e-mail topics of basic understanding

In the age of the Internet, you might find yourself clicking "reply," typing up a quick response, and hitting "send" without giving so much as a thought about what you've just written. But experts agree that your e-mail behavior has the potential to sabotage your reputation both personally and professionally. Inc.com got in touch with some of the industry's most seasoned e-mail experts and had them weigh in on how to perfect your e-mail etiquette.

1.    Only discuss public matters. We've all heard the stories about a "private" e-mail that ended up being passed around to the entire company, and in some cases, all over the Internet. One of the most important things to consider when it comes to e-mail etiquette is whether the matter you're discussing is a public one, or something that should be talked about behind closed doors. Ask yourself if the topic being discussed is something you'd write on company letterhead or post on a bulletin board for all to see before clicking "send." --Judith Kallos, 
author of E-Mail Etiquette Made Easy, E-Mail: The Manual, and E-Mail: A Write It Well Guide

2.    Briefly introduce yourself. Do not assume the person receiving your e-mail knows who you are, or remembers meeting you. If you are uncertain whether the recipient recognizes your e-mail address or name, include a simple reminder of who you are in relation to the person you are reaching out to; a formal and extensive biography of yourself is not necessary. --Peggy Duncan, personal productivity expert and author of Conquer Email Overload with Better Habits, Etiquette, and Outlook 2007

3.    Don't "e-mail angry." E-mailing with bad news, firing a client or vendor, expressing anger, reprimanding someone, disparaging other people in e-mails (particularly if you're saying something less than kind about your boss) are all major no-no's. Because e-mail can seem so informal, many people fall into this trap. Always remember that e-mail correspondence lasts forever. --Lindsey Pollak, career and workplace expert, e-mail etiquette consultant, and author of Getting From College to Career

4.    Use exclamation points sparingly. The maximum number of exclamation points in a business e-mail? One. Otherwise, you risk looking childish and unprofessional. --Pollak

5.    Be careful with confidential information. Refrain from discussing confidential information in e-mails such as someone's tax information or the particulars of a highly-sensitive business deal. Should the e-mail get into the wrong person's hands, you could face serious – even legal – repercussions. --Peter Post, director of the Burlington, Vermont-based Emily Post Institute, which offers etiquette advice and answers to manners questions such as wedding etiquette, parenting issues and table manners.

6.    Respond in a timely fashion. Unless you work in some type of emergency capacity, it's not necessary to be available the instant an e-mail arrives. Depending on the nature of the e-mail and the sender, responding within 24 to 48 hours is acceptable. --Duncan

7.    Refrain from sending one-liners. "Thanks," and "Oh, OK" do not advance the conversation in any way. Feel free to put "No Reply Necessary" at the top of the e-mail when you don't anticipate a response. --Duncan

8.    Avoid using shortcuts to real words, emoticons, jargon, or slang. Words from grown, business people using shortcuts such as "4 u" (instead of "for you"), "Gr8" (for great) in business-related e-mail is not acceptable. If you wouldn't put a smiley face or emoticon on your business correspondence, you shouldn't put it in an e-mail message. Any of the above has the potential to make you look less than professional. --Duncan

9.    Keep it clean. Nothing annoys recipients more than when people reply and leave the messages messy, for example, an e-mail chain that includes excessive carets (>>>), or pages and pages of e-mail addresses that weren't protected using Bcc. You can get rid of carets by selecting the text, Ctrl+F to use the Find and Replace command to find a caret and replace all of them with nothing. You can get rid of all the e-mail addresses just by deleting. Clean it up, then send it. --Duncan

10.    Be clear in your subject line. With inboxes being clogged by hundreds of e-mails a day, it's crucial that your subject line gets to the point. It should be reasonably simple and descriptive of what you have written about. Expect that any e-mail with a cute, vague, or obscure subject will get trashed. Also, proof your subject line as carefully as you would proof the rest of the e-mail. --Post



