Rakesh Kumar (B.Com ( H ) Pursuing CA Final ) (327 Points)
26 September 2012whats the difference between bond and debentures?
what is accrued income and what are accruals?
what do u mean by journal?
what type of account is capital account and why?
what type of accounts do fall on liabilities side and assets side of balance sheet?
this questions seems to b simple but hard to explain, test ur self, even i cudnt answer accurately...
CA Pooja Agarwal
(Chartered Accountant)
(3228 Points)
Replied 26 September 2012
there is avery thin line of difference between bonds and debentures,,the only difference being the debentures issued by govt undertakings are referred to as bonds..otherwise its all the same
Rakesh Kumar
(B.Com ( H ) Pursuing CA Final )
(327 Points)
Replied 26 September 2012
to some extent pooja ur correct, both are fixed income debt securities, though i didnt find precise answer but the major difference i found from various web pages is bonds are secured by underlying assets of the company in case of default by the company whereas debentures are mostly unsecured, if anyone has more accurate answers pls post them...
CA Pooja Agarwal
(Chartered Accountant)
(3228 Points)
Replied 26 September 2012
accrued income refers to income which has been earnred or have become due t receipt but has not been received yet,,acrruals include both payables and rreceivables..i havnt googles..may be i am wrong..you may post the correct answer
Deepak kumar sharma
(Govt. job)
(2946 Points)
Replied 26 September 2012
1. Journal is a ledger kept for the entries which don't relate to any other ledgers like Sales, purchase, cash etc.
2. Capital is a inner liability for business since business ia a separate entity from owners. It is showed at liability side of balance sheet to show investment and profit part of owner's investments.
3. Assets side includes current assets (cash, Bills Receivables, stock, debtors etc.) , fixed assets ( furniture, building etc.) Liability side shows current liabilities (creditors, BP, O/s etc.) and capital
4. Accrued income is income which is not received yet but the right to received has occured.
5. Debentures are source of long term capital which may be secured, unsecured, convertable, non convertable etc. Bond is one type of debenture
According to my knowledge.
Rakesh Kumar
(B.Com ( H ) Pursuing CA Final )
(327 Points)
Replied 27 September 2012
| Originally posted by : Deepak kmr sharma | ||
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1. Journal is a ledger kept for the entries which don't relate to any other ledgers like Sales, purchase, cash etc. 2. Capital is a inner liability for business since business ia a separate entity from owners. It is showed at liability side of balance sheet to show investment and profit part of owner's investments. 3. Assets side includes current assets (cash, Bills Receivables, stock, debtors etc.) , fixed assets ( furniture, building etc.) Liability side shows current liabilities (creditors, BP, O/s etc.) and capital 4. Accrued income is income which is not received yet but the right to received has occured. 5. Debentures are source of long term capital which may be secured, unsecured, convertable, non convertable etc. Bond is one type of debenture According to my knowledge. |
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1. Journal is not a ledger as per my knowledge , ledger is book containing set of accounts which are prepared by posting transactions from subsidary books, journal. Journal is the book kept for recording transactions in chronological order which are not in bulk and hence journalised i.e. journal entry is made example goods sold on credit or purchased on credit. Subsidary books or specialized journals are purchase book, sales book, cash book are maintained to record transaction which are in bulk because u cant journalise each of such bulk transaction so any transactions which are in bulk there are separate books maintained for each such category of transactions and at the end of the period total is taken from susidary books and posted to respective accounts in ledger for example total of credit purchase is taken and posted to purchase account which represent both cash and credit purchases and corresponding amounts are credited to each of the creditors account. And apart from bulk transactions which does not require separate book are journalised in journal i.e. journal entry is passed in separate book for residual transactions by debiting one account and crediting other.
2. my question was wat type of account is capital account i.e whether real , personla or nominal and why?
3. my question was wat type of accounts fall in liabilties side and asset side of balance sheet i.e. real , personal or nominal ?
4. Answer to accured income is correct.
5.difference in debenture and bond is correct to some extent. since in india this terms are often used interchangeable, there is no precise answer to it.
well tried...when i tested my self i cudnt answer accruals ,and to some extent i was able to answer difference in debentures and bond,,, capital account type, and types of accounts....
CA Pooja Agarwal
(Chartered Accountant)
(3228 Points)
Replied 27 September 2012
assets and liabilities appearing in BS are real accounts and personal accounts...while the balances of nominal account is transfeered to revenue accounts
CA Pooja Agarwal
(Chartered Accountant)
(3228 Points)
Replied 27 September 2012
capital account is a personal account
Rakesh Kumar
(B.Com ( H ) Pursuing CA Final )
(327 Points)
Replied 27 September 2012
| Originally posted by : pooja | ||
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accrued income refers to income which has been earnred or have become due t receipt but has not been received yet,,acrruals include both payables and rreceivables..i havnt googles..may be i am wrong..you may post the correct answer |
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ur answer is right....
Rakesh Kumar
(B.Com ( H ) Pursuing CA Final )
(327 Points)
Replied 27 September 2012
@ pooja ur answers are correct ,, though v all have learnt it..but this terms are difficult to answer....
CA Lokesh Pokharna
(CA (Ahmedabad Bhilwara Chittorgarh))
(4128 Points)
Replied 27 September 2012
Major criteria for liability & assets accounts is a/c
liability side -for which payments have to be done, (payment may be in cash or other than cash)
assest side- for which payments have to be recieved, depreciable or w/off in more than one year accounts(fixed assets & misc exp.)....
CA Pooja Agarwal
(Chartered Accountant)
(3228 Points)
Replied 27 September 2012
lokesh,
what about investments made..no paymant had to be received,it is not to be wriiten off,its not depreciable..then why does it appear in assets side..im sorry i dont agree with your explaination
CA Lokesh Pokharna
(CA (Ahmedabad Bhilwara Chittorgarh))
(4128 Points)
Replied 27 September 2012
On return basis, both fixed income securities no fiff..
but there are some differences
bonds are fully secure,
debentures are not as much secure as bond.\
e.g after becoming CA if we join in a company & they say us to sign bond (means its much secure for them to keep us for specified period or take back salary as the case may be), but if we join on only oraly trust basis than its like "debenture"
CA Lokesh Pokharna
(CA (Ahmedabad Bhilwara Chittorgarh))
(4128 Points)
Replied 27 September 2012
| Originally posted by : pooja | ||
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lokesh, what about investments made..no paymant had to be received,it is not to be wriiten off,its not depreciable..then why does it appear in assets side..im sorry i dont agree with your explaination |
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miss pooja, you quickly jumped on item which i missed , suppose your co. have invested rs. 1lac in other co. shares after a unspecified period your co. will recieve payments in cash or other than cash.........just think what will be ultimate end of investment a/c ..............investments a/c like either future cash a/c OR future assets a/c
ultimate end is either cash/assets/shares/........................
Rakesh Kumar
(B.Com ( H ) Pursuing CA Final )
(327 Points)
Replied 28 September 2012
| Originally posted by : CA Lokesh Pokharna (Jain) | ||
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Major criteria for liability & assets accounts is a/c liability side -for which payments have to be done, (payment may be in cash or other than cash) assest side- for which payments have to be recieved, depreciable or w/off in more than one year accounts(fixed assets & misc exp.).... |
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dude wat r u trying to xplain....i'm sorry i didnt get u...
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