Accounting and Finance Questions

Gross Domestic Product : 

It is the total value of all final goods and services produced within the boundary of country during the given period of time. 

Gross National Product :

It is the total value of the total output or production of final goods and services produced by the nationals of a country during a given period of time. 

Gross National Income : 

It is the total domestic and foreign output claimed by residents of a country, consisting of gross domestic product (GDP) plus factor incomes earned by foreign residents, minus income earned in the domestic economy by non-residents.

Net National Product :

The total value of goods produced and services provided in a country during one year, after depreciation of capital goods has been allowed for.

BRS - Bank Reconciliation Statement

A bank reconciliation statement is a statement prepared by organizations to reconcile the balance of cash at bank in a company's own records with the bank statement on a particular date.

The differences may arise because of the following reasons:

     - Cheques deposited into bank but not yet collected by bank

     - Cheques issued by the organization but not yet presented for payment

     - Cheques directly deposited by customers into the bank

     - Bank charges debited by bank

     - Interest credited or some receipts directly collected by bank based on org. request.

     - Some payments directly made by bank based on the organizations request.

So, the statement shows the reasons as what are the reasons for difference in balance.

Back end collections means like commission on sales or commission on providing services.
Front end collections means like sales and providing services

If an outstanding check of the previous month clears the bank (is paid by the bank) in the current month, you simply remove that check from the list of outstanding checks.

If an outstanding check of the previous month does not clear the bank in the current month, the check will remain on the list of outstanding checks until the month that it does clear the bank.

In the bank reconciliation process, the total amount of the outstanding checks is deducted from the balance appearing on the bank statement.

The way in which a bank keeps money in a deposit account in the same way the Depository company converts share certificates into electronic form and keep them in a Demat account.

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.

MIS report is known as Management Information System... regarding the Manpower status of a particular month, place and overall..

It helps the Management in decision making.. like what are the reasons of resignation.. in which area attrition is high.. and so many things to help in decision making.. with the help of MIS you may prepare a lot of reports.. Like annual attrition.. region wise attrition.. region wise manpower.. graphical representation of regions manpower status.. and so on..

You may prepare the same at your end.As it will help you to prepare other such formats too.

I am describing you the contents with sheet wise..

First Sheet - Details of employee

a. E.Code

b. Name of employee

c. Date of birth          

d. Designation

e. CTC

f. Address for communication

g.Permanent address

h. Contact number

i. Blood group

j. Maximum qualification

k. Extra qualification

l.Total Experience

Second Sheet- Salary structure

In this sheet write down the complete salary structure.. and make a column what is salary after any revision

Third Sheet - New Joinees

In this sheet write down the name of New joinees of that month with detail like CTC,  Designation, DOB etc. 

Forth Sheet - Resigned employees

In this sheet write the name of employees who resigned during that particular month with details like name, designation, date of joining, Date of resignation, last working day.

Fifth sheet - Attrition rate

Based on this MIS report, you may find out the attrition report, Qualification analysis reports, team management reports and so on can prepare a number of reports..