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Q:- 1. What is Accounting ?

       

 

Q:- 2. What is the meaning of Accounting ?

 

 
        
 
 



Q:- 3. What do you mean by Accounting?

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Q:- 4. Accounting ?

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Q:-5. What is the definition of Accounting?

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Q:-6. What can you say about Accounting?





   


      
 


 

  
   

 

Q:- 7. What is the simple definition of Accounting?

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financial statements./

 



 

comparative financial statements.

         


  

What is Financial Statements?

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a)Profit and Loss Account

 
 
    
     

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b) Profit and Loss Appropriation Account

 
 

 
 

    
 



  
 
  
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c) Balance Sheet
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d) Cash flow statement

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cash flow from operating activity + Cash flow from investing activity + cash flow from

financing activity + opening balance of cash book = Closing balance of cash book


Why are these statements made by Companies?

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1. Managers and Directors

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2. Investors

 

        

   

  
 

  
    


3. Government




 
 
 


  
    
  



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1st method of providing depreciation

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--------------------------Original cost of asset - scrape value of asset
Depreciation = ___________________________________
-------------------------Effective working life of asset

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Benefits of this method

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Disadvantage of this method

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Essential of a Bill of Exchange

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Journal Entries in the books of Drawer

1. Drawer receives a bill accepted by drawee

  

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Journal Entries in the books of Draweeor Debtor 

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Definition of Costing System

  
  
 
       
 

    




   

Explanation of Costing System

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Type of Costing System

1. Tradition Costing System

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2. Activity Base Costing System

 
     

 

   
    
   
  
     


Installation of a Good Costing System

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1. # Manufacturing methods and process

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2. # Size of company

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3. # Nature of products

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4. # Management control needs

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5. # Nature of raw materials

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6. # Comparability

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7. # Organization structure

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PAPER 2 : COMPANY ACCOUNTS, COST AND MANAGEMENT
ACCOUNTING

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Part B : Cost And Management Accounting (50 Marks)

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Simple Meaning of Activity based Costing



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Main Steps of Calculating total Cost Under Activity based Costing


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Ist Step
Identify the Activities

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2nd Step
Calculate the Cost of All Activities
  
     
  

 

  
 
 

 
 
 
 

 

  
3rd Step
Calculate Cost Driver Rate
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= Total cost of all activities / No. of Cost Drivers

4th Step

Calculate the total Cost of Product


= Cost Driver Rate X No. of Machine Hour Time Used on Product ?


Following Sheet will Show you What have to Calculate in Activity
Base Costing!




Benefits of Activity Based Costing / ABC


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Some of Important Facts Relating to Activity Base Costing

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