Unit 3
Modern Office Equipments
Introduction-
The word automation denotes replacement of human labour by machine. The mechanical operations in office with less human participation is termed as automation. The word mechanization and automation should not be considered as synonymous. Mechanization refers to a process whereby office machines and equipment’s are introduced in the office with a view to aid administrative processes.
But automation is something more than mechanization because automation is a self-regulated process in which the work is completed with minimum human efforts. The self-regulated process aims at continuous flow of information without minimum human intervention. So, in brief the word automation denotes the art of recording, processing and controlling the information automatically by mechanical and electronic machine.
Meaning
Office automation (OA) refers to the collective hardware, software and processes that enable automation of the information processing and communication tasks in an organization. It involves using computers and software to digitize, store, process and communicate most routine tasks and processes in a standard office.
Importance of Automation-
a) Automation facilitates efficient and detailed information through the use of mechanical aids like computers.
(b) It ensures speedy recording. Processing and presenting of information.
(c) Increased volume of work, scarcity of time and the slow manual processes necessitate the introduction of automation.
(d) It facilitates better quality work by reducing errors which are created on manual work.
(e) Revolution in office has been brought by automation because increased volume of work is handled in a better manner with greater accuracy and speed because of automation. This process results in increased output.
(f) Automation increases the goodwill and reputation of the firm because it adds to the prestige and status symbol of the enterprise.
While selecting office machines, he has to consider the main objectives for introduction of such machines. The objectives of office mechanization are:
i) To Save Labour: There is saving of labour as large volume of work can be handled by fewer employees.
Ii) To Save Time: Machines work faster and give more output than what is manually possible. Thus, there is considerable saving of time.
Iii) To Promote accuracy: As office machines minimize clerical errors, accuracy of work especially in accounting, computation, calculations etc. is another objective of office mechanization.
Iv) To Ensure Neat and Clean work: Improved quality of work is one of the important objectives of office mechanization. Work produced with the help of machines is usually neat and uniform in appearance.
v) To Eliminate Monotony: The routine work which is of repetitive nature is generally monotonous and normally leads to boredom. Office machines help in relieving human labour of boredom.
Vi) To Lessen Chances of Fraud: Machines like Cash Register, Cheque Writing Machine etc. help in minimization of frauds and misappropriation of funds to a great extent.
Vii) To Ensure Better Control: Mechanization in office enables the management to exercise effective control over office operations. For example, the use of Time Recording Machine in office ensures better control over attendance of staff.
The advantages of office mechanization are-
1.Higher Efficiency: As the speed of work is greatly increased with the use of office machines, higher efficiency in work done can be achieved resulting in saving of a lot of time.
2. Better Quality of Work: The work performed with the help of machines is standardized, uniform, neat and clean as compared to manually performed jobs.
3. Greater Accuracy: Mechanization ensures greater accuracy of work produced. Clerical errors and frauds can be reduced considerably when Accounting Machines are used.
4. Reduced Operating Costs: Office Machines are labour and time saving devices. They save manual effort and increase productivity and thus lead to overall reduction in operating costs.
5. Relieves Monotony: The monotony of repetitive office work is reduced with the use of office machines.
6. Better Service and Goodwill: The use of office equipment results in improvement of office services. This helps in giving better services to customers and public, which enhances the prestige of an organization. For example, customers’ database can be stored in computer and used whenever required.
7. Effective Control: Mechanization enables management to exercise effective control over various office operations.
8. Effect on Personnel: Office Machines help to motivate employees of the organization and they finish their work on time.
9. Specialization and Modernization: Introduction of office machines is an indicator of modernization in office. When office employees work on same machines for a long period of time, they develop specialized skills which is quite helpful in performing office work.
1.Heavy investment: Initial expenses of installation of office machines are too high for an office to invest. Small organizations cannot afford to privilege them as some machines are quite costly.
2. High maintenance cost: Machines require high operational and periodical maintenance which becomes quite expensive and additional cost to the organization. Sometimes, breakdown of machine may also cause considerable losses to an organization.
3.Risk of Obsolescence: Machines tend to become obsolete in quite a short period of time. Further, many-a-times, machines purchased for specialized jobs cannot be adopted for new or changed office methods.
4.Change in Existing System: Sometimes, introduction of office machines need change in overall office systems and procedures.
5. Need for Trained Operators: Some machines need well-trained and skilled operators. This puts extra financial burden on the organization.
6.Staff’s Resistance: Workers, sometimes, resist introduction of machines and do not cooperate in using machine optimally.
7. Less Flexible: Machines used for one office operation may not be fit to carry out other tasks of similar nature.
8. Uneconomical: Office Machines prove to be wasteful and uneconomical if these are not used up to their optimum capacity.
