OMITEC COMPUTER INSTITUTE

What are Prepaid Expenses? Prepaid expenses represent  expenditures that have not yet been recorded by a company as an expense, but have been paid for in advance. In other words, prepaid expenses are expenditures paid for in one  accounting period, but that will not be recognized until a later accounting period. Prepaid expenses are initially recorded as  assets, because they have future economic benefits, and are expensed at the time when the benefits are realized (the  matching principle). Common Reasons for Prepaid Expenses The two most common uses of prepaid expenses are rent and insurance. 1.  Prepaid rent  is rent paid in advance of the rental period. The journal entries for prepaid rent are as follows: Initial journal entry for prepaid rent: Dr     Prepaid Rent                10000 Cr      to Cash                                             10000 Adjusting journal entry as the prepaid rent expires: Dr     Rent Expenses             10000 Cr      to Prepa

Interest on Capital Owners may seek a return on investment in form of fixed rate of interest to the extent of amount employed by them in the business. In order to ascertain a true picture of the business’ profitability, it is a common practice to provide interest on capital. Journal entry for interest on capital includes two accounts;  Capital A/c  &  Interest on Capital A/c Interest on capital is an expense for the business  and is added to the capital of the proprietor thereby increasing his total capital in the business. It is not paid in cash or by the bank. Journal entry for interest on capital is; Interest on Capital A/c Debit Debit the increase in expense   To Capital A/c Credit Credit the increase in capital Example Provide 10% interest on capital at the end of the year to Raman. His contribution to the business is 1,00,000. Interest on Capital A/c 10,000  T

Depreciation and appreciation In finance and accounting, terminology is everything. Depreciation and appreciation are two sides of the same coin. Depreciation is when the value of assets goes down, and appreciation is when the value of assets goes up. Another type of depreciation that can confuse people is asset depreciation. This is an accounting term used to describe a certain type of write-off. 1.         Depreciation and appreciation of Fixed Assets: Depreciation : Depreciation is decreased in the value of fixed assets.  It is decreased due to the various reasons.  It is a loss, therefore, depreciation is debited. It decreases the value of fixed assets; therefore, fixed asset account is credited. For example; provide depreciation on furniture Rs. 5,000 p.a. Appreciation : Appreciation is the opposite of depreciation. It increases the value of assets, therefore assets account is debited and appreciation account is credited as a gain of the business. For example; the val

Tally Syllabus Tally Beginner Syllabus ( Duration: 3 months OR 70 Hrs) Module 1: Manual Accounting About Tally, What is accounting, Types of accounting, Advantages of accounting, Transaction, Basic types of transaction, Step of accounting, Source Documents Journals, Methods of maintain journals, Rules of maintain journals, Types of accounts, Golden rules,  Important Journal entry transaction, Capital, Bank & Cash Entry, Fixed Assets, Purchase, Sales, Payment, Receipt, Discount, Goods Return Entries, Important Accounting Keyword, Types of Business (Service Organizations, Trading Organizations & Manufacturing Organizations), About ledger book & posting, Final Reports (Trial balance, Profit & loss & Balance sheet). Module 2: Computer Accounting Understand Tally Ledgers & Groups, Important Ledgers & Groups, Accounting Vouchers, Basic Accounting Vouchers, Introduction and History of Tally, Understand Different Version of Tally, About Tally Screen, Wor

Journal Entry for Goods Given as Charity or Distributed as Free Samples Charity generally refers to the voluntary giving of help, typically in the form of money or goods to those in need.  Goods given as free samples are however a way of advertising . Both acts when performed by a company are required to be recorded in the books of accounts. Goods given to charity or goods distributed as free samples are  not to be  accounted  for as sales . Instead, they are accounted as expenses, simply because, in this case, the  outflow of goods  happen  without any consideration . Journal Entry  for  Goods Given as Charity When accounting for goods given as charity, purchases are reduced with the exact cost of goods contributed. Charity A/C Debit  To Purchases A/C Credit Example A company, Unreal Pvt Ltd.  gave  goods to charity which cost them 20,000. Journal entry for charity, in this case, will be posted as; Charity A/C 20,000  To Purchases A/C 20,000 Treatment of

Bad Debts Bad debts means that money which we could not acquire from our debtors . We may give the goods or money on credit to our debtors. Same debtor or debtors has to give us the money of his taken debt. But when will not give the debt, it will be the loss of our business , so, we have to pass the entry for bad debts like the entry of any other business loss. All losses account will be debited and any asset which will decrease, will be credited. In case of bad debt following journal entry will be passed. 1. Journal Entry for Bad Debts Loss  For showing this journal entry, it is very necessary that  a debt must be uncollectible. We have done all the efforts but we did not collect the debt. After failure of final notice to the debtor, we will convert our debt in bad debt.  Bad Debt Account Debit Particular Debtor Account Credit Example :  Shyam did not pay us our Rs. 5000 debt and Ram did not pay us our Rs. 10000 debt up to end of the financial year. This receivable am

Excel Introduction इंट्रोडक्शन माइक्रोसॉफ्ट एक्सेल एक एप्लीकेशन सॉफ्टवेर है जो की हमें माइक्रोसॉफ्ट ऑफिस पैकेज के अंदर मिलता है | इससे पहले हमने माइक्रोसॉफ्ट वर्ड पढ़ा है जो की माइक्रोसॉफ्ट ऑफिस पैकेज के अंदर का ही एक एप्लीकेशन सॉफ्टवेर है | जिसमें हम लैटर राइटिंग का वर्क करते है | अब हम इसी ऑफिस पैकेज के अंदर का दूसरा एप्लीकेशन सॉफ्टवेर सीखेगे जिसका नाम एक्सेल है | इस सॉफ्टवेर का यूज़ हम रिकॉर्ड मेंटेनेंस के लिए करते है | मतलब की एक्सेल एक रिकॉर्ड मेंटेनेंस का सॉफ्टवेर है | रिकॉर्ड और फ़ील्ड्स क्या होते है ? एक रिकॉर्ड बहुत सारी फ़ील्ड्स का कॉम्बिनेशन होता है और एक फ़ील्ड्स एक इनफार्मेशन होती है | अगर हम एक स्टूडेंट का रिकॉर्ड बनाना चाहते है तो हमे कौन – कौन सी फ़ील्ड्स (इनफार्मेशन) चाहिए | Roll Number, Student name, Address, City, Contact Number, Date of Birth etc. Fields इसको हम रो ( Row) और कॉलम (Column)   के अनुसार भी समझ सकते है | रो ( Row) मतलब रिकॉर्ड और कॉलम (Column) मतलब फ़ील्ड्स |