book

Financial Accounting

by P. C. Tulsian

November 2002

Intermediate to advanced

1190 pages

31h 35m

English

Pearson Education India

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IntroductionMeaning of AccountingAccountancy, Accounting and Book-keepingRelationship Between Accountancy, Accounting and Book-keepingDistinction Between Book-keeping and AccountingMeaning of an Accounting CycleUsers of Accounting Information and Their NeedsPrimary Objectives of AccountingTypes of Accounting InformationAdvantages of AccountingLimitations of AccountingQualitative Characteristics of Financial StatementsBranches of AccountingBasic Accounting TerminologyDouble Entry System of Book-keepingRelationship of Accounting with Other DisciplineRole of an Accountant in the SocietyAccrual Basis of Accounting and Cash Basis of AccountingDistinction Between Accrual Basis of Accounting and Cash Basis of AccountingConcept of IncomeAccounting Concept of IncomeHow to Compute Accounting IncomeEconomic Concept of IncomeHow to Compute Economic incomeTheoretical Questions
Meaning of 'Generally Accepted Accounting Principles' (GAAP)Basic Assumptions of AccountingBasic Principles of AccountingModifying Principles of AccountingTheoretical Questions
IntroductionMeaning of Accounting StandardsObjective of Accounting StandardsSignificance of Accounting StandardsAdvantages of Setting Accounting StandardsArguments Against Setting Accounting StandardsDevelopment of Accounting StandardsAccounting Standards Board of IndiaTheoretical Questions
Meaning of Accounting PoliciesExamples of Accounting PoliciesConsiderations in the Selection of Accounting PoliciesDisclosure of Accounting PoliciesChange in Accounting PolicyTheoretical Questions
Meaning of Accounting EquationProcedure for Developing an Accounting EquationTheoretical QuestionsPractical Questions
Meaning of an AccountTraditional Classification of AccountsAccounting Equation Based Classification of AccountsComparison of Traditional Classification and Accounting Equation Based Classification of AccountsMeaning and Rules of Debit and CreditMeaning and Format of JournalMeaning of JournalizingDistinction Between Journal and LedgerInvoiceTrade DiscountCash DiscountDistinction Between Trade Discount and Cash DiscountLedgerCompound EntryMeaning, Recording and Posting of Opening EntryBalancingComprehensive ProblemsTheoretical QuestionsPractical Questions

