Basics Of Accounting

The ROUND function is used to round a number to a specified number of digits. When the second argument is 2, the number is rounded to two decimal places. When the second argument is 0, the number is rounded to the nearest integer.

It provides fast and accurate processing of accounting data.
It reduces clerical errors and duplication of work.
It enables easy storage and retrieval of large volumes of data.
It helps in quick preparation of financial statements and reports.

Data Audit refers to the systematic examination of data entered in computerized accounting systems. It helps in checking the accuracy, completeness and reliability of data and ensures that records are maintained as per rules and standards.

The steps to delete a company in Tally are as follows:
Open Tally software.
Select Company Info from the Gateway of Tally.
Choose the option Select Company.
Select the company which you want to delete.
Press Alt + D.
Confirm the deletion by pressing Yes.

Computerized accounting software provides password protection to restrict unauthorized access and ensure data security.

A spreadsheet is a computer application that consists of rows and columns. It is used for calculations, data analysis and graphical representation of data.

Tally
QuickBooks
Busy Accounting Software

A Scatter Chart is also called an XY Chart because it plots data points based on X and Y coordinates.

PMT method is used to calculate equal periodic instalments for repayment of loans, including principal and interest.

In Tally, the shortcut key Alt + D is used to delete a voucher.

In a spreadsheet, a group of one or more selected cells is known as a Range.

Computers are accurate and fast, but they do not possess intelligence of their own. They work only as per the instructions given to them.

Calls in Arrears represent the amount unpaid by shareholders on calls due, whereas Calls in Advance represent the amount received by the company before calls are made.
Interest may be charged on Calls in Arrears, whereas interest may be allowed on Calls in Advance as per the Articles of Association.

Capital Reserve is that part of profit which arises from capital transactions such as profit on sale of fixed assets, issue of shares at premium, or revaluation surplus. It is not available for distribution as dividend.

Horizontal analysis compares financial data over different periods. Since it studies changes over time, it is called dynamic analysis.

Under the fixed capital system, the capital balance remains constant, whereas under the fluctuating capital system, the capital balance changes frequently.
In the fixed capital system, separate current accounts are maintained, whereas in the fluctuating capital system, no separate current account is maintained.

Reserves and surplus belong to the old partners and are created from past profits. At the time of reconstitution, these amounts are distributed among existing partners in the old profit-sharing ratio to prevent the incoming or continuing partners from gaining unfairly.

A partner may retire:
With the consent of all other partners.
In accordance with the terms of the partnership deed.

Realisation Account is prepared when a firm is dissolved. All assets are transferred to this account at book value and liabilities are settled to determine the profit or loss on dissolution.

Mohan withdraws ₹4,000 at the beginning of each quarter. For drawings made at the beginning of each quarter, the average period is:

Revaluation Account लाभ या हानि को दर्शाता है, इसलिए यह एक Nominal Account होता है।

जब परिसंपत्तियों (Assets) के मूल्य में वृद्धि होती है, तो यह Revaluation Account के क्रेडिट पक्ष (Credit Side) में दर्ज की जाती है। इसका कारण यह है कि परिसंपत्तियों के मूल्य में वृद्धि लाभ (Gain) को दर्शाती है।