Accountancy for CA-CPT

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