கருப்பைக் கோளாறுகளுக்கு முற்றுப்புள்ளி வைக்க உதவும் எளிய உணவு

முந்திரி, பாதாம், பிஸ்தா போன்ற உயர் ரக பருப்பு வகைகளில் மட்டும் தான் நமது உடலுக்குத் தேவையான சத்துக்கள் இருப்ப‍தாக மக்க‍ள் மத்தியில்

ஒருதவறான கருத்து நிலவுகிறது. உண்மையில் நிலக் கடலையில்தான் மேற்சொன்ன‍ எல்லா உயர் ரக பருப்பு வகைகளில் இருக்கும் சத்துக்களை விட அளவுக் கதிகமான சத்துக்கள்உள்ளன. நோய் எதிர்ப்புசக்தியை உருவாக்கும் ஆற்றலும் நிலக்கடலைக்குத்தான் உண் டு.

இந்நிலக்கடலையில் பெண்களுக்கு பெரிதும் தேவை யான போலிக் அமிலம், பாஸ்பரஸ், கால்சியம், பொட்டாசியம், துத்த நாகம், இரும்பு, விட்டமின்கள், குறு ட்டாமிக் அமிலம் நிலக் கடலையில் நிறைந்துள்ளது.

கருப்பையில் பல கட்டிகள்

குறிப்பாக பெண்கள் இந்த நில க்கடலையை உட்கொள்ள வேண்டும். அவ்வாறு உட்கொள்ளும் பட்சத்தில் பெண்களின் இயல்பான ஹார்மோன் வளர் ச்சியை நிலக்கடலை சீராக்குகிறது. இதனால் பெண்களுக்கு விரைவில் குழந்தைபேறு ஏற் படுவதுடன் பெண்களுக்கு ஏற்படும் மார்பகக் கட்டி உண்டாவதையும் தடுக்கிறது. மேலும் நிலக்கடலையை தொடர்ந்து சாப்பிடும் பெண்களின் கர்ப்பப்பைச் சீராக செயல்படுவதுடன் கருப்பைக் கட்டிகள், நீர்கட்டிகள் ஏற்படாதது மட்டுமல்லாது குழந்தைப் பேறும் உடன் உண்டாகும்.கருப்பை கட்டிகள், நீர்கட்டிகள் ஏற்படுவ தையும் தடுக்கிறது. இவை மட்டுமல்ல‍ நீரழிவு நோய் பெண்களுக்கு வராமல் தடு ப்பதிலும் எலும்புத்துளை நோய் வராமல் பாதுகாப்பதிலும் இதன்பங்கு மகத்தானது.

உங்களுக்கு அடிக்கடி தொண்டை கரகரப்பு ஏற்படுதா

பெரும்பாலும் தொண்டை கரகரப்பு ஏற்பட காரணமாய் இருப்பது புகைப்பிடிக்கும் பழக்கம் அல்லது புகை சார்ந்த இடங்களில் வேலை பார்ப்பது, அதிக சத்தமாய் கத்திப் பேசுவது போன்றவையாக தான் இருக்கும். மேலும் தொண்டை கரகரப்புக்கு அழற்சிகளும் காரணமாக இருக்கும். தொண்டை கரகரப்பு ஏற்படும் போது சில சமயங்களில் சிலருக்கு நெஞ்செரிச்சலும் சேர்ந்து ஏற்பட வாய்ப்புகள் உண்டு. தொண்டை கரகப்பு என்பது அனைவருக்கும் ஏற்படும் ஒரு சாதாரணப் பிரச்சனை

