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The Benefits Of Learning Accounting Via An Institute

Accounting is no more simply limited to maintaining bookkeeping, profit and loss and balance…

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best accounting course in ahmedabad

Accounting is no more simply limited to maintaining bookkeeping, profit and loss and balance sheet. As many companies now turn global, the transactions get more complex. Therefore, an accountant is now expected to possess the knowledge of how to handle such intricate transactions. Even the local companies are now in a dilemma as to how to handle the accounts after the launch of GST.

Every now and then we hear of bankruptcy of highly reputed banks. The ability to detect such fraud at an early stage is also what one expects out of an accountant. Lot of job opportunities are out in the market and unfortunately very few are well qualified for it. 

Possessing a degree is one thing but to be able to practically handle the transactions is where the actual skill is. If you aspire to be one of those rare but an accountant with exceptional skills, one needs to know what is beyond the books. That is where the catch is! 

Super 20 is one such institute that offers accounting courses in Ahmedabad and other various courses for all who are eager to learn about accounting and related courses.

The following are the key features which are offered by S20-

  • Accounting 
  • GST
  • Taxation 
  • Tally
  • Banking and finance
  • Courses for basic learners, experienced and advance learners
  • Communication skills, personality development, computer skills

What are the benefits of enrolling yourself with for Super20 courses?

  • Expert faculties

They claim all their faculties are qualified Chartered Accountants with expert knowledge. Learning directly from the experts mouth eradicates the chances of errors and provides conceptual clarity on the fundamentals.

  • Step by step approach and customized courses

Super20 courses take you step by step from basic level of courses to advanced level. If someone wants to skip the basic level, he can directly take up the advanced level course to get updated with technical concepts after clearing some procedures.

  • Real life case studies

As discussed above, S20 aims at learning the practical way i.e., without the books. This helps the students to crack the real corporate world scenarios way before they enter the corporate world. This makes them confident when they join their job or speak to their clients.

  • Doubt solving

The faculties are completely dedicated to each and every student and take keen interest to solve their doubts whether small or big. The focus is on bringing conceptual clarity and confidence in each student.  

  • Reasonable fees

Their fees are reasonable compared to many other institutes. Also, one doesn’t need to pay again if at all he is unable to grasp the course in the given period. Super20 courses are supremely beneficial for slow learners.

  • Communication skills and personality development

S20 makes sure that when you leave their premise, you are fully prepared to enter the corporate world, which is why they offer special course on communication skills and personality development.

  • Confidence

The Super20 courses are a combination of such courses which guarantees confidence to the student. One is able to handle the complex transactions like Merger and Acquisitions, accounting of international businesses by Indian company, etc.

  • 100% placement assistance

They provide a 100% placement assistance to provide you with job once you finish the course.

  • Focus on developing practical sense and skills

By providing lectures on corporate banking, various businesses, structure of the economy and likewise, the student is carved for their entrepreneur drive.

  • Career guidance

After completing the course, one may be confused whether to opt for a banking job or work with a manufacturing company or start his own business. S20 provides counseling laying down the pros and cons in each of them.

  • Learning made enjoyable for youngsters

The faculties try to make the lectures interactive and lively so that they don’t get bored. Also they are introduced with certain computer related skills.

  • Free demo

Don’t think much. Just go for a demo lecture before joining in. See if you are able to connect with the faculties’ way of teaching, and then decide to go for it or not.

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The Accounting Skills You Need To Succeed

Every second person is now aspiring to be an accountant due to the unending…

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accounting skills you need to succeed

Every second person is now aspiring to be an accountant due to the unending demands for the same. But they can be categorized between mediocre, good and excellent. This transition will pave your way towards your goal to excel at accounting. This transition is utmost mandatory to grade up your job position or to attract more clients. If you are still wondering what skills you can work upon to get there, don’t worry. 

We shall discuss in this article the accounting skills which you must polish:

  • Knowledge

An accountant should possess thorough knowledge of how a particular transaction should be dealt with. If the company that he deals in wants to issue a Initial Public Offer and be listed with the National or Bombay Stock Exchange, the accountant should have in depth knowledge of how to proceed with that, what documents, bank requirements, the capital/sales requirements, etc. How is it going to affect the Balance sheet, Profit and loss and cash flows of the company? 

An accountant should be aware of the Indian Accounting Principles and Standards set by the Accounting Standard Boards and should also be able to apply them in the practical situation.

