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How to account for renting a passenger vehicle?

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When a business leases a private vehicle called a passenger vehicle for the purpose of its business, it must account for this rental. It is an obligation. For best accountancy training Best school of accountancy In Lahore . How to account for financial rents? Focus on this particular device. Accounting for rents and royalties Sometimes a passenger vehicle is rented out by a company as part of its business. In this case, we are talking about rent payments because the company pays money each month to benefit from the vehicle. Of course, these must be accounted for by the company. You have to debit account 6135 Rentals, and credit account 401 Suppliers. However, the accounting system is different when it comes to a lease, and therefore a royalty. Account 6122 Leasing Mobilier must be debited and credited to account 401 Suppliers. Vehicle accounting The recognition of the call option exercise The lease sometimes provides for a call option . In this case, the company eventually...
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Accounting for invoices to be

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At the end of the financial year, the invoices to be drawn up are valued at the amount of the goods delivered or the services performed and are deducted from the tax if the company is liable for VAT. The accounting entries of the invoices to be drawn up differ according to whether they concern goods delivered or services performed. For a delivery, debit account "4181 - Customers / Invoices to be established " and credit accounts "44587 - Turnover tax on invoice to be established" and "707 - Sales of goods" . In the second situation, the account "4181 - Customers / Invoices to be drawn up" must be debited and "44587 - Invoice turnover tax to be established" and "706 - Provision of services" credited . A counter-entry must be made at the beginning of the following financial year. The delicate issue of VAT There are situations in which VAT may be due when the delivery or the service is performed without even the i...
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What is IFRS and IAS?

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The IFRS and IAS accounting standards are international accounting rules that help to maintain confidence among capital market players around the world. For best accountancy training Best school of accountancy In Lahore . Focus on these standards. What are these accounting standards for? The accounting standards used to improve understanding of the accounts. At the international level, the IAS and IFRS standards, ie International Accounting Standards and International Financial Reporting Standards , were created to establish a uniform accounting system among all countries in the world. Why were these accounting standards created? In the 2000s, there were several financial scandals that lastingly scalded confidence between the different countries. IFRS and IAS apply in more than 100 countries . Companies listed on the stock exchange as well as major international groups are obliged to respect these standards to present their accounts. Therefore, the largest groups are affec...
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Invoices to be established: operation and accounting

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Under the accounting principle for the independence of financial years, any delivery of goods or services must be invoiced during the financial year in which it takes place. However, a time lag sometimes exists. The invoices to be established are there to remedy such a situation. What are the invoices? In the course of its business it is common for an undertaking to face a situation in which a supply of goods or the performance of a service takes place during a financial year when the invoicing takes place during the financial year. In terms of accounting, this time lag is inconceivable. Therefore, in the same way as there are deferred revenues to record the products collected before delivery or service, there are invoices to be established for products not billed while the delivery or the service has already taken place. Most often, the invoices to be drawn up are recorded but also recorded at the end of the financial year, that is to say when the company carries out its an...
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What is a financial commitment table?

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Contained in Annex accounting since it contains elements that are significant, the table of financial commitments is an unrecognized financial document. For best accountancy training Best school of accountancy In Lahore . Here is an overview of its content but also the rules to respect for its establishment. Behind the notion of a table of financial commitments, there is in reality a multitude of tables that have the particularity of listing different elements: Simple financial commitments . There will thus appear numerous data such as guarantees given by personal guarantees (guarantees, guarantees or endorsements), receivables ceded not yet due, write-offs, guarantees of assets and liabilities, etc. Complex financial commitments . They mainly correspond to commitments entered into under finance leases or as part of the settlement of difficulties. However, this is also where more complex commitments such as the issue of guaranteed value certificates or the sale of securities ...
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