FINNANCIAL ACCOUNTING

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jyothsna (Querist)
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28 November 2009 1. WHAT IS THE DIFFERENCE BETWEEN SALES,TURNOVER,AND REVENUE?
2. WHAT IS NEGATIVE INCOME?
3. WHAT IS THE DIFFERENCE BETWEEN BILLS RECEIVABLE AND DEBTORS?
4. WHAT IS ESCRO ACCOUNTS?

CA. Amit Daga

CA. Amit Daga (Expert)
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28 November 2009 1. Sales, Turnover and Revenue all are same. Its just a differnt terminology

CA. Amit Daga

CA. Amit Daga (Expert)
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28 November 2009 2. Negative income is loss.. when your income is less than expense than your income is negative income

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CA. Amit Daga

CA. Amit Daga (Expert)
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28 November 2009 3. Bill Receivable is kind of negotiable instrument which is issued by our debtor to us or we are issuing to our creditor ..This bill they can endoresed with the bank and in cashed it and bank will pay them after deducting there charges

Debtor is the person to whom we are selling our goods on credit

CA. Amit Daga

CA. Amit Daga (Expert)
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28 November 2009 4. A trust account held in the borrower's name to pay obligations such as property taxes and insurance premiums.

shakuntala chhangani

shakuntala chhangani (Expert)
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28 November 2009 Hey Amit, when we issue bill to our creditor, it is called Bills payable. Bills receivable, when issued by our debtors, means that the debtor has made the payment and money has again been advanced to him. that is why it is removed from debtors and included in loans and advances as per Schedule VI. Regards, CA Shakuntala Chhangani

Madhusudan Bohra

Madhusudan Bohra (Expert)
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29 November 2009 Escrow account is an bank account earmarked to a specific project/ purpoase.
All the money received from that specific project/ purpose is deposited into this account and it is ensure that payment from this account is only related to that project/ purpose.
This account basically ensures that the investor's money is used for the given purpose/ project and not diverted elsewhere.

In many cases there is compulsion to have an escrow accounts.
You must have heard of many big developers saying that they have escrow account. It means that the money of the project will not be diverted eslewhere.

Hope this clarifies your doubts.

your first three queries have already been responded.

Jag Bhushan Sharma

Jag Bhushan Sharma (Expert)
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01 December 2009 Escrow account is normally opened under the orders of a Trust or court so as to make sure that the party to the contract fulfils its part of the contract. The depositor cannot withdraw money from this account unless it carries out the job/or its part of the contract. Only on sucessful completion, Court or Trust will alllow the party to withdraw amount from that account.

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