Competitive Exams Accountancy: Loans & Advances
Difference between Loan and Advance
Many accountants think that loan and advance is almost same. Both means when a person borrows the money from other, it is called loan or advance. But, If you will deep study of this, then you found many differences between loan and advances.
Loan means debt for personal or business purposes in which loan taker is responsible to return his taken money with interest.
Advance is to get money from those, which have our mutual relationship.
- Employee can get salary in advance from his employer. Advance transaction will arise due to relationship between employer and employee.
- Debtor can give advance money for purchasing any future goods from his supplier or creditor. Or Supplier can demand advance money for passing his order. Rohan has to buy of Goods $50000 in 5/5/2009 but he pay to Sham $50000 in advance in 5/3/2009.
Loan is just Contract between Lender and borrower in which they fix their terms and condition.
What is rate of interest on loan, what is the installment amount, when installment of loan will given, What penalty will be levied if, installment is not given at proper time and many more conditions they can fix.
But in advance, term and condition is fix on their relationship, a good relationship with employer, you can get advance salary with 0% interest rate.
Sometime Imprest cash and call in advance is also deemed advance but these are not loan items.
IASB publishes his new amendments. According to this now IASB will gets public comments to clarify the requirements in
IAS and IFRIC 9 reassessment of Financial Instruments. Now any one can also read Financial instruments project page print-friendly version of the press release.
The proposals are set out in an exposure draft Embedded Derivatives, on which the IASB invites comments by 21 January 2009. The exposure draft is available on the Website IASB.
Accounting Education means that education which teaches recording and maintaining books of accounts. This education came in existence after mathematics and Economics science. In the point of facts, if It should be said that above education is the base of accounting education. Above Education are very helpful for getting accounting Education. In accounting education, we learn what is way of recording our different transactions. With this education, we can calculate our business's result relating to different transactions and events. It is not easy to find to reward or return on investment made by businessman.
Suppose, A company whose sale is 6 Billion $6 X 1000000000000 $and it has spread in 120 countries and if you are said to calculate the profit or loss of a company. Then, you will feel giddy. But, if you learn accounting education, you will feel reposal and easement to calculate above profit or loss.
This accounting education is also helpful for determination of tax because, if we learn to record all transactions in the books and on this base we can calculate correct value of tax and become responsible businessman of this nation.
All tax officers or assessing officers confess the accounts of professional accountants who are expert in accounting education.
Success of business is fully under accounting's thumb. It is impossible to develop business without accounting data and effective use of them for business plannings. For analysis of different statement is also depend on cost and management accounting which are subbranches of accounting.
One of magistral feature of accounting is that this education is encumbrance on brain. All work is done in this education with fully scientific method of accounting.
After spending of time, all other educations forget but accounting education is always young and challenging position in the brain of accountant. Accountant does their work with new power. It is the reason that as accountant's experience increases, by the way amounts to higher posts of administration.
It is true that getting of any education is no so simple and you have to face several difficulties. Like other education accounting education is not so easy. It is the way of complexities and Complications but student should do hard practice and try to understand accounting terminology. After this student can solve every problem of accounting.