive​ ​payment​ for in the ​futur​e
 ● Bills payables
Amount paid for the purchase of goods and sevices. It a liability of a company.

● Current ratio = current assets

--------------------
Current liability

● Liquidity ratio
The ratio between the liquid assets and liability of a bank or any other institution.

● Balance sheet
A statement of assets and liability . it shows the financial position of company.

● Trail balance
a statement of all debits and credits in a double-entry account book,​ with any disagreement
indicating an error. A company prepares a ​trial balance​ periodically, usually at the end
of every reporting period.

● Journal entry
The ​journal entry​ can consist of several recordings, each of which is either a debit or a credit

● Portfolio

a portfolio is a collection of investments held by an investment company, hedge fund,

financial institution or individual.

● Hedge fund
It’s a risk management tool
 ● GST IMPACT ON GDP

Now, There is only one tax rate for all which will create a unified market in terms of tax 
implementation and the transaction of goods and services will be seamless across the states. 
The same will reduce the cost of the transaction. In a survey, it was found that 10-11 types of 
taxes levied on the road transport businesses. So the GST will be helpful to reduce 
transportation cost by eliminating other taxes. 
After GST implementation the export of goods and services will become competitive because of 
nill effect of cascading effect of taxes on goods and products. In a research done by NCAER, it 
was suggested that GST would be the key revolution in Indian Economy and it could increase 
the GDP by 1.0 to 3.0 percent. 
GST is more transparent in comparison to the previous law provision so it will generate more 
revenue to the Government and will be more effective in reducing corruption at the same time. 
Overall GST will improve the tax Compliances. 
In a report issued by the Finance Ministry, it was mentioned that Make In India programme will 
be more benefited by the GST structure due to the availability of input tax credit on capital 
goods. 
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● TOP CEO ALL TIME 
 

Sunder picahi ( ceo of google) 

Shantanu Narayan ( CEO of adobe) 
Kishore biyani ( CEO of Future group) 
Salil parikh (CEO of Infosys) 
Kalyan Krishna murty ( CEO of flipkart) 
 
Examples of a Debtor and a Creditor
Assume that a company borrows money from its bank. The company is the ​debtor​ and the
bank is the ​creditor​. If a manufacturer sells merchandise to a retailer with terms of net 30
days, the manufacturer is the ​creditor​ and retailer is the ​debtor.​
  
 An income statement or profit and loss account is one of the
financial statements of a company and shows the company’s
revenues and expenses during a particular period. It indicates how
the revenues are transformed into the net income or net profit