Appendix-III – Financial Accounting

APPENDIX III

IMPORTANT SHORT NOTES

Write short notes on the following:

  1. Business Transactions.
  2. Revenue.
  3. Equity.
  4. Meaning, Functions and Limitations of Accounting.
  5. Accounting Policies.
  6. Generally Accepted Accounting Principles.
  7. Accounting Entity Assumption.
  8. Monetary Unit Assumption.
  9. Accounting Period Assumption.
  10. Going Concern Assumption.
  11. Revenue Recognition Principle.
  12. Duality Concept Principle.
  13. Cost Principle.
  14. Matching of Cost and Revenue Principle.
  15. Full Disclosure Principle.
  16. Objectivity Principle.
  17. Materiality Principle.
  18. Consistency Principle.
  19. Conservatism Principle.
  20. Special Purpose Subsidiary Books.
  21. Cost of Goods Sold.
  22. Users and their need for Accounting Information.
  23. Floating Assets.
  24. Wasting Assets and Intangible Assets.
  25. Grouping and Marshalling of Assets and Liabilities.
  26. Limitations of Balance Sheet.
  27. Limitations of Financial Statements.
  28. Vertical Form of Balance Sheet.
  29. Deferred Revenue Expenditure.
  30. Contingent Liability.
  31. Meaning and Need for Providing Depreciation.
  32. Depreciation, Depletion, Amortization and Obsolescence.
  33. Straight Line Method.
  34. Written Down Value Method.
  35. Sinking Fund Method of Depreciation.
  36. Treatment of Special Donations and Legacy in the final accounts of a non-profit-seeking organisation.
  37. Settlement of Accounts in case of Dissolution of Firm.
  38. Treatment of Firm’s Debts and Private Debts.
  39. Return of Premium (goodwill) in case of dissolution of Firm before the expiry of a fixed term.
  40. Rule in Garner vs. Murray and its applicability to India.
  41. Meaning and Limitations of Single Entry System.
  42. Method of Calculating Profit/Loss under Single Entry System.
  43. Hire Purchase System.
  44. Default and Repossession in Hire Purchase.
  45. Debtors System of Recording Branch Transactions.
  46. Dependent and Independent Branches.
  47. Branch Adjustment Account.
  48. Treatment of Normal Loss of Stock and Abnormal Loss of Stock under Debtors Method and Stock and Debtors Method.
  49. Inter-Branch Transactions.
  50. Branch Operating on Wholesale Basis.
  51. Accounting Standards in India.