Accountancy for CA-CPT

Description

Cover Contents Chapter 1 Meaning and Scope of Accountancy Introduction Meaning of Accounting Activities under Accounting Objectives of Accounting Book-Keeping Subfi elds of Accounting Users of Accounting Information Relationship of Accounting with Other Disciplines Limitations of Accounting Role of Accountants in the Society Exercises Answers Chapter 2 Accounting Concepts, Principles and Conventions Introduction Business Entity Going Concern Concept Money Objectivity Dual Aspect Concept Periodicity Concept Accrual Concept Matching Concept Revenue Recognition Principle Conservatism Consistency Materiality Qualitative Characteristics of Financial Statements Exercises Answers Chapter 3 Accounting Standards—Concepts, Objectives and Benefi ts Introduction Defi nition Objects Concept of Accounting Standards Overview of Accounting Standards in India Exercises Answers Chapter 4 Accounting Policies Meaning Essentials for Accounting Policy Exercises Answers Chapter 5 Accounting as a Measurement Discipline Introduction Exercises Answers Chapter 6 Basic Accounting Procedures—Journal Entries Introduction Double-entry System Account Journal Advantages of Double-entry System Classifi cation of Accounts Golden rules of Accounting Exercises Answers Chapter 7 Ledgers Introduction Defi nitions Posting Balancing of an Account Exercises Answers Chapter 8 Trial Balance Introduction Defi nitions Exercises Answers Chapter 9 Subsidiary Books Subsidiary Book Subsidiary Books and their Advantages Purchase Book Sales Book Sales Return Book Purchase Return Book Bills Receivable Book Bills Payable Book Journal Exercises Answers Chapter 10 Cash Books Introduction Cash Book Non-Imprest System of Petty Cash Exercises Answers Chapter 11 Capital and Revenue Expenditures and Receipts Introduction Exercises Answers Chapter 12 Contingent Assets and Contingent Liabilities Introduction Contingent Assets Liability Provisions Contingent Liabilities Exercises Answers Chapter 13 Rectifi cation of Error Introduction Stages of Error in Accounting Process and Types of Errors Purpose of Rectifi cation When Errors are Rectifi ed Steps to Locate Errors Criteria for Rectifi cation Application of Rectifi cation on Criteria Detailed Explanation of Types of Errors and its Rectifi cation Exercises Answers Chapter 14 Bank Reconciliation Statement Introduction Bank Passbook Bank Reconciliation Statement Summary Exercises Answers Chapter 15 Inventories Inventory Basis of Inventory Valuation Inventory Record System Periodic Inventory System: Cost Allocation Periodic Inventory System Perpetual Inventory System: Cost Allocation Non-Historical Cost Methods Stock-taking Exercises Answers Chapter 16 Depreciation Accounting Introduction Concept of Depreciation as per AS–6 Objectives for Providing Depreciation Factors in the Measurement of Depreciation Methods of Providing Depreciation Change in the Method of Depreciation Revision of the Estimated Useful Life of the Depreciable Asset Provision for Repairs and Renewals Exercises Answers Chapter 17 Final Accounts of Non-Manufacturing Entities Introduction Principles Applied for Prepared of Financial Statement Income Statement Trading Account Important Terms Balance Sheet Tangible Fixed Assets Intangible Fixed Assets Long-Term Investment Current Assets Capital Long-term Loans Short-term Loans Current Liabilities Need for Adjustments Accrued Expenses Outstanding Expenses Accrued Income Outstanding Income or Income Receivable Prepaid Expenses Prereceived Income or Income Received in Advance Bad Debts and Provision for Doubtful Debts Interest on Capital Interest and Drawings Differed Revenue Expenditure Stock on Hand of Consumable Item Other than Goods at the End of Accounting Period Provision and Reserves Abnormal Loss of Stock Goods Sold on Approval Recorded as Sales Commission Based on Profi t Value Added Tax (VAT) Transactions Involving Correction of Errors Limitations of Financial Statements Different