Finance Testing
Basic terms of FINANCEGolden Credit Debit rules of FINANCE
Types of accounts in FINANCE
Types of voucher in FINANCE
Basic terms of FINANCE
Income Tax Slab for India
Income Tax Slab for USA
Income Tax Slab for China
What is finance ?
Finance is just a world of DEBIT and CREDIT.
There are few basic terms that one must know :
Assets: tangible and intangible items that the company owns that have value (e.g. cash, computer systems, patents).
Liabilities: money that the company owes to others (e.g. mortgages, vehicle loans).
Equity : Equity is that portion of the total assets of the company that the owner fully owns.
Assets = Liabilities + Owner's Equity.
Revenue or Income: money the company earns from its sales of products or services, and interest and dividends earned from marketable securities.
Expenses: money the company spends to produce the goods or services that it sells (e.g. office supplies, utilities, advertising).
Capital : In economics, capital, or financial capital to be precise, refers to the funds made available by investors and lenders to entrepreneurs to arrange (read buy) machinery and equipment for the production of goods.
Working Capital = current asset – current liability.
Credit debit rules :
Rule 1.
Debit to receiver
Credit to giver
Rule 2.
Debit what comes in
Credit what goes out
Rule 3.
Debit All Exp /Loss
Credit Income/Gain
The accounts are of three types:
1.Personal Account: Debit the receiver n credit is the giver.
(Sub type of account)*
2.Real Account:Debit what comes in n credit what goes out.
Relate to the assets of the firm but not debt.
Example : building , land , investment etc. 3.Nominal Account: Debit all expenses n losses n credit all incomes n gains.
What is voucher in Finance ?
Voucher : Voucher is a document provide evidence of some business transaction.
Types of voucher :
There are basically four types of vouchers :
1. Bank voucher
2. Cash Voucher
3. Journal Voucher
4.Contra voucher
Bank voucher are divided in two type : Payment voucher & Receipt Voucher
Cash voucher are divided in two type : Payment voucher & Receipt Voucher
Journal voucher are divided in two type : Purchase voucher, Sales Voucher & Adjustment Voucher
Contra Voucher : Between Bank to bank
Income Tax Slabs
Here is the Income tax slab for India, USA & UK.
Income Tax slab in India for Financial Year 2016-2017
For Men Below 60 Years of Age
| Income Tax Slab | Income Tax Rate |
| Income upto Rs. 2,50,000 | Nil |
| Income between Rs. 2,50,000-Rs. 500,000 | 10% of Income exceeding Rs. 2,50,000 |
| Income between Rs. 500,001 - Rs. 10,00,000 | 20% of Income exceeding Rs. 5,00,000 |
| Income above Rs. 10,00,000 | 30% of Income exceeding Rs. 10,00,000 |
For Women Below 60 Years of Age
| Income Tax Slab | Income Tax Rate |
| Income upto Rs. 2,50,000 | Nil |
| Income between Rs. 2,50,000-Rs. 500,000 | 10% of Income exceeding Rs. 2,50,000 |
| Income between Rs. 500,001 - Rs. 10,00,000 | 20% of Income exceeding Rs. 5,00,000 |
| Income above Rs. 10,00,000 | 30% of Income exceeding Rs. 10,00,000 |
For Senior citizen Age between 60 to 80 years
| Income Tax Slab | Income Tax Rate |
| Income upto Rs. 3,00,000 | Nil |
| Income between Rs. 3,00,000-Rs. 500,000 | 10% of Income exceeding Rs. 2,50,000 |
| Income between Rs. 500,001 - Rs. 10,00,000 | 20% of Income exceeding Rs. 5,00,000 |
| Income above Rs. 10,00,000 | 30% of Income exceeding Rs. 10,00,000 |
For Senior citizen Age more than 80 years
| Income Tax Slab | Income Tax Rate |
| Income upto Rs. 5,00,000 | Nil |
| Income between Rs. 500,001 - Rs. 10,00,000 | 20% of Income exceeding Rs. 5,00,000 |
| Income above Rs. 10,00,000 | 30% of Income exceeding Rs. 10,00,000 |
Income Tax slab in USA
Taxable Income Brackets and Rates (Estimate)
| Rate | Single Taxable Income | Married Joint Filers | Married Filing Separately Taxable Income | Head of Household Filers |
| 10% | $0 to $9,275 | $0 – $18,550 | $0 – $9,275 | $0 – $13,250 |
| 15% | $9,276 – $37,650 | $18,551 – $75,300 | $9,276 – $37,650 | $13,251 – $50,400 |
| 25% | $37,651 – $91,150 | $75,301 – $151,900 | $37,651 – $75,950 | $50,401 – $130,150 |
| 28% | $91,151 – $190,150 | $151,901 – $231,450 | $75,951 – $115,725 | $130,151 – $210,800 |
| 33% | $190,151 – $413,350 | $231,451 – $413,350 | $115,726 – $206,675 | $210,801 – $413,350 |
| 35% | $413,351 – $415,050 | $413,351 – $466,950 | $206,676 – $233,475 | $413,351 – $441,000 |
| 39.6% | $415,051+ | $466,951+ | $233,476+ | $441,001+ |
Income Tax slab in UK
Income Tax in China
| Tax % | Monthly Income(CNY) |
| Income between 1 - 1,500 | 3% |
| Income between 1,501 - 4,500 | 10% |
| Income between 4,502 - 9,000 | 20% |
| Income between 9,001 - 35,000 | 25% |
| Income between 35,001 - 55,000 | 30% |
| Income between 55,001 - 80,000 | 35% |
| Income between 80,000 and above | 45% |
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