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Questions and Answers
How would 'Collection for Property Expenses' typically be categorized in an Income and Expenditure Account?
How would 'Collection for Property Expenses' typically be categorized in an Income and Expenditure Account?
- As an expenditure, reducing the overall surplus.
- As income, increasing the overall surplus. (correct)
- As an asset, indicating resources available.
- As a liability, representing future obligations.
What is the implication of a 'Surplus / (Deficit)' in an Income and Expenditure Account?
What is the implication of a 'Surplus / (Deficit)' in an Income and Expenditure Account?
- It is solely used to calculate the depreciation of equipment.
- It represents the difference between total income and total expenditure: a surplus indicates income exceeds expenditure, while a deficit indicates the opposite. (correct)
- It reflects the total cash balance available at the end of the accounting period.
- It always indicates the organization's financial health is in decline.
If a company uses 'Fixed Income Bearing Securities,' how should that be categorized?
If a company uses 'Fixed Income Bearing Securities,' how should that be categorized?
- Debentures (correct)
- Short Term Bond Fund
- Share Based Payment
- Equity Growth Fund
What financial reporting standard does 'Business Combinations' fall under?
What financial reporting standard does 'Business Combinations' fall under?
What is the primary purpose of transferring to a 'Reserve Fund'?
What is the primary purpose of transferring to a 'Reserve Fund'?
How does 'Outstanding' property expenses adjust the total property expenses?
How does 'Outstanding' property expenses adjust the total property expenses?
How does 'Prepaid' security adjust the total security expenses?
How does 'Prepaid' security adjust the total security expenses?
If 'Interest - Savings Bank' and 'Interest - Fixed Deposit' are both types of income, under what broader category would they be classified in an Income and Expenditure account?
If 'Interest - Savings Bank' and 'Interest - Fixed Deposit' are both types of income, under what broader category would they be classified in an Income and Expenditure account?
In the context of asset classification, how are 'Cash on Hand' and 'Cash in Banks' typically categorized?
In the context of asset classification, how are 'Cash on Hand' and 'Cash in Banks' typically categorized?
Which of the following is the correct matching of Column A and Column B items based on the context?
Which of the following is the correct matching of Column A and Column B items based on the context?
Flashcards
What is IFRS 2?
What is IFRS 2?
Deals with share-based payment transactions, such as employee stock options.
Highest Risk Associated Fund
Highest Risk Associated Fund
Funds with the highest potential for loss due to their investment strategies.
Moderate Risk Fund
Moderate Risk Fund
Funds with a moderate level of risk, balancing potential returns with stability.
Investment Accounting
Investment Accounting
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Fixed Income Bearing Securities
Fixed Income Bearing Securities
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Special Fund
Special Fund
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Compulsory transfer to Reserve Fund
Compulsory transfer to Reserve Fund
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What is IFRS 3?
What is IFRS 3?
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What are Debentures?
What are Debentures?
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What is AS 13?
What is AS 13?
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Study Notes
- Solution 1 (b) shows two columns, A and B, seemingly for matching items.
Column A
- IFRS 2
- Highest Risk Associated Fund
- Moderate Risk Fund
- Profit on Sale at Investment
- Investment Accounting
- Fixed Income Bearing Securities
- Special Fund
- Bye Law No. 145
- Compulsory transfer to Reserve Fund every year
- IFRS 3
Column B
- Share Based Payment
- Equity Growth Fund
- Short Term Bond Fund
- Credited to Profit and Loss Account
- AS 13
- Debentures
- Prize Fund
- Maximum Cash Balance
- 25% of the Net Profit each year
- Business Combinations
Income and Expenditure Account
- This account has debit (Dr.) and credit (Cr.) sides.
- The debit side lists expenditures, while the credit side lists income.
- The account totals to ₹27,65,210 on both sides.
Expenditure Items
- Property Expenses total ₹2,84,450, including property taxes of ₹18,95,609, water charges of ₹1,05,641, electricity charges of ₹2,52,082, outstanding expenses of ₹32,368, and repairs/maintenance of ₹1,60,948.
- Establishment Expenses of ₹1,48,940 are listed.
- Other expenses includes Salaries of ₹10,000
- Security expenses total ₹90,628 after deducting prepaid expenses of ₹5,984 from ₹96,612.
- Other expenses of ₹20,612 and a depreciation (equipments) value of ₹48,382 are included.
- Surplus/Deficit is not specified but contributes to the total.
Income Items
- Collection from members includes ₹13,44,570 for property expenses
- Collection for establishment expenses of ₹12,68,919.
- Interest and dividends total ₹1,51,71.
- This includes ₹1,16,313 from savings bank interest and ₹35,408 from fixed deposit interest.
Balance Sheet
- The balance sheet is for the year ended 31-3-2017.
Liabilities
- Share capital authorized is ₹4,00,000.
Assets
- Cash and bank balances include ₹8,24,175 cash on hand
- Cash in banks of ₹2,01,456.
- A investments line item representing ₹10,2
- An investments line item representing ₹13,
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