  • Analyze

An accountant should possess great analytical skills. He should be able to calculate the position of the company by having a glance at its Balance sheet, Cash flows and Profit and loss statements. This power of analyzing the opposite party can help the company to take their decision whether or not to deal with them. Like if their Debt to Equity ratio is more than 1, it implies the company has taken more debts than its capacity and hence riskier to work with it.

  • Audit

Brief knowledge on audit can save the company from complications later. A visionary accountant should foresee any difficulties approaching from the perspective of an auditor so that minimum issues are raised by the auditors after the balance sheet is finalized. Any extra ordinary case shall be looked into deeply as the auditor will not spare that. And its treatment should be convincing enough for the auditor.

  • Working on dead lines

Accountants should be able to work on deadlines as most of the work is associated with time lines. 

  • Vision

An accountant should be able to think strategically about a particular transaction and its affects if treated one way or the other in the long term. It most often affects the profitability of the company.

  • Adaptability

A lot of companies have gone global and multi-national. With that, accounting and taxation laws of the other countries are also taken into consideration. An accountant who is easily able to adapt to international laws and its treatment in India can go far in their career. Also, the local clients throw challenge with various fields they work in. Like Textiles, Pharmacy, Food, Construction, Jewelry, etc. The accountant should not be afraid but open to accepting challenges to work in different fields.

  • Good communication

Without good communication, one can literally land nowhere. Accountants should acquire the skill of being able to communicate verbally and non-verbally to attract, convince, interact with their clients or bosses. No one can work in isolation. Therefore, with great set of communication skills one can co-ordinate and be more organized in their field.

  • Organized

Since the accountant has lots to do and within set time limits, he will mess things up if his mind is not organized. He should be well aware of the dates and deadlines and should be able to prioritize work according to its urgency. 

  • Honesty and Integrity

An accountant is looked up to for his integrity. Even the Government hires accountants for special reports in case of fraud because they trust the accountants as their profession expects them to be honest and transparent.

  • Convincing power 

At times, deciding on how to treat a transaction may inflict a conflict within the organization or between two parties. An accountant possessing knowledge but no convincing power will be of a waste. Developing this skill will be an icing on the cake.

  • Accounting software

Along with Tally, a lot of new accounting software are launched for business automation and to reduce the clerical work of an accountant. Any small or large enterprise works on one or other accounting software like Zoho Books, Quickbooks, SAP, Saral, MProfit, etc. So, at least basic knowledge of the most used accounting software in the market should be gained to have an upper hand at any interview.

Your love for accountancy will enhance as and when you develop the above skills and for your career. Keep upgrading your knowledge as the past glory will just keep you where you are. You can join accounting coaching classes in Ahmedabad and attain the heights in the accounting profession.

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Section 80C of the Income Tax Act

In computing the total income of an assessee, being an individual or a Hindu…

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In computing the total income of an assessee, being an individual or a Hindu divided family (HUF), section 80C deductions are applicable. This section tells us that if we invest our money into specific investment avenues like life insurance, subscription to certain equity mutual funds or debentures, etc., you will get a reduction in your tax payable amount by way of deduction from tax computable income. The deduction does not exceed Rs. 1,50,000/-.

But the question arises where to invest or if any expenses are made then which are the expenses which will get a deduction, right? So here is the list…

1. Life Insurance: Premiums paid toward all life insurance policies are eligible for tax benefits under Section 80C. This deduction can be claimed for premiums paid towards ensuring self, spouse or wife, dependent children and any member of Hindu Undivided Family (HUF).

2. Public Provident Fund: Public Provident Fund (PPF) contributions are eligible for tax deductions under Section 80C. PPF accounts have a maximum or utmost deposit limit of Rs. 1,50,000/- p.a., therefore, we can claim a deduction of the amount deposited in PPF account under Section 80C.

3. Stamp Duty and Registration Charges: While buying a property, one of the largest expenses you will have to bear is the 4.9% stamp duty and 1% registration charges of sale deed value in Gujarat. To give some benefit to the taxpayers or people are eligible to pay tax, the government has included these expenses under Section 80C of the Income Tax Act, 1961. To the benefit of taxpayers.

4. Sukanya Samriddhi Yojana: Investments made in Sukanya Samriddhi Yojana, which is a saving scheme for the girl child, are to be claimed for tax deduction under Section 80C of the Income Tax Act, 1961. A parent or legal guardian of a girl child, who has not crossed the age of 10 years, can open this account. Sukanya Samriddhi Yojana account can be opened for two girl children. We can open one account per one girl child and can be extended to a third if twins are involved.

