Presentation On Accounts Tips

Published in: Accounting
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    Anish L

    • Dubai
    • 5 Years of Experience
    • Qualification: M.Com
    • Teaches: Accountancy, Accounting, Accounts, Accountancy: Ma...
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    art A Part B pril May une ul ugust Se tember October November November December Januar Febuary Marks 1 3 4 6 8 1 4 6 Total Book 1 Book 1 Book 1 Book 2 Book 2 Book 3 Book 3 Book 3 Revision & Test Revision & Test Test No of Questions 6 4 2 3 2 2 3 1 23 Accounting for PA, Goodwill & change in profit sharing ration Admission & retirement Death & dissoultion Vacation Balance sheet, commone size, comparative & ration anaysis 4 1 2 3 Min 6 28 16 45 45 3 22 15 3 Tutor : cash flow Equity Debenture Non Profit Or Weekl test 1st - Weekl test 1st - 1-3 ch 1-3 ch ts, 2nd -4, 3rd -5 4th -6 ts, 2nd -4, 3rd -1 4th -2 & 3 apers Paper solving atleast 4 1 mintue per question 7 mintues per question 8 mintues per question 15 mintues per question appropraiately 22 mintues 1.5 mintue per question 7 mintues per question 15 mintues per question Remark mail) 10 25 20 25 Total Mks 6 12 8 18 16 2 12 6 80 Anish Lona an (anishhlona an at
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    CHPT : 1 ACCOUNTING FOR PARTNERSHIP Provision for partnership act 1932 Profit sharing equally No int on capital, no int on drawing, no salary, no commission 6% int on the loan provided by partner the absence of partnership deed#greement, partnership acVisconsidere Dr To int on cap to salary to commission to transfer to gen reserve To profit trans to capital P/ L appriation A/c Cr By NP By int on drawings Note * Created to share the net profits amg partners * Int on loan if not given, reduce from NP * Comm for manager if not given, reduce from NP Remember No additional items Guaratee of profit means assurance of certain profit never account int on loan in the PL appr A/C whenver capital and curr A/c is given, it means mtd is fixed capital mtd ixed Capital (Capital is constant, only entry is drawings and introduction of new capital) Il adjustments related to int on capital, profit sharing etc done in current a/c lutuating Capital, only 1 account is created... all entries i.e int on capital, drawings etc all are recorded nder capital a/c, no current ac is created ast Adjustments * Create table * Reverse things which was wrongly done example profit shared wrongly... debit the same amount in the partners capital * Debit / credit the adjustments not done (post the total figures in the opposite side of firm) * See the balance in the firms ledger, share it amoung the partners * Debit side of parts capital is more, debit the difference to part capital and vice versa * Int on ca ital should be calculated al sono enin ca ital * Int on drawing to be done case on case basis l)systematic drawing (use formula total drawing * avg period/12 * rate) 2)Random drawing 2a) total drawing * rate * span of drawing / 12 2b) total drawng * 10% * 6/12 (in case rate is 10%pa but date of drawing is not mentioned 2c)if .a not mentioned, a I rate directl
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    CHPT : 3 CHANGE IN PARTNERSHIP RATIO henever there is a change in partnership ratio, there is one partner ho sacrifices and other gains Entry Gaining Partner's capital A/C dr o Sacrificing partner ame rule is applicable for admission / retirement / death or change in PSR & B is sharing profit 2:1, C has joined for 1/4 share It means remaining share of 3/4 has to be shared in 2:1 ration among OP = 2/3 of 3/4 plus 2/3 B = 1/3 of 3/4 plus 1/3 c=1/4 ie 6/12 + 8/12 = 14/12 ie 3/12 + 4/12 = 7/12 i.e 1/4*3/3 = 3/12 Remember Of means 'X' From means & B is sharing profit 2:1, C will get his share of 1/4 equally by partner t means C will get 1/8 from A and B each (1/8 + 1/8 = 2/8 i.e 1/4) = 2/3 - 1/8 = 1/3 - 1/8 =1/4 i.e (16-3)24 = 13/24 i.e (8-3)24 = 5/24 i.e 1/4*6/6 = 6/24 * If question states that no changes to be shown in the balance sheet, do not create revaluation accounts, simply find the profit / loss and share in sacrificing ratio * If question states that all reserves in the balance sheet should remain intact distribute the reserves (gen res / profit / adv exp) in sacrificing ratio
