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Accounting process till Rectification of Error

The latter half of the CA CPT chapter “Accounting Process” tests your understanding of the accounting process and deals with rectification of accounting entries. It includes a discussion on capital and revenue items as well as contingent assets and liabilities.

CA CPT Exam  

With Sheela Warrier.Duration:3hrs 51min 

Capital & Revenue ,Contingent & Rectification of Error Duration (min:sec)
Capital & Revenue   
{modal;rel=0|width=780|height=439|title=Introduction}Introduction{/modal} 04:39
{modal;rel=0|width=780|height=439|title=What is Capital & Revenue Expense}What is Capital & Revenue Expense{/modal} 14:45
{modal;rel=0|width=780|height=439|title=Implication of Wrong Recording}Implication of Wrong Recording{/modal} 04:29
{modal;rel=0|width=780|height=439|title=Deferred Revenue Expense}Deferred Revenue Expense{/modal} 04:59
{modal;rel=0|width=780|height=439|title=Example}Example{/modal} 10:24
{modal;rel=0|width=780|height=439|title=Conclusion Revenue vs. Capital Expense}Conclusion Revenue vs. Capital Expense{/modal} 04:20
{modal;rel=0|width=780|height=439|title=Revenue & Capital Receipt}Revenue & Capital Receipt{/modal} 05:14
{modal;rel=0|width=780|height=439|title=Quiz}Quiz{/modal} 11:23
{modal;rel=0|width=780|height=439|title=Conclusion}Conclusion{/modal} 07:26
Contingent Asset & Liability  
{modal;rel=0|width=780|height=439|title=Introduction}Introduction{/modal} 01:36
{modal;rel=0|width=780|height=439|title=Contingent Asset}Contingent Asset{/modal} 04:08
{modal;rel=0|width=780|height=439|title=Contingent Liability}Contingent Liability{/modal} 04:27
{modal;rel=0|width=780|height=439|title=Example}Example{/modal} 13:50
{modal;rel=0|width=780|height=439|title=Recap}Recap{/modal} 04:07
{modal;rel=0|width=780|height=439|title=Quiz}Quiz{/modal} 01:28
Rectification of Error  
{modal;rel=0|width=780|height=439|title=Introduction }Introduction {/modal} 04:19
{modal;rel=0|width=780|height=439|title=What is Rectification of Error}What is Rectification of Error{/modal} 05:17
{modal;rel=0|width=780|height=439|title=When do error occur}When do error occur{/modal} 19:20
{modal;rel=0|width=780|height=439|title=Types of Error}Types of Error{/modal} 10:59
{modal;rel=0|width=780|height=439|title=Quiz}Quiz{/modal} 02:09
{modal;rel=0|width=780|height=439|title=When is error detected}When is error detected{/modal} 03:36
{modal;rel=0|width=780|height=439|title=Error detected before TB}Error detected before TB{/modal} 19:18
{modal;rel=0|width=780|height=439|title=Error detected after TB}Error detected after TB{/modal} 09:55
{modal;rel=0|width=780|height=439|title=Example after TB}Example after TB{/modal} 07:41
{modal;rel=0|width=780|height=439|title=Error detected after Final Account}Error detected after Final Account{/modal} 09:16
{modal;rel=0|width=780|height=439|title=Concept Impact of error on Profit}Concept Impact of error on Profit{/modal} 03:30
{modal;rel=0|width=780|height=439|title=Example Impact of error on Profit}Example Impact of error on Profit{/modal} 16:15
{modal;rel=0|width=780|height=439|title=Final Quiz}Final Quiz{/modal} 16:08
{modal;rel=0|width=780|height=439|title=Additional Questions}Additional Questions{/modal} 9:56
{modal;rel=0|width=780|height=439|title=Conclusion}Conclusion{/modal} 05:59
Total 4:00:53


Few things covered by us :

Capital & Revenue Expenditure & Receipts

Capital Expenditure
Revenue Expenditure
Deferred Revenue Expenditure
Capital Receipt
Revenue Receipt

Considerations for Determining Capital & Revenue Exp

Nature of business
Nature of expense
Benefit of expense
Effect on revenue generating capacity of business
Materiality of amount

Capital Expenditure

Benefit derived over more than a year
Increases revenue earning capacity

Revenue Expenditure

Benefit derived only in current period
Usually recurring in nature
Maintenance charges
Non material items

Deferred Revenue Expenditure

Revenue in nature
Matching with revenue deferred
Deferred revenue expenditure vs Prepaid expenses
Discount on issue of Debentures, R& D Expense

Revenue Receipt

Receipt from business activity
Taken to Profit and Loss a/c - credit side
Recurring in nature
Sale , Scrap Sale, Interest on Deposits, Profit on sale of fixed assets, Discount received

Capital Receipt

Receipts not from regular business activity
Not recurring in nature
Affects the financial position
Liability side of Balance Sheet
Bank loan, Sale of Asset, Issue of shares

Contingent Asset

Possible asset
From past events
Possibility of income in future
Prudence and AS
If outcome is certain ?

Contingent Liability

Possible obligation from past events
Present obligation from past events
Distinction between liability and contingent liability
Distinction between provision and contingent liability

Rectification of Errors

What is rectification of errors
When do errors occur
Types of errors
Stages of rectification of errors
Errors Impact on Profit

What is Rectification of Errors

Examples of errors
Effect on Trial Balance
How to rectify

Errors occur - while recording

Omission of a transaction
Double recording of a transaction
Partial omission of a transaction
Recording a wrong amount
Recording in a wrong subsidiary book
Wrong totalling of subsidiary book

Errors occur - while posting

Omission of posting
Partial omission of posting
Wrong amount posting
Wrong totalling of day books
Wrong account posting
Posting to the wrong side of correct account
Posting to the wrong side of wrong account

Errors occur - after posting

Wrong balancing of ledger account
Omission of account from Trial Balance
Wrong totalling of Trial Balance
Taking balance to wrong side in Trial Balance

CPT Exam Exposure

Take Quiz

next toBank Reconciliation Statement

back toJournal to Cash Book


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