9. Other problems like noise, space, after sales service etc. are also limitations of office mechanization.
The following factors should be considered at the time of mechanization of office work-
1. The procedure is adopted at present to perform a job and the extent of increasing efficiency if mechanical devices are introduced.
2. There must be a sufficient work for full utilization of machines.
3. The type of machines is necessary to employees.
4. There must be chance of reducing expenses in office operation.
5. Whether the machine is available in India or abroad.
6. Whether all the machines are necessary at one time or in phases. 7. It must be ensured that skilled employees are available to operate the machine or will be trained before purchasing them.
8. The extant of office space is available to install the machine.
9. Whether the machines can be repaired or not. A special care should be devoted for imported machine.
10. Whether spare parts of the machine are available in India freely, particularly for the imported machines.
11. Whether the existing employees will be retrenched by the introduction of machines or not.
12. The cost of the machine
Personal Computers-
A computer is the most commonly used machine in offices. A computer is a machine that can perform a variety of operations such as arithmetical calculations, comparison of data, storage of information, analysis of data and preparation of diagrams and charts etc. The main component of computer is the ‘memory’ unit. The input data and programmes are fed and remain available for reproduction. With the help of Word Processing programmes, one can compose letters, memos, reports etc. visible on screen, edit them, save them and print as often as needed. A document is given a file name and stored on disk or pen drive. High speed, flexibility and accuracy are main advantages of the computer. The main disadvantages include high initial and operating cost, need of trained staff and serious disorder in case of breakdowns. Computer’s desktop environment is within physical limits. A Laptop is a small and light personal computer designed for mobile users. A laptop integrates most of the typical components of a desktop computer, including a display, a keyboard, a pointing device and often including a battery, into a single small and light unit. The rechargeable battery is charged from an AC adapter and typically stores enough energy to run the laptop for three to five hours in its initial state, depending on the configuration and power management of the computer.
Photocopier-
A Photocopier is a machine which makes copies of visual images quickly and cheaply. With the help of this machine, an exact photographic copy of the original is obtained. Photocopiers use a technology called xerography, a dry process using heat. Copiers can also use other output technologies such as ink jet, but xerography is standard for office copying. One can use Black and White or coloured photocopier of various sizes as per the requirement. With the use of digital technology, a copier effectively consists of an integrated scanner and laser printer. Automatic image quality enhancement and the ability to “build jobs” (that is, to scan page images independently of the process of printing 41 them) are quite useful features of the photocopier. One of the great advantages of using networked digital photocopiers is that hard copies of documents can be scanned into device and forwarded to the appropriate department without the need of making another hard copy. The documents are then stored electronically and changes made are tracked. Employees can also scan copies of documents into the photocopier and send them directly to their computer. Documents can also be scanned into photocopiers and sent via email directly from the device, by linking photocopier to an email server. With logins these emails can be sent from the user’s own email account. Email can be easily recognized by the person receiving it. It is also stored in the user’s sent items. Many new photocopiers also incorporate faxing capabilities. It means that documents scanned into the device may be faxed directly, storing the data in the hard drive.
FAX-
A FAX is an abbreviation for Facsimile. With fax system, it is possible to transmit electronically visual images over telephone lines from one fax machine to another fax machine instantly. It can send handwritten or printed matter like pictures, charts, diagrams etc. to different locations within or outside the country. Fax machines are very convenient to transmit a correspondence speedily that cannot easily be sent through email.
Telephone-
Telephone is the most convenient and widely used means of oral communication for having internal and external contacts in an organization. Telephone calls are classified according to area viz. Local call, STD (Subscriber Trunk Dialling) calls and ISD (International Subscriber Dialling) calls.
Telephone Answering Machine-
Automated voice answering systems are used to take messages and provide automated information retrieval requests. They reduce operator’s error, improve customer service and allow call centre employees to perform other tasks.
Dictating Machines-
Dictating machines may be either mechanical or magnetic. They can record voice on wire or coated tape which can be removed from the machine after dictation and forwarded to the point of transcription. These machines are used to record messages or dictations when boss wants to dictate some matter and the secretary is not available.
Audio Visual Aids-
Audio-visual aids are of various forms. Some say they are broadly of two types, some say of three types, still others say of four or five types. But the materials or audio-visual aids that are used at the primary level may be classified into three major categories. This classification is based on the learners’ sense organs that are influenced by the aids. An aid that influences the learners’ auditory sense (sense related to listening or hearing) is called an audio aid. Such aids are the record player or the gramophone, the radio (programmes) etc.