தான். இது ஒரு வாரம் நீடிப்பதே அதிகம். அதற்குள் சரியாகி விடும். ஒரு வேலை உங்களுக்கு தொண்டை கரகரப்பு நெடுநாட்கள் நீடித்து வந்தால் உடனடியாக மருத்துவரிடம் ஆலோசிக்கவும். ஏனெனில், தொண்டை கரகரப்புப் புற்றுநோய்க்கான ஒரு அறிகுறி என மருத்துவ நிபுணர்கள் கூறுகின்றனர். நாம் முன்பு சொன்னது போல தொண்டை கரகரப்பைப் பல சமயங்களில் நாமே நமக்கு பரிசளித்துக் கொள்ளும் பிரச்சனையாக தான் வருகிறது, சத்தமாக கத்தி பேசுதல், புகைத்தல் போன்றவையின் மூலம். சரி, தொண்டை கரகரப்பு வராமல் தடுப்பது எப்படி என்பதனைத் தெரிந்துக் கொள்ள வேண்டுமா? தொடர்ந்து படியுங்கள்… தினமும் ஆறு முதல் எட்டு டம்ளர் வரை தண்ணீர் பருகி வந்தால், தொண்டையில் உராய்வு தன்மை ஏற்படாமல் இருக்கும். உராய்வு தன்மையைக் கட்டுப்படுத்தினாலே தொண்டை கரகரப்பு வராமல் தடுத்துவிடலாம். பெரும்பாலும் வாய் வழியில் சுவாசிப்பதை தவிர்த்து நாசி வழியாக சுவாசிப்பதை வழக்கமாகக் கொள்ளுங்கள். ஏனெனில், நீங்கள் வாய் வழியாக சுவாசிக்கும் போது கிருமிகள் அதிகம் தொண்டைப் பகுதியை கடந்து கல்லீரலுக்கு செல்வதால். இது உங்களுக்கு தொண்டை கரகரப்பை பரிசளிக்க பெருமளவு வாய்ப்புகள் உள்ளன. முடிந்த வரை உங்களது உணவுப் பழக்கத்தில் மென்மையான உணவுகளையும், எளிதாக விழுங்கக் கூடிய உணவுகளை எடுத்துக் கொள்வதும் தொண்டை கரகரப்பு வராமல் தடுக்கும். புகைப்பதன் மூலம் அது நமது தொண்டைப் பகுதியை வறட்சி அடைய செய்கிறது. இதனால், நாம் சாதாரணமாகப் பேசும் போது கூட, தொண்டையில் உராய்வு தன்மை ஏற்படுகிறது. இதனால், சுலபமாக தொண்டை கரகரப்பு ஏற்பட வாய்புகள் உள்ளன. நாம் உபயோகப்படுத்தும் சில வாய் கொப்பளிப்பு திரவங்களில் இருக்கும் கேடு விளைவிக்கும் இரசாயன கலப்புகள் கூட தொண்டை கரகரப்பை ஏற்படுத்தும். தொண்டைப் பகுதி மிகவும் மென்மையான பகுதியாகும். எனவே, நாம் காரமான உணவுகளை அதிகம் உட்கொள்வதை தவிர்த்தாலே தொண்டை கரகரப்பு பிரச்சனை வராது பார்த்துக் கொள்ளலாம் அதிகம் மது அருந்துதலின் காரணமாகவும் தொண்டை கரகரப்பு பிரச்சனை ஏற்படுவதாக பல மருத்துவ நிபுணர்கள் கூறுகின்றனர். அதிகம் டைல்யூட் செய்யப்படாத சிட்ரஸ் ஜூஸ் குடிப்பதன் மூலமாகவும் தொண்டை கரகரப்பு ஏற்பட வாய்ப்புகள் உள்ளது. ஏனெனில், அதில் இருக்கும் அசிடிக் தன்மைத் தொண்டைப் பகுதியை எரிச்சல் அடையச் செய்யும். இதனாலும் தொண்டை கரகரப்பு ஏற்பட அதிக அளவில் வாய்ப்புகள் உள்ளன. பல நேரங்களில் கிசுக்கிசு பேசும் போதும், புரளி பேசும் போது, நாம் ஹஸ்கி வாய்ஸ் உபயோகப்படுத்துவது உண்டு. அப்போது நம் குரல் வளத்தில் ஏற்படும் கடினத் தன்மையின் காரணமாகவும் கூட தொண்டை கரகரப்பு ஏற்படலாம் என கூறப்படுகிறது. பசும்பாலில் மிளகை நன்குப் பொடி செய்து அத்துடன் சிறிதளவு மஞ்சள் தூளையும் சேர்த்துப் பருகினால் தொண்டை கரகரப்பிலிருந்து விடுபடலாம்.

TIN number validation with State code

State code and Tin number co-relation for implementing and validation .

The chart given below is very useful for verification of Tin number with the respected State code.

Sr. No.	State Name	First two digit TIN No.	State Code
1	Andaman and Nicobar Islands	35	AN
2	Andhra Pradesh	28	AP
3	Andhra Pradesh (New)	37	AD
4	Arunachal Pradesh	12	AR
5	Assam	18	AS
6	Bihar	10	BH
7	Chandigarh	4	CH
8	Chattisgarh	22	CT
9	Dadra and Nagar Haveli	26	DN
10	Daman and Diu	25	DD
11	Delhi	7	DL
12	Goa	30	GA
13	Gujarat	24	GJ
14	Haryana	6	HR
15	Himachal Pradesh	2	HP
16	Jammu and Kashmir	1	JK
17	Jharkhand	20	JH
18	Karnataka	29	KA
19	Kerala	32	KL
20	Lakshadweep Islands	31	LD
21	Madhya Pradesh	23	MP
22	Maharashtra	27	MH
23	Manipur	14	MN
24	Meghalaya	17	ME
25	Mizoram	15	MI
26	Nagaland	13	NL
27	Odisha	21	OR
28	Pondicherry	34	PY
29	Punjab	3	PB
30	Rajasthan	8	RJ
31	Sikkim	11	SK
32	Tamil Nadu	33	TN
33	Telangana	36	TS
34	Tripura	16	TR
35	Uttar Pradesh	9	UP
36	Uttarakhand	5	UT
37	West Bengal	19	WB

Bill and Hold

Bill and hold transaction is important transaction which can inflate the income of any businessman who sell goods to his customer. So, you should understand what is this. Bill and hold is that business transaction in which customer buys goods or service  from his vendor. Seller gets its price and under agreement, he does not deliver the goods to the customer.

