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[SIZE=3]Accountancy And Auditing Paper-I[/SIZE]
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Those who have Accounting as their optional sub, plz answer this question of 2012:

Q: Explain how the typical corporate firm is organised as it relates to the financial management function?

Q: Explain how the typical corporate firm is organised as it relates to the financial management function?

There's a Finance department headed by a CFO/Director Finance, etc, assisted by two key persons i.e. Controller and Treasurer. Controller is responsible for accounts related matters while Treasurer and his team perform financial management functions like investment appraisal, arranging funds, dividend policy, etc.
That's what I wrote, don't know how far correct.

Thanks for your reply.

Your answer matches to greater extent to that of mine. My answer was as follows.

Firstly i explained the financial management function. Mainly it performs two major functions, those are finance and investment functions. In order to perform these two functions effectively and efficiently, a corporate firm is organised in a suitable manner. There is a finance dept. It is headed by finance head or director. Under him are many sub-units such as asset manager, equity manger, liability etc manager. All of these parts contribute to the efficient financial management function.

use of scientific calculator
 

seniors lz tell me can we use scientific calculator in this paper as it is written there on paper that normal calculator can be used

[QUOTE]seniors lz tell me can we use scientific calculator in this paper as it is written there on paper that normal calculator can be used[/QUOTE]
scientific calculator is prohibited. i remember two of my friends were using scientific calculator during 2010 attempt. on seeing them, the invigilator captured their calculator under his custody. so my friends were very disheartened at this happening as their attempt was at risk. so i advise you to use simple calculator. on the other hand, you can attempt the paper with simple calculator; there is no need of scientific calculator.

Tax rates for Income tax portion
 

I am lil but confused regarding the income tax section.....there is always a numerical question in this section that requires to calculate tax payable....i want to know for this purpose shud we refer the current tax slab means if we are required to calculate the tax payable for the period 2011-2012 then the respective tax rates shud be used or we are supposed to calculate the tax payable on the basis of hypothetical rates?....second thing i want to know that do they publish every year a new edition for income tax buk coz i have heard that every year some changes are made in income tax law...so if it is written to get the latest edition then does it mean that we are supposed to refer this years edition....kindly answer my long query

can anybody tells me how to prepare this subject and what books are required for its preparation? i did MBA.

[QUOTE=Ahmed Faisal;463912]can anybody tells me how to prepare this subject and what books are required for its preparation? i did MBA.[/QUOTE]
[url]http://www.cssforum.com.pk/css-optional-subjects/group/accounting-auditing/65013-how-prepare-accounting.html[/url]


Please consider upper link

Sir tell me one thing....in the income tax section they have asked to calculate the taxable income for a period ending june 2008...how did u solve this problem....i mean u must had gone through the tax slabs and tax rates of the tax year 2011-2012...n for this question u must have a knowledge regarding tax rates of 2008-2009...den how did u solve this question.....kindly rpl

plz somebody answer my query

[QUOTE=rushna khalil;466264]plz somebody answer my query[/QUOTE]

i wish i could answer, but i am still pondering over this subject to opt. for one thing, there are very few to guide us... keep going and hope for the best.

[QUOTE=Ahmed Faisal;466279]i wish i could answer, but i am still pondering over this subject to opt. for one thing, there are very few to guide us... keep going and hope for the best.[/QUOTE]
I do not know why you are confused to choose this subject

[QUOTE=rushna khalil;465419]Sir tell me one thing....in the income tax section they have asked to calculate the taxable income for a period ending june 2008...how did u solve this problem....i mean u must had gone through the tax slabs and tax rates of the tax year 2011-2012...n for this question u must have a knowledge regarding tax rates of 2008-2009...den how did u solve this question.....kindly rpl[/QUOTE]

Calculation of taxable income do not require any tax rates. If examiner ask to calculate the income tax payble then reates are required. And examiner normaly asks about taxable income not income tax payable. If he would ask to calculate income tax payable then he will ask about recent year. I.e CE-2013 then tax year ending 2012. Further queries are welcome.

[QUOTE=sidogar;466470]I do not know why you are confused to choose this subject[/QUOTE]

I am confused, because from where should i start...i.e., i studies these books in my academic years..
Principle of Accounting by meigs and meigs
Advance Accounting by M.A Ghani
Cost Accounting (7th Edition) by Adolph Matz, Phd, Milton F.usry, PHD, CPA
Auditing by Professor Dr. khuwaja Amjad Saeed.
Taxation by Muhammad muazzam Mughal.
My Question is that are these book are sufficient and what chapters should i have to prepare from these book.
another question is that is there any manual of these books are available...
Bro sirfraz and others kindly help in this regard.