An annual budget lays out a company's projected income and expenses for a 12-month period. The process of creating an annual budget involves balancing out a business' sources of income against its expenses. In many instances, particularly for non-individuals, an annual budget is expanded to include a balance sheet and cash flow statement. Annual budgets are used by individuals, corporations, governments, and other types of organizations that need to keep track of financial activity.
Annual budgets are considered to be balanced if projected expenditures are equal to projected revenues. It is in deficit if expenditures exceed revenues, and it is in surplus if revenues exceed expenditures.
Annual budgets can apply to either a fiscal or calendar year. These budgets help their creators to plan for the upcoming year and make the necessary adjustments to meet their financial goals. Annual budgets help individuals to better manage their money. For corporations, governments, and other organizations, annual budgets are critical and often mandated for planning purposes with respect to sources of income and necessary expenses-assets, liabilities, and equity required to support operations over the one-year period; and cash flows used for reinvestments, debt management, or discretionary purposes.
Revised budget- A budget revision is a process that allows budget specialists to make changes to a budget in order to increase the company's financial standing. This can mean making revisions to pull in more income to pay off liabilities or finding methods to satisfy the amount of expenses the business is currently spending.
Budget Revisions may be necessary if the current planned expenditures differ from the original or most recent budget approved by the sponsor. Reasons for revising a budget include increases (or decreases) in funding amounts or to reallocate budgeted funds between cost categories within a project. Budget revisions may require sponsor approval.
Before any revisions or changes take place, the revision process needs to include learning how the business budget is currently functioning. During the analysis, the budget specialist or business owner needs to find out what the business needs in terms of expenses and earnings to operate without going into debt. For example, the business may need to spend a specific amount on product development and production in order to sell the products and make money
Budget estimates- Every year, the Budget is presented before Parliament by the Union finance minister. During the speech, the funds allocated for various jobs and activities and ministries are laid out. These numbers are called Budget estimates. For example, if the government sets Rs 1,000 crore aside for defence, then Rs 1,000 crore will the Budget estimate for defence for the given financial year.
One thing to note here is that these estimates are not exact numbers or the final commitment by the government to any particular sector. These are just estimates of the extent of expenditure the government is willing to go for. The government later gives a revised estimate of how much is possible for it to extend to the said sector. The revised estimates and budget estimates may vary, but the difference may not be huge. The actuals are the numbers that represent the real amount extended by the government to the sector concerned.
Budget estimates represent the government's wishes and ambitions. Revised estimates show how the expenditure is likely to pan out. Actuals give the real number for how much was really extended.
A recurring expense is any cost a company experiences at regular intervals that is required for operating the business. The difference between a normal expense and a recurring expense is that a normal expense is a cost experienced once, or multiple times but not on a regular basis. On the other hand, a recurring expense occurs repeatedly with a fixed due date, for instance, the 1st of each month.
Recurring expenses are generally the same amount each pay period.
Examples of recurring expenses
A recurring expense can be any cost incurred by a company on a regular basis. A few examples may include:
- Rent
- Software subscriptions
- Salary payments
- Mortgage payments
- Car payments
- Phone bills
These costs have a clear payment pattern and are ongoing and expected costs for a business. These can be further divided into recurring general expenses and recurring administrative expenses.
Recurring general expenses are recurring costs that cannot easily be linked to a specific function of the business, but rather help the business function overall. This may include rent for an office in which all departments are based.
Recurring administrative expenses are recurring costs that are directly or indirectly linked to the administration and management of a company. This may include a subscription to an invoicing software which helps the accounting department keep track of finances.
Non-Recurring Expenses-
A nonrecurring expense is a cost the company incurs irregularly. Sometimes, a business may experience an emergency cost or need to purchase new equipment. These are nonrecurring expenses that the company still includes on its balance sheet. Each nonrecurring expense takes away from the company's profitability, so the business should understand how much it spends on these costs throughout the year. Investors may also want to know about a company's nonrecurring expenses, especially if they're higher than usual.
For example, if a company repairs damage to its buildings from several storms throughout the year, these expenses could create an extra financial burden for the business. Paying off these expenses can create more working capital and make it more appealing to potential investors.
Vouching is concerned with examining documentary evidence to ascertain the authenticity of entries in the books of accounts. In other words, it is an inspection by the auditor of evidence supporting the transactions made in the books. Vouching is a technique used by an auditor to judge the truth of entries appearing in the books of accounts. Some important definitions of vouching are:
“Vouching means testing the truth of items appearing in the books of original entry.” – J.R. Batliboi
“Vouching is an act of comparing entries in the books of accounts with documentary evidence in support thereof.” - Dicksee
From the above definitions we can conclude that vouching is a technique in which an auditor verifies authenticity and authority of transactions recorded in the books and on the basis of which he submits a report, indicating that accounts are correct, free from errors or fraud and complete.
