CA Foundation Principles of Accounting: Questions 62 - 69 of 351

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Question number: 62

» Theoretical Framework » Accounting Concepts, Principles and Conventions

Short Answer Question▾

Write in Short

What is meant by the term book keeping?

Question number: 63

» Theoretical Framework » Accounting Concepts, Principles and Conventions

Essay Question▾

Describe in Detail

What are the steps involved in accounting a single transaction?

Explanation

  • The steps involved in accounting each and every transaction in the books of the firm as follows:

  • Identifying the business transactions which are in terms of monetary value and have supporting vouchers. This is the first process of accounting system and business transactions are identified from the source of documents.… (124 more words) …

Question number: 64

» Theoretical Framework » Valuation Principles, Accounting Estimates

Short Answer Question▾

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What is the meaning of the term measurement in accountancy?

Question number: 65

» Accounting Process » Books of Accounts - Capital and Revenue Receipts

Essay Question▾

Describe in Detail

Explain the terms capital and revenue profits briefly?

Explanation

  • When an enterprise prepares its financial statements, a clear distinction is made between the capital and revenue profits earned by the firm.

  • Revenue profit: The profit that arises in the normal course of business activities such as sale of goods.

Meaning of revenue profits

Meaning of Revenue Profits

Meaning and examples of revenue profits… (83 more words) …

Question number: 66

» Theoretical Framework » Accounting Concepts, Principles and Conventions

Short Answer Question▾

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Why the accrual concept is considered as important to know the true financial position of a firm?

Question number: 67

» Theoretical Framework » Accounting Concepts, Principles and Conventions

Essay Question▾

Describe in Detail

How can the accounting principles be classified?

Explanation

The accounting principles can be classified as

  • Accounting concepts

    • Separate entity concept

    • Going concern concept

    • Accounting period concept

    • Money measurement concept

    • Dual aspect concept

    • Cost concept

    • Matching concept

    • Realization concept

  • Accounting conventions.

  • Convention of consistency

  • Convention of materiality

  • Convention of full disclosure

  • Convention of conservatism

General Accepted Accounting Principles

General Accepted Accounting Principles

Classification… (5 more words) …

Question number: 68

» Theoretical Framework » Valuation Principles, Accounting Estimates

Short Answer Question▾

Write in Short

What are the objects or events that require measurement in accounting?

Question number: 69

» Accounting Process » Books of Accounts - Fundamental Errors

Essay Question▾

Describe in Detail

  • Mr. Tendulkar’s trial balance showed a suspense A/C of Rs. 32600 on the debit side. On rechecking the books, the following errors were discovered:

  • An amount of Rs. 10000 received from Mr. Ganguly was posted to the debit side of Mr. Ashwin as Rs. 12000.

  • Salary paid to driver Rs. 4000 was debited to his personal A/C as Rs. 2400

  • Drawings of Rs. 2000 was credited to sales A/C as Rs. 3200

  • An amount of Rs. 6000 accounting for depreciation on car was posted as Rs. 600

  • Sale of an old bat Rs. 20000 was credited to sales A/C as Rs. 12000.

Assuming that the Mr. Tendulkar has made all the rectification required in his books with respect to the above errors identified. Will the trial balance of Mr. Tendulkar tally? Justify your answer

Explanation

  • No, Mr. Tendulkar’s trial balance does not tally even after the rectification of the discovered errors. After the preparation of suspense account Mr. Tendulkar realizes that there still exists a debit balance in the suspense A/C of Rs. 20400. This may be due to the reason that there may be… (82 more words) …

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