Latest Easy Accounting Topics

Only registered person is allowed tax credit for investment in shares. Companies are not allowed to claim such allowance. The provision guidlines for this are as follows: a. cost of acquiring new shares offered to the general public usually through prospectus by a listed company. In order to claim t...
added on 17-Nov-2017
Various individuals or entities give donations, so for the purpose of taxation, their valuation is done by the following methods: a. imported items Donation value = value as per custom duty + all duties & charges incurred/ paid by the donor. b. locally manufactured items Donation value = purchas...
added on 17-Nov-2017
There are various types of credits or rebates which can be adjusted against salary income of an individual. By this, the tax liability of a person reduces & this is a great way to save your money. The following are allowable tax credits or rebates on salary income under most of the jurisdiction:...
added on 17-Nov-2017
Perquisites is a part of the salary income. However, it is not a fixed benefit. Instead, it is a variable amount which is reimbursed by the employer to the employee. Perquisites include: services of drivers, house keeper or gardener, utilities such as electricity, gas, water & telephone, motor v...
added on 17-Nov-2017
Directors often take fee for attending Board of director's meeting. This is considered as part of the salary in income tax laws of various countries. The rate is charged @ 20 % of the directorship fee, which is adjustable against normal tax liability. If the director is not a working employee or dir...
added on 17-Nov-2017
Salary means any amount received by the employee from its employer and includes: Pay, wages Allowances such as cost of living, rent, utilities, entertainment allowance, Kit/ Uniform allowance Perquisites - expenses incurred by employee which are later reimbursed by the employer, Annuity or pension P...
added on 17-Nov-2017
Sales budget is the first main component of the master budget. It includes expected quantity and the expected price and the product of the two factors are calculated to find out the expected sale value. This is vital to forecast the quantity and the unit price with sufficient reliability, otherwise ...
added on 15-Nov-2017
Master Budget is a collection of all lower level budgets and provides a great route to the management to plan for the future. The main purpose of the master budget is to make sure that at the end of the time period for which the budget was made; the actual results do not deviate too much. If the act...
added on 14-Nov-2017
In order to combine the effects of both Paasche and Laspeyre price index, Fisher presented a new formula to calculate price index. It is defined as the geometric mean of Paasche and Laspeyre price indices. Formula
added on 13-Nov-2017
In this price index, we use the current year quantitties of commodities as weights. That is why it is also called Current Year Weighted Average Index Number & is denoted by P. Formula
added on 13-Nov-2017