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