Received amount is also not advance but under bill and hold agreement. For example, Mr. A bought goods from Mr. B Company of $ 10,000. They have agreed Mr. B company will send delivery of $ 10,000 goods to Mr. A in the beginning of next year. Now, This advance $ 10,000 is not liability but it is the revenue of Seller under agreement. Seller can do same bill and hold agreement with other 10 parties and inflate his revenue in his income statement. Buyer will also not show it as asset. But sometime, if both parties wants to show it in financial statement. It will like

Income statement of Vendor $ 10000 as revenue.

Balance sheet of Vendor $ 10,000 as liability of sending goods or service.

Off-balance sheet of Vendor : $10,000 as asset of stock in hand without delivery which he can use to sell other and inflate his earning upto $ 10,000.

Income statement of Buyer :  $ 10,000 as Expense of buying goods or service

Balance sheet of Buyer :  $ 10,000 as Asset of Receivable Goods or Service
Practical Example : Nortel Networks Corporation of Canada has done such agreement in the form of vendor and inflate his revenue millions of dollars.

Receipt

Receipt is accounting source document. It is the proof that party has received the goods or payment. When there is short payments are done by employee for getting the service for business, employee has to make a simple receipt and gets original signature on same receipt. With this, it becomes the proof of valid payment to valid party.


If there is some tax on received service service, receipt of payment will show also the tax and party who is authorize for getting, will be responsible for getting tax on the behalf of Govt. and it is also his responsibility to deposit it in Govt. account.

What should be in Receipt 

If any employee is on the point of Sale, he will be the accounting software. He will scan identification and the code of product through barcode  which will add the price, tax and discount in the accounting system. On this, basis, paper printer will generate the receipt for customer.

Mobile Receipt Printer

Today technology is going fast. Recently, there are lots of electronics companies have launched mobile receipt printer which is low weight just like a simple mobile which can be used anywhere for scanning the product and print the receipt on the requirement.

Digital Receipt 

Due increasing the trend of internet on 3G smart phones, some vendor will issue the receipt on your mobile. They can also send it to your email account if you have bought goods online commerce website which can be organised after downloading in your PC and save in separate folder. It can also be used for your accounting.

Accounting and Control of Wastage, Spoilage and Defectives

Wastage, spoilage and defectives are the loss of business. Before explaining their accounting treatment, we should explain the meaning of wastage, spoilage and defectives.


Meaning of Spoilage 

Spoilage is of two types. First is normal spoilage and second is abnormal spoilage.

Normal Spoilage

Normal spoilage is that wastage which is must during the production. For example, we will make the wooden tables or chairs, there will be the loss of some wood in the form of   scobs. We can not stop it because it is necessary and it must happen during the cutting of suitable woods. Like this, all type of production needs some of wastage. All are normal spoilage.

Abnormal Spoilage

Any wastage which is more than normal spoilage will be abnormal spoilage. It happens due to doing the production work by unskilled person. It is also loss of business.

Meaning of Wastage 

Wastage may happen during the time of production. For example, when we have made wooden 1000 tables, it is normal some wood will be the part of wastage because we can not make new tables with them.

Meaning of Defectives

When we buy large quantity of raw material for production, there is the chance of some raw material may be in defectives form which can not be returned or sometime, due to the defects in the machine, defective goods will produce. Both will be the loss of business in the form of defectives. For example, you have bought the wood of $ 30,000, out of them 10% defective which could not be returned. So, $ 3000 is defective loss.


Accounting Treatment of Wastage, Spoilage and Defectives


Normal wastage, spoilage and defective will be the part of cost of production. No, need to open separate account for them. When we will calculate per unit cost, it will increase with normal wastage, spoilage and defectives.

For example, cost of production is $ 10,000, normal wastage, spoilage and defectives are $ 1000. Now, cost of production will be $ 11,000

Now, we need only to open the accounts of abnormal wastage, Abnormal spoilage and Abnormal Defectives which is more than normal. This loss can be transfer to costing profit and loss account. When it will in the account, we can take good steps to control it.

First we pass the journal entries, then, we tell the tips to control them.

