Accounting Principles

AS 1: Disclosure of Accounting Policies Fundamental Accounting Assumptions (Based On Para Nos. 9, 10 And 27) Question 1.A limited has sold its building for ₹ 50 lakhs and the purchaser has paid the full price. The Company has given possession to the purchaser. The book value of the building is ₹ 35 lakhs. As […]

Accounting Standards-Applicability of AS What Are As? What Are The Advantages/Benefits Question 1.What are Accounting Standards? Explain the issues, with which they deal. (4 Marks) (November 2017)Answer:Accounting Standards (ASs) are written policy documents issued by expert accounting body or by government or other regulatory body covering the aspects of recognition, measurement, presentation and disclosure of […]

Framework for Preparation and Presentation of Financial Statements  Question 1.Briefly define the Fundamental Accounting Assumptions? (Nov 2017, 4 marks) [IPCC Gr. II]Answer:Fundamental Accounting AssumptionsAs per the Framework on Preparation and Presentation of Financial Statements, there are three fundamental accounting assumptions: Going Concern, Accrual Basis and Consistency. ECPGURGAON.COM  1. Going Concern Financial statements are normally prepared […]

FINANCIAL ACCOUNTING QUESTION ANSWERS Accounting Fundamentals  Bills of Exchange, Consignment, Joint Venture  Preparation of Final Accounts of Commercial Organisations, Not-for-Profit Organisations and Incomplete Records Preparation of Financial Statements of Commercial Organisations  Preparation of Financial Statements of Not-for-Profit Organisations  Preparation of Financial Statements from Incomplete Records  Partnership Accounting  Lease Accounting  Branch (including Foreign Branch) and Departmental […]

CMA Inter Financial Accounting MCQs Question 1.From the four alternative answers given against each of the following cases, indicate the correct answer:(i) Realisation account is opened at the time of(A) Admission of a new partner(B) Retirement of a partner(C) Dissolution of the Firm(D) In all the above situationsAnswer:(C) Dissolution of the FirmDissolution of the firm: […]

Accounting Standards Question 1.Write short note:Recognition of Govt. grants related to specific fixed assets (PPE). (June 2017, 4 marks)Answer:Recognition of Govt. grants related to specific fixed assets (PPE):Grants received specifically for fixed asset(PPE) is disclosed in the financial statement either(i) by way of deduction from the gross block of the asset concerned, thus granted recognized […]

Accounting Standards – CA Foundation Accounts Question 1.Need of Accounting StandardsAnswer:Need of Accounting Standards: Accounts gives information to various groups. The financial statement can serve the interest of different interest groups only if there is uniformity and full disclosure of relevant information. There are various alternatives regarding accounting treatment and valuation norms which may be […]

Accounting Concepts, Principles and Conventions – CA Foundation Accounts Study Material Question 1.What are Accounting Concepts, Principles & Conventions?Answer:Usually, accounting theories are expressed (referred) as Postulates, Concepts, Principles, Doctrines, Axioms, Rules, Standard, Assumptions, Canon etc. These are basic assumptions & norms on which the whole system of accounting is developed. These gives the basic structure […]

Meaning and Scope of Accounting – CA Foundation Accounts Study Material Question 1.What do you mean by Accounting? Give its definition.Answer:According to AICPA, “Accounting” is the art of recording, classifying and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of a financial character, and […]