5. As tuition fees (excluding any payment towards any development fees or donation or payment of similar nature), whether at the time of admission or thereafter-
(a). To any university, college, school or other educational institutions situated within India;
(b). For the purpose of full-time education of any of the persons as specified in the act.

6. As subscription of any units of any mutual fund referred to in clause (23D) of section 10 and approved by the Board of an application by such mutual fund in the prescribed form.

7. As subscription to such bonds issued by the National Bank for Agriculture and Rural Development.

8. In an account under the Senior Citizens Savings Scheme Rules, 2004.

9. The insurance, deferred annuity, provident fund & superannuation fund.

10. Unit-linked insurance plan and an annuity plan.

11. Pension fund and subscription to any deposit schemes as specified.

12. Principal repayment of the amount borrowed for purchase or construction of a residential house.

To learn more about taxation (income tax), join our classes Super20. S20 is well known for the Best Tally Classes and #1 Taxation Institute in Ahmedabad.

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Taxes Benefits for Salaried Individuals

As soon as the filing season begins, salaried class are frenzy about taxes they…

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Taxes-Benefits-for--Salaried--Individuals

As soon as the filing season begins, salaried class are frenzy about taxes they must pay for the said financial year. It is important to understand tax slab and what each of salary breakup component means. This can help to figure out how to save on taxes. Here are the important things to understand.

Standard Deduction: Salaried person are given a standard deduction of Rs. 40,000/- from their salary income irrespective of their salary per annum.

House Rent Allowance: This allowance can be claimed by those individuals who live in rented house. This can be partially or completely exempted from tax. Method for computing HRA is given in the income tax act that can be claimed as exemption. Also note that, if you received HRA and don’t live on rent, then it is fully taxable.

Leave Travel Allowance (LTA): Salaried employees can avail exemption for a travelling expenses, i.e., travel fare within India under LTA if the same is reimbursed by the employer. This allowance can only be claimed for a trip taken with your spouse, children, and parents, but not with other relatives. This particular exemption is up to the actual expenses, therefore unless you actually take the trip and incur these expenses, you cannot claim it. It can be avail only 2 times in block of 4 years. Submit the bills to your employer to claim this exemption.

Professional Tax: In our income tax return, professional tax is allowed as a deduction from our salary income. It is usually deducted by the employer and deposited with the state government. The maximum amount of professional tax that can be levied by a state is Rs. 2,500.

Food Allowance: The amount given as food allowance upto Approx. Rs. 15000/-per annum is non-taxable in the hands of employees.

Donation to Political Parties U/s 80GGC: Any Donation made to political parties is exempt from tax if it satisfies certain conditions.

Donation to Charitable Trust u/s 80G: Any donation made to registered charitable trust by cheque is exempt upto 50% of donation amount from tax if it satisfies certain conditions.

Interest On Housing Loan: Under Section 24 of the Income Tax Act, an individual can claim tax deduction of the interest payment on the housing loan up to a maximum amount of Rs. 2,00,000.

Deduction u/s 80C: Following expenses are claimed as exemption u/s 80C. Maximum amount which can be claimed as deduction for the following expenses is Rs. 1,50,000/- per annum.

  • Tuition fees of school or college
  • Life Insurance premium
  • National Saving certificate and Kisan Vikas Patra
  • Employee Linked Saving Scheme
  • Principal Repayment Towards Housing Loan
  • Sukanya Samridhhi Scheme (It is only for those who has girl child)
  • Public Provident Fund
  • Statutory Provident fund
  • Stamp duty and registration charges of house purchase, etc.

NPS: An individual can avail an exemption of Rs.50,000 if he invested in National Pension Scheme under section 80CCD regardless to the deduction of 1,50,000 in 80C.

Mediclaim u/s 80D: This deduction can be avail by an assesse upto Rs.25000 for his family. However, if any of the parents covered by the mediclaim policy is a senior citizen, then the deduction amount is increased to Rs. 30,000.

Education Loan u/s 80E: The deduction allowed is the total interest part of the EMI paid during the financial year. There is no limit on the maximum amount that is allowed as deduction. You, however, need to obtain a certificate from your Bank.

You can also write to us at info@s20.in. We provide people of any background a simple, effective and practical training in Accounting, Taxation, GST, Tally. You can know more about our courses at www.s20.in/courses.

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Accounting Reserves: Concept

Several times we have heard the word reserve in accounting but the exact meaning…

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Several times we have heard the word reserve in accounting but the exact meaning is at times not explained in various accounting classes and also most of the classes are not covering in the accounting courses. And even if it is explained in various accounting classes by learned faculties, students fail to understand the basics. They know it’s accounting effect. Do they really know what is it? Or why it is created for?