Costing Profit and Loss Account Debit

Abnormal Spoilage Account Credit

Abnormal Wastage Account Credit


Controlling Tips

1. Appoint more supervisors who will supervise the production center.
2. Repair machines on the time.
3. Appoint skilled laborers who manage to give them training.
4. Give good reward to those laborers who do best. 

Planning and Control of Capital Expenditure

Because capital expenditure is used for buying long term and fixed assets, so, this type of investment needs proper planning and control. If there is no planning and control, we will take wrong decisions and our this investment will become wasted assets which will have no market value.


Planning of Capital Expenditure 

Planning is very useful for getting better and useful investment at lowest capital expenditure. In this planning, we have to try to best to solve some question like how, when, why and who in advance.

1. Check the Need of Business

If I ask one question from you. Why should you buy any fixed asset? Or why should you spend money on capital expenditure? What you will say me. You should answer the question on the basis of requirement in your business. If there is no need, it will be the wastage of money. For example, for my commerce website, I need one camera for media snap whose cost is Rs. 68000. I check my business, there is no such camera. If there is already same camera, then, this type of investment will be wastage of money. Like this, you should also check your business need, then you should try to best to buy same fixed asset.

2. Check the Current Resources of Company

Then, after getting the answer of why should buy the any particular fixed asset, you should get the answer, how to buy? Answer is with money. For this, you need to check your current resources. I also need to check my current resources, for example, if resources will be in 3 months, I will buy at the end of 4th month because I do not want to disturb my other plans of capital expenditure. Like, this, you need to think.

3. Compare Capital Expenditure with Return on Investment 

Now, you need to compare your capital expenditure with its future return on same investment. If return on investment is more than invested money, it is better investment. Otherwise, it will be bad investment. You also check the time. For this, better is to use capital budgeting techniques.


Control of Capital Expenditure 

Now, you have bought the fixed asset, your duty is to control it. Following are its main steps


1. To do the accounting of capital expenditure

Every fixed asset which you are buying, should record in the books of accounts. Timely, you should make the plan of its repair and you should also annual depreciation provision on it. This depreciation provision will help you to buy new fixed asset at the time of scrap of same fixed asset. It is just like reserve of new capital expenditure.

2. Audit

Time to time, audit of fixed assets is necessary. Audit of physical quantity and value will help to safeguard the fixed asset and proper use of capital expenditure for business.


3. Feed Back

Time to time, we have to check the physical performance of your fixed asset.

4. Investment Monitoring 

Investment monitoring is also useful technique of controlling capital expenditure. With this, if your market value of your fixed asset is decreasing fastly due to lots of reasons, you can sell it and buy other new fixed assets. It may be possible only with investment monitoring.

Remedial Measures for Labour Turnover

In cost accounting, we study the remedial measures for labor turnover after its calculation. More labor turnover rate will increase the labor cost of company's products. Due to this, overall cost of production will increase. In end, we will fail to fix competitive sale price in the market.

So, it is very necessary to find the remedial measures for labor turnover.

1. Make Long Term Plan of Laborers and Employees

You have to see long period. For example, you are paying wages and salary. There may be the reason, your wages and salary is less. Employees may expect more. Now, think, if your employee will leave your company. What will happen. You will again show the advertisement in the newspaper. For this, you will pay the money. You will also spend time and money for giving training to new employees. It will also increase your cost of labor. Your production will decrease because new laborers and employees produce less products. So, you think all these things. If there is only issue of salary, you should increase the salary by thinking above mentioned factors. When you will get success to keep labor turnover at lowest rate, your business will grow. So, always make long term plan for this.

2. Give More Incentives 

I have lots of employees and laborers. Time to time, I give incentives. It may be gift or bonus. With this, I got success to keep them long period.

3. Keep Family Relations

As per my thinking, laborers and employees are also human being. They are also part of your business. If all will leave your company, market value of your company will reach at zero level. Because all will know that you are so selfish. It is not good way. Keep family relations with your employees. Help them when they need your help. Only then, you can decrease labor turnover rate.


4. See All Employees with One Eye

In your staff, there may different type of employees who work for different projects. See them with one eye. Never try to play politics. With this, you will lose very useful employees for all the time. Never differentiate them on the basis of caste, religion, race or other illegal category.


5. Promote them on the Basis of Performance

You should make a good system to check their performance. Promote them on the basis of their performance. With this, employees will do hard-work and try to best to perform better because with this, there salary and status will increase. So, they will never absent and never think to leave the company.

6. Retrenchment of Negative Employees 

Some employee are so negative. They try to effect on other employee with their negativity. With this, there is more chance, long period, there may high labor turnover. So, better is to retrenchment of negative thinking employees first.

