Professional Tax

ESI

PF

Recoveries

Advances if any

Gratuity is paid to all such employees after their resignation or retirement.Incase of resignation gratuity is paid to such employees who have completed 5 years of service.

Calculation of gratuity = Basic + DA x (15/26) x Total no. yrs service

15- Half month

26- Excluding 4 sundays

The types of accounts that appear on the post-closing trial balance are the permanent accounts, Assets, Liability and Owner's capital. Permanent accounts is also called real accounts.

Purchasing good two kinds of entry 

Either Cash or Credit 

If Cash

Purchase A/c ------ Dr  xx  To Cash A/c

(Being good purchase on cash)

If Credit 

Purchase A/c ---- Dr  To Supplier A/c

(Being goods purchase on Credit)

There is no specific abbreviation for the term WIRE because when the payment is being made using this option, you will not see the physical movement of funds. It is all electronic. It is just like a current passes through Wire. 

Therefore Electronic movement of funds is campared with WIRE.

Software Technology Parks of India (STPI).Some of the software service providers will get exemption from STPI for their software exports. In accounts payable may be we need to define the vendor STPI location wise.

In India we have different STPI location. If one vendor supplying services or materials to all OR some of the STPI locations we need to maintain the same vendor STPI wise.  

The terms Billable and Non-Billable expenses are normally associated with say a consultancy company where they bill consultants out to their clients. Therefore Billable expenses will be paid by the client whereas Non-billable will be paid by your employer. What's included in both is subject to the contract your company has with their client.

Accounts payable process is required in a company because this will help and guide the accountant to manage their payables with in the normal course of the business.

This includes verifying and checking the invoice details including the credit terms, due date, mode of payment, payee and the items received. Only the items received will be paid. Incase theres a discrepancy against the actual receipts, a credit note will be raised by the supplier against the short-shipped invoice.

At the end of the month, AP reconcilition is required confirming both parties balances thru the statement of accounts (SOA). This you can identify which invoices or payment hasnt been booked yet by both parties and you will end up with the same balances, (equal balance from your company and with their company).