Make Or Buy Decisions
A Company may be producing a product by itself or receive an offer from an outside supplier to supply that product. Similarly, a firm may be buy a product from outside or may make/produced/manufacture that product in the firm itsel...
Continuous Audit: Meaning, Advantages & Disadvantages Of Continuous Audit And Steps for Effectiveness
Continuous Audit
What is a Continuous Audit?
Continuous audit or a detailed audit is an audit which involves a detailed examination of books of accounts at regular intervals i.e. monthly, quarterly or yearly. The auditor visits clients at regular intervals during the financial year and checks each and every transaction.
An auditor checks the profit and loss account and the balance sheet at the end of the year. A continuous audit is...
Computerized Accounting System VS Manual Accounting System
Differences Between Computerized Accounting System And Manual Accounting System
Computerized System:
1. Starts with the account balances in the ledger at the beginning of the period.
2. Analyzes and classifies business transactions by type. Access appropriate menus for data entry.
3. Computer automatically posts transactions as a batch or when entered on-line.
4. The unadjusted balance are available immediately after each posting.
5. The trial...
Taxation: Basis Period Of Assessment, Capital Allowance And Loss Relief
The following topics will be discussed in this series, those topics are: -
a. Basis period of assessment
b. Capital allowance
c. Loss relief.
Assessable Profit
The accounting profit arrived at in the trading, profit & loss account is not usually the same as “tax profit”. This is because...
Taxation: Capital Allowance And Loss Relief
To read the previous article on basis period of assessment, please click here
CAPITAL ALLOWANCE
Definition
Capital allowance are a form of relief granted to any company which has incurred qualifying capital expenditure during a basis period in respect of fixed assets in use at the end of the basis period, for the purpose of a trade or business. Capital allowance is granted in lieu of depreciation. Capital allowance covers initial allowance,...
