What do you understand by Intercompany Settlement?

Correct Answer: The open items of an account can only be cleared once you post an identical offsetting amount to the account In other words, the balance of the items assigned to each other must equal zeroDuring clearing, the system enters a clearing document number and the clearing date in these items In this way, invoices in a vendor account are indicated as paid, and items in a bank clearing account are indicated as cleared You generally use the payment program to clear invoices Manual clearing of open items is therefore not usually necessary However, you will sometimes have to clear items manually if, for example, you receive a refund from your vendor or you have set up a direct debit procedure

Correct Answer: Liabilities are what all u owe from the bank on notes payable or in other words it is: Liability=Asset-Owners equity what company owes that is liability liability = Asset-capital

Correct Answer: An invoice or bill is a commercial document issued by a seller to the buyer, indicating the products, quantities, and agreed prices for products or services the seller has provided the buyer An invoice indicates the buyer must pay the seller, according to the payment terms In the rental industry, an invoice must include a specific reference to the duration of the time being billed, so rather than quantity, price and discount the invoicing amount is based on quantity, price, discount and duration Generally speaking each line of a rental invoice will refer to the actual hours, days, weeks, months etc being billed From the point of view of a seller, an invoice is a sales invoice From the point of view of a buyer, an invoice is a purchase invoice The document indicates the buyer and seller, but the term invoice indicates money is owed or owing In English, the context of the term invoice is usually used to clarify its meaning, such as "We sent them an invoice" (they owe us money) or "We received an invoice from them" (we owe them money)

Correct Answer: 1 Collection of attendance / collation of attendance 2 Scrutunizing the received attendance 3 Calculating the salary as per the attendance, based on LOP received 4 Once the Payroll Processing is over, the gross salary should be checked with Master Data of salary 5 Netpay has to request for bank transfers / cheque 6 Need to take care of statutories like PF / ESI / PT / Income Tax 7 While processing salary, statutory deductions like PF / ESIC / PT and income tax calculations tobe taken care 8 Arriving the salary structure for New Joiners 9 F&F tobe done for resigned employees 10 PF & ESI Nomination has to take care for the new joiners 11 PF Settlement / PF transfer has to take care for the resigned employees after 60days from the date of resignation

Correct Answer: A foreign exchange rate is the price of the domestic currency stated in terms of another currency

Correct Answer: 3 way matching is to compare three documents ie, 1 Purchase order 2 Receipt of Items/Packing slip 3 Invoice For example, if we Order for 50 Items in purchase order and received 40 Items only instead of 50 items But we received invoice for 50 items After comparing the three documents we pay for only 40 Items

Correct Answer: From the customer point of view, credit is the amount which is deposited into her or his account And debit refers to that amount which is taken from the account of the customer

Correct Answer: You should have recorded in your cash books all amounts you have actually received and payments you have actually made However the cash books may be incomplete as your bank may have put extra transactions through your account such as: ? bank fees or interest charges ? direct debits (payments) and direct credits (receipts) Doing a regular bank reconciliation will allow you to: ? take into account any extra transactions your bank puts through your account and ? check and record any errors or omissions By regularly doing a bank reconciliation (say monthly) you can be more confident that your records contain all the information you need to prepare your income tax return and activity statements

Correct Answer: The Debit balance recovery is usually made by raising a credit memo for the regular vendors However if there are no future transactions from the supplier, we ask the vendor to send the check / make an EFT for the amount due from him When payment is made to the wrong vendor or payment made in excess, in that case overpayment has gone to the vendor, so for us it is vendor debit balance For debit balance recovery, we can either follow- up with the vendor to send us the excess amount / refund back, or we can adjust that extra amount in future invoices submitted by that vendor In case no future transactions, we have to follow-up with the vendor, failing which we have to write off this amount

Correct Answer: The words "asset" and "liability" are two very common words in accounting Liabilities are legally binding obligations that are payable to another person or entity Accounts payable, loans, mortgages, deferred revenue, come under liabilities