[QUOTE=Ahmed Faisal;466558]I am confused, because from where should i start...i.e., i studies these books in my academic years..
Principle of Accounting by meigs and meigs
Advance Accounting by M.A Ghani
Cost Accounting (7th Edition) by Adolph Matz, Phd, Milton F.usry, PHD, CPA
Auditing by Professor Dr. khuwaja Amjad Saeed.
Taxation by Muhammad muazzam Mughal.
My Question is that are these book are sufficient and what chapters should i have to prepare from these book.
another question is that is there any manual of these books are available...
Bro sirfraz and others kindly help in this regard.[/QUOTE]

please visit thread "How to Prepare Accounting" in accounting and auditing section. Complete detail alongwith chapters/books is there.

Sir even for the taxable income, we require the current tax slab.....as far as I know the tax slabs are revised every year....so even though you are required to calculate taxable income only, then also u must have the knowledge of current tax slab....anyways thanx for ur answer......n mu next query is whether taxable income is the net income after tax exemption or before exemption.....if t is before exemption then surely we dont need to have a knowledge of current tax slabs.....i will be thankful to u if u clear dis point...

[QUOTE=rushna khalil;466696]Sir even for the taxable income, we require the current tax slab.....as far as I know the tax slabs are revised every year....so even though you are required to calculate taxable income only, then also u must have the knowledge of current tax slab....anyways thanx for ur answer......n mu next query is whether taxable income is the net income after tax exemption or before exemption.....if t is before exemption then surely we dont need to have a knowledge of current tax slabs.....i will be thankful to u if u clear dis point...[/QUOTE]

no tax slabs required for calculation of taxable income and thats 100% sure. And taxable income is after deduction of all exemptions from the income. However tax credits required knowledge of slabs, and examiner normaly does not ask about that. Start your preparation you will get 16-20 even if you do not calculate the tax payable.

Paper 1 question 8, Ratios???
 

Question # 8 of Paper 1 kahan sy aa gaya hy yaar. I mean I have a book for accounting named "Principles of Accounting" by M.A. Ghani and there is no chapter showing any kind of ratios like current ratio, liquidity ratio etc etc. Should I buy another book. If yes then which one. Also recommend any book for Paper II jis ki main ny abhi tayyari karni hy :)

[QUOTE=xepan;477660]Question # 8 of Paper 1 kahan sy aa gaya hy yaar. I mean I have a book for accounting named "Principles of Accounting" by M.A. Ghani and there is no chapter showing any kind of ratios like current ratio, liquidity ratio etc etc. Should I buy another book. If yes then which one. Also recommend any book for Paper II jis ki main ny abhi tayyari karni hy :)[/QUOTE]

"Principals of Advanced Accounting" by M.A Ghani. You need to prepare chapter of financial ratios from that book only.

Ratios
 

[QUOTE=xepan;477660]Question # 8 of Paper 1 kahan sy aa gaya hy yaar. I mean I have a book for accounting named "Principles of Accounting" by M.A. Ghani and there is no chapter showing any kind of ratios like current ratio, liquidity ratio etc etc. Should I buy another book. If yes then which one. Also recommend any book for Paper II jis ki main ny abhi tayyari karni hy :)[/QUOTE]

Dear ratios are the easiest topic. Here are the various types of ratios:

1 Profitability ratios
2 Liquidity ratios
3 Activity ratios (Efficiency Ratios)
4 Debt ratios (leveraging ratios)
5 Market ratios
6 Capital budgeting ratios
You can study its details at this link and if you still find some problem then we can discuss it here. Do read their interpretations also as they are very helpful for aspirants in their fledgling stage of preparation.
[url]http://en.wikipedia.org/wiki/Financial_ratio#Profitability_ratios[/url]

[QUOTE=Abdul Q;481178]Dear ratios are the easiest topic. Here are the various types of ratios:

1 Profitability ratios
2 Liquidity ratios
3 Activity ratios (Efficiency Ratios)
4 Debt ratios (leveraging ratios)
5 Market ratios
6 Capital budgeting ratios
You can study its details at this link and if you still find some problem then we can discuss it here. Do read their interpretations also as they are very helpful for aspirants in their fledgling stage of preparation.
[url]http://en.wikipedia.org/wiki/Financial_ratio#Profitability_ratios[/url][/QUOTE]
That's very nice, but I recommend you to go through the book as well. Brcause there are lot of problems there which you can practice. Also formulas are bit different everywhere. It is better to follow Pakistan standards.

