CA Foundation Accountancy Support series

Learn the core accounting concepts under GAAP and IFRS, including the business entity, money measurement, going concern, accounting period, cost, and revenue recognition concepts with practical examples.

Explore the accrual basis of accounting and the matching concept, linking revenue to expenses in the period, and contrast with cash basis along with key concepts like disclosure and conservatism.

Identify financial transactions, apply debit and credit rules, pass and post journal entries, and close ledgers; compile trial balance for profit and loss account, balance sheet, and notes to accounts.

Explore the dual concept of accounting and the accounting equation, assets equal liabilities plus capital, and how these drive balance sheets and debit and credit rules.

Learn the golden rules of accounting for real, personal, and nominal accounts, including debit and credit concepts, journal entries, and the receiver and giver roles.

Learn to pass journal entries step by step by identifying financial transactions, applying debit and credit rules, and recording cash, bank, capital, purchases, and expenses with clear narration.

Learn to parse and pass journal entries for capital introduction, drawings, bank and cash, assets, and liabilities, with narration and vouchers, in a trading business.

Learn how to pass journal entries for purchases and sales on cash and credit, discount handling, salary and rent payments, loan repayments, and interest income, through a comprehensive example.

Develop skills to pass journal entries for sales returns, purchase returns, cash and cheque payments, and adjust balances with future transactions, using debit and credit rules.

Master how to post journal entries in the ledger, prepare ledger accounts, and assess the debit and credit impact on cash, bank, capital, and loans.

Learn to close ledger accounts, compute closing balances, and carry forward balances using debit and credit totals, with practical postings for cash, bank, and capital accounts.

A trial balance lists ledger accounts with debit and credit balances at a specific date, verifies journal postings, and supports preparing the balance sheet and profit and loss account.

Learn how a general ledger aggregates sub ledgers, using accounts receivable as an example, and see postings, opening and closing balances, and trial balance in manual and computerized accounting.

Learn how subsidiary books and special journals organize accounting by recording cashbook, purchase journal, sales journal, and sales return book, with general journal proper for other transactions.

Understand the cashbook basics, including single and double column formats, petty cash under the imprest system, and how cash and bank transactions are recorded as the book of original entry.

Learn to prepare a single column cashbook by recording receipts on the debit side and payments on the credit side, including opening balance and balance brought down.

Learn how to prepare a double column cashbook with cash and bank columns, recording receipts on the debit side, payments on the credit side, including opening balances and closing balances.

Manage petty cash under the imprest system by setting a starting balance, transferring funds from the main cashier, recording expenses in the petty cash book, and posting journal entries.

The lecture explains the purchase journal, also known as borgese dbl, for credit purchases, and the purchase return journal, including debit notes and supplier accounts.

Learn to prepare the purchase journal and purchase returns journal for June 2009, recording credit and cash purchases, applying trade discounts, and posting to supplier accounts.

Discover how the sales journal records credit sales with customer details, how cash sales use the cash book, and how sales returns are tracked in the sales returns journal.

Learn to record credit sales in the sales daybook, apply trade discounts, manage cash sales in the cash book, and post sales returns in the sales return journal.

Rectify accounting errors from journal entry to trial balance. Classify errors as errors of principle, omission, commission, and compensating, and apply suspense accounts and prior period items.

The lecture demonstrates how to rectify errors detected before preparing the trial balance by recording journal entries, reversing wrong entries, and posting corrections to ledger accounts.

Learn how to rectify errors detected after preparing the trial balance using two approaches, including the use of a suspense account and practical examples.

Examine rectification of errors detected in subsequent years, using prior period adjustment accounts and suspense accounts, and transfer net effects to the current year profit or loss and capital.

Master bank reconciliation basics to bridge gaps between your bank statement and books. Learn to read cash books and bank statements, and identify deposits not cleared and checks not presented.

Learn to prepare a bank reconciliation statement from cash book and passbook. Adjust for unpresented checks, deposits not cleared, bank charges, and other items to reveal the balance.

Learn to prepare a bank reconciliation statement for a normal credit balance by adjusting deposits not cleared, direct bank payments, fixed deposits and dividends to reach the cash book balance.

Learn to prepare a bank reconciliation for an overdraft, reconciling cash book and bank statement with checks issued but not presented, deposits not cleared, bank charges, direct deposits, and interest.

Demonstrates preparing a bank reconciliation for an overdraft balance by reconciling the bank statement and cashbook, accounting for checks issued but not presented, direct payments, bank debits, and dividend receipts.

This example shows how to prepare a bank reconciliation statement after rectifying cashbook errors and recording transactions not in the cashbook, aligning the cashbook balance with the bank statement.

shows how to prepare a bank reconciliation statement by comparing the cash book and bank statement, identifying deposits in transit, outstanding cheques, direct transfers, and charges to reconcile balances.

Learn to prepare a bank reconciliation statement using opening balances, reconciling passbook, cash book, and bank statements, with deposits not cleared, charges, and outstanding checks.

Understand inventory and its valuation in trading and manufacturing, including raw materials, packing materials, stores and spares, work in progress, finished goods, cost of goods sold, and net realizable value.

