Accounting and Finance Questions

For making accounting entries the accounting dept will need the total transactions of the particular payroll run grouped into various expenditure/liability/Income items like salary,loans,ees pension,ers pension,tax, PF/NI etc. This information should be employee wise & relevant cost center of the employee(in a large organisation).

Mostly payroll will have expenses/liabilities only. Few payrolls might have Income also.

To be specific to the reports bit of your question following reports are produced

1) Net pay reconciliations report
2) Deductions report comprising all voluntary and non voluntary deductions
3) Payments report
4) Costing report
5) Exceptions report
6) High pay salary report
7) No pay salary report

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

Purchase return and allowances is a contra account to purchases.

The chart of accounts is designed to to meet the information needs of a company and other financial statement users.

Different types of risk exist in ivesting schemes depending on what you've invested in.

Savings accounts are generally regarded as the least risky investments as in this we just save our wealth for future expenses.

The Internal Rate of Return (IRR) is defined as the measure of an investment’s rate of return. It is also called the discounted cash flow rate of return.