Accounting Treatment of Direct Expenses

In cost accounting, direct expenses are the part of prime cost. For calculating the prime cost, we add direct material cost, direct labor cost and direct expenses. Before understanding the accounting treatment of direct expenses, once again, you should understand direct expenses.


When any cost easily can be identified from finished goods, it will be direct cost. direct expenses are the part of direct cost. For example Freight Carriage inward, factory expenses, oil and fuel, factory fixed assets' depreciation, Royalty on production, Import duty, Excise duty and Clearing and Port Charges.One of other good feature of direct expenses, it changes directly, if there is the changing in the production.


Following it its accounting treatment.

1. When direct expenses are paid.

Direct expenses account Dr.

Cash/Bank Account Cr.
2. When we we show it in the financial statements.

Trading Account Dr.

Direct Expenses Account Cr.
3. When there are direct expenses which are due but not paid in the end of the period and not recorded in the books of accounts.

Direct Expenses Account Dr.

Outstanding Direct Expenses Account Cr.


In Financial Statement


1. All direct expenses will be debit in trading account. All outstanding direct expenses will be added in paid direct expenses.

2. All outstanding direct expenses will be shown in the current liability side of balance sheet.

For Calculation the Cost of Production and Cost of Goods Sold

For calculating cost of production, we will add direct material, direct labor cost and direct expenses or manufacturing overhead and then deduct cost of closing stock of raw material, work-in-process. For calculating cost of goods sold, we add opening stock of finished goods, purchase of finished goods from outside, cost of production and deduct closing stock of finished goods.

காலையில் சாப்பிட்ட‍தும் பழச்சாறு குடிக்கக்கூடாது

ஆஸ்திரேலிய விஞ்ஞானிகள்குழு ஒன்று, அதிகஉடல் எடை கொண்ட அதே நேரத்தில் ஆரோக்கியமான 34 ஆண் மற்றும் பெண்களை 2 குழுக்களாகப் பிரிக்கப் பட்டு நடத்திய

ஆய்வில் ஒரு குழுவினருக்கு சிற்றுண்டியின்போது பழச்சாறும் கொடுத்து, மற்றொரு பிரிவினருக்கு கொழுப்பு நீக்க ப்பட்ட பாலும் 4 மணிநேர இடைவெளியில் தொடர்ந்து கண்கா ணிக்கப்பட்டதில் ஒரு அதிர்ச்சிகரமான‌ உண்மை தெரிய வந்துள்ளதாக விஞ்ஞா னிகள் தெரிவித்துள்ளனர்.

சிற்றுண்டி சாப்பிட்ட‍பிறகு பழச்சாறு அருந்தினால்அதுபசியை சீக்கிரமாகவே தூண்டி விடுகிறது மேலும் அப்பசி அடங்க  உட்கொள்ளும் உணவின் அளவும் அதிகமாகிறது. இதன் காரணமாக உடலில் கலோரிகளின் அளவு அதிகரித்து உடல் எடை கூடிக்கொ ண்டே இருக்கும் என்கிற அதிர்ச்சித் தகவலையும் வெளியிட்டுள்ளனர் ஆய்வாளர்கள்  

மேலும் காலைச் சிற்றுண்டியுடன் பழச்சாறு குடிப்பதற் கு பதில் கொழுப்பு நீக்கப்பட்ட பால் குடித்தால் மதிய உணவின் போது சாப்பிடும் அளவில் 9 % குறையும் என்கிறது ஆஸ்திரேலிய ஆய்வுத் தகவல். இத்தகைய முறையினால் உணவின் அளவு குறைவதுடன் நாம் எடுத்துக் கொள்ளும் கலோரி அளவும்குறைவதால் உடலின் எடை கணிசமாக குறை ய வாய்ப்புகள் அதிகம்என்கிற மகிழ்ச்சி தரும் தகவ லையும் வெளியிட்டுள்ள‍னர் அந்த விஞ்ஞானிகள்

இந்த கொழுப்பு நீக்கப்பட்ட பாலில் குறைந்த அளவே புரதம் மற்றும் லாக்டோஸ் சத்துக்கள் இருப்பதும், அதிகப்படியான கொழுப்பு உடலில் சேர்வதும் தடை செய்யப்படுகிறது. ஆனால் அதன் இதர சத்துக்கள் உட லில்சேர்ந்து மூளைச் செயல்திறனை அதிகரித்து ‘போதும் என்ற மன நிறைவைக் கொடுப்பதால் பசிக்கும் உணர்வு தள்ளிப்போகிறது, குறைவா ன உணவும் எடுத்துக்கொள்ள ஏதுவாகிறது. அதனால் உடல் எடை எளிதில் குறைய வகை செய்கிறது என்பது ஆராய்ச்சியாளர்களின் கருத்து.

