Strategy to Qualify & Excel in CA IPC P1: Accounting

CA. G.P. Kasthuri Rangan, FCA

Chapters Covered 1. Accounting Standards 15 Marks 2. Preparation Of Financial Stts. 3 Marks 3. Cash Flow Statements 10 Marks 4. Profit / Loss Prior To Incorpn. 5 Marks 5. Bonus Issue 4 Marks 6. Amalgamation & Reconstruction 15 Marks 7. Average Due Date 5 Marks 8. Account Current 2 Marks 9. Non-profit Organisations 14 Marks 10. Single Entry 8 Marks 11. Hire Purchase & Installment A/C 5 Marks 12. Investment Accounts 3 Marks 13. Insurance Claims 6 Marks 14. Partnership Accounts 15 Marks 15. Accounting In Comp. Environment 5 Marks

Accounting Standards

1 • Disclosure of Accounting Policies

2 • Inventory Valuation

6 • Depreciation Accounting

7 • Construction Contracts

9 • Revenue Recognition

10 • Acc. for Fixed Assets

AS-3 Cash Flow Statements

Direct Method

Gross Cash Receipts

Gross Cash Payments

Indirect Method

Operating Activities

Investing Activities

Financing Activities

AS – 14 Amalgamation & Reconstruction

Calculation of Purchase Consideration

Merger – Pooling of Interests Method

Purchase – Purchase Method

Journal Entries

Calculation of Goodwill/ Cap. Reserve

Preparation of Balance Sheet

Non-profit Organisations

Receipts & Payments A/C

Income & Expenditure A/C

Capital Fund, Corpus Fund, Building Fund, Sports Fund

Balance Sheet

Partnership Accounts

Basic Concepts

Goodwill – Valuation & Accounting

Admission of A Partner

Retirement of A Partner

Death of A Partner

Single Entry

Capital Comparison Method

Closing Cap. + Drgs.- Addl. Cap.-Opening Capital = Profit / Loss

Conversion Method

Preparation of Total Drs/ Crs A/C,

Cash / Bank A/C, Opening Balance Sheet

Determination of Missing Figures

Application of Ratios

Trading, P&L A/c, Balance Sheet

Insurance Claims

Loss of Stock

Memorandum Trading A/C

Determination of GP Ratio

Application of Average Clause

Loss of Profit

Short Sales

Determination of GP Ratio

Increased Cost of Working

Insured Standing Charges

Application of Average Clause

HP & Installment A/C

Difference Between Hp & Installment System

Calculation of Cash Price

Entries In Books of Hire Vendor, Hire Purchaser

Interest Suspense Method

Default & Repossession

Preparation of Hp Trading A/C

Stock & Drs Method

Elimination of Loading On Stock

Determination of Profit Made By Hire Vendor

Profit/ Loss Prior to Incorporation

Pre & Post Incorporation Periods

Determination of Time Ratio

Determination of Sales Ratio

Allocation of Exp/Revenue Based On Appropriate Ratios.

Determination of Pre & Post Incorporation Profits

Avg Due Date, Account Current

Identifying The Base Date

Determining Add. Using Formula.

Calculation of Interest

Preparation of A/C Current With Interest Calculation

Balance of Interest Method

Balance of Product Method

Red Ink Interest

Self Balancing Ledgers

Difference Between Sectional Balancing & Self Balancing Ledgers

Preparation of Total Drs/ Crs A/C

Preparation of Gla A/C

Preparation of Dla A/C

Preparation of Cla A/C

AS – 13 Investment Accounts

Classification of Investments

Temporary Or Current

Permanent Or Long Term

Purchase of Shares / Debentures

Sale of Shares / Debentures

Profit / Loss On Sale

Sale of Rights

Bonus Issue

Valuation of Investments

Long Term = Cost, Current = Cost Or Nrv (Wel)

Disclosure Requirements

Acc. for Bonus Issue

SEBI Guidelines & Conditions for Issue of Bonus Shares

Utilisation of Free Reserves

Capital Reserves Realised In Cash

Journal Entries

Fin. Statements of Companies

Compliance with Revised Schedule VI

Redemption of Pref Shares/ Debentures

Caln of Managerial Remn

Preparation of Balance Sheet, Profit & Loss Statement

Questions ????

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