If there is the factory and there is the fire in that factory and the machine was rendered un-useable and then we sold the machine for scrap, 100,000 was the original value and 50,000 was the written down value showing on the books and the scrap value is 10,000 and from insurance company we were able to recover 30,000, and we purchase another machine to replace the machine for 100,000. How to record the transaction?
Note: This is assuming all transactions are in the same period. If Fire is in Year 1 and Recovery is in Year 2, impairment will be done in Year 1 For the sale of scrap and receivable from Insurance company the entry is Bank a/c Dr 10,000 Insurance Receivable/ Bank a/c Dr 30,000 Loss on...
Keys to effective controllership
It’s not enough to simply know the financial controller role. There are clear ways to be more efficient and effective in this position, and to move from simple data processing to trusted business partners. Here are some keys to doing this. a. Automate, automate, automate! As every accountant is well aware, recording financial transactions still...
Difference between research and development?
Research is original and planned investigation undertaken with the prospect of gaining new scientific or technical knowledge and understanding. Development is the application of research findings or other knowledge to a plan or design for the production of new or substantially improved materials, devices, products, processes, systems or services before the start of commercial production...
Controlling vs accounting
The controller is intricately involved in the company accounting process. And in many cases, they will do a lot of accounting day to day. But in larger finance teams, there’s a clear distinction between the two. Accounting Accounting is the act of recording the company’s transaction data. This includes money coming both in and out...
Controller vs CFO
This is another interesting dynamic. In smaller finance teams, the controller and CFO may even be the same person.The CFO is both the leader of the finance team and a member of the executive leadership. On the one hand, they have to ensure that the finance team is well run and that everyone has all...
What does a Financial Controller do?
The FC is a senior leader in the finance team. For this reason, it’s usually expected that job applications show significant experience in accounting and tax issues, plus the ability to guide others and take ownership of the company’s books.This requires more than simply a gift for numbers. Controllers need to be organized self-managers, with...