Accounting terminology is the language used by accounting professionals such as income, expenses, assets and liabilities, etc. A computerised accounting system is a platform that processes financial transactions and events according to the GAAP (Generally Accepted Accounting Principles) a set of accounting rules, standards, and procedures prescribed by the Institute of Chartered Accountants of India,…
The process in which the accounts are handwritten on the paper-based register in the form of ledgers, subsidiary books, and journals to record the financial transactions is called Manual Accounting. The process in which the financial accounts are systematically accounted through specially developed computer accounting software. The following are the differences between a computerized accounting…
A computerized accounting system is a software application that automates financial records and reporting processes to make them faster, more accurate, and easier to manage. It reduces the manual entry of data, eliminates redundant operations, and reduces accounting error risk with built-in controls. The main features of a computerized accounting system are; Updates: In a…
As the name says ‘computerised accounting’ is the use of computers, software, and hardware to process financial transactions and events and produce accounting reports: A computerized accounting system (CAS) automates financial records and reporting processes of financial transactions and events and produce reports based on user requirements. The process of financial transactions done through…
The Supreme Court today overruled a 2008 decision by the National Consumer Disputes Redressal Commission (NCDRC) that capped the interest rate banks could charge on late credit card bill payments at 30% per annum, bringing relief to banks. The National Consumer Court had in 2008 restrained banks from charging interest rates over 30% per annum…
The Bank’s financial statements are prepared under the historical cost convention, on the accrual basis of accounting on a going concern basis, unless otherwise stated, and conform in all material aspects to Generally Accepted Accounting Principles (GAAP) in India, which comprise applicable statutory provisions, regulatory norms/guidelines prescribed by the Reserve Bank of India (RBI), Banking…
The term ratio means a simple division of one number by another. It is measured by the number of times one number is contained by the other, either integrally or in fraction. The ratio analysis of financial statement means the process of calculating structural relations of different items and groups in the financial statements. Generally,…
If any lending decision is to be properly made, the risk involved in the transaction should be properly evaluated. Risk evaluation primarily consists in the ascertainment of the ability of the prospective borrower to repay the proposed loan. To ascertain this ability, apart from financial analysis many other vital considerations such as the character of…
(This article explains the method of computation and the purposes of capital structure ratios viz. Current ratio, Quick ratio/Acid test ratio, Debt Equity Ratio, Solvency Ratio, Proprietary or Equity asset ratio, Fixed assets to tangible net worth plus term debt, Current debt to tangible net worth ratio, Inventory to net working capital ratio, Current debt…
The term “accounting treatment” represents the prescribed manner or method in which an accountant records and presents a specific business transaction or event in the establishment’s financial statements. The accounting policies of Banks require banks to disclose the key areas of operations in one place (under Schedule 17) along with notes to accounts in their…