Basic Accounting Lectures

Correction of Error

admin — Fri, 31 Aug 2012 19:10:27 +0000

In this page you would find all the relevant material regarding the financial accounting topic of ‘ Rectification of Error’ or ‘ Correction of Error’. The Material includes Video lectures, Notes, Practice Questions etc.

Video Lecture

Language: (Urdu and Hindi) Video Length: About 19 minutes File Type: Flash file (zipped) File Size: 5.5 mb

Lecture Overview: In this lecture you would learn about two broad categories of Error i.e. ;

Errors that affect trial balance agreement &;
Errors that do not affect trial balance agreement.

The errors which do not affect the trial balance agreement are further divided in to 6 categories;

a: Error of Omittion
b: Error of Commission
c: Completer reversal of Entry
d: Error of Original Entry
e: Compensating Error
f: Error of Principal

In the current video, you will learn in detail about the above errors (nature, how to correct etc.)

In case of errors affecting trial balance agreement, Suspense Account is used (the topic of suspense account will be covered in separate video)

Note: You need to have winrar and flash player installed on your computer.

Download the lecture from Ziddu

Practice Material:

Question 1 (Question and Answer in PDF)

This is good exam level question on the topic. Except part 5, the question is relatively easy.

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Question 2 (MCQs)

Download from Ziddu (700 kb)

Lecture Notes.

Basic Concepts Problems and Solution

admin — Sat, 26 May 2012 08:07:26 +0000

This question tests your basic knowledge of various accounting Principals ranging from fundamental accounting principals to inventory (IAS 2).

SAMPLE :

Question:- Revenue is not recognized when it is received.

Ans: True, it is recognized in the period in which it is earned.

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You need to have PDF reader installed on your machine as this is in PDF format.

Branch Accounting Problems and solutions

admin — Tue, 08 May 2012 14:40:34 +0000

This is the professional exam level question on the topic of Branch Accounting.

It is moderately difficult.

File size : 1.12 mb

Format: pdf

You must have adobe reader 7 or above to view the file contents.

Download it from Ziddu

In case of any problem contact us

Practice Questions — Material Cost

admin — Tue, 03 Apr 2012 17:32:51 +0000

There are about 10 MCQs on the topic of material.

Sample Question

Q:- One of the following documents is used for issuing materials to production departments.

A: Purchase Requisition Note
B: Stores Requisition Note
C: Goods Received Note
D: Stores Credit Note

Now attempt the following question. Click on the following video. It takes some time to load. After it is fully loaded, the test will begin.

There is no time limit to answer the question.

Practice Questions — Labour Cost

admin — Fri, 30 Mar 2012 18:35:49 +0000

Download the file and attempt the question on the topic “Labour Cost” of cost accounting. Currently there are 10 Questions. You need to have adobe reader 9 or higher to access the file.

Download from Ziddu

Other Details of the download:

General

Format                                  : ShockWave
File size                                : 2 MB (approximately)
Overall bit rate                  : 4 374 Kbps
Bit rate                                 : 4 194 Kbps
Width                                    : 1 024 pixels
Height                                   : 768 pixels
Display aspect ratio        : 4:3
Frame rate                           : 30.000 fps

Practice Questions — Process Costing

admin — Mon, 26 Mar 2012 16:55:24 +0000

Download the Mcqs on the topic of Process Costing. Please note that you will require Adobe Acrobat Reader 9 or higher to view the file.

Download from Ziddu

Details of the file are as under

Format                                  : pdf (ShockWave)
File size                             : 1589 KiB
Overall bit rate                    : 4 378 Kbps
Width                                   : 1 024 pixels
Height                                    : 768 pixels

General Cost Accounting Quizz

admin — Thu, 05 Jan 2012 18:09:42 +0000

In this file, you will find 10 MCQs and True/Falls etc regarding cost accounting. All questions carry equal marks i.e 10. You need 80% to pass this test. This is very easy and for beginners.

Download it from Ziddu

Overhead Variance – Four Variance Method

admin — Sun, 25 Dec 2011 11:33:27 +0000

This is the last lecture on Variance Analysis

In the four Variance method following variances are calculated

Spending Variance
Idle Capacity Variance
Variable Efficiency Variance
Fixed Efficiency Variance.

The spending variance and idle capacity variance are the same as in Three Variance Method. The formula for all of these four variances are given below.

You can click on the image below to enlarge the view.

OH Variance Analysis – Two Variance & Three Variance Method

admin — Mon, 12 Dec 2011 19:18:44 +0000

There are couple of approaches for Overhead Variances. In one approach, variances for FIXED and VARIABLE overheads are calculated separately. (click here for explanation and formula of this approach)

Whereas in the second approach, which is the topic of this post, separate variances are not calculated.

Note: (First approach is more widely used than the later, and you will have to refer your own syllabus in order to determine which approach falls within your scope. In some professional courses, students may be asked to learn both methods.)

In Two Variance Method, the following variances are calculated.

Controllable Variance
Volume Variance

In Three Variance Method, the following variances are calculated.

Spending Variance
Idle Capacity Variance
Efficiency Variance

In Four Variance Method, the following variances are calculated.

Spending Variance
Idle Capacity Variance
Variable Overhead Efficiency Variance
Fixed Overhead Efficiency Variance

The formula for Two Variance Method & Three Variance Method are given are available below in this post whereas the formula for Four Variance Method are shall be provided in the next post.

You can click on the image below to enlarge the view.

Invertory/Stock Levels

admin — Sun, 11 Dec 2011 19:16:49 +0000

What are stock Levels?
Every business has to maintain stocks of material/goods which are used during the production process. Following stock levels are self-explanatory. Like reorder level suggests that at what level we should re order the stock. Similarly maximum or minim stock levels suggest the maximum or minimum stocks to be maintained by the business. Danger level means that if the stock falls below this level, business might be suffering stock out costs i.e. stoppage in production, delayed delivery to client and loss of goodwill etc.

Solving questions on this topic is quite easy if you know the formulas. You will have to remember all these formulas.
Helpful Tip
I am giving you a good tip which will ease the process of remembering these formulas. If you haven’t already noticed, just note it that Requirement and Lead Time are same, i.e. if requirement is average, lead time is also average, if requirement is minimum lead time is also minimum in a formula.

You can click on the image to enlarge the view.

You can click on the image below to enlarge the view.