Need for Sub-division of the JournalMeaning of Special Journals (or Subsidiary Books)Advantages of Special Journals (or Subsidiary Books)Distinction Between Books of Original Entry and LedgerMeaning and Types of Cash Books'Single Column Cash BookTrade DiscountCash DiscountDistinction Between Trade Discount and Cash DiscountDistinction Between Commission and DiscountCash Book with Discount ColumnThree Column Cash BookPetty Cash BookTheoretical QuestionsPractical Questions
Purchases BookSales BookPurchases Returns BookSales Returns BookJournal ProperTheoretical QuestionsPractical Questions
Meaning of Financial StatementsUsefulness of Financial StatementsElements of Financial StatementsRecognition of Assets, Liabilities, Income and ExpensesMeasurement of the Elements of Financial StatementsTrading AccountManufacturing AccountDistinction Between Manufacturing Account and Trading AccountProfit and Loss AccountBalance Sheet [or Position Statement]Distinction Between Tangible Assets and Intangible AssetsDistinction Between Fixed Assets and Current AssetsGrouping and Marshalling of Assets and LiabilitiesDistinction Between Trading and Profit and Loss Account and Balance SheetDistinction Between a Trial Balance and a Balance SheetMethods of Presenting the Final AccountsTreatment of Some Items which may be Direct Items/indirect Items/Incomes/ExpensesClassification of Capital and RevenueRationale of Making Adjustments at the Time of Preparing the Final AccountsDistinction Between Outstanding Expense and Prepaid ExpenseDistinction Between Deferred Revenue Expenses and Prepaid ExpensesDistinction Between Accrued Income and Unaccrued IncomeTreatment of Items of Adjustment Appearing Outside the Trial BalanceTreatment of Items of Adjustments Appearing in the Trial BalanceSolved ProblemsSolved Problems (Advanced)Professional Examination ProblemsTheoretical QuestionsPractical Questions
Meaning of Not-for-Profit OrganisationsDistinction Between a Profit Seeking Organisation and a Not-for-Profit OrganisationFund Based AccountingAccounting for Not-for-Profit OrganisationsReceipts and Payments AccountIncome and Expenditure AccountMeaning and Accounting Treatment of some Peculiar ItemsDistinction Between Receipts and Payments Account and Income and Expenditure AccountDistinction Between Income and Expenditure Account and Profit and Loss AccountPreparation of an Income and Expenditure Account from a Receipts and Payments AccountPreparation of a Receipts and Payments Account from an Income and Expenditure AccountPreparation of Balance Sheet of a Not-for-Profit OrganisationAccounts of a Professional FirmSolved ProblemsSolved Problems (Advanced)B. Com. Examination Problems
Theoretical Questions
Meaning of DepreciationMeaning of Depreciation AccountingCauses of DepreciationNeed for Charging DepreciationFactors Affecting the Amount of DepreciationDepreciation on Additions to Fixed AssetsMethods of Recording DepreciationRecording of Depreciation by Charging to Asset Account MethodMethods of Allocating Depreciation'Straight Line Method' of Depreciation (SLM)'Written Down Value Method' of Depreciation (WDV)Distinction Between Straight Line Method and Written Down Value MethodRecording of Depreciation by Creating Provision for Depreciation AccountChange in the Method of DepreciationSinking Fund Method or Depreciation Fund MethodMeaning and Objectives of ProvisionMeaning, Objectives and Types of ReservesDistinction Between Revenue Reserve and Capital ReserveDistinction Between 'Provision' and 'Reserve'Specific Requirements of AS-6 Issued by ICAISolved ProblemsB.Com. Examination ProblemsProfessional Examination ProblemsTheoretical QuestionsPractical Questions
Meaning of InventoriesMeaning of Cost for Inventory ValuationExclusions from the Cost of InventoriesInventory SystemsDistinction Between Periodic Inventory System and Perpetual Inventory SystemMethods of Valuation of InventoriesRequirements of Accounting Standard 2 as to MethodFirst in First Out (FIFO) MethodLast in First Out (LIFO) MethodDistinction Between FIFO and LIFO Method of Valuation of InventoryWeighted Average Price MethodAdjusted Selling Price [or Retail Inventory Method]Base Stock MethodSpecific Identification MethodStandard Cost MethodValuation of Inventory as on Balance Sheet DateStock as per Books and Stock as per Physical VerificationLower of Cost or Net Realisable Value RuleMethods of Comparison of Cost or Net Realisable ValueDisclosure RequirementsSpecific Requirements of AS-2 Issued by ICAISolved ProblemsB. Com. Examination ProblemsProfessional Examination ProblemsTheoretical QuestionsPractical Questions
Dissolution of Partnership vs Dissolution of a FirmDistinction Between Dissolution of Partnership and Dissolution of FirmSettlement of Accounts [Section 48]Treatment of Firm's Debts and Private Debts [Section 49]Distinction Between Firm's Debts and Private DebtsRealisation AccountAccounting EntriesTreatment of GoodwillPreparation of Balance Sheet as on Date of DissolutionPreparation of Balance Sheet as on the Date of Dissolution of FirmCalculation of Remuneration Payable to Incharge of RealisationTaking Over the Business of a Dissolved Firm by Some of its Partners to Continue the Same BusinessReturn of Premium (Goodwill) in Case of Dissolution of Firm Before the Expiry of a Fixed Term [Section 51]Professional Examination ProblemsTheoretical QuestionsPractical Questions
IntroductionDecision in Gamer vs MurrayApplicability of the Decision in Gamer vs Murray in IndiaInsolvency of a FirmPiecemeal DistributionBasis of Distribution of Cash Among Partners Towards their CapitalsMaximum Loss MethodProportionate Capital MethodSale of a Firm to a CompanyAmalgamation of FirmsB. Com. Examination ProblemsProfessional Examination ProblemsTheoretical QuestionsPractical Questions
Meaning of Incomplete RecordsReasons of Incomplete RecordsLimitations of Incomplete RecordsDistinction Between Double Entry System and Incomplete Records (Popularly known as Single Entry System]Preparation of Accounts from Incomplete RecordsStatement of Affairs MethodDistinction Between Statement of Affairs and Balance SheetFinal Accounts MethodHints for Tracing Missing InformationSolved ProblemsB. Com. Examination ProblemsTheoretical QuestionsPractical Questions
Meaning of Hire Purchase AgreementContents of Hire Purchase AgreementMeaning of Instalment Purchase AgreementDistinction Between Hire Purchase Agreement and Instalment Purchase AgreementCalculation of Interest When Both the Cash Price and the Rate of Interest are GivenCalculation of Interest When Cash Price is Given but Rate of Interest is Not GivenCalculation of Interest When Both the Cash Price and the Rate of Interest are Not GivenCalculation of Cash PriceCalculation of Cash Price in Case of Equal Annual Instalments with the Help of Annuity FormulaAccounting for Hire Purchase TransactionsFull Cash Price MethodJournal Entries Under Full Cash Price MethodDisclosure in Balance Sheet Under Full Cash Price MethodActual Cash Price Paid MethodJournal Entries Under Actual Cash Price Paid MethodDisclosure in Balance Sheet Under Actual Cash Price Paid MethodDefault and RepossessionComplete RepossessionPartial RepossessionAccounting for Goods of Small Sales ValuesMethods of Ascertaining ProfitDebtors MethodStock and Debtors MethodAccounting for Instalment PurchaseJournal Entries Under Interest Suspense MethodDisclosure in Balance Sheet Under Interest Suspense MethodAccounting for Guaranteed ServiceB. Com. Examination ProblemsProfessional Examination ProblemsTheoretical QuestionsPractical Exercises
Meaning of a BranchClassification of BranchesAccounting for Dependent BranchesDebtors MethodAccounting Treatment of Goods Returned and Cash Remitted by Branch Customers Directly to Head OfficeAccounting Treatment of Goods Sent to Another Branch and Goods Received from Another BranchAccounting Treatment of Normal Loss, Abnormal Loss, Insurance Claim and Agreed Allowance/Trade DiscountAccounting Treatment of Branch Manager's CommissionWhen Goods are Sent to Branch at Cost plus ProfitStock and Debtors MethodFinal Accounts MethodWhole Sale Branch MethodAccounting for Independent BranchesIncorporation of Branch Results in the Books of Head OfficeB. Com. Examination ProblemsTheoretical QuestionsPractical Questions
Meaning of a ComputerCapabilities of a ComputerRole ·of Computers in AccountingComputer TermsComponents of a ComputerMemory of a ComputerSecondary Storage DevicesHardware and SoftwareTheoretical Questions
True or False Questions
Important Distinctions
Important Short Notes
Important Theoretical Question Bank
Recognition of Revenue and Expenses