Financial Accounting Principles

• Financial accounting's foundation is stewardship accounting.
• GAAP represents generally accepted accounting principles.
• Prepaid rent is categorized as a nominal account.
• Funds introduced by a business owner are credited to the Capital Account.
• A trial balance is a statement.
• Trial Balance prepared on a specific date.
• Invoices serve as source documents or vouchers for recording entries in the sales book.
• Closing entries are found within the ledger.
• The cash book documents both incoming and outgoing cash.
• Small expenditures are noted in a petty cash book.
• A bank reconciliation statement is a business' record.
• Initial cash book balance: ₹2,000.
• Bank charges of ₹250 not reflected in the cash book.
• Bank statement balance is now ₹1950 credit balance.
• Discrepancies in the trial balance are directed to the suspense account.
• An entirely unrecorded transaction signifies complete omission.
• Depreciation is not caused by single factor but by multiple factors: lapse of time, usage, and obsolescence.
• Obsolescence in depreciable assets stems from technological advancements or wear and tear.
• Revenue expenditure aims to benefit the current period.
• A balance sheet displays financial position of a business.
• Closing stock is assessed at cost price or net realizable value, whichever is lower.
• A printer serves as an example of an output device.

Part II

• Accounting is defined.
• Book keeping is defined.
• Methods for preparing a Trial Balance are asked for.
• Different types of cash books are queried.
• Depreciation is inquired about in terms of meaning.
• Account classification involves Personal, Real, and Nominal accounts.
• Categories include capital, cash, carriage inwards, and outstanding wages.
• Identification of subsidiary books is based on transaction types.
• Includes cash sales, credit sales, and credit purchases.
• Rectification of accounting errors is also addressed.

Cost of Goods Sold

• Calculation of the cost of goods sold considers opening stock, purchases, direct expenses, indirect expenses, and closing stock.
• Sales book was undercast by ₹100.
• Purchase returns book was overcast by ₹200.

Vinoth's Opening Balances

• Vinoth's books list assets like cash, stock, amounts due from Ram and Machinery.
• Liabilities include amounts due to Vijay.
• An opening journal entry must be prepared.

Double Entry Accounting

• The golden rules of Double Entry Accounting are stated.

Trial Balance Account Balances

• Classification of account balances for the trial balance involves assets, liabilities, and equity.
• Transactions include purchases, drawings, debtors, capital, purchase returns, and discount received.

Furniture Account

• A furniture account is prepared using transactions regarding furniture on hand, purchases, and sales.

Trial Balance Preparation

• A trial balance is prepared using information related to bank loans, bills payable, stock, capital, purchases, sales, debtors, and bank balance.

Bill Due Dates

• Calculation of bill due dates involves considering the period of the bill and days of grace.

Sales Day Book

• Transactions for sales to Anbu & Co, Jagadish sons and Elango & Co require a sales day book.

Bank Reconciliation

• Reconciliation involves bank reconciliation statement with details on cash book balance, uncleared cheques, and direct deposits.

Depreciation Calculations

• Depreciation amount and rate are determined using the straight-line method with details on cost, useful life, and residual value of a building.

Capital and Revenue Items

• Classification of items differentiates between capital and revenue expenditures.

Computer System Components

• Input and output devices of a computer system are identified.

Manohar's Journal

• Journal entries required in the books of Manohar with details of cash introduced, cash transactions and credit transactions.

Adjusting Journal Entries

• Adjusting journal entries covers items like outstanding wages, depreciation, interest on capital, and bad debts.

Accounting Equation Effects

• Accounting equation reflects transactions such as business commencement, cash and credit purchases and sales.

Financial Statements

• Balance sheets for Deri, which contains the financial position utilizing balances like credit, bills payable, stock, etc.

Anand's Account

• Anand's account is prepared with credit balances, payments, credit purchases, and discounts.

Capital or Revenue Identification

• Capital or revenue items classified, like audit fees and factory rent.

Babu's Trial Balance

• A trial balance is prepared from balances as of March 31st, 2016.

Truck Sale Profit/Loss

• A gain/loss on disposal of a truck by Lakshmi Transports Ltd is determined.

Subsidiary Books of Niranjan

• Prepare subsidiary daybooks from details.

Journal Entry Rectifications

• Correcting inaccurate journal entries.

Sundaramm's Cash Book

• Kalyana Sundaram's columnar cash book is prepared using various transactions.

Bank Reconciliations

• The bank reconciliation statement is prepared as of December 31st, 2017

Petty Cash Book

• An analytical petty cash book is prepared under the imprest system.

Software Defined

• Definition and accounting software types are identified.

A summary of accounting principles, including GAAP, stewardship accounting, capital accounts, and trial balances. Covers cash books, bank reconciliation statements, and handling discrepancies. Also discusses transaction omissions and depreciation factors.