[QUOTE=sarfaraz shami;463957][url]http://www.cssforum.com.pk/css-optional-subjects/group/accounting-auditing/65013-how-prepare-accounting.html[/url]


Please consider upper link[/QUOTE]
how question no 2 was to be solved in paper 1 accounting assumptions and conventions ?

conventions
 

[QUOTE=atifdada;485255]how question no 2 was to be solved in paper 1 accounting assumptions and conventions ?[/QUOTE]

Conventions are the general accounting views to be taken into consideration while preparing Accounts.
If you are having accounting knowledge you must have studied the concepts like:
Prudence concept, separate entity concept, revenue recognition principles etc. they all fall into conventions and are the very basic concepts of accounting.

Let me solve the first 2 cases of Q No. 3 Paper I:
A) Supplies for personal use cannot be recorded as expense as Separate Business Entity Convention is applicable, So transaction should have been:
Drawings Dr
Cash/Bank Cr.
B) IAS 18 related to revenue provides guidline for the recording of service revenue. According to it Cash Basis should not be used rather one should record service revenue as the service has been rendered.

Hope you find the answer

[QUOTE=Abdul Q;485307]Conventions are the general accounting views to be taken into consideration while preparing Accounts.
If you are having accounting knowledge you must have studied the concepts like:
Prudence concept, separate entity concept, revenue recognition principles etc. they all fall into conventions and are the very basic concepts of accounting.

Let me solve the first 2 cases of Q No. 3 Paper I:
A) Supplies for personal use cannot be recorded as expense as Separate Business Entity Convention is applicable, So transaction should have been:
Drawings Dr
Cash/Bank Cr.
B) IAS 18 related to revenue provides guidline for the recording of service revenue. According to it Cash Basis should not be used rather one should record service revenue as the service has been rendered.

Hope you find the answer[/QUOTE]
Sorry for a mistake dear, In the double entry for A) instead of crediting Cash/Bank we will credit Supplies as they were used from out of business stock.

Thanks

[QUOTE=Abdul Q;485389]Sorry for a mistake dear, In the double entry for A) instead of crediting Cash/Bank we will credit Supplies as they were used from out of business stock.

Thanks[/QUOTE]
thanks dear question ki statement mai confusion thi .. aur aik cheez k yeh is type k questions ka answer kaha say milay ga like WHAT IS THE PURPOSE OF PREPARING FINANCIAL STATEMENTS ON TIMELY BASIS ??

[QUOTE=atifdada;485473]thanks dear question ki statement mai confusion thi .. aur aik cheez k yeh is type k questions ka answer kaha say milay ga like WHAT IS THE PURPOSE OF PREPARING FINANCIAL STATEMENTS ON TIMELY BASIS ??[/QUOTE]

This is one of the easiest questions dear. It can be found through internet or any good book of B.Com under the head "Uses and Purposes of Financial Statements"
it's a some what lengthy question otherwise I could have posted it here, you can check it out for guidance at:
[URL]http://en.wikipedia.org/wiki/Financial_statement#Purpose_of_financial_statements_by_business_entities[/URL]

[QUOTE=atifdada;485255]how question no 2 was to be solved in paper 1 accounting assumptions and conventions ?[/QUOTE]

[B]Accounting Conventions and Concepts[/B]
Please read the above in detail at this link:
[URL]http://www.tutor2u.net/business/accounts/accounting_conventions_concepts.htm[/URL]

[QUOTE=sarfaraz shami;466710]no tax slabs required for calculation of taxable income and thats 100% sure. And taxable income is after deduction of all exemptions from the income. However tax credits required knowledge of slabs, and examiner normaly does not ask about that. Start your preparation you will get 16-20 even if you do not calculate the tax payable.[/QUOTE]

ok sir agreed that no tax slabs required...bt even in calculation of taxable income the treatment of different items as to taxable or exempt or rate of taxability changes from year to year..how to look upto this??
reply awaited

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[SIZE=3]Accountancy And Auditing Paper-I[/SIZE]
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can any senior help me to solve the question 2 of paper 1... i just dont get how to solve it... please help soon... thanx

[QUOTE=babar saeed malik;643780]can any senior help me to solve the question 2 of paper 1... i just dont get how to solve it... please help soon... thanx[/QUOTE]

My dear, first of all make journal entries and then income statement which will produce income/ loss. After that you shall add or subtract the Income or loss as the case may be in your statement of owner equity. Finally, make Balance sheet. Principle of Accounting book by Meigs and Meigs is full of such type of question in Chapter 3 or 4. Its simple.