Latin phrases

Latin phrases

ab initio		from the beginning
ab intestato		from an intestate
ab intra		from within
ab origine		from the source
ad hoc		to this
ad utrumque paratus		prepared for either [alternative]
ad valorem		according to value
agendum		thing to be done
affidavit		he asserted
age quod agis		Do what you are doing.
agenda		things to be done
alias		at another time, otherwise
alibi		elsewhere
alma mater		nourishing mother
alter ego		another I
alumnus or alumna		pupil
amicus curiae		friend of the court
anno (an.)	in the year
Anno Domini (A.D.)	in the Year of the Lord
ante bellum	before the war
ante cibum (a.c.)	before food
ante litteram	before the letter
ante meridiem (a.m.)	before midday
ante mortem	before death
ante prandium (a.p.)	before lunch
aqua (aq.)	water
aqua fortis	strong water
aqua pura	pure water
aqua regia	royal water
aqua vitae	water of life
aurora australis	southern dawn
aurora borealis	northern dawn

bis in die (bid)	twice in a day
bona fide	in good faith
bona notabilia	note-worthy goods
bona officia	good services
bona patria	goods of a country
bona vacantia	vacant goods

camera obscura	dark chamber
circa (c.) or (ca.)	around
citius altius fortius	faster, higher, stronger
corrigenda	things to be corrected
culpa	fault
curriculum vitae	course of life

de facto	by deed
de jure	by law
de novo	from the new
dura mater	tough mother
dum vita est, spes est	while there is life, there is hope

ego non	not I
emeritus	veteran
ergo	therefore
erratum	error
et alibi (et al.)	and elsewhere
et alii (et al.)	and others
et cetera (etc.) or (&c.)	And the rest
ex gratia	from kindness
ex novo	from new
ex officio	from the office
ex parte	from a part
exempli gratia (e.g.)	for the sake of example

fac simile

make a similar thing

habeas corpus

You should have the body

ibidem (ibid.)	in the same place
idem (id.)	the same
id est (i.e., or ie.)	that is
idem quod (i.q.)	the same as
in absentia	in the absence
in camera	in the chamber
in memoriam	into the memory
in situ	in the place
in toto	in all
in vitro	in glass
inter alia (i.a.)	among other things
intra vires	within the powers
ipse dixit	he himself said it
ipso facto	by the fact itself

Magna Carta	Great Charter
magnum opus	great work
mala fide	in bad faith
mea culpa	my fault
mens rea	guilty mind
mens sana in corpore sano	a sound mind in a sound body
modus operandi (M.O.)	method of operating
modus vivendi	method of living

nota bene (n.b.)

mark well

Pari passu	with equal step
peccavi	I have sinned
per capita	by heads
per contra	through the contrary
per diem (pd.)	by day
per mensem (pm.)	by month
per se	through itself
persona non grata	person not pleasing
post meridiem (p.m.)	after midday
post mortem (pm)	after death
post scriptum (p.s.)	after what has been written
prima facie	at first sight
prima luce	at dawn
primus inter pares	first among equals
pro forma	for form
pro rata	for the rate

quater in die (qid)	four times a day
quid pro quo	what for what
quo vadis	Where are you going?
quod erat demonstrandum (Q.E.D.)	what was to be demonstrated
quod erat faciendum (Q.E.F)	which was to be done
quod est (q.e.)	which is
quod vide (q.v.)	which see
quorum	of whom

sanctum sanctorum	Holy of Holies
semper ad meliora	always towards better things
semper ardens	always burning
semper eadem	always the same
semper excelsius	always higher
semper fidelis	always faithful
semper fortis	always brave
semper in excretia sumus solim profundum variat	We're always in the manure; only the depth varies.
semper instans	always threatening
semper invicta	always invincible
semper liber	always free
semper paratus	always prepared
semper primus	always first
semper reformanda	always in need of being reformed
semper ubi sub ubi	always where under where
semper vigilans	always vigilant
semper vigilo	always vigilant
sic	thus
sine die	without a day
sine ira et studio	without anger and fondness
sine loco (s.l.)	without a place
sine nomine (s.n.)	"without a name"
sine poena nulla lex	Without penalty, there is no law
sine qua non	without which not
sine remediis medicina debilis est	without remedies medicine is powerless
sine scientia ars nihil est	without knowledge, skill is nothing
sola fide	by faith alone
sola gratia	by grace alone
status quo	the situation in which
sub judice	under a judge
sub poena	under penalty
sub rosa	under the rose
sub silentio	under silence
suo motu	upon one's own initiative

terra nova

new land

veni, vidi, vici	I came, I saw, I conquered
verbatim	word for word
veritas	truth
veritas vincit	truth conquers
versus (vs) or (v.)	towards
veto	I forbid
via	by the road
via media	middle road
via, veritas, vita	The Way, the Truth and the Life
vice	in place of
vice versa versa vice	with position turned
vide infra (v.i.)	see below
vide supra (v.s.)	"see above"
vincit qui se vincit	he/she conquers who conquers himself/herself
viva voce	living voice
vox nihili	voice of nothing
vox populi	voice of the people

Ratio Analysis - LDCE

RATIO ANALYSIS

(Frequently asking and Most Important Essay Question - 25 marks asked in Management accounting section of LDCE)

v  Definition: 

                        I.        A relationship expressed in mathematical terms between two figures having Cause and Effect relationship or connected in some way or other.