Verification is the process of substantiation involved in proving that a statement account or item is accurate and stated properly. It is an enquiry into the value, ownership & title, existence and possession, and presence of any charge on the assets as stated in the balance sheet.
Objects of Verification –
- Picture of true position.
- Correct valuation.
- Not exceeding the actual.
- Not less than actual.
- Existence and possession.
- Ownership and title.
- Without fraud or irregularity.
- Arithmetical correctness.
- Correct presentation in the balance sheet.
Valuation-
Valuation means finding out correct value of the assets on a particular date. It is an act of determining the value of assets and critical examination of these values on the basis of normally accepted accounting standard. Valuation of assets is to be made by the authorized officer and the duty of auditor is to see whether they have been properly valued or not. For ensuring the proper valuation, auditor should obtain the certificates of professionals, approved values and other competent persons. Valuation is the primary duty of company officials. Auditor can rely upon the valuation of concerned officer but it must be clearly stated in the report because an auditor is not a technical person. Without valuation, verification of assets is not possible.
If the valuation of assets is not correct, both the financial statements such as Balance Sheet and Profit and Loss Account cannot be correct. Hence, the auditor must take utmost care while valuing the assets to show true and fair view of the state of affairs of the financial position of the concern.
A stock register is a detailed record kept of the shares issued by a corporation, as well as any repurchases and transfers between shareholders. A register is most commonly maintained by a publicly-held company, but can be kept by any corporation, especially when there are many shareholders.
A stock record contains information about securities that are held by a brokerage firm. This record should against every time the firm makes a trade.
The following information is in the stock record:
- Names of the real owners
- Names of the beneficial owners
- Amounts of the securities held by the brokerage firm
- Locations of the securities held by the brokerage firm
Brokerage firms hold securities for investors in street name. For this reason, it is crucial that firms keep thorough records of the true owners of the shares.
With the new technological advancements on Wall Street, paper certificates are no longer needed. Additionally, when stock records hold securities in street name, brokerage firms do not need to provide paper securities to the investor. These new processes made transactions easier and decreased the amount of time needed during trades.
Asset Register-
An asset register is a complete listing of a businesses or an entity’s physical resources. Organizations, schools, or companies use this listing to track the date assets were purchased, calculate their value, and identify their physical locations.
With an asset register, accountants have an accessible reference when comparing the value of the assets against their ledgers or balance sheets. They can also optionally use this list to calculate depreciation as part of a depreciation schedule. As such, this is a vital decision-making tool that businesses can use for asset verification.
Although asset registers involve tracking items, they are not the same as inventory management tools. Inventory management involves keeping a log of what you sell or consume.
The disposal of assets involves eliminating assets from the accounting records. This is needed to completely remove all traces of an asset from the balance sheet (known as derecognition). An asset disposal may require the recording of a gain or loss on the transaction in the reporting period when the disposal occurs. For the purposes of this discussion, we will assume that the asset being disposed of is a fixed asset.
The overall concept for the accounting for asset disposals is to reverse both the recorded cost of the fixed asset and the corresponding amount of accumulated depreciation. Any remaining difference between the two is recognized as either a gain or a loss. The gain or loss is calculated as the net disposal proceeds, minus the asset’s carrying value.
The options for accounting for the disposal of assets are noted below. A proper fixed asset disposal is of some importance from the perspective of maintaining a clean balance sheet, so that the recorded balances of fixed assets and accumulated depreciation properly reflect the assets actually owned by a business.
No Proceeds, Fully Depreciated
When there are no proceeds from the sale of a fixed asset and the asset is fully depreciated, debit all accumulated depreciation and credit the fixed asset.
Loss on Sale
When there is a loss on the sale of a fixed asset, debit cash for the amount received, debit all accumulated depreciation, debit the loss on sale of asset account, and credit the fixed asset.
Gain on Sale
When there is a gain on the sale of a fixed asset, debit cash for the amount received, debit all accumulated depreciation, credit the fixed asset, and credit the gain on sale of asset account.
