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1. Difference between Accounting and Audit 1. Meaning :Accounts : Accounting means the maintaining of the books of accounts.

Audit : Auditing means examining the books of accounts and reporting means to report about their accuracy. 2. Performance Of Work :Accounts : Accountant job is performed by the accountant. Audit : Auditing job is performed by the auditor. 3. Appointment :Accounts : Accountant is appointed by the management. Audit : Auditor is appointed by the share holders. 4. Nature Of Job :Accounts : Accountant job is a mechanical nature. Audit : Auditor job is is not so mechanical in that sense. 5. Qualification :Accounts : For the accountant no specific qualification is required. Audit : For the auditor specific qualification is required. 2. Govt Accounting System

Governmental accounting is an umbrella term which refers to the various accounting systems used by various public sector entities and Government offices. The Government Accounting System is governed by Government Accounting Rules.1990. The accounts of

Government are kept in three parts: 1. Consolidated Funds of India 2. Contingency Funds of India 3. Public Account

3. Difference between Accrual and Cash
Under the cash basis of accounting… 1. Revenues are reported on the income statement in the period in which the cash is received from customers.

2 2 Neither an asset is acquired nor the value of an asset is increased. its effect is reduces gradually. It occurs repeatedly . 3 4 3 4 5.. Expenses are reported on the income statement in the period when they occur or when they expire—which is often in a period different from when the payment is made. Revenue Expenditure Capital Expenditures 1 Its effect is long term i. It does not occur again and again . A company prepares a trial balance periodically.. and breaks the analysis down to operating.2. The statement captures both the current . i. it has physical existence i. 1 Revenue Expenditures Its effect is temporary.e. usually at the end of every reporting period. is non-recurring and irregular. Its benefit is enjoyed in future year or years also. Major Head Vs Minor Head 6.e. The general purpose of producing a trial balance is to ensure the entries in a company's bookkeeping system are mathematically correct. it is exhausted within the currentaccounting year.e. Expenses are reported on the income statement when the cash is paid out. the cash flow statement is concerned with the flow of cash in and out of the business. It has no physical existence.. Generally. i. it is not exhausted within the current account year. Under the accrual basis of accounting… 1. it cannot be seen with eyes. An asset is acquired or the value of an asset is increased as a result result of this expenditure.e. also known as statement of cash flows.. 7. Revenues are reported on the income statement when they are earned—which often occurs before the cash is received from the customers. Trial Balance A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit columns. 2. is a financial statement that shows how changes in balance sheetaccounts and income affect cash and cash equivalents. and financing activities. a cash flow statement. 4.It is recurring and regular. In a word. Cash Flow Statement In financial accounting. it can be seen with eyes. Essentially. Capital Expenditure Vs.

These accounting standards are formulated by Accounting Standards Board of Institute of Chartered Accountants of India. 10. Sources and Application of Fund The Source and Application of Funds Statement shows the total sources of new funds raised between Balance Sheet dates and the total uses of those funds in the same period. liabilities and shareholders' equity at a specific point in time. As an analytical tool. To window dress. . 8. These securities are then reported as part of the fund's holdings. Now India will have two sets of accounting standards viz. Accounting Standard Indian Accounting Standards. the statement of cash flows is useful in determining the short-term viability of a company. 2006 and IFRS converged Indian Accounting Standards(Ind AS). The Source and Application of Funds Statement tells exactly where the company got their money from and how it was spent. existing accounting standards under Companies (Accounting Standard) Rules. (abbreviated as india AS) are a set of accounting standards notified by the Ministry of Corporate Affairs which are converged with International Financial Reporting Standards (IFRS). Window Dressing A strategy used by mutual fund and portfolio managers near the year or quarter end to improve the appearance of the portfolio/fund performance before presenting it to clients or shareholders. These three balance sheet segments give investors an idea as to what the company owns and owes. This statement is made up by listing the changes that have occurred in all of the Balance Sheet Items between any two Balance Sheet dates. 11. particularly its ability to pay bills.operating results and the accompanying changes in the balance sheet. It tells whether management has made sound investment decisions. Balance Sheet A financial statement that summarizes a company's assets. as well as the amount invested by the shareholders. The balance sheet must follow the following formula: Assets = Liabilities + Shareholders' Equity 9. the fund manager will sell stocks with large losses and purchase high flying stocks near the end of the quarter.

towns and villages. engaged either for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose of planning. Any Trust. 1960 or any law corresponding to that Act in any part of India. whose books are required to be audited under section 44AB during the immediately preceding financial year. Any corporation established by or under a Central.  Tax should be deducted at source only if the contract is between the contractor and the following specified persons: 1. TDS in case of contractor Under the Indian Income Tax Act. State or Provincial Act 4. Any University established by or under any Central. A company 5. Any Co-operative Society. State or Provincial Act or any institution declared to be a University under the University Grants Commission Act. 9. Any local authority. the following provisions relate to the Tax Deduction at Source from payments to Contractors and Subcontractors under section 194C.              . 3. or for both. 6. Association of persons or Body of Individuals. Any Society registered under the Societies Registration Act. 7. Any firm. 12. 2. whether incorporated or not.12. 8. Person responsible for paying any sum for carrying any work to any resident contractor should deduct tax at source. [The turnover from business/profession exceeds the limits specified u/s 44AB during the immediately preceding financial year]. development or improvement of cities. Any individual or Hindu Undivided Family whose books are required to be audited under section 44AB during the immediately preceding financial year. The Central Government or any State Government. 11. Any authority. 10. constituted in India by or under any law.

Difference between Deduction and Exemption There are certain incomes on which TAX is not charged (fully or to som extent) they are called tax exempted incomes. For example the income from PPF investment is TAX exempted. where employer or payer is expected to deduct the TAX (at a standard rate) in advance. before maing the payment to you. Read more at: http://www. bank deducts 10% TDS. A corporate tenant will deduct 15% TDS before making the rental payments.13.asp#. before the final payment of interest on FD. That is called Tax Deducted at source.UjEs9dJQFA0 . There are some incomes. Your 2nd phrase should have been "deduction from income" or "tax deduction".com/forum/difference-between-exemptionfromtax-and-deduction-from-tax-19244. Example.caclubindia.