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    Debit all losses Depreciation bad debts Rev rofit trans to ca Revaluation A/C Credit all income -creditors waved off -land appreciated Rev loss trans to ca Capita ransfer loss frm bal sheet xample, adv exp & G/W opening balance b/d ransfer all reserves -Gen reserve / profit -WCR (reduce claim) -IFR( aft adjustment) Note 1) 2) 3) 4) 5) 6) Admission Retirement / death Balance sheet Should tall Cash A/c dvisable to prepare it so that you don't miss n entries, closin balance transf to balsheet transfer all the items from old balance sheet assets - asset side(new balance sheet) / debit side liabilities - liabilities side(balance sheet / credit side Anything from the balancesheet to be transferred to partners in old ration example g/w, profits etc New G/W always at sacrificing ratio(SR) If no new ration given, Old ratio = Sacrifing Rato if new ration given, find SR and distribute new G/W All adjustments should have 2 effect, Dr & Cr Goodwill is the money new partner brings in ... paid to old partner * it is mandatory to account g/w when there is admission If goodwill of the firm is given, new partner pays his share eg 10000 is firms g/w, his share is 1/5, he will bring cash of 2000 Goodwill can also be hidden, when no information is provided in the sum Attimes, partner brings cash / assets directly in the form of goodwill if not then debit partners capital a/c Goodwill to be transferred to exiting partner in the gaining ratio
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    Dr ransfer all the assets from Balance sheet including goodwill, Debtors (excluding the PBD) exclude cash as you create a separate cash a/c Debit liabilites settled o Cash o Partners Ca ita o Cash / parters cap (Realisation Exp) o Rev Profit Bal Fi to be transferred to artner ransfer the profit in the asset side from balsheet Balance to Bank ransfer the opening balance ash received ash Note : 1 Pass 2 entries for all adjustment.. CHPT : 6 DISSOLUTION Realisation A/C Cr Transfer all the liabilities from Balance sheet include IFF , Provision for debts Exclude partners loan as you create a separate part loan a/c Credit assset sold / taken by partner By Cash B Partners Ca ita B Rev loss Bal Fi to be transferred to Partners Ca ital A/c Transfer the opening balance artner Transfer the general reserve, WCR, Rev Profit from balsheet (exclude IFR as it is transferred to realisation) Balance to Bank cash A/C Cash aid cash led er should tall Partners Loan transfer the opening balance 2 Since you have transferred all the assets and liabilities to realisation, for any entries you will be only using realisation, cash or capital acounts Example - Assets sold for 10000 Cash A/c Dr Realisation Cr Realisation expenese paid Realisation A/c Dr Cash / Partners capital A/c Cr Liabilities paid by partner Realisation Dr Partner's cap Cr Assets taken by partner Partner's cap Dr Realisation Cr 3 DON'T FORGET TO PAY ALL THE LIABILITIES TRANSFERRED TO REALISATION(NOT PDD, IFR) 4 if a liablity is settled with an asset, NO ENTRY
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    Add Substract Add Substract Substract CASH FLOW FROM OPERATING ACTIVITIES Net Profit before tax & extra ordinary items Non cash & Non operation items Non cash - Dep, amortisation Non operating - Int paid, proposed div, loss on sale of FA Substract Non cash & non operation items Profit on sales of FA, Int / rental received etc Change in working capital Increase in liabilites, assume loan taken increase cash decrease in assets, assume stock sold increase cash Increase in assets , assume purchased assets reduce the cash decrease in liabilites, assume a in off loan reduces the cash Income tax aid CASH FLOW FROM INVESTING ACTIVITIES Related with fixed asset(purchase & sales) CASH FLOW FROM FINANCIAL ACTIVITIES Increase in equity means cash inflow, decrease in debenture means paid off Remember Debits side of P/L credit side of P/L Only curr assets & curr liab except bank OD, bank loan & cash Only Fixed Assets & Investment Only related to ca ital Note 1) 2) ** even bank overdraft & bank loan is considered Add Opening balance of cash & cash equivalent(marketable securities / short term deposit You should et the closin balance of cash & cashe uivalent automaticall Always create a ledger if you have items in the balance and related adjustments eg dep for machine , prov for tax etc orelse pass 2 entries if no information iven, interest on debenture to be aid based on last ear(lts hidden entr )

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