References:
- Https://tyrocity.com/topic/importance-of-an-office/
- Https://www.yourarticlelibrary.com/office-management/office-management-and-its-importance/53154
- Https://www.londontfe.com/blog/Concept-and-importance-of-office-management
- Https://www.rcvacademy.com/office-meaning-modern-office-concept/
- Https://www.yourarticlelibrary.com/organization/organization-meaning-definition-concepts-and-characteristics/53217
- Https://www.yourarticlelibrary.com/office-management/organising/organising-meaning-process-principle/69776
- Http://egyankosh.ac.in/bitstream/123456789/33238/1/Unit-1.pdf
- Https://www.yourarticlelibrary.com/organization/departmentalisation/departmentalisation-meaning-need-and-types/70074
- Https://www.iedunote.com/departmentalization
- Https://www.businessmanagementideas.com/notes/management-notes/departmentation-management-notes/notes-on-departmentation-meaning-importance-and-basis-organisation/4979
Unit 3
Modern Office Equipments
Introduction-
The word automation denotes replacement of human labour by machine. The mechanical operations in office with less human participation is termed as automation. The word mechanization and automation should not be considered as synonymous. Mechanization refers to a process whereby office machines and equipment’s are introduced in the office with a view to aid administrative processes.
But automation is something more than mechanization because automation is a self-regulated process in which the work is completed with minimum human efforts. The self-regulated process aims at continuous flow of information without minimum human intervention. So, in brief the word automation denotes the art of recording, processing and controlling the information automatically by mechanical and electronic machine.
Meaning
Office automation (OA) refers to the collective hardware, software and processes that enable automation of the information processing and communication tasks in an organization. It involves using computers and software to digitize, store, process and communicate most routine tasks and processes in a standard office.
Importance of Automation-
a) Automation facilitates efficient and detailed information through the use of mechanical aids like computers.
(b) It ensures speedy recording. Processing and presenting of information.
(c) Increased volume of work, scarcity of time and the slow manual processes necessitate the introduction of automation.
(d) It facilitates better quality work by reducing errors which are created on manual work.
(e) Revolution in office has been brought by automation because increased volume of work is handled in a better manner with greater accuracy and speed because of automation. This process results in increased output.
(f) Automation increases the goodwill and reputation of the firm because it adds to the prestige and status symbol of the enterprise.
While selecting office machines, he has to consider the main objectives for introduction of such machines. The objectives of office mechanization are:
i) To Save Labour: There is saving of labour as large volume of work can be handled by fewer employees.
Ii) To Save Time: Machines work faster and give more output than what is manually possible. Thus, there is considerable saving of time.
Iii) To Promote accuracy: As office machines minimize clerical errors, accuracy of work especially in accounting, computation, calculations etc. is another objective of office mechanization.
Iv) To Ensure Neat and Clean work: Improved quality of work is one of the important objectives of office mechanization. Work produced with the help of machines is usually neat and uniform in appearance.
v) To Eliminate Monotony: The routine work which is of repetitive nature is generally monotonous and normally leads to boredom. Office machines help in relieving human labour of boredom.
Vi) To Lessen Chances of Fraud: Machines like Cash Register, Cheque Writing Machine etc. help in minimization of frauds and misappropriation of funds to a great extent.
Vii) To Ensure Better Control: Mechanization in office enables the management to exercise effective control over office operations. For example, the use of Time Recording Machine in office ensures better control over attendance of staff.
The advantages of office mechanization are-
1.Higher Efficiency: As the speed of work is greatly increased with the use of office machines, higher efficiency in work done can be achieved resulting in saving of a lot of time.
2. Better Quality of Work: The work performed with the help of machines is standardized, uniform, neat and clean as compared to manually performed jobs.
3. Greater Accuracy: Mechanization ensures greater accuracy of work produced. Clerical errors and frauds can be reduced considerably when Accounting Machines are used.
4. Reduced Operating Costs: Office Machines are labour and time saving devices. They save manual effort and increase productivity and thus lead to overall reduction in operating costs.
5. Relieves Monotony: The monotony of repetitive office work is reduced with the use of office machines.
6. Better Service and Goodwill: The use of office equipment results in improvement of office services. This helps in giving better services to customers and public, which enhances the prestige of an organization. For example, customers’ database can be stored in computer and used whenever required.
7. Effective Control: Mechanization enables management to exercise effective control over various office operations.
8. Effect on Personnel: Office Machines help to motivate employees of the organization and they finish their work on time.
9. Specialization and Modernization: Introduction of office machines is an indicator of modernization in office. When office employees work on same machines for a long period of time, they develop specialized skills which is quite helpful in performing office work.
1.Heavy investment: Initial expenses of installation of office machines are too high for an office to invest. Small organizations cannot afford to privilege them as some machines are quite costly.
2. High maintenance cost: Machines require high operational and periodical maintenance which becomes quite expensive and additional cost to the organization. Sometimes, breakdown of machine may also cause considerable losses to an organization.
3.Risk of Obsolescence: Machines tend to become obsolete in quite a short period of time. Further, many-a-times, machines purchased for specialized jobs cannot be adopted for new or changed office methods.
