Use of Spreadsheet in Busines
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Payroll Accounting
- Payroll is a statement of pay details of employees of an organisation.
Components of Payroll Accounting
Earnings:–
- Basic Pay(BP) It is the pay in the pay scale plus Grade Pay.
- Grade Pay (GP): It is the pay to be added to Basic Pay according to the designation of the employee.
- Dearness Allowance (DA): It is the compensation for reduction in the purchasing power of money due to price rise. It is granted by Govt.
- Transport Allowance (TA / TRA) : Transport allowance granted to employee for the purpose of travelling between place of duty and residence.
- House Rent Allowance (HRA): It is an amount paid to facilitate employee in acquiring rental accommodation.
Gross Pay (GP) Sum total of basic pay and all other allowances payable to the employee before deductions taken in to account.
Deductions:-
- Provident Fund (PF): It is a statutory deduction as a part of social security. It is deducted as certain percentage of Basic Pay + Dearness Pay(DA).
- Tax Deductions at Source (TDS): It is a statutory deduction. It is the monthly instalment of total Income Tax payable during the year.
- Recovery of Loan Instalment (LOAN): Deduction towards loan provided by the employer to the employee.
Net Pay :What remains from gross pay after deductions have been taken away.
Gross Pay = The total earnings of an employee before making any deductions
= Basic Pay + Grade pay +DA+HRA+TA+Other allowances
Net Pay = Amount payable to the employee after subtracting all deductions from gross pay.
Asset Accounting
- Asset accounting means maintaining asset register by considering the value of depreciation of assets.There are Two methods for calculating depreciation in LibreOffice Calc.
SLN Method : This method is used to calculate the depreciation of asset based on straight line method.
Syntax is : =SLN(Cost,Salvage,Life)
- Cost – The original cost of the asset
- Salvage – salvage value after the asset has been fully depreciated.
- Life – The useful life of the asset.
DB Method : The DB() function is used to calculate depreciation of asset based on diminishing balance method.
Syntax is : =DB(Cost,Salvage,Life,period,month)
- Cost – The original cost of the asset
- Salvage – salvage value after the asset has been fully depreciated.
- Life – The useful life of the asset.
- Period – The period that you wish to calculate the depreciation.
- Months – It is the number of months in the first year of depreciation (Optional)
Loan Repayment schedule
Loan is a sum of money borrowed for a specific period.These loans are to be repaid along with interest over the loan repayment period.
Equated monthly Instalment (EMI) Calculation
Equated monthly instalment is a fixed amount payable by a borrower to a lender at a specified date of each month.The EMI of a loan is determined by factors like principal amount,rate of interest ,loan tenure etc.PMT function available in Libreoffice Calc can be used for calculating periodic instalments.
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