The Indian Accounting Standards (Ind AS), as notified under section 133 of the Companies Act 2013, were first implemented voluntarily in India on April 1, 2015. They became mandatory for certain companies on April 1, 2016, and were later extended to other companies and sectors. The main objective of Indian accounting standards (Ind-AS) is to…
A partnership firm is a business owned by two or more people who have agreed to share profits and act on behalf of the business. The people who own the business are called partners, and the name of the business is the firm name. An LLC is a privately held business that combines the characteristics…
The issue of shares refers to the process by which a company raises money by selling ownership stakes in the form of shares of stock to investors for a variety of purposes like expansion plans, repayment of debts, improving liquidity, or a plan to increase the long-term source of capital that helps a company operate…
Companies are classified into different types based on the structure of the company such as sole proprietorships, partnerships, and corporations. The ownership of a company may belong to the government, private individuals, or foreign entities. The Companies Act 2013 provides several classifications of companies to suit different business needs. The primary types of the companies…
Section 3 (1) (i) of the Companies Act, 1956 defines a company as “a company formed and registered under this Act or an existing company”. In common parlance, a company means an association of two or more persons formed an artificial legal entity for some common object or object such as the economic gain of…
The government of Bihar on October 3rd, 2024, issued a notification regarding the Bihar Government Holiday List of 2025 under explanation to section 25 of the Negotiable Instrument Act 1881. Sr.No Date Day Occasion/Festival Date 1 26.01.2025 Sunday REPUBLIC DAY 2 13.03.2025 Thursday HOLIKA DAHAN 3 14.03.2025 Friday HOLI 4 22.03.2025 Saturday BIHAR DIVAS 5…
The Andhra Pradesh State Government vide circular no. GO/Rt/No.2116 dated 6.12.2024 declared following General Holidays for the year 2025 under section 25 of Negotiable Instrument Act 1881. Following is the list of bank holidays for the year 2025 Sr.No. Date Day Occasion/Festival 1 14.01.2025 Tuesday MAKARA SANKRANTHI 2 26.01.2025 Sunday REPUBLIC DAY 3 26.02.2025 Wednesday…
A trial balance is a preliminary step in preparing a balance sheet. It summarizes the general ledger account balances. The trial balance taken the first time is called an unadjusted trial balance. Whenever totals of debits and credit side mismatches in the unadjusted trial balance, the major job is to search for and correct the…
[This post elucidates the eligibility status of Small Companies and the benefits given to small company promoters and directors.] The Companies Act, 2013 (‘Act’) introduced the concept of small companies to provide advantages for small businesses operating as private limited companies. Small companies do not have any separate procedure to obtain registration under the Act.…
A trial balance is an internal financial report that lists all the balances of general ledger accounts of an entity at a specific time. The items reflected in the trial balance include assets, liabilities, equity, revenues, expenses, gains, and losses. It’s usually prepared at the end of the accounting year to ensure the bookkeeping system’s…