4.Change in Existing System: Sometimes, introduction of office machines need change in overall office systems and procedures.
5. Need for Trained Operators: Some machines need well-trained and skilled operators. This puts extra financial burden on the organization.
6.Staff’s Resistance: Workers, sometimes, resist introduction of machines and do not cooperate in using machine optimally.
7. Less Flexible: Machines used for one office operation may not be fit to carry out other tasks of similar nature.
8. Uneconomical: Office Machines prove to be wasteful and uneconomical if these are not used up to their optimum capacity.
9. Other problems like noise, space, after sales service etc. are also limitations of office mechanization.
The following factors should be considered at the time of mechanization of office work-
1. The procedure is adopted at present to perform a job and the extent of increasing efficiency if mechanical devices are introduced.
2. There must be a sufficient work for full utilization of machines.
3. The type of machines is necessary to employees.
4. There must be chance of reducing expenses in office operation.
5. Whether the machine is available in India or abroad.
6. Whether all the machines are necessary at one time or in phases. 7. It must be ensured that skilled employees are available to operate the machine or will be trained before purchasing them.
8. The extant of office space is available to install the machine.
9. Whether the machines can be repaired or not. A special care should be devoted for imported machine.
10. Whether spare parts of the machine are available in India freely, particularly for the imported machines.
11. Whether the existing employees will be retrenched by the introduction of machines or not.
12. The cost of the machine
Personal Computers-
A computer is the most commonly used machine in offices. A computer is a machine that can perform a variety of operations such as arithmetical calculations, comparison of data, storage of information, analysis of data and preparation of diagrams and charts etc. The main component of computer is the ‘memory’ unit. The input data and programmes are fed and remain available for reproduction. With the help of Word Processing programmes, one can compose letters, memos, reports etc. visible on screen, edit them, save them and print as often as needed. A document is given a file name and stored on disk or pen drive. High speed, flexibility and accuracy are main advantages of the computer. The main disadvantages include high initial and operating cost, need of trained staff and serious disorder in case of breakdowns. Computer’s desktop environment is within physical limits. A Laptop is a small and light personal computer designed for mobile users. A laptop integrates most of the typical components of a desktop computer, including a display, a keyboard, a pointing device and often including a battery, into a single small and light unit. The rechargeable battery is charged from an AC adapter and typically stores enough energy to run the laptop for three to five hours in its initial state, depending on the configuration and power management of the computer.
Photocopier-
A Photocopier is a machine which makes copies of visual images quickly and cheaply. With the help of this machine, an exact photographic copy of the original is obtained. Photocopiers use a technology called xerography, a dry process using heat. Copiers can also use other output technologies such as ink jet, but xerography is standard for office copying. One can use Black and White or coloured photocopier of various sizes as per the requirement. With the use of digital technology, a copier effectively consists of an integrated scanner and laser printer. Automatic image quality enhancement and the ability to “build jobs” (that is, to scan page images independently of the process of printing 41 them) are quite useful features of the photocopier. One of the great advantages of using networked digital photocopiers is that hard copies of documents can be scanned into device and forwarded to the appropriate department without the need of making another hard copy. The documents are then stored electronically and changes made are tracked. Employees can also scan copies of documents into the photocopier and send them directly to their computer. Documents can also be scanned into photocopiers and sent via email directly from the device, by linking photocopier to an email server. With logins these emails can be sent from the user’s own email account. Email can be easily recognized by the person receiving it. It is also stored in the user’s sent items. Many new photocopiers also incorporate faxing capabilities. It means that documents scanned into the device may be faxed directly, storing the data in the hard drive.
FAX-
A FAX is an abbreviation for Facsimile. With fax system, it is possible to transmit electronically visual images over telephone lines from one fax machine to another fax machine instantly. It can send handwritten or printed matter like pictures, charts, diagrams etc. to different locations within or outside the country. Fax machines are very convenient to transmit a correspondence speedily that cannot easily be sent through email.
Telephone-
Telephone is the most convenient and widely used means of oral communication for having internal and external contacts in an organization. Telephone calls are classified according to area viz. Local call, STD (Subscriber Trunk Dialling) calls and ISD (International Subscriber Dialling) calls.
Telephone Answering Machine-
Automated voice answering systems are used to take messages and provide automated information retrieval requests. They reduce operator’s error, improve customer service and allow call centre employees to perform other tasks.
Dictating Machines-
Dictating machines may be either mechanical or magnetic. They can record voice on wire or coated tape which can be removed from the machine after dictation and forwarded to the point of transcription. These machines are used to record messages or dictations when boss wants to dictate some matter and the secretary is not available.