                      II.        An expression of the quantitative relationship that exists between two numbers.

v  One of the very effective tool of financial analysis.

v  It is useful for various groups of people, say creditors, investors, management etc, who are interested in financial statements.

v  Provides clues and symptoms of underlying conditions.

v  Computation of ratios is relatively an easy exercise.

v  The usefulness of ratio analysis depends on its intelligent and judicious interpretation. Ratios by themselves carry little sense.  Comparisons are essential for making inferences.

v  Comparisons can be with:

1. Past ratios of the same enterprise.  This shows a trend within the organization.

2. Ratios of other companies in the same Industry.  It gives insight into the relative financial health & performance of the Organization.

3. Comparisons with Pre-determined Standard Ratios ( say Benchmarks), which may be Company/Industry accepted general standards.

v  Accounting Ratios  - Different types.

Balance Sheet Ratios	Income Statement or Revenue Statement Ratios	Composite Ratios
Both items available in the  Balance Sheet only	Both items available in the  Profit & Loss A/c only	One item from Profit & Loss A/c and another item from Balance Sheet
Examples - a) Current Ratio - Assets & Liabilities b) Proprietorship Ratios - Proprietor's Assets & Total Assets	Examples - a) Gross Profit Ratio  - Gross Profit & Sales. b) Optg. Profit  -  Cost of Goods sold to Net Sales. c) Stock Turnover Ratio - Cost of Goods sold & Average Stock carried.	Examples - a) Turnover of Debtors  -  Debtors & Net Sales. b) ROCE - Return On Capital Employed  - Net profit & Proprietor's Capital

v  Financial Ratios - Different types.

Category	Examples
1. Liquidity	1. Current Ratio  2. Acid Test/Quick/Liquidity Ratio
2. Activity/Turnover	1. TOR/Investor Turnover Ratio 2. Capital employed Turnover Ratio. 3. Total Assets Turnover Ratio   4. Debtors Turnover Ratio.
3. Leverage	1. Debt: Equity Ratio
4. Profitability	1.ROCE-Return On Capital Employed 2. Return on Net Worth
5. Investment/Investors related	1. Dividends pay out Ratio 2. Dividends Yield Ratio

Advantages:

1. Facilitates understanding of Financial Statements.
2. Narrates the whole story of changes in financial condition of the Business.
3. Facilitates Inter-Firm comparison.
4. Helps in planning the operations of the firm.
5. Facilitates "Management by Exception" .  Higher management can concentrates only at the area where its intervention is narrated.  The promoters has better utilisation of time and resources.
6. Compares with standard benchmarks.  During the period of existence, the firm develops certain standards/norms. Any change in the norms passes on the right message to the Management for the course of action to be initiated.

Limitations:

1. Communicates only a relative interpretation. Every Organization has its own uniqueness and comparisons may not be valid.

Example: Government company with limited freedom cannot be compared with Private company having lot of freedom though both are in same Industry.

2. Ratios are only a tool.  Their ultimate use depends on the craftsmen who use it.  Hence ratios are not an end in themselves.  Rather they are means to an end.  They pass only guiding / warning signals.

3. Window Dressing :  Sometimes companies do Window Dressing by manipulates accounts to show the outside a better or gloomy picture as the case may be they required. Such things cannot be disclosed by Ratio Analysis ( as Ratios depends on figures available in Financial Statements)

4. Inflation distorts/misleads financial ratio analysis. Spectacular performance is enabled due to inflation, not by Management.

                                                However companies may use "Replacement Cost Method" to prevent/obviate the above limitation.

CONCLUSION

"In a nutshell, the advantages clearly outweighs limitations, considering over all benefits".

Important question - Book keeping

IMPORTANT QUESTIONS IN BOOK KEEPING SUBJECT

compiled by Smt Neelam Dhadse, SSO(A)/Bhusaval

Important Note:

My advice is to read and cover entire syllabus irrespective of  Important or Not Important. Subsequently put more preference for  important ones because they are repeatedly asked in previous examinations as well as for importance they associated with the working of Indian Railways.

