The difference between Debentures and Preferential Shares is as follows:

1) Person holding debentures has owed money to a company, while Preferential Shareholder could be considered as a partial owner of the company.

2) A Preference shareholder earns dividends if the company is making profits, however a debenture holder needs to be paid irrespective of making profits or losses.

3) A debenture holder would be paid the capital invested at the end of a stipulated term. A preference shareholder is not promised return of capital invested; instead he earns dividends till the time the company exists and is profitable.

4) A debenture holder earns interest on the capital invested till the capital is not returned, while a preference shareholder is paid dividends till the time the company exists.

The Debit balance recovery is usually made by raising a credit memo for the regular vendors. However if there are no future transactions from the supplier, we ask the vendor to send the check / make an EFT for the amount due from him.

When payment is made to the wrong vendor or payment made in excess, in that case overpayment has gone to the vendor, So for us it is vendor debit balance.

For debit balance recovery, we can either follow-up with the vendor to send us the excess amount / refund back, or we can adjust that extra amount in future invoices submitted by that vendor

In Case no future transactions, we have to follow-up with the vendor, falling whicch we have to write off this amount.

Invoice holds are 2 types
1)Sytem Hold               2) User Defined Holds.

Sytem Holds: Sytem holds the invoice if the Invoice Amt total is not equal to Invoice Distribution Amt. To release the hold correct the amount and again validate the invoice.

User Defined Holds: These is defined by user. If we do want to make payments to the validated invoice. Go to particular invoice and apply hold going to Holds tab.

A loss (or losses) from previous years carried forward in order to offset future earnings. This reduces the tax burden for the years with profit as the accumulated losses are deducted from the taxable profit.

Open item management ensures that all items that have not yet been cleared are available in the system. Only after every open item in a document is cleared can a document be archived.

Supplier should follow the check list.

1. He should create confidence in the client mind
2. Services to be done (fulfilled in time)
3. Services to be done according the specification of the client
4. He should be placed the another order by doing the above three steps

Debenture holder are those who provides long term loan at specific interest rate in term of cash and creditor provides only short term credit in term of cash for purchasing of goods.

Excess payment to supplier is treated as Advance paid to supplier. This will show as debit balance in supplier account.

Supplier can send the payment by way of cheque / demand draft without adjusting in his subsequent bills.