Audio Visual Aids-
Audio-visual aids are of various forms. Some say they are broadly of two types, some say of three types, still others say of four or five types. But the materials or audio-visual aids that are used at the primary level may be classified into three major categories. This classification is based on the learners’ sense organs that are influenced by the aids. An aid that influences the learners’ auditory sense (sense related to listening or hearing) is called an audio aid. Such aids are the record player or the gramophone, the radio (programmes) etc.
An annual budget lays out a company's projected income and expenses for a 12-month period. The process of creating an annual budget involves balancing out a business' sources of income against its expenses. In many instances, particularly for non-individuals, an annual budget is expanded to include a balance sheet and cash flow statement. Annual budgets are used by individuals, corporations, governments, and other types of organizations that need to keep track of financial activity.
Annual budgets are considered to be balanced if projected expenditures are equal to projected revenues. It is in deficit if expenditures exceed revenues, and it is in surplus if revenues exceed expenditures.
Annual budgets can apply to either a fiscal or calendar year. These budgets help their creators to plan for the upcoming year and make the necessary adjustments to meet their financial goals. Annual budgets help individuals to better manage their money. For corporations, governments, and other organizations, annual budgets are critical and often mandated for planning purposes with respect to sources of income and necessary expenses-assets, liabilities, and equity required to support operations over the one-year period; and cash flows used for reinvestments, debt management, or discretionary purposes.
Revised budget- A budget revision is a process that allows budget specialists to make changes to a budget in order to increase the company's financial standing. This can mean making revisions to pull in more income to pay off liabilities or finding methods to satisfy the amount of expenses the business is currently spending.
Budget Revisions may be necessary if the current planned expenditures differ from the original or most recent budget approved by the sponsor. Reasons for revising a budget include increases (or decreases) in funding amounts or to reallocate budgeted funds between cost categories within a project. Budget revisions may require sponsor approval.
Before any revisions or changes take place, the revision process needs to include learning how the business budget is currently functioning. During the analysis, the budget specialist or business owner needs to find out what the business needs in terms of expenses and earnings to operate without going into debt. For example, the business may need to spend a specific amount on product development and production in order to sell the products and make money
Budget estimates- Every year, the Budget is presented before Parliament by the Union finance minister. During the speech, the funds allocated for various jobs and activities and ministries are laid out. These numbers are called Budget estimates. For example, if the government sets Rs 1,000 crore aside for defence, then Rs 1,000 crore will the Budget estimate for defence for the given financial year.
One thing to note here is that these estimates are not exact numbers or the final commitment by the government to any particular sector. These are just estimates of the extent of expenditure the government is willing to go for. The government later gives a revised estimate of how much is possible for it to extend to the said sector. The revised estimates and budget estimates may vary, but the difference may not be huge. The actuals are the numbers that represent the real amount extended by the government to the sector concerned.
Budget estimates represent the government's wishes and ambitions. Revised estimates show how the expenditure is likely to pan out. Actuals give the real number for how much was really extended.
A recurring expense is any cost a company experiences at regular intervals that is required for operating the business. The difference between a normal expense and a recurring expense is that a normal expense is a cost experienced once, or multiple times but not on a regular basis. On the other hand, a recurring expense occurs repeatedly with a fixed due date, for instance, the 1st of each month.
Recurring expenses are generally the same amount each pay period.
Examples of recurring expenses
A recurring expense can be any cost incurred by a company on a regular basis. A few examples may include:
- Rent
- Software subscriptions
- Salary payments
- Mortgage payments
- Car payments
- Phone bills
These costs have a clear payment pattern and are ongoing and expected costs for a business. These can be further divided into recurring general expenses and recurring administrative expenses.
Recurring general expenses are recurring costs that cannot easily be linked to a specific function of the business, but rather help the business function overall. This may include rent for an office in which all departments are based.
Recurring administrative expenses are recurring costs that are directly or indirectly linked to the administration and management of a company. This may include a subscription to an invoicing software which helps the accounting department keep track of finances.
Non-Recurring Expenses-
A nonrecurring expense is a cost the company incurs irregularly. Sometimes, a business may experience an emergency cost or need to purchase new equipment. These are nonrecurring expenses that the company still includes on its balance sheet. Each nonrecurring expense takes away from the company's profitability, so the business should understand how much it spends on these costs throughout the year. Investors may also want to know about a company's nonrecurring expenses, especially if they're higher than usual.
For example, if a company repairs damage to its buildings from several storms throughout the year, these expenses could create an extra financial burden for the business. Paying off these expenses can create more working capital and make it more appealing to potential investors.
