Banking Notes

Objectives of Foreign Exchange Regulation Act 2019 To regulate foreign exchange related transactions. To maintain the economic interest of the general public. To promote the use of foreign exchange for the payment and receive of foreign trade. To promote foreign investment and technology transfer, To promote the use of foreign currency in loan exchange. To […]

Income Tax Act 2058 acts for regulating all the tax-related matters in Nepal. Revenue Tax Revenue – Direct Tax(Income Tax) and Indirect Tax Non Tax Revenue Objectives of the income tax 2058 To confine all the matters of income in a single law To develop the taxpayer-friendly environment To integrate the Nepalese tax system with foreign

What is a company? Company is an organization of firm incorporated under the provision of company law. Incorporation means the process of registering the firm, organization, institution under the provision of law. A company is also known as a legal or artificial person. Features of the company  Company is incorporated association Company has limited liabilities

Concept of Accounting Before understanding the account, let’s look at the following diagram.  We can draw a definition of accounting from the input, process and output concept as shown in the diagram below. Accounting is the process of identifying financial transaction, systematic and scientific record keeping, classifying summarizing and preparing the final statement in order to provide information to the

Double Entry System Concept If each and every financial activity is recorded by using the rule of debit and credit then such modern, systematic, scientific and fundamental concept of accounting is called double entry system. It has a two-fold effect on the accounting process. The double entry system is a modern system of bookkeeping based

What is Trial Balance? Let closely observe the position of the trial balance in the following diagram. Trial balance sits right between the bookkeeping and the reporting. It works as a bridge between book or record keeping and reporting section of accounting. Trial balance is the bridge between bookkeeping and reporting. In accounting, the trial

Meaning of financial statement The accounting output of the bank or organization is called a financial statement.  It is reporting part of account cycle which is used to provide information to the concern authorities. It is prepared by using unique techniques. It is also called the final account. Main elements of the final account Balance

What is Profit and Loss Account? Profit and loss account is a financial statement which presents the income, gain, losses, and expenses of the firm on a given period of time. It shows the financial performance of the firm because the PL account presents the net profit and net loss. It is the presentation of revenue nature transactions debit side holds the expenses and losses and

The process of checking financial transactions, related documents, ledger, financial statement, and document by employees of the organization internally and by CA, RA externally for finding the truth and fair condition, evaluate documents, prepare report along with personal opinion and submit to concern authority is known as auditing. Auditing refers to the process of a

What is a cash book? Cash book is the book of all information prepared using all the financial transaction of cash inflow and cash outflow in a certain period of time. We do not enter credit transaction in cash book. Cash book acts as ledger and journal at once. Cash book is the description of cash inflow