CMA updates

Departmental Accounting – CMA Inter Financial Accounting  Question 1.Distinguish between Branch and Departmental Accounting. (June 2013, 2 marks)Answer:The differences between Branch and Departmental are listed below:- Departmental Branch 1. Departmental always in Inland 1. It is either Inland or Foreign. 2. All departments of a Business remain generally under one roof. 2. Branch of a […]

Branch Accounting – CMA Inter Financial Accounting Question 1.Write short note on:Classification of Branches for Branch accounting purpose. (Dec 2012, 5 marks)Answer: .Branches are classified as two-way,(i) Inland Branch,(ii) Foreign Branch (i) Inland Branches:(a) Dependent Branches: Branches in respect of which the whole of the accounting records are kept at head office.(b) Independent Branches: As […]

Lease Accounting – CMA Inter Financial Accounting Question 1. Write short note:Operating Lease and Finance Lease (Dec 2017, 4 marks)Answer:Operating Lease and Finance LeaseA lease is an agreement whereby the lessor conveys to the lessee in return for a payment or sones of payments the right to use an asset for an agreed period of […]

Partnership Accounting – CMA Inter Financial Accounting Question 1.Write short note:Guaranteed Partnership. (June 2013, 5 marks)Answer:In a partnership, there may be special agreement by virtue of which partner may get the guarantee of earning a minimum amount of profit. The guarantee may be given by one partner in particular or by the firm. It is […]

Preparation of Financial Statements from Incomplete Records Question 1.Write short note on the following:Weaknesses of Single Entry System (June 2017, 5 marks)Answer:Weaknesses of single entry system: As principle of double entry is not followed, the trial balance cannot be prepared. As such, arithmetical accuracy cannot be guaranteed. Profit or loss can be found out only […]

Preparation of Financial Statements of Not-for-Profit Organisations Question 1.Write short note on the following:Features of Income and Expenditure Account (June 2019, 5 marks)Answer:Features of Income and Expenditure Account: It follows Nominal Account. All expenses of revenue nature for the particular period are debited to this Account on accrual basis. Similarly, all revenue incomes related to […]

Preparation of Financial Statements of Commercial Organisations   Question 1.Write short note on the following:Provision for Discount on Debtors (June 2019, 5 marks)Answer:Provision for Discount on Debtors:We know that cash discount is allowed by the suppliers to customers for prompt settlement of cash. Naturally a provision is created for this purpose. Thus, the provision which […]

Bills of Exchange CMA Inter Financial Accounting  Question 1.Write short flotes on the following:(a) Accommodation Bill (June 2016, 5 marks)(c) Rebate on Bills Discounted (June 2016, 5 marks)Answer:(a) Accommodation Bill: An Accommodation Bill is a bill of exchange signed by-a party as drawer, drawee, endorser to accommodate another party whose credit is not strong enough […]

Accounting Fundamentals – CMA Inter Financial Accounting  Question 1.Write short note:(c) Accounting convention of consistency; (Dec 2012, 5 marks)Answer:In order to enable the management to draw important conclusions regarding the working of a company over a number of years it is essential that accounting practices and methods remain unchanged from one accounting period to another. […]

MCQs on The Indian Contract Act, 1872 Part 1 Q.1:- The person making the proposal is called the and the person accepting the proposal is called : a).Proposor/ Proposee b).Promisee/ Promisor c).Promisor/Promisee d).Proposee/ Proposor Correct Option: C Q.2:- Every promise and every set of promises, forming the consideration for each other, is called as: a).A […]