Let us understand the concept of reserves and their types:

Profit earned by any business is payable to its proprietor. But the proprietor does not withdraw the whole amount of profit. He leaves some amount of profit to maintain the liquidity and strengthen the financial position of the business. This amount is known as the reserve. Reserve is profits, appropriated for a particular purpose.

There is a long list of reserves created for in the books of accounts as explained in various accounting classes. And truly, it is so. However, primarily we can classify reserves in two categories:

  • Revenue reserve
  • Capital reserve

Revenue reserves can be further classified into:

  1. General reserve: Profit determined by the profit and loss statement at the end of the year, the proportion of such profit is not aid to the proprietor, but kept apart is known as revenue reserve. General reserve is created to maintain the liquidity of the business resources, meeting any known contingencies, liabilities, etc.
  2. Specific reserve: If the provision is created for any specific period it is known as a specific reserve. This reserve cannot be utilized for any other purposes. For example- Reserve for Repairs and Maintenance, Reserve for Outstanding Expenses.

On the other hand, Capital Reserve refers to the profit that arises from the sources other than the normal trading activities. Such profit is known as capital profit. A capital reserve is an account on the balance sheet which can be used for contingencies or to offset capital losses. It is built out of capital profit and not out of business profit.

Hence, we can infer that reserve is a great source for financing any long-term project of any company, and if a company which isn’t keen to go for debt, term loan etc. can use this reserve to fully finance their new projects. There are many sub-classifications we focus during our accounting classes on reserves. For more such details you can attend our free demo classes.

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Understanding Methods of Depreciation

Generally, methods for providing depreciation are based on the formula developed on a study of…

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depreciation method - Best accounting classes in ahmedabad

Generally, methods for providing depreciation are based on the formula developed on a study of the behavior of the assets over a period of years for readily computing the amount of depreciation suffered by different forms of assets. However, various accounting institutes focus on a few methods and overlook the other methods. Due to space constraint, we will explain only two most commonly used depreciation methods here.

The two methods for providing depreciation are the Straight Line Method and the Reducing Balance Method. The Straight Line Method is the most suitable and accurate method to adapt in most case. The income tax rules, however, prescribe the Reducing Balance Method except in the case of assets of an undertaking engaged in generation and distribution of power.

Straight Line Method: An equal amount is written off every year during the working life of an asset so as to reduce the cost of the asset to nil or its residual value at end of its useful life. The advantages of this method are that it is simple to apply and give accurate result results especially in the case of leases, patent and copyrights, and also in case of plant and machinery. This method is even known as Fixed Instalment Method.

Methods of Depreciation - best tally classes in ahmedabad

So, it is very simple. And it is like apportioning some expenses every year. So, no need to attend any accounting institute for this purpose.

Reducing Balance Method: Under this method, a fixed percentage of diminishing value of the asset is written off each year, so as to the asset to its break – up value at the end of its life, repairs and small renewals being charged to revenue. This method is commonly used for plants, fixtures, etc. Under this system, the annual charge for depreciation decreases from year to year, so that the earlier years suffer to the benefit of the later years. Also, under this method, the value of the asset can never be completely extinguished, which happens in the early explained Straight Line Method.

Many accounting institutes and academies stop at this juncture instead of teaching students exact formulae of arriving at the proper depreciation rate. But our accounting training in Ahmedabad focuses on every nitty-gritty of this method since this method is generally the only allowed method of calculating income tax applicable to the firm.

In this method, Depreciation goes on decreasing every year. The formula is –

best accounting classes in ahmedabad 2018-12-19

Suppose that the fixed asset purchase price is 10,000, the scrap value is 1,000, and the depreciation rate is 30%.

Using the Reducing balance method, 30% of the depreciation base (net book value minus scrap value) is calculated at the end of the previous depreciation period. Calculation of depreciation for the first three years is shown in the following table.

Understanding Methods of Depreciation - accounting classes in ahmedabad

If you have any questions related to this topic, we will be happy to revert to you or you can visit our accounting institute in Ahmedabad and attend a free demo class of depreciation accounting.

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Double Entry System

Double entry system of book keeping is the most popular scientific system of accounting.…

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double-entry-system | Best Accounting Classes in Ahmedabad

Double entry system of book keeping is the most popular scientific system of accounting. According to it, every transaction has two-fold aspects – debit & credit and both aspects are to be recorded in the books of accounts. This system has been found of great use for recording the financial affairs for all institutions.

