Dr. Sujit Dutta

Golden rules of accounting

Basics of Golden Rules of Accounting and Accounting Equation with Dual Aspect Concept

3 Comments / Accounting /

Accounting is often referred to as the language of business, but every language has its own grammar and rules. Similarly, the entire accounting system is built upon a few fundamental principles that ensure every business transaction is recorded accurately and systematically. Among these, the concepts of debit and credit, the Golden Rules of Accounting, the […]

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U.S. taxation basics

Fundamentals of U.S. Taxation: Concepts and Essential Tax Forms

8 Comments / US Tax /

When students first approach U.S. taxation, it often appears complex and layered. However, once the foundational structure is understood, the system becomes much more logical and interesting. Let’s break it down into simple, conceptual elements. Unlike many countries, the United States follows a multi-level taxation system, where taxes are imposed at different levels: This means

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Cash Book, BRS and Cash Flow Statement

Cash Book, BRS and Cash Flow Statement (AS 3): How they are connected

4 Comments / Accounting /

Cash and bank balances represent the most liquid resources of a business. Their accurate recording is essential because they not only affect day-to-day operations but also influence the Balance Sheet and the Cash Flow Statement. To ensure proper control over these balances, accountants maintain a Cash Book and periodically prepare a Bank Reconciliation Statement (BRS).

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Accounting concepts and conventions

Concepts and Conventions in Accounting: Practical Insights for Students

3 Comments / Accounting /

Accounting is the language of business but often introduced as a subject of rules, formats, and calculations. But it is built on a set of fundamental concepts that give meaning and consistency to every number recorded. If students understand these concepts clearly, they don’t need to “memorize accounting”—they can reason out answers, even in interviews

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Historical cost vs fair value accounting

Historical Cost vs Fair Value Accounting: A Practical Understanding under AS and Ind AS

2 Comments / Accounting /

Financial statements are prepared according to a framework of accounting principles commonly known as GAAP (Generally Accepted Accounting Principles). GAAP includes accounting concepts, conventions, standards and disclosure requirements that guide companies in preparing financial statements in a consistent and comparable manner. Traditionally, Indian Accounting Standards (AS) largely emphasized the historical cost concept, under which assets

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Understanding GAAP, AS, Ind AS and IFRS

1 Comment / Accounting /

In the modern business environment, financial statements are not prepared merely to calculate profit; they are prepared to communicate financial information in a structured, reliable and globally understandable manner. While studying accounting and corporate reporting, students frequently encounter terms such as GAAP, Accounting Standards (AS), Ind AS and IFRS, which often create conceptual confusion because

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PAT vs cash flow from operating activities

PAT vs Cash Flow from Operating Activities: A Practical Understanding under AS 3

1 Comment / Accounting /

In the world of accounting, “profit” and “cash” are not always the same. A company may report a strong Profit After Tax (PAT) under the Statement of Profit & Loss prepared in accordance with GAAP, Accounting Standards and Schedule III of the Companies Act, yet still face cash shortages in day-to-day operations. This happens because

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Asset side of the balance sheet

Understanding the Asset Side: Linking Investment Decisions with Financial Ratios

Leave a Comment / Finance /

Having examined the funding side of the Balance Sheet in our last blog, it is equally important to understand how these funds are deployed within the business. This tells us that whatever funds a business raises—whether from owners (equity) or borrowings (debt) must be fully utilised in acquiring assets. But the real question is: how

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Understanding the Funding Side of the Balance Sheet: A Gateway to Connected Ratio

3 Comments / Finance /

When we analyze the liability side of the Balance Sheet, we are essentially looking at the sources of funds—primarily shareholders’ equity and borrowings. However, the Balance Sheet presents only a snapshot at a point in time. To truly understand how these funds are raised, repaid, or managed over a period, we must look beyond and

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