Journal Entries of Payroll

Payroll means total salary of an employee. When we pay the net salary to any employee, we make the his or her payroll. Payroll record is necessary because it is the main expense of company. There are many liabilities like TDS, EPF and ESI which are related to payroll. So,  it is made with full of care because we have to adjust total deductions from the salary in this. We also record all these items with following journal entries.


1. Pass the journal entry when salary is due.


Basic Salary Debit        

Allowances Debit          

Company Contribution to EPF Debit

Company Contribution to EPS Debit

Administration Charges to EPF Debit

Company contribution to ESIC Debit
 EPF Payable Credit
 EPS Payable Credit

ESIC Payable Credit

Professional Tax Payable Credit

TDS Payable Credit

Labour welfare fund Payable Credit
 Loan to Employee Credit

Salary Advance to Employee Credit

Rent Recovery  Credit

Canteen Expense Credit

Salary Payable Credit

2. Pass the journal entry of the payment of salary.

Salary Payable  Debit
     Cash/ Bank Credit
Now understand the above journal entry

Basic salary and allowance are the salary expense which go to salary payable and which is paid to employee at the time of payment of salary. EPF, EPS and ESI contribution will be transferred to their payable fund accounts. Because all these contribution is also expense, so we have debited the contribution in these funds. Before transferring to salary payable account, we deduct the TDS and transfer to TDS payable account. So, TDS payable account will be credited.

You should understand the meaning of above payroll items.

1. EPF = Employees provident fund.

 2. EPS = Employees pension scheme
 4. ESIC = Employees State Insurance Corporation

What is the Difference Between Payroll Expenses and Payroll Liabilities

If your company is big multinational, it will have surely lots of employees in different branches and department. For proper record of their salaries payment, there will be a separate payroll department. If you are working in this department and your duty is to record payroll, you should know the difference between payroll expenses and payroll liabilities. Here is the list of main differences between these two payroll terms.


1st Basis of Difference : Meaning

Meaning of Payroll Expenses

Payroll expenses represent the total expenses which is paid or to pay to employees in the form of salaries. Employees are the service providers and for their services, they get the salary. Company will record all these expenses in simple category whose name will be payroll expenses. For example in the Govt. Hospital a MBBS doctor will get salary of Rs. 1,00,000. Suppose, there are 10 doctors. Suppose, there are other staff whose salaries is Rs. 20,00,000. Total payroll expense in which Govt. will use his cash will be Rs. 30,00,000.

Meaning of Payroll Liabilities

On the date of payment to employees, all the payroll expenses will convert in payroll liabilities. If company does not pay to employees, it is just loan which we have taken from employees, so it will be our payroll liabilities. We can also say it outstanding liabilities. When we pay payroll liabilities, our cash will decrease and our this payroll liabilities will also decrease by debit payroll liabilities and credit cash.


2nd Basis of Difference :  Location in Financial Statement 

Payroll Expenses

On the due date of salary payments, we show all payroll expenses in our account by passing journal entries. In financial statement, it will go to income statement and it will be used to compare with current financial year's income. Both paid and payable payroll expenses will be shown as expense in income statement.

Payroll Liabilities

If on the due date of salary payment, company does not pay, it will become the liability to pay the salary. So, showing this liability, we make balance sheet. In balance sheet, payroll liabilities will show as current liabilities because if this year, we do not pay, it is sure, next year, we will pay all payroll liabilities.

3rd Basis of Difference : TDS and Other Tax

Payroll Expenses

It is the duty of company to cut the TDS and other Tax when it pay the salaries to employees. When payroll expense account will be adjust with these taxation. In these taxation, there may be also included professional tax which is deducted from total salary payment. So, total salary in which include all the deductions will be company's total payroll expense. After adjusting all the deductions, it will be payroll expense payable. When it will paid, it will become payroll expense paid.

Payroll Liabilities

Net payroll expense after adjusting all the TDS and Tax deduction will be our payroll expense, when it is not paid, it will become our payroll liabilities. TDS and All other Tax deductions from total salaries will be also our liabilities but all these liabilities will be under Tax and Duties.

Payroll Clearing Account

Payroll clearing account is the account which is used for payment the salary to employees. In this account, only total estimated future salary will be added. Any employee can clear their check from this account when his salary will due. This account is useful for big companies and organisations who have thousands of employees for their work.


Benefits of Payroll Clearing Account

It is just like a bank account which is made separately from main bank account. So, it is the less chance of compromising the main bank account. First of all total salary is estimated. Then only same salary fund is transferred in this PCA. When this PCA will reach zero balance, new fund will be transfer in this account.

Disadvantages of Payroll Clearing Account

PCA is not suitable for small business organisation. Small business organisation needs only main bank account for recording all transactions. So, with payroll clearing account, there will be more work load on employees.

Recording System of Payroll Clearing Account

When fund will come in PCA.