11.    Don't get mistaken for Spam. Avoid subject lines that are in all caps, all lower case, and those that include URLs and exclamation points – which tend to look like Spam to the recipient. --Judith Kallos, 
author of E-Mail Etiquette Made Easy, E-Mail: The Manual, and E-Mail: A Write It Well Guide

12.    Your subject line must match the message. Never open an old e-mail, hit Reply, and send a message that has nothing to do with the previous one. Do not hesitate to change the subject as soon as the thread or content of the e-mail chain changes. --Peggy Duncan, personal productivity expert and author of Conquer Email Overload with Better Habits, Etiquette, and Outlook 2007

13.    Provide a warning when sending large attachments. Sending unannounced large attachments can clog the receiver's inbox and cause other important e-mails to bounce. If you are sending something that is over 500KB, senders should ask, 'Would you mind if I sent you an attachment? When would be the best time for you?' --Kallos

14.    No more than two attachments, and provide a logical name. Unless it's been specifically requested, refrain from sending a message with more than two attachments. Also, give the attached file(s) a logical name so the recipient knows at a glance the subject and the sender. --Duncan

15.    Send or copy others only on a need to know basis. Before you click Reply All or put names on the Cc or Bcc lines, ask yourself if all the recipients need the information in your message. If they don't, why send it? Take time to send your messages to the right people. --Duncan

16.    Beware of the "reply all." Do not hit "reply all" unless every member on the e-mail chain needs to know. You want to make sure that you are not sending everyone on a list your answer—whether they needed to know or not. --Duncan

17.    Pick up the phone. When a topic has lots of parameters that need to be explained or negotiated and will generate too many questions and confusion, don't handle it via e-mail. Also, e-mail should not be used for last minute cancellations of meetings, lunches, interviews, and never for devastating news. If you have an employee or a friend you need to deliver bad news to, a phone call is preferable. If it's news you have to deliver to a large group, e-mail is more practical. --Duncan

18.    Evaluate the importance of your e-mail. Don't overuse the high priority option. If you overuse this feature, few people will take it seriously. A better solution is to use descriptive subject lines that explain exactly what a message is about. --Duncan

19.    Maintain privacy. If you're sending a message to a group of people and you need to protect the privacy of your list, you should always use "Bcc." Additionally, avoid giving out e-mail addresses to a third party (such as an Evite, newsletter, etc). Make sure that addresses you willingly hand over to third parties stay with them, especially when the service they're offering is free. --Duncan

20.    Keep it short and get to the point. The long e-mail is a thing of the past. Write concisely, with lots of white space, so as to not overwhelm the recipient. Make sure when you look at what you're sending it doesn't look like a burden to read – feel free to use bullet points. The person reading your e-mail should not have to dig through several paragraphs in order to figure out what you're asking. You should state the purpose of the e-mail within the first two sentences. Be clear, and be up front. --Lindsey Pollak, career and workplace expert, e-mail etiquette consultant, and author of Getting From College to Career



21.     Know your audience. Your e-mail greeting and sign-off should be consistent with the level of respect and formality of the person you're communicating with. Also, write for the person who will be reading it – if they tend to be very polite and formal, write in that language. The same goes for a receiver who tends to be more informal and relaxed. --Lindsey Pollak, career and workplace expert, e-mail etiquette consultant, and author of Getting From College to Career

22.    Always include a signature. You never want someone to have to look up how to get in touch with you. If you're social media savvy, include all of your social media information in your signature as well. Your e-mail signature is a great way to let people know more about you, especially when your e-mail address is does not include your full name or company.  --Pollak

23.    Only use an auto-responder when necessary. An automatic response that says, "Thank you for your e-mail message. I will respond to you as soon as I can" is useless. However, one thing these messages do great is alert spammers that your e-mail is real and that they can add you to their spam list. --Peggy Duncan, personal productivity expert and author of Conquer Email Overload with Better Habits, Etiquette, and Outlook 2007

24.    Train your staff. Business owners should make sure their staff is trained in e-mail communications – don't assume they know what they're doing, and what is considered professional. Set up e-mail standards that everyone at the company should abide by. --Pollak

25.    Your e-mail is a reflection of you. Every e-mail you send adds to, or detracts from your reputation. If your e-mail is scattered, disorganized, and filled with mistakes, the recipient will be inclined to think of you as a scattered, careless, and disorganized businessperson. Other people's opinions matter and in the professional world, their perception of you will be critical to your success. --Peter Post, director of the Burlington, Vermont-based Emily Post Institute, which offers etiquette advice and answers to manners questions such as wedding etiquette, parenting issues and table manners.

