Private company versus publicly listed company – what is the difference

A company can be classified as private or publicly listed based on whether it’s stocks can be traded in financial markets or not. Organizations whose shares are traded in the financial markets (stock exchanges) are known as publicly listed companies. Organizations whose shares can’t be traded in the financial market is referred to as a … Read More » "Private company versus publicly listed company – what is the difference"

How many board meetings a One Person Company should conduct in a year

To consider policy issues and other major problems of a one person company, board meetings are held by bringing together the directors. Companies act allow you to hold it in many forms. Directors can meet to take decision in all most all cases of the OPC. They can also delegate certain type of functions to … Read More » "How many board meetings a One Person Company should conduct in a year"

Fixed assets on the company’s balance sheet

Asset held with the intention of being used for the purpose of producing goods or providing services and is not held for sale in the normal course of business is known as fixed assets. Fixed assets are shown on the balance sheet at its historical cost less accumulated depreciation. Cost of fixed assets Cost of … Read More » "Fixed assets on the company’s balance sheet"

Inventory on the balance sheet

In simplified terms, inventory consists of items which the company owns but has not yet sold and/or consumed. Inventory is shown under the head current asset on the balance sheet because in the normal operating cycle, the company usually converts the goods into cash. Inventory for a manufacturing company consist of: Raw materials Work-in-progress Finished … Read More » "Inventory on the balance sheet"

what is Retained Earnings and how its calculated

Company’s profit can be distributed as dividend or retained for reinvestment within the organisation. Based on management’s plan, companies in general distribute a portion of the profit as dividend and the balance left out reinvested for future growth. Retained earnings is the accumulated profit that the company earns and retain for reinvestment purpose after paying … Read More » "what is Retained Earnings and how its calculated"

Single entry or double entry bookkeeping – What is best

Bookkeeping is the process of accumulating, classifying, recording and organizing a financial transaction to facilitate day-to-day transaction of an entity for preparing financial statement. We have two systems of bookkeeping to consider: single-entry and double-entry. Based on your business size and complexity, you can use either single-entry or double-entry bookkeeping system. Single-entry bookkeeping system If … Read More » "Single entry or double entry bookkeeping – What is best"

How to start a Systematic Investment Plan or SIP in Mutual Fund

There are two ways to invest in a mutual fund. One is the one-time outright payment directly to the mutual fund and the other one is periodic payments to a predefined mutual fund scheme. The First type of investment is called Lump Sum investment and the second one is called SIP or Systematic Investment Plan … Read More » "How to start a Systematic Investment Plan or SIP in Mutual Fund"

Difference between repo rate and reverse repo rate

In this article, we will be discussing the difference between repo and reverse repo rate. To understand reverse repo rate, we first have to understand what is repo rate. For short term requirement, banks in Indian can borrow money from RBI to lend to customers. When bank borrow money from RBI, they pay a fixed … Read More » "Difference between repo rate and reverse repo rate"