Short notes

1) contingent liability

2 ) secret reserve

3) deferred revenue expenditure

4) good will/ valuation of good will

5) memorandum of association

6) accommodation bill

7) accounting conventions or principles

8) double entry system/ single entry system

9)business entity concept

10) money measurements concept

11) matching concept

12) accrual concept

13) going concern concept

14) revenue recognition

15) full disclosure 

16) cash book

17) petty cash book

18) equity

19) cash discount

20) trade discount

21) liquidity ratio

22) debt equity ratio

23) subsidiary records

24) endowment of fund

Distinguish between

1) single entry and double entry

2) fixed asset and current assets

3) trading a/c and profit & loss a/c

4) bad debts & doubtful debts

5) trade bill & accommodation bill

6) debit note & credit note

7) joint venture & partnership 

8) memorandum of association & article of association

9) receipt and payment a/c & income and expenditure a/c

10) sale and consignment

11) bill of exchange and promissory note and cheque

12 share and debenture

13) equity shares & preference share

14) capital expenditure & revenue expenditure

15) trial balance & balance sheet

16) journey and ledger

17) straight line & written down method

18) capital reserve & revenue reserve

19) interest and dividend

Topic to be cover 

1) trial balance :- definition, errors not disclosed by trail balance, errors disclosed by trial balance

2) depreciation :- definition, factors causing depreciation, type of depreciation

3) accounting conventions/ concept/principles

4) bank reconciliation statement:- definition, causes fir disagreement between cash book & pass book.

5) provision, types of provision.

6) reserve, types of reserve.

7) bill of exchange

8) promissory notes

9) negotiable instruments

10) trail balance

11) good will, valuation of good will, good will on dissolution

12) profitability ratios & it's types

13) shares ,types of shares

14) debenture, types of debentures.

********

Book Keeping Bills of Exchange - Accommodation Bill

BILLS OF EXCHANGE

AND

ACCOMMODATION BILL

                                                                  

Bill of Exchange:

ü Meaning: A Bill of Exchange means " An instrument in writing containing an unconditional order, signed by the Drawer(maker), directing a certain person (Drawee)  to pay a certain sum of only to or to order of, a certain person or to the bearer of the Instrument."

ü Usually, bills of exchange are intended to finance only actual transaction in goods. Example: Shankar purchases goods for an amount of Rs.1000 from Ramesh on credit basis. So Ramesh (maker) makes a Bill for an amount of Rs.1000 and sent to Shankar for acceptance. On the due date, Shankar pays 1000 to Ramesh duly honouring the bill on presentation by Ramesh.

Accommodation Bill:

ü Meaning: A Bill made, drawn, accepted, or endorsed by one person for another without consideration, to enable the second person to obtain credit or raise money is called ACCOMMODATION  B ILL.

ü Example: In Accommodation Bills, though transaction of selling/buying good not takes place between Shankar and Ramesh, Ramesh (Drawer or Maker) makes/drafts a bill for an amount of Rs. 1000 and sent to Shankar(Drawee) for acceptance for the sole purpose of raising funds temporarily.(by Shankar).

ü Then Shankar discounting the Bill with the Banker for Rs. 975.  On the date of maturity,  Shankar has to pay Rs.1000 to the Ramesh, who is in order to honor the bill presented by the Banker (Payee).

ü Thus Shankar raises funds to meet his finance requirements temporarily with the help of Ramesh.

ü Some times Shankar and Ramesh (both parties) can raise funds by drawing the bills on others and get them acceptance. Later both can discount their bills at Bankers and get the requisite funds.  Like in the above example, both will be honouring the Bills on maturity date.

ü Record of journal entries regards accommodation bills as usual in other Bills of Exchange only.  There is no special treatment as far as Accommodation Bills concerned.

                                                                                      $$$$

Book keeping - Final Accounts - Tips

TIPS FOR PREPARATION OF FINAL ACCOUNTS IN 

BOOK KEEPING PAPER

ü  Each item in the Trial balance -------------------------->  Must only be entered once in Final Accounts.

ü  Adjustments at the foot of Trial balance ---------------------> posted two times in Final Accounts. 

ü  Post all Nominal accounts (such as all expenses and incomes ) in Trading and P&L Accounts.

ü  Post all Real (Assets) and Personal Accounts in the Balance Sheet.

ü  Balance Sheet is a Statement, not an Account.  Hence Dr and Cr words should not be used.

ü  Trading A/c or P&L A/c is prepared for the year 2014-15, whereas preparation of Balance Sheet as on 31st March, 2015.

ü  Because preparing Trading and P&L A/c to report their financial performance over a period of time i.e., for the year 2014-15, whereas Balance Sheet to report financial position at a specific date i.e., as on 31st March, 2015.

ü  Trading expenses should post in P&L A/c, not in Trading Account.  Here Trading expenses means expenses related to Sales.

ü  Carriage inwards --------------------> related to Purchases ----------------------> Trading A/c.

ü  Carriage outwards ------------------> related to Sales ---------------------> P&L A/c.

ü  Wages & Salaries ----------------------> Trading A/c.

ü  Salaries & Wages ------------------------>  P&L A/c.

ü  If Closing Stock appearing in Trial Balance  (instead of adjustments at the end of trial balance):

 Closing stock, under this case, will not be shown on the credit side of the Trading Account but will be shown on the assets side of  Balance Sheet only.  (Remember, any entry appearing in the Trial Balance appears only once. Closing stock is a real account, hence appears on the assets side of the balance sheet.)

MANY MORE SUCH TIPS WILL BE POSTED INTO THE WEBSITE IN COMING DAYS.  ALL THE BEST