ABCD OF BALANCE SHEET

ABCD OF BALANCE SHEET

BALANCE SHEET

Balance sheet is a statement which shows assets and liabilities of the business firm on a particular date. Balance sheet is not an account, it is only a statement. At the end of the year, the balances of all accounts relating to income and expenditures are transferred to profit and loss account and the balances of remaining accounts are shown in the balance sheet. The balances shown in balance sheet are shown as opening balances in next financial year.

Balance sheet is prepared annually or at the end of the financial year. In India, financial year is from 1^stApril to 31^st March. In some countries, financial year is the calendar year i.e. 1^st January to 31^stDecember.

In India there are two formats of preparing of the balance sheet:-

1)      Horizontal format:- In horizontal format of balance sheet, the figures are shown in two parts of balance sheet as under:-

·         Liabilities.

·         Assets.

2)      Vertical format:- In vertical format of balance sheet the figures are shown in two parts of balance sheet as under:-

·         Sources of Funds:- All the liabilities are shown under this head.

·         Application of Funds:- All the assets are shown under this head.

In both formats, the difference is only the presentation. The figures and accounts heads are not affected at all.

CONTENT OF BALANCE SHEET

Following items are shown in balance sheet:-

LIABILITIES

1. CAPITAL (Owner’s Equity)

The structure of Capital or owner’s equity differs according to the different type of business organizations. For example:-

In Limited Companies, the capital is shown as share capital. Again, Share capital shows  separate details of equity shares and preference shares.

In Partnership Firm, the capital is shown as Partner’s Capital.

In Proprietorship Firm, the capital is shown as Proprietor’s Capital account.

2. RESERVES AND SURPLUSES

Reserve and surplus is shown in the balance sheet of limited companies only. This is the part of shareholder’s fund. Reserve and surplus is again divided in following parts:-

·         Capital Reserves

·         Capital Redemption Reserves

·         Share Premium Account or Securities Premium Account

·         General Reserves   (Reserves for any specific reasons etc.)

·         Surplus (Balance in profit and loss account after providing for  proposed allocations, namely, dividend, bonus or reserves

·         Sinking Fund

3.  SECURED LOANS

Secured loans are those loans which are accepted by the business firm against any specific or rolling assets of the company. We can classify the secured loans as follow:-

·         Debentures

·         Loans from banks

·         Loans subsidiaries

·         Other loans

·         Interest accrued and due on secured loans

4. UNSECURED LOANS (No Security)

Unsecured loans are those loans which are accepted by the business firms without any charge or mortgage of any property. For example:-

·         Loans from subsidiaries

·         Personal loans

·         Loans From Friends & Relatives

5. CURRENT LIABILITIES & PROVISIONS

A)    CURRENT LIABILITIES

Current liabilities are those liabilities which are normally settled within one year. We call them as rolling liabilities also. Current liabilities include the followings:-

·         Bills payable

·         Sundry creditors

·         Bank overdraft

·         Cash credit facilities

·         Subsidiaries Companies

·         Credit balances of debtors.

·         Outstanding expenses or Expenses payable

·         Unclaimed dividends

·         Other liabilities (if any)

·         Interest accrued but not due on loans

B).  PROVISIONS

Provision means when any amount is kept separate for certain purpose and also debited in profit and loss account but not paid in current financial year. For example:-

·         Provision for taxation

·         Proposed dividend

·         For contingencies

·         For provident fund scheme, pension and similar staff benefit scheme

·         Other provisions.

