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Accounting Hand Book for Small & Medium Businesses


Chapter 1

1 What is Accounting?

2 What are Accounts?

3 Why do Businesses Need Accounts?

4 Use Accounting to your Advantage

Chapter 2

5Basis of Accounting

6The Double Entry System of Accounting

7Journal Entries

8Accounting Assumptions

9 Accounting Regulatory Bodies

 Chapter 3

10 Double Entry & T Accounts – A Quick Recap

11Books of Accounts

12Books of Original Entry

13Sales Day Book & Sales Ledger

14 Purchase Day Book & Purchase Ledger

15 Cash & Bank Book

16 Inventory Ledger

17 General Ledger

18 Vouchers

Chapter 4

20 Books of Accounts – A Quick Recap

21 What is Capital?

22 What is Equity?

23 How much Capital should be Injected?

24 How Frequently should Capital be Injected?

25 Is Capital always in Cash?

26 Deciding on a Profit Share

27 Businesses are Separate from Owners

28Capital for Companies

Chapter 5

29 Books of Accounts – A Quick Recap

30 What are Purchases?

31 Why is it Important to Record Purchases?

32 Purchase Cycle

33 Other Situations in Purchase Cycle

34 Cash Flow & Cost Management Strategies – Some Tips

Chapter 6

35 Books of Accounts – A Quick Recap

36 Why is it Important to Record Sales?

37 How should Sales be Recorded?

38 Know your Selling Price

39 My Customer has not paid me – What do I do?

40Convert your Receivables into Cash

41 Some Suggestions on Improving Liquidity

Chapter 7

42 Books of Accounts - A Quick Recap

43 What are Fixed Assets?

44 Tangible & Intangible Assets

45 What is Cost of Fixed Assets?

46 Understanding the Terminology

47 What is Depreciation?

48 Depreciation is not always Charged

49 My Fixed Assets are worth more now!

50 What happens when a Fixed Asset is Sold or Lost?

51 Using Fixed Assets to your Benefit!

Chapter 8

52Books of Accounts – A Quick Recap

53What is Lease?

54Commonly Used Terms

55Types of Leases

56 Why should a Business Lease?

57 How are Leases Recorded?

58 Using Leasing to your Advantage

Chapter 9

59 Books of Accounts - A Quick Recap

60What is Inventory?

61 Why Have Different Valuation Techniques?

62 What is Cost of Inventory?

63 How is Inventory Valued?

64 Is Inventory Always Shown at Cost?

65 How can Inventory Costs be Reduced?

Chapter 10

66 Books of Accounts – A Quick Recap

67What type of Inventory is Manufactured?

68 Why is Costing Important for a Manufacturer?

69 What is Cost of Manufactured Inventory?

70Costing Terminology Made Easy!

71What is a Typical Manufacturing Cycle?

72 How are Costs Classified?

73 How is Cost of Manufactured Inventory Calculated?

74 What is Accounting for Work in Process?

75 How should I Decide which Product to Manufacture?

76 How can these Costing Methods Help in Decision Making?

77 How much do I have to Produce before I Start Making Profits?

78 Are there Other Costing Methods MORE SUITABLE TO MY


Chapter 11

79 Books of Accounts - A Quick Recap

80 What are the Sources of Bank Financing?

81What Types of Financing are Available to Businesses?

82 How are Payments Made to the Financing Bank?

83 Using Long Term Financing to Your Advantage

84 Some Facts to Keep in Mind!

Chapter 12

85 Books of Accounts – A Quick Recap

86 Employees are Important for a Business

87What Are the Different Types of Payroll Costs?

88 What is Included within Salaries?

89 Maintaining Employee Records

90 How is Salary Cost Recorded?

91When & How is the Tax Department Informed?

92 What Responsibilities are Placed on Businesses?

93What are Overheads?

94 Why are Expenses Accrued?

95What are Prepaid Expenses?

Chapter 13

96 Books Of Accounts - A Quick Recap

97 What are Foreign Currency Transactions?

98 Understanding the Terminology

99 What are the Different Types of Foreign Exchange Rates?

100 What is the Accounting for Foreign Currencies?

101 What is Exchange Gain or Loss?

102What is the Accounting for Export Transactions?

103 How Different is Accounting for Import Transactions?

Chapter 14

104 What have We Covered So Far?

105How Frequently are Accounts Prepared?

106What are Accounts?

107What are Final Adjustments?

108 Closing of Accounts

109 How is a Trial Balance Made?

110Profit & Loss Account

111Balance Sheet

112 Cash Flow Statement

Chapter 15

113 A Quick Recap

114 What is Ratio Analysis?

115 How can these Ratios be Used in Businesses?

Chapter 16

116 Disclaimer

117 What is Income Tax?

118 Laws Governing Income Tax

119 To Whom do Income Tax Regulations Apply?

120Income Tax Terminology Made Simple

121How to Apply for a National Tax Number?

122 Income Tax Law – Brief Overview

123 What is a Tax Year?

124 What is Income Tax Cycle?

125 Arriving at Taxable Profits

126Universal Self Assessment Scheme

127 Refunds

128 Penalties

129 Small Company

Chapter 17

130 Disclaimer

131 What is Sales Tax?

132 How to Register for Sales Tax?

133 Understanding the Terminology

134 What is the Benefit of Sales Tax Registration?

135Minimum Value Addition

136 What is a Sales Tax Invoice?

137 Input Tax not Claimable

138 Filing of Sales Tax Return

139 Refund or Carry Forward

140 Penalties

141 e-Filing of Sales Tax Return