Non-Profit and Governmental Accounting Essentials

Posted by on Mar 10, 2026 in Financial and Accounting Management | 0 comments

F6: NFP & Governmental Accounting

NFP Financial Statements

NFP Financial StatementsNFP Cash Flows
  • Statement of Financial Position (Balance Sheet): Assets – Liabilities = Net Assets
  • Statement of Activities (Income Statement)
  • Statement of Cash Flows

Net Assets Classification:

  1. Without Donor Restriction: Available for general use. Board-designated funds are considered internal and are not donor-restricted.
  2. With Donor Restriction: Restricted by purpose or time.
  3. Temporary in Nature: Restriction expected to
Read More

Income Tax Act: Capital Gains, Clubbing, and Loss Set-offs

Posted by on Mar 5, 2026 in Financial and Accounting Management | 0 comments

Understanding Capital Assets: Short-Term vs. Long-Term

The distinction between a Long-Term Capital Asset (LTCA) and a Short-Term Capital Asset (STCA) is based purely on the period of holding. This classification is crucial for determining tax rates and indexation benefits.

FeatureShort-Term Capital Asset (STCA)Long-Term Capital Asset (LTCA)
Holding PeriodHeld for a period not more than the specified limit.Held for a period more than the specified limit.
Specified LimitVaries by asset (e.g., 12 months
Read More

TallyPrime Ledger Management and Bank Reconciliation

Posted by on Mar 3, 2026 in Financial and Accounting Management | 0 comments

This document explains how to create, alter, and display a single ledger, as well as the steps to create multiple ledgers.

Understanding Ledgers in TallyPrime

A Ledger is the actual accounting head or account name (e.g., Cash, Sales, Rent Expense, Customer A/C) that records and summarizes transactions. Ledgers are the most fundamental master in TallyPrime, as all vouchers and financial statements are built upon them.

Creating, Altering, and Displaying a Single Ledger

All ledger operations (Create, Alter,

Read More

Final Accounts: Trading, Profit & Loss, Balance Sheet Accounting

Posted by on Feb 20, 2026 in Financial and Accounting Management | 0 comments

Final Accounts and Financial Statements

Final accounts are the financial statements prepared at the end of an accounting period to ascertain the financial performance (profit or loss) and the financial position (assets and liabilities) of a business. Final accounts typically consist of the Trading Account, the Profit & Loss Account, and the Balance Sheet.

Trading Account — Gross Profit or Loss

The Trading Account is prepared to ascertain the gross profit or gross loss resulting from buying and

Read More

Accounting Entries, Financial Statements & Key Ratios

Posted by on Feb 19, 2026 in Financial and Accounting Management | 0 comments

Adjusted Trial Balance Format

Debit Accounts

  • Cash
  • Accounts Receivable
  • Interest Receivable
  • Notes Receivable (short-term)
  • Supplies
  • Prepaid Insurance
  • Prepaid Rent
  • Merchandise Inventory
  • Debt Investments (short-term)
  • Land
  • Buildings
  • Equipment
  • Vehicles
  • Patents
  • Copyrights
  • Trademarks
  • Goodwill
  • Dividends
  • Cost of Goods Sold
  • Wages Expense
  • Salaries Expense
  • Depreciation Expense—Buildings
  • Depreciation Expense—Equipment
  • Insurance Expense
  • Utilities Expense
  • Interest Expense
  • Supplies Expense
  • Rent Expense
  • Advertising Expense
  • Delivery Expense
  • Office
Read More

Capital Gains Tax and Section 54 Exemptions India

Posted by on Feb 14, 2026 in Financial and Accounting Management | 0 comments

Capital Gains and Exemptions — Section 54

Definition of Capital Gains

Capital Gains is defined in Section 45(1) of the Income Tax Act, 1961. It refers to the profit or gain arising from the transfer of a capital asset effected in the previous year. The capital gain is charged to tax in the assessment year immediately following the previous year in which the transfer took place.

Key Components of the Definition

  • Capital Asset (Section 2(14)): Property of any kind held by an assessee, whether connected
Read More