 ASSETS

1. FIXED ASSETS

These assets are also called long term assets. Fixed assets are shown in balance sheet at their historical cost less depreciation. The depreciation rates are determined in income tax rules or companies act. Following are the examples of fixed assets:-

·         Goodwill

·         Land

·         Building

·         Leaseholds

·         Railway sidings

·         Plant and machinery

·         Furniture and fittings

·         Development of property

·         Patents, trade marks and design

·         Livestock

·          Vehicles

2. INVESTMENTS

When any business firm invests some money other than its business activities then it will treated as investments. Normally, the investment is made in marketable securities or bonds or mutual funds or debentures etc.

3. CURRENT ASSETS, LOANS AND ADVANCES

A).  CURRENT ASSETS

Current assets are those assets which are mostly settled within a year and according to business trade the net amount of these assets keeps changing on through out the year. For example:-

·         Sundry debtors

·         Bills receivables

·         Closing Stock

·         Interest accrued on investments

·         Cash balance on hand

·         Bank balances

·         Security Deposits

·         Fixed Deposits with banks

B).  LOANS AND ADVANCES

When the loans are given or the amount is paid in advance, by a business firm, shall come under this category.

·         Advances and loans to subsidiaries

·         Advances and loans to partnership firm in which the company or any of its subsidiaries is a partner

·         Taxes paid in advance

·         Advances paid to suppliers.

·         Prepaid Expenses

4. MISCELLANEOUS EXPENDITURE

These are basically, revenue expenditures but these expenditures are written off in more than two years because the effect of these expenditures is seen in more than one years. These expenditures are also called as deferred revenue expenditures. Following are the examples of these expenditures:-

·         Preliminary expenses

·         Expenses including commission or brokerage on underwriting or subscription of shares or debentures

·         Discount allowed on the issue of shares or debentures

·         Interest paid out of capital during construction (also stating the rate of interest)

·         Development expenditure not adjusted

·         Other sums (Specifying nature)

5. PROFIT AND LOSS ACCOUNT

This is shown only when its debit balance could not be written off out of uncommitted reserves.

FORMAT OF THE DETAILED BALANCE SHEET IN A HORIZONTAL FORM

Horizontal Form of Balance Sheet

Balance Sheet of..... (Name of the company) as on.....

Figures for the Previous year Rs.	Liabilities	Figures for the current year Rs.	Figures for the previous year Rs.	Assets	Figures for the current year Rs.
	Share Capital: Authorised …shares of Rs…each Preference Equity Issued : …shares of Rs…each Preference Equity Less: Calls Unpaid: Add: Forfeited Shares Reserves and Surplus: Capital Reserve Capital Redemption Reserve Securities Premium Other Reserves Profit and Loss Account Secured Loans: Debentures Loans and Advance from Banks Loans and Advances from subsidiary Companies Other Loans and Advances Unsecured Loans: Fixed Deposits Loans and Advances     from subsidiary companies Short Term Loans and Advances Personal Loan Loan from Friends & Relatives Other Loans and Advances Current Liabilities and Provisions: A.    Current Liabilities Acceptances Sundry Creditors Expenses Payable Duties & Taxes Outstanding Expenses Advance from Customers B. Provisions: For Taxation For Dividends For Contingencies For Provident Fund Schemes   For Insurance, Pension and   Other similar benefits			Fixed Assets: Goodwill Land Building Leasehold Premises Railway Sidings Plant and Machinery Furniture Patents and Trademarks Live stock Vehicles Investments: Government or Trust Securities, Shares, Debentures, Bonds, Fixed deposits Current Assets, Loans and Advances: (A) Current Assets: Interest Accrued on investments Stores and Spare parts Loose Tools Stock in Trade Work in Progress Sundry Debtors Cash and Bank balances (B) Loans and Advances: Advances and Loans to Subsidiaries Bills Receivable Advance Payments and unexpired discounts Advance Taxes Advance to Suppliers Miscellaneous - Expenditure: Preliminary Expenses Discount on Issue of Shares and Other Deferred Expenses Profit and Loss Account (debit Balance: if any)