Accounting Process (CA Foundation Principles of Accounting): Questions 6 - 14 of 68

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Question number: 6

» Accounting Process » Books of Accounts - Fundamental Errors

Short Answer Question▾

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What is meant by the term error of commission?

Question number: 7

» Accounting Process » Books of Accounts - Fundamental Errors

Essay Question▾

Describe in Detail

Mention the types of errors that take place during the accounting process?

Explanation

An error can occur in the accounting process at any step. The errors that take place while recording a transaction are classified as follows:

  • On the basis of their effect on the trial balance

    • Errors effecting the agreement of the trial balance

    • Errors not effecting the agreement of the trial… (45 more words) …

Question number: 8

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

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How will you classify the following expenses?

  1. Inauguration expenses incurred in the opening of a new showroom

  2. Voluntary retirement compensation paid to workers

  3. Foreign travel expenses in connection with purchase of machinery

  4. Lawyer’s fees paid to defend a case relating to the ownership of land

Question number: 9

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

Essay Question▾

Describe in Detail

Differentiate between capital and revenue receipts?

Explanation

Capital and revenue receipts are different from each other on the following basis:

Difference between capital and revenue receipt

The basis on which capital and revenue receipts are differentiated from each other

Basis of difference

Capital receipt

Revenue receipt

Nature

These are non-recurring in nature

Its recurring in nature

Accounting… (74 more words) …

Question number: 10

» Accounting Process » Books of Accounts - Preparation of Trial Balance

Essay Question▾

Describe in Detail

Describe the classification of accounts briefly?

Explanation

All the transactions that occur in a business enterprise can be classified into three types. Every account head that is used in the transaction should be capable of coming under any one of the three types. The three types of classification are as follows:

  • Personal Accounts:

    • Natural personal account: this… (159 more words) …

Question number: 11

» Accounting Process » Books of Accounts - Fundamental Errors

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State the steps to rectify the errors if the errors are identified after the preparation of final accounts.

Question number: 12

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

Short Answer Question▾

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What is meant by the term revenue expenditure? Give a suitable example

Question number: 13

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

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Justify your answers after classifying the following into capital and revenue receipts

  1. Owner’s contribution towards capital

  2. Entrance fees received by a club

  3. Subsidy received from government

  4. Sale revenue received by Hyundai from the sale of cars

Question number: 14

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

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What is the meaning of the term Capital Receipt? Give example.

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