Vouching is concerned with examining documentary evidence to ascertain the authenticity of entries in the books of accounts. In other words, it is an inspection by the auditor of evidence supporting the transactions made in the books. Vouching is a technique used by an auditor to judge the truth of entries appearing in the books of accounts. Some important definitions of vouching are:
“Vouching means testing the truth of items appearing in the books of original entry.” – J.R. Batliboi
“Vouching is an act of comparing entries in the books of accounts with documentary evidence in support thereof.” - Dicksee
From the above definitions we can conclude that vouching is a technique in which an auditor verifies authenticity and authority of transactions recorded in the books and on the basis of which he submits a report, indicating that accounts are correct, free from errors or fraud and complete.
Verification is the process of substantiation involved in proving that a statement account or item is accurate and stated properly. It is an enquiry into the value, ownership & title, existence and possession, and presence of any charge on the assets as stated in the balance sheet.
Objects of Verification –
- Picture of true position.
- Correct valuation.
- Not exceeding the actual.
- Not less than actual.
- Existence and possession.
- Ownership and title.
- Without fraud or irregularity.
- Arithmetical correctness.
- Correct presentation in the balance sheet.
Valuation-
Valuation means finding out correct value of the assets on a particular date. It is an act of determining the value of assets and critical examination of these values on the basis of normally accepted accounting standard. Valuation of assets is to be made by the authorized officer and the duty of auditor is to see whether they have been properly valued or not. For ensuring the proper valuation, auditor should obtain the certificates of professionals, approved values and other competent persons. Valuation is the primary duty of company officials. Auditor can rely upon the valuation of concerned officer but it must be clearly stated in the report because an auditor is not a technical person. Without valuation, verification of assets is not possible.
If the valuation of assets is not correct, both the financial statements such as Balance Sheet and Profit and Loss Account cannot be correct. Hence, the auditor must take utmost care while valuing the assets to show true and fair view of the state of affairs of the financial position of the concern.
A stock register is a detailed record kept of the shares issued by a corporation, as well as any repurchases and transfers between shareholders. A register is most commonly maintained by a publicly-held company, but can be kept by any corporation, especially when there are many shareholders.
A stock record contains information about securities that are held by a brokerage firm. This record should against every time the firm makes a trade.
The following information is in the stock record:
- Names of the real owners
- Names of the beneficial owners
- Amounts of the securities held by the brokerage firm
- Locations of the securities held by the brokerage firm
Brokerage firms hold securities for investors in street name. For this reason, it is crucial that firms keep thorough records of the true owners of the shares.
With the new technological advancements on Wall Street, paper certificates are no longer needed. Additionally, when stock records hold securities in street name, brokerage firms do not need to provide paper securities to the investor. These new processes made transactions easier and decreased the amount of time needed during trades.
Asset Register-
An asset register is a complete listing of a businesses or an entity’s physical resources. Organizations, schools, or companies use this listing to track the date assets were purchased, calculate their value, and identify their physical locations.
With an asset register, accountants have an accessible reference when comparing the value of the assets against their ledgers or balance sheets. They can also optionally use this list to calculate depreciation as part of a depreciation schedule. As such, this is a vital decision-making tool that businesses can use for asset verification.
Although asset registers involve tracking items, they are not the same as inventory management tools. Inventory management involves keeping a log of what you sell or consume.
The disposal of assets involves eliminating assets from the accounting records. This is needed to completely remove all traces of an asset from the balance sheet (known as derecognition). An asset disposal may require the recording of a gain or loss on the transaction in the reporting period when the disposal occurs. For the purposes of this discussion, we will assume that the asset being disposed of is a fixed asset.
The overall concept for the accounting for asset disposals is to reverse both the recorded cost of the fixed asset and the corresponding amount of accumulated depreciation. Any remaining difference between the two is recognized as either a gain or a loss. The gain or loss is calculated as the net disposal proceeds, minus the asset’s carrying value.
The options for accounting for the disposal of assets are noted below. A proper fixed asset disposal is of some importance from the perspective of maintaining a clean balance sheet, so that the recorded balances of fixed assets and accumulated depreciation properly reflect the assets actually owned by a business.
No Proceeds, Fully Depreciated
When there are no proceeds from the sale of a fixed asset and the asset is fully depreciated, debit all accumulated depreciation and credit the fixed asset.
Loss on Sale
When there is a loss on the sale of a fixed asset, debit cash for the amount received, debit all accumulated depreciation, debit the loss on sale of asset account, and credit the fixed asset.
Gain on Sale
When there is a gain on the sale of a fixed asset, debit cash for the amount received, debit all accumulated depreciation, credit the fixed asset, and credit the gain on sale of asset account.
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