Acceptance The drawee's acknowledgement of the LIABILITY on a BILL OF EXCHANGE, in writing on the instrument itself. A bill may also bear the co-acceptance by a bank, which is a guarantee to honour the instrument in the event of default by the drawee.

Accommodation Bill A BILL OF EXCHANGE without any consideration, or quid pro quo. In this case, a person signs a bill and makes himself liable, without receiving any value in return, such as, an advantage or a benefit. The purpose of accepting such a bill is to accommodate the drawer who is temporarily in need of funds. The acceptance enhances the LIQUIDITY of the instrument, which can be discounted by the drawer with a bank.

Accrual Basis A method of accounting that recognizes revenues and expenses as they accrue, even though cash would not have been received or paid during the accrual period.

ADR An acronym for American Depository Receipt. It is an instrument traded at U.S. exchanges representing a fixed number of shares of a foreign company that is traded in the foreign country. By trading in ADRs, U.S. investors manage to avoid some of the problems of dealing in foreign securities markets. The ADR route enables companies to raise funds in the U.S. financial markets, provided they meet the stringent regulatory norms for disclosure and accounting. (See also GDR.)

Allotment The acceptance of an application subscribing to the shares or other securities of a company. Such allotment establishes the contractual relationship that underlies an investment through public subscription.

Amortization The reduction f an amount at regular intervals over a certain time period. This term is used to refer to the reduction of debt by regular payment of loan installments during the life of a loan. It is also used to described the accounting process of writing off an intangible ASSET.

Annual Report A yearly publication that contains particulars relating to the operating data of a company, and which is published and distributed by the company to its share-holders, as per the requirement of the Companies Act. The important contents are the profit and loss statement and the BALANCE SHEET. These statements show a company's performance in terms of sales and earnings during a financial year, and also its year-end financial position in terms of ASSETS and LIABILITIES. It also contains the directors' report, a notice to the shareholders about the proposed business agenda of the annual general meeting and the auditor's report.

Arbitrage The simultaneous purchase and sale transactions in a security or a commodity, undertaken in different markets to profit from price differences. For example, an arbitrageur may find that the share of The Tata Iron and Steel Company (TISCO) is trading at a lower price, at the Vadodara Stock Exchange compared to the exchange at Bombay. Hence, he may simultaneously purchase TISCO stock in Vadodara at, say Rs.250, and sell in Bombay at a higher price, say Rs.256, making a profit of Rs.6 per share less expenses.

Asset Management Company (AMC) A company set up for floating and managing schemes of a MUTUAL FUND. An AMC earns fees by acting as the PORTFOLIO manager of a fund. The AMC is appointed by the Board of Trustees, which oversees its activities. Thus, a mutual fund is generally established as a trust by a SPONSOR, which could be a registered company, bank or FINANCIAL INSTITUTION. Also, a custodian and a registrar are appointed to ensure safe keeping of the fund's securities and to deal with investors' applications, correspondence, etc.

At-the-Money The term relates to trading in listed OPTIONS. An option is said to be trading "at-the-money" when the STRIKING PRICE and the market price of the underlying share are equal. 


Balance of Payments A statement that contains details of all the economic transactions of a country with the rest of the world, for a given time period, usually one year. The statement has two parts: the Current Account and the Capital Account. 

Abbreviations used in bookkeeping -
· a/c – account
· B/S – Balance Sheet
· c/d – carried down
· b/d – brought down
· b/f – brought forward
· Dr – Debit record
· Cr – Credit record
· G/L – General Ledger: (or N/L – Nominal Ledger)
· P&L – Profit & Loss
· TB – Trial Balance

The Accounting Equation
Now let us discuss the accounting equation, which keeps all the business accounts in balance. We will create this equation in steps to clarify your understanding of this concept. In order to start a business, the owner usually has to put some money down to finance the business operations. Since the owner provides this money, it is called Owner’s equity. In addition, this money is an Asset for the company. This can be represented by the equation:

ASSETS = OWNER’S EQUITY

If the owner of the business were to close down this business, he would receive all its assets. Let’s say that owner decides to accept a loan from the bank. When the business decides to accept the loan, their Assets would increase by the amount of the loan. In addition, this loan is also a Liability for the company. This can be represented by the equation:

Assets = Liabilities + Owner’s Equity

Now the Assets of the company consist of the money invested by the owner, (i.e. Owner’s Equity), and the loan taken from the bank, (i.e. a Liability). The company’s liabilities are placed before the owners’ equity because creditors have first claim on assets.
If the business were to close down, after the liabilities are paid off, anything left over (assets) would belong to the owner.


Financial Statements
In order to manage your business effectively you need reports that tell you how your business is performing. For example, you may want to know the value of your assets like, Cash you have on hand,Cash in bank, and Inventory in stock. In addition, you would like to know the value of your liabilities, loans, income earned, and expenses incurred. Accountants prepare financial statements that summarize these transactions. Two of the most important reports for managing your business are Income Statement and the Balance Sheet.