Accounting Policies Perpetual Continuity and Periodic Account Exercises Answers Chapter 18 Final Accounts of Manufacturing Entities Introduction Purpose Preparation of Manufacturing Account By Product Design of a Manufacturing Account Exercises Answers Chapter 19 Consignment Meaning Features Differences between Consignment and Sales Accounting for Consignment Transactions and Events Consignment Account Presented in Divided Bars Goods Sent by the Consignor to the Consignee at Cost or Above Cost Expenses Incurred by the Consignor for Sending Goods Loss in Transit Expenses Incurred by the Consignee on Receiving Goods Advance by the Consignee Vs. Security Against Consignment Expenses Incurred by the Consignee for Keeping and Maintaining of Goods Return of Goods from the Consignee Abnormal Loss at Consignee’s Godown Expenses Incurred by the Consignee for Selling Goods Sale of Goods by Consignee Commission Normal Loss at Consignee’s Godown Consignment Stock Remittance by the Consignee Profi t/Loss on Consignment Exercises Answers Chapter 20 Joint Ventures Meaning Features Methods of Maintaining Joint Venture Accounts Exercises Answers Chapter 21 Bills of Exchange and Promissory Notes Introduction Bill of Exchange Promissory Note Bills Receivable Book Bills Payable Book Exercises Answers Chapter 22 Sale of Goods on Approval or Return Basis Introduction Accounting Records Exercises Answers Chapter 23 Introduction to Partnership Accounts Introduction Defi nition and Features of Partnership Power of Partners Accounts Interest on Capital Interest on Drawings Guarantee of Minimum Profi t to a Partner Salary or Commission to a Partner Adjustments Required in the Books of the Firm after Annual Final Accounts are Prepared Exercises Answers Chapter 24 Treatment of Goodwill in Partnership Accounts Introduction Meaning of Goodwill Methods for Goodwill Valuation Accounting of Goodwill Exercises Answers Chapter 25 Admission of New Partner Introduction Revaluation Account or Profi t and Loss Adjustment Account Revaluation of Assets and Liabilities of a Firm Adjusted to Capital Accounts Reserve in the Balance Sheet Computation of New Profi t Sharing Ratio Proportionate Capital and Inference of Goodwill Exercises Answers Chapter 26 Retirement or Death of a Partner Introduction Calculation of Gain Ratio Revaluation of Assets and Liabilities on Retirement of a Partner Revaluation of Assets and Liabilities of a Firm Adjusted to Capital Accounts Reserve Final Payment to Retiring Partner Paying a Partner’s Loan in Instalment Joint Life Policy Joint Life Policy Reserve Method Exercises Answers Chapter 27 Introduction to Company Accounts Introduction Meaning Features of Company Types of Companies Books of Accounts Preparation of Financial Statements The Form of a Company Balance Sheet as Prescribed in Part I of Schedule VI: Balance Sheet of (Name Exercises Answers Chapter 28 Issue, Forfeiture and Reissue of Shares Introduction Share Capital Over-subscription and pro-rata Allotment Forfeiture of Shares Forfeiture of Shares which were Issued at Par RE-issue of Forfeited Shares On Forfeiture of Shares which were Issued at a Discount Forfeiture of Shares which were Issued at a Premium Issue Shares for Consideration other than Cash Exercises Answers Chapter 29 Redemption of Preference Shares Introduction Purpose of Issuing Redeemable Preference Shares Methods of Redemption Redemption of Preference Shares by Fresh Issue of Shares Redemption of Redeemable Preference Shares by Capitalisation of Undistributed Profi ts Redemption of Partly Called up Preference Shares Redemption of Fully Called but Partly Paid–up Preference Shares Exercises Answers Chapter 30 Issue of Debentures Introduction Meaning Features of Debentures Distinction between Debentures and Shares Types of Debentures Issue of Debenture for Consideration other than Cash Issue of Debenture as Collateral Security Treatment of Discount on Issue of Debentures Interest on Debentures Exercises Answers