Learn how inventory record systems work, including periodic and perpetual methods, stock taking, and cost determination methods such as fifo and weighted average.

Explore historical methods for determining inventory cost, including specific identification, FIFO, LIFO, simple average, and weighted average. Learn how periodic and perpetual inventory systems affect valuation.

Learn non historical methods to determine inventory cost, especially the adjusted selling price method for retail, using gross profit ratio and deductions (discounts, taxes, transport), and compare with standard price.

Understand the depreciation concept and meaning: allocate fixed asset costs, such as factory building, machinery, and furniture, over useful life, exclude land, and apply component-wise depreciation with residual value.

Explore depreciation methods including straight-line, reducing balance, sum of digits, units of production, and depletion, with practical examples and tax considerations.

Calculate the asset's written-down value on the sale date, compare it with the sale price, determine profit or loss, and explain direct charge versus provision for depreciation with their entries.

Learn to apply the reducing balance depreciation method to fixed assets, post depreciation to asset and depreciation accounts, and compute profit or loss on asset sale.

Learn to apply provision for depreciation with reducing balance at 10 percent, record depreciation to the provision account (accumulated depreciation), and manage asset sale and profit and loss transfers.

learn how to handle changes in the method of depreciation by revising estimates, switching from reducing balance to straight-line, and disclosing reasons and amounts in notes.

Learn how asset revaluation at fair value affects depreciation, including upward/downward changes, the use of revaluation reserve, and adjustments to profit and loss, with depreciation on the revalued amount.

Explore how a bill of exchange and a promissory note enable sellers to raise funds when buyers cannot pay on time, detailing makers, acceptors, and essential writing requirements.

Identify what constitutes a foreign bill under the negotiable instruments act: a bill drawn outside India, or drawn in India but payable outside India, and its implications for foreign exchange.

Compute the bill’s due date and maturity from the bill date or acceptance (after sight), including grace days, and account for promissory notes and holidays.

Explore the options of bills of exchange, including holding, endorsing to a third party, discounting with a bank, and noting charges and rebates on early payment.

Learn the journal entries for bills of exchange, covering drawing and acceptance, transfer to bills receivable, banking discount, endorsement, renewal, retirement, and dishonor with noting charges.

Explore how to pass journal entries for bills of exchange and promissory notes, including bills receivable, renewal, dishonor, discounts and rebates, and insolvency with deficiency and bad debt treatment.

Learn to pass journal entries for four bills drawn on Mr. X, including bank discounting, endorsements, dishonor, noting charges, and maturity in a bill of exchange and promissory note example.

Explore the basics of sale on consignment, defining consignor and consignee, ownership transfer on sale, and how ordinary, del credere, and overriding commissions are earned and reflected in accounts.

Learn how to record journal entries for consigner and consignee accounts, stock, expenses, advances, and profit or loss on each consignment.

Valuation under consignment adds cost to reach the consignee and freight; inventory is valued at cost or NRV, lower; 50% sold; returned goods use cost plus transport; subsequent transport costs excluded.

Differentiate normal loss from abnormal loss in consignments; learn how normal losses are absorbed in cost, while abnormal losses are recorded separately with possible insurance adjustments.

Explore goods sold on consignment, including calculating abnormal loss, valuing inventory, and recording journal entries for the consigner and consignee, with commission, expenses, and bad debts.

Explore sale on return basis, including buyer inspection within 15 days or one month, acceptance or rejection terms, and how accounting treatment varies by transaction frequency, especially in online sales.

Record casual sales on return as normal sales and adjust for returns when the buyer accepts; if acceptance is pending, reverse and treat as stock with the customer.

Learn how to handle goods sold on sale on return basis in casual transactions, including recording sales, processing returns, reversing entries at year end, and valuing inventory with the customer.

Manage sale on return transactions with memorandum books and separate customer ledgers; record actual sales in main books and value year-end inventory at lower of cost or net realizable value.

Explain how to record sales on return on a frequent basis, using goods sent on approval ledger, goods approved, and inventory with the customer, and end-of-year balancing.

Compute the average due date with a weighted average of multiple due dates, adjust for holidays, and assess interest gains or losses when payments deviate from the average date.

Compute the average due date for inter-party transactions by netting mutual payments and using a base date, dividing the difference in the sum of products by the difference in amounts.

Shows how to compute loan interest using the average due date for equal and unequal annual installments at 10 percent, producing results that match the standard method.

Learn to calculate interest on drawings in a partnership using the average due date method, including base date selection and comparison with the ordinary method.

Account current records transactions in a ledger and computes interest from due dates, using three methods: interest tables, product method, and balance method.

Prepare an account current by calculating interest for each credit transaction from its due date to the account end, using a 10 percent per annum rate.

Learn to prepare account current by production method, using forward and backward methods to compute net interest on balances across due dates and days.

Discover how red ink or negative interest is calculated in an account current using the means of production method, including cash discounts and two-month credit terms.

Learn how to prepare an account current using the balance method by banks, calculating debit and credit balances per transaction, product of balance with days, and net interest.