PCA account Dr.

Main Bank Account Cr.

When Fund will out from PCA 

Employee's salary Account Dr.

PCA account Cr.

How Payroll Systems Work

To provide the salary to employees needs the system and this system is payroll system. In this system, boss pays the salaries of employees on the time with correct amount. He also deduct all TDS and deposit it in the Govt. account. In big company, a separate team is appointed for handling all salaries, bonus and employees' fund.

Following are the main steps of payroll systems work :


1. Record the Payroll Information

Today all the basic accounting software have the option of recording the payroll separately. For example in tally software, we first add the payroll information. In this, we make the groups of employees. Employees may be of sales, purchase or accounts department or any other department.  Then, we record the name of employees with his full data and keep him under specific employees group. Now, we record the basis of his salary, it may be on attendance basis or on production basis.

After this, we record his pay head. In this, we can make the head as basic pay, bonus, home rent allowance,  overtime salary, and canteen deduction. All will be under indirect expenses. EPF Fund deduction and salary payable will be under liability because, it has to pay but still did not pay.


2. Edit Payroll Information

If any employee leave or any new employee joins or there is any changing regarding the transfer of employee from one department to other, we can edit payroll information at any time. This will help to correct record of payroll. For this, we can use alter or edit option.

3. Approve and Pay Payroll and Record Payroll Vouchers

When employees are paid by employer, it is approved by authorized person. After paying, payroll vouchers are completed. Basic accounting principle will apply for recording payroll.

Payroll Procedures

When employer pays salaries to his or her employees, it effects many parties like employees, business and government. So, it is very necessary to follow a good and defined procedure of payroll. With this, we can save our time, energy and money from errors in it and then its rectification.

Following are main steps of Payroll Procedures.

1st Step  : Record Employees' Detail

In first step, we classify our employees. Employees may be part time, full time, department, branch employees and independent professional. We have to record their each and every detail in our accounting system.

2nd Step :  Calculation of Payroll

Firs of all, we calculate the gross salary of employee. Then, we calculate different deducations. It may pension fund deduction, employee's health insurance deducation and other EPF deducations. We also calculate all statutory tax deducations of employee. Except this, we also add different allowances, bonus and benefits in balance salary.



3rd Step : Record of  Payroll

Now, in the third step of payroll procedure, we record all the basic salary, deductions and benefits and TDS in the books of company.


4th Step : Edit Payroll System

Sometime, there may be new employees will come and old employees will go. So, we have to edit the system by adding new employees and deleting old employee. Some time, we have to change the position of any employee, at that time, we also change the record of employees. We can also change the rate and time period of working after auditing employee's record or any update in the policies of company.

5th Step : Make the Payments

Now, we pay each employee and tax authorities.

6th Step : Submit Forms and Reports

In last step, time to time, we have to submit reports to central govt. state govt. and to our employers for telling the whole detail of payroll in one year. Specially, it is important in govt. departments and branches.

Budget 2015-16 Changes in Service Tax on Goods Transport Agency (GTA)

Budget 2015 has a few amendments with respect to existing exemptions and abatements. Entry no.21 of item (d) of mega exemption notification no.25/2012 has been amended to restrict the scope of exemption on GTA services. The details are as follows:

 

 

By amending the above entry, exemption has been restricted only for Milk, Salt and food grain including flours, pulses and rice transported. For other goods like food stuff, tea, coffee, jaggery, sugar, milk products, edible oil and alcoholic beverages no exemption would be available. When such goods are transported, the same would be liable for service tax after availing the abatement under Notification no.26/2012-ST in the hands of service recipient or provider as the case may be.

Apart from this, amendment has been made to entry no.7 of Notification No.26/2012 wherein the abatement has been reduced to 70% from 75% resulting in increase of liability of service tax from 25% to 30% of the service value. This change is effective from 01st April 2015.

Goods transport agency service provided for transport of export goods by road from the place of removal to an inland container depot, a container freight station, a port or airport is exempt from service tax vide notification No. 31/12-ST dated 20.6.2012. Scope of this exemption is also widened to exempt such services when provided for transport of export goods by road from the place of removal to a land customs station.This change is effective from 01st April 2015.

 

SI. No.	Exemption given upto 31.03.2015	Exemption from 1st April 2015
1	Foodstuff including flours, tea, coffee, jaggery, sugar, milk products, salt and edible oil, excluding alcoholic beverages	Milk, salt and food grain including flours, pulses and rice

PAN mandatory for service tax registration

Permanent Account Number (PAN) is now mandatory for private firms for getting service tax registration besides email and mobile number. The registration shall mandatory require that the PAN number of the proprietor or the legal entity being registered should be quoted in the application except for government departments, it said.

