Author: Meenumol Thomas

What is a Lower Tax Deduction Certificate (LTDC)? In India, whenever you pay certain types of vendors (professionals, contractors, etc.), you’re required to deduct TDS (Tax Deducted at Source) at a fixed rate prescribed under the Income Tax Act (e.g., 10% under Section 194J for professional services). Sometimes, the vendor’s income level, exemptions, or business… Continue reading Lower Tax Deduction Certificate

When working with an invoice in NetSuite, the tax amount may change after you select Save. This happens due to how tax is calculated in NetSuite and Avalara. Environment: NetSuite Tax calculates automatically whenever a change is made to a transaction, such as an invoice, estimate, or credit memo. Selecting Save triggers tax calculation to… Continue reading Avalara Tax functionality

The Principles of Accounting are foundational concepts that guide the preparation and presentation of financial statements. They ensure consistency, reliability, and comparability in financial reporting. Here are the main accounting principles: 🔹 1. Accrual Principle Revenue and expenses are recorded when they are incurred, not when cash is received or paid. 🔹 2. Consistency Principle… Continue reading Principles of Accounting

The Golden Rules of Accounting are the fundamental principles that guide the recording of financial transactions in double-entry bookkeeping. These rules are categorized based on three types of accounts: 1. Personal Account Rule: Debit the receiver, Credit the giver Example: If you pay a supplier (a person or business), the supplier is credited, and cash… Continue reading Golden Rule of Accounting

Depreciation allocates cost of an asset to the period benefited in line with the Matching concept. To record depreciation, credit Accumulated Depreciation (contra-asset to PP&E on B/S) Methods of depreciation Straight Line Method (SLM) (HC – SV) × SLM% (SLM= 1/Useful life) Double Declining Balance (HC-Acc Dep) * DDB% (DDB%= 1/Useful life*2 Sum of the… Continue reading Depreciation of Assets

1.What is Inventory? Inventory refers to the goods a company intends to sell to customers. It’s an important asset for businesses that sell physical products (like retailers, wholesalers, and manufacturers). 2. Why is Inventory a Current Asset? Inventory is classified as a current asset because it is expected to be sold, used, or converted into… Continue reading Inventory

Accounts Receivable or Trade Receivables A/R should be reported in B/S at Net Realizable Value (NRV) A/R at gross amount is adjusted for Cash Discounts (discounts for prompt payments) Trade discounts (recorded net of any trade discounts) balk purchases. Bad Debts (representing receivables which are uncollectible) Sales Returns and allowances (expected to be returned in… Continue reading Accounts Receivables

Current assets are assets which are expected to be consumed or converted to cash within one year or the normal operating cycle whichever is longer Cash and cash equivalents trading securities Accounts receivable and notes receivable Inventories Prepaid expenses Short term investments Cash surrender value of life insurance Current liabilities are labilities which are expected… Continue reading Current Assets & Current Liabilities

GST (Goods and Services Tax) is a consumption-based tax levied on the supply of goods and services. It is designed to replace multiple indirect taxes, such as VAT, excise duty, and service tax, with a single unified tax system. GST is applied at each stage of the supply chain, and businesses can claim input tax… Continue reading Goods and service Tax