Income Statement
An Income Statement is also called a Profit and Loss Report. In addition, the word Revenue is often used in place of the word Income. An Income Statement is used to inform you about the income earned, expenses incurred, and the total profit or loss in a particular period. Two common periods for creating an income statement are monthly and annually.
This report summarizes all Income (or sales), the amounts that have been or will be received from customers for goods delivered or services rendered to them, and all expenses, the costs that have arisen in generating revenues. To show the actual profit or loss of a company, the expenses are subtracted from the revenues to show the Net Income – profit or the “bottom line”.
Income Accounts: These accounts are used to track income earned during the process of operating your business. The income of a business comes from sales to customers or fees for services or both. Some of the common names for income accounts are:
• Income from Sales
• Income from Freight
• Other Income
Expense Accounts: These accounts are used to track expenses incurred during the process of operating your business. Expenses include both the costs directly associated with creating products and general operating expenses. Some of the common names for expense accounts are:
• Cost of Sales
• Office Supplies
• Utilities


 
Companies act sections

Sections
1. Short title, commencement and extent
2. Definitions
2A. Interpretation of certain words and expressions
3. Definitions of "company", "existing company", "private company" and "public company"
4. Meaning of "holding company" and "subsidiary"
4A. Public financial institutions
5. Meaning of "officer who is in default"
6. Meaning of "relative"
7. Interpretation of "person in accordance with whose directions or instructions directors are accustomed to act"
8. Power of Central Government to declare an establishment not to be a branch office
9. Act to override memorandum, articles, etc.
10. Jurisdiction of courts
10A. [Omitted]
10B. [Omitted]
10C. [Omitted]
10D. [Omitted]


INCORPORATION OF COMPANY AND MATTERS INCIDENTAL THERETO

11. Prohibition of associations and partnerships exceeding certain number
12. Mode of forming incorporated company
13. Requirements with respect to memorandum
14. Form of memorandum
Page 2 of 332
15. Printing and signature of memorandum
15A. Special provision as to alteration of memorandum consequent on alteration of name of State of Madras
15B. Special provision as to alteration of memorandum consequent on alteration of name of State of Mysore
16. Alteration of memorandum
17. Special resolution and confirmation by Company Laws Board required for alteration of memorandum
17A. Change of registered office within a State
18. Alteration to be registered within three months
19. Effect of failure to register
20. Companies not to be registered with undesirable names
21.Change of name by company
22. Rectification of name of company
23. Registration of change of name and effect thereof
24. Change of name of existing private limited companies
25. Power to dispense with "Limited" in name of charitable or other company
26. Articles prescribing regulations
27. Regulations required in case of unlimited company, company limited by guarantee or private company limited by
shares
28. Adoption and application of Table A in the case of companies limited by shares
29. Form of articles in the case of other companies
30. Form and signature of articles
31. Alteration of articles by special resolution
32. Registration of unlimited company as limited, etc.
33. Registration of memorandum and articles
34. Effect of registration
35. Conclusiveness of certificate of incorporation
36. Effect of memorandum and articles
37. Provision as to companies limited by guarantee
38. Effect of alteration in memorandum or articles
39. Copies of memorandum and articles, etc., to be given to members
40. Alteration of memorandum or articles, etc., to be noted in every copy
41. Definition of "member"
42. Membership of holding company
43.Consequences of default in complying with conditions constituting a company a private company
43A Private company to become public company in certain cases
44. Prospectus or statement in lieu of prospectus to be filed by private company on ceasing to be private company
45. Members severally liable for debts where business carried on with fewer than seven, or in the case of a private
company, two members
46. Form of contracts
47. Bills of exchange and promissory notes
48. Execution of deeds
49. Investments of company to be held in its own name
50. Power for company to have official seal for use outside India
51. Service of documents on company
52. Service of documents on Registrar
53. Service of documents on members by company
54. Authentication of documents and proceedings

• The SEBI Act, 1992
• The SC(R)A, 1956
• The Depositories Act, 1996
• The Companies Act, 1956.
• The Banking Regulation act,1949
• The Reserve Bank of India Act,1934
• The Income Tax Act 1961
• The Finance Act, 1994
• The Contract Act, 1872
• The Transfer of Property Act, 1882
• The Sale of Goods Act, 1930
• Securitisation and Reconstruction of Financial Assets And Enforcement of Security Interest (SARFAESI) Act, 2002
• Foreign Exchange managenment act,2000
• Prevention of money laundering Act,2002
• The Insurance Regulation And Regulation Act,

These were the acts to be followed for the finance

HR acts as there are many these were followed accordingly on the basis of the company

• The Trade Unions Act,1926 And The Trade unions (Amended) Act 2001
• The Industrial  Employment (Standing Orders) Act 1946
• The Industrial Disputes act, 1947
• The payment of wages act,1936
• the minimum wages act, 1948
• the workmen compensation act 1923
• EMPLOYEES' STATE INSURANCE ACT, 1948

well to the side of the accounting,
the recording and summarizing is done by passing  journal entries and ledgers as you all know how they are passed by basing on the principles of accounting and then to Trail balance, P&L, & Balance sheet. They are all done and reported as prescribed by the Institute of Chartered Accountants of  India.

In the financial management it deals with mostly with the Depreciation & Taxes and Now on we would discuss with it

methods to deal with

Financial Management & Human Resources Management
Financial Management
It deals with the process of managing the overall profitability of the company many methods are there to implement and to deal with the financial and HR but i do believe the most of the practical applicability and the way we deal with it
of the all lets start with my favorite subjects Accounts, Finance, and Taxes. to deal with financial management we have to learn with the accounts first with the Indian system of accounting.
 there are 3 types of accounts classified and determined by there principles they are as follows
1)Personal a/c's: Principle Debit the receiver  credit the giver

2)Real a/c's :      Principle Debit What comes in Credit what goes out
3)Nominal a/c's  Principle Debit  expenses and losses credit all income and gains.

 These were Known as GAAP (Generally accepted accounting principles) And the regulations stipulated by the Chartered Accountants Institute of India there are 29 Standards determined  also known as the AS Standards.