Relevant CIRCULAR NO. 997/4/2015-CX,Dated: February 28, 2015 and Extract from the same-

5) Henceforth, registration shall mandatory require that the PAN number of the proprietor or the legal entity being registered be quoted with the exception of the Government Departments for whom this requirement shall be non-mandatory. Applicants, who are not Government Department, shall not be granted registration in the absence of PAN number.

How to Create Repeating Journal Entries

Before knowing the creation of repeating journal entries, you should understand what are the repeating journal entries. Repeating journal entries are those which are relating to the expenses or revenue. We pay same or different amount every month or we receive same or different amount every month as revenue. So, we need to pass repeating journal entries.

If we have big business, to pass repeating journal entries is the waste of time of accountant. Accountant has to do other important work of business. So, there are many software which help to create repeating journal entries. Now, after this, you need not pass the repeating journal entries mannually. Accounting software will do all work automatically. Just like, if you have set the auto respond of every email, your email system will send email automatically without your existence because you have have advance permission to your gmail account. Same type of system in some accounting software. One of example of Xero accounting software.

You can do easily in Xero accounting software. Steps are very simple.

1. First enter the bill in Xero accounting software and choose pre-payment account. Then approve it.

2. Create repeating journal. For example, you have to pass the automatically journal entries of insurance premium. Through this, you can create. Every month, your $ 1000 will show as the insurance expense. Like this, you can create other repeating journals.

When you want to get report, your insurance expenses journal entries will show in the same accounting software. 

Like this, you can also create the invoices and repeating journal entries of our different incomes.

Best Valuation Method of Companies

Different valuation tools are used for valuation of companies at different levels of business.

(a) Start-Ups

Start-ups are driven by far too many factors to be captured by simplistic valuation models. Their sensitivity to economic factors, sector specific and company specific factors must be captured as far as possible to reasonably value them. These factors can only be captured with the DCF method.

(b) High Growth Companies

High growth companies have drastically changing market shares and hence it is very difficult to compare them with a benchmark, making comparable valuation difficult and leaving one to go with the DCF approach.

(c) Matured Companies

Matured companies have fairly predictable financials and hence DCF will result in a fairly reliable valuation. However, the Dividend Discount Model will also work reliably, as matured companies have nominal expansion needs and hence a high dividend payout ratio along with predictability of growth rates.

(d) Cyclical Companies

Cyclical companies by virtue, have a very high degree of uncertainty. Secondly, such companies are always on the radar for news & management comment both of which are immediately reflected in Comparables. On the other hand, DCF may have to wait for a quarter or more to reflect a change.

(e) Distressed Companies

Distressed company valuation, is particularly tricky as the challenge lies in finding fair value and not the lowest value! By distressed, we mean loss making companies or those that are restructuring their businesses by selling off ‘toxic assets’ and toning down capital structure. Traditional valuation approaches fail miserably as a result of the uncertainty involved and this is where Liquidation Value & Replacement cost method come to the rescue. Liquidation value measures return from selling off or liquidating the assets while replacement cost measures the opportunity cost of setting up a business.

(f) IPO Valuation

Although, for such situations it is best to use DCF as it determines the intrinsic value, not many will want to use it as it is likely to understate value as against Comparable valuation. Simply because, the idea behind an IPO is to raise maximum possible capital for a minimum dilution in equity! Hence most IPOs come out in bull markets where valuations are already stretched and comparable valuation will result in higher values as compared to DCF, as a result of circularity involved in such the approach.

Consequently, you may notice that IPOs are ‘demand driven’ rather than intrinsic value; as a result many average companies get extraordinary valuations

 

Financial Assets Examples

Before learning the examples of financial assets, you should know the meaning of financial assets. Financial asset is not physical asset. It is the part of intangible assets. These assets comes into contractual claims. Following are its Main Example.

1. Contracted Value of Used Copyrighted Material

For example, A user of any youtube channel has used B person's copyrighted material. B person has complained YouTube. As per youtube policy, you can not upload copyrighted material in this website. So, you as A user has to do contract with B. You can send email and ask for retract his claim. For this, you may agree to pay him $ 30. If you have paid him $ 30 through your Paypal account and B retract his claim. Your youtube channel will reactive. So, this $ 30 which B have received through contract. So, this contractual value of used his copyrighted material will be the financial asset of B.

2. Value of Share in Any Demat Account 

If you have bought shares or mutual funds, you will not get any physical asset. All will be digital. So, this digital asset's value will be your financial asset.

3. Your Bank Balance

Now, your all bank balance is digital. Whether you are India or you are in Canada, you can withdraw it fastly. So, this is your financial asset.

4. Contractual Right to Receive Cash from Digital Asset

If you went to court and court has ordered for your favor. On this basis, if you have the right to get cash from any of your digital asset or software, this will be your financial asset.