How Double book-keeping is helpful?
– By the use of this system the accuracy of the accounting work can be established, through the device of trial balance,
– Profit earned of loss suffered during the period can be ascertained together with details &
– The position of a firm can be ascertained.

For the conceptual clarity, one must know the basic of accounting and the reason why they are used in the way we do. Because at S20, we want things to remain simple people joining our accounting classes, tally classes or GST classes will definitely appreciate this. So, let’s understand the concept of double entry system with an example –

A person starts his business with Rs. 10,000; capital and cash are both 10,000. Transactions entered into by the firm will alter the cash balance in two ways, one will increase the cash balance and other will reduce it. Payment for goods purchased, for salaries and rent etc., will reduce it; sales of goods for cash and collection from customers will increase it.

We can change the cash balance with each transaction but this will not be easy to tally at the end of the financial year. Instead it would be better if all the transaction that lead to an increase are recorded in one column and those that reduce the cash balance in another column; then their net result can be ascertained, if we add all increases to the opening balance of cash and then deduct the total if all decreased we shall know the closing balance. In this manner, significant information will be available relating to cash.

The two columns which are referred above are put usually in the firm of an account, called the ‘T’ form.

This is illustrated below by taking imaginary figures:

Best tally classes in ahmedabad

What we have done is to put the increase of cash on the left-hand side and the increase on the right side; the closing balance has been ascertained by deducting the total of payment, Rs. 2,000 from the total of the left – hand side. Such a treatment of receipt and payment of cash is very convenient.

The proper form of an account is as follows:

Best tally courses in Ahmedabad

The columns are self-explanatory except that the column for reference (Ref.) is meant to indicate the source where information about the entry is available.

The aforementioned outflow and inflow of cash have their specific nature in wider terms which is explained in the next article Rule of debit and credit. Your feedback on this article may be shared at info@s20.in. we are known as premier accounting institute in Ahmedabad. Our flagship Executive of Commerce Course is known for its detailed coverage of accounting topics.

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IL&FS fiasco and accounting ratios

We have a space constraint, so let us not discuss what was discusses in…

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We have a space constraint, so let us not discuss what was discusses in the previous article. But you can refer my article IL&FS fiasco and accounting statements for basic understanding.

Now let us straight away understand what are accounting ratios or financial ratios as they are famously referred to.

I have produced direct ratios as calculated by me in MS Excel. If you do not know how to calculate financial ratios or how to arrive at accounting ratios you can approach Super 20 Training Institute – Ahmedabad. We provide such case based, practical and detailed understanding of various topics in our Accounting Courses, Taxation Courses, GST Courses, Tally Courses etc. at our training institute in Ahmedabad.

Now let us look at Operating Profit Margin. In FY1617, Operating Profit Margin was 49%, whereas, in FY1718, Operating Profit Margin was 39%. Such a big erosion in margins is worrisome. That means the company has some serious operating issue which needs to be looked at. Or the figures may be misleading for the previous years.

The next important accounting ratio is EBIT margin. That is Earning Before Interest and Taxes Margin. In FY1617, EBIT Margin was 42%, whereas, in FY1718, EBIT Margin was 31%. This is the significant decline. That means the company has less amount of money to meet their interest expenses.

Finally, we are staring at Net Profit Margin. In FY1617, Net Profit Margin was 1%, whereas, in FY1718, Net Profit Margin was -10%. The company was barely profitable in the previous year. Hence, everything was not ok even in FY1617 also. It was not ignored by everyone concerned with the company. And now we are staring at a big loss in FY1718. Signals were there, but they were ignored.

How default is evident from the above analysis. It is from Interest Coverage Ratio. In FY1617, the company was barely able to meet its interest obligations. On the other side, in FY1718 the interest cover was less than 1.

That means that the company did not have sufficient funds to service their interest obligations. Still, the company kept raising funds from the markets. All these funds were short-term funds basically to see the day has gone off or passed. The management was doing time pass all these days. The regulators were sleeping. The Government thought that the investors like LIC, SBI are taking care of IL&FS. LIC, SBI and other foreign investors were thinking that the management was very much able and worthy. Credit rating agencies were giving AAA rating blindly. Lenders took money from public and loaned to IL&FS thinking it is backed by the Government and anyways AAA. But it was written on the wall that IL&FS is not functioning well. And the worst came true. The institution of this size, scale and reputation are staring at bankruptcy.

Friends, these are the easy tools to analyse the company’s accounting records. Anyone, who wants to understand such topics in detail may contact us at info@s20.in. or visit our website. We are proud to be known as the best accounting training institute in Ahmedabad. All the best.