HOW TO PREPARE COMPANY ACCOUNTS AND AUDITING PRACTICES

HOW TO PREPARE COMPANY ACCOUNTS AND AUDITING PRACTICES

HELLO GUYS                  

How are you all ? I hope you all are fine. I am really sorry for the late posting. Because I have been busy in some work.

Today we will discuss about HOW TO PREPARE COMPANY ACCOUNTS AND AUDIT.  OKAY first let me tell you that this post is specially for CS EXECUTIVE OLD SYLLABUS STUDENTS. I am assuming you already completed your 70 to 80% syllabus.   So without wasting time let’s get started.

In CS executive old syllabus company accounts and auditing practices divided into 2 parts.

PART A COMPANY ACCOUNTS = 70 MARKS.

PART B AUDITING PRACTICES = 30 MARKS.

 

1)    AUDITING PRACTICES :   I will discuss first audit portion because it’s not just audit. But it is GOLDEN AUDIT for those students who are weak in company accounts.

·        Audit could be scoring part. ( if you properly study it).

·        If your audit portion is strong, and if you perfectly ( not copied language of module, but with proper key words) write the answer in exam and attempt full audit portion with 100% accuracy. You will get 15 to 17 marks easily ( personal experience).

·        So guys do audit properly and revise it for at least 3 to 4 times.

·        Make short notes or summary points of chapters and must practice comment based question .sometime ICSI asks comment based question.

·        Solve past year paper it will boost your confindecne.

·        Remember guys, it’s a GOLDEN AUDIT.

I know some of you will thinking audit is bunch of theory , how to mug up or how to cramp this theory.  Again you don’t need to cramp audit.  Just understand the concept properly and highlight or note down the key points and revise it on weekly basis.

 

2)COMPANY ACCOUNTS : Company secretary has to provide the complete and accurate information about the financial operations of company to management for decision making.

Now I hope you can understand why this subject is important.

NOTE : don’t focus on too much practical. Focus on theory also. In every attempt they ask theory of 30 to 40 marks in the exam.

Now I am giving you briefing of every chapters. Before we go ahead  this is suggestions and you can coustmise as per requirement.  And don’t follow this blindly. Because it is professional exams. I am just soothing the process of preparation.

A)   SHARE CAPITAL :    IMPORTANT from practical as well as theory point of view.

solve practical questions of issue of shares : at par, at discount, on conversion and for consideration other than cash, forfeiture of share and re-issue of shares.

Practice questions of underwriting of shares.

 

Hit theory questions from this chapter :

·        Issue of shares at premium.

·        Utilization of amount of security premium account.

·        Buy back : its condition/advantage.

·        Prohibition of buy back in certain  circumstances ( section 70 companies act 2013).

·        Issue of bonus shares.

·        ESOP/SWEAT EQUITY SHARES/RIGHT SHARES.

·        Alteration of share capital ( section 61 companies act 2013).

 

B)    DEBENTURE :  DO all the practical questions from module and scanner, try to solve question on redemption of shares, issue of debenture for consideration other than cash, conversion of debenture into shares.

 

clear your concept in CUM IN AND EX INTEREST  and practice such types of question.

 

C)    FINAL ACCOUNTS OF COMPANY :   very imp chapter for both theory and practical.

 

practice managerial remmunration question.

 

Theory : prepare the format of new balance sheet and statement of profit and loss. Sometime they ask format of P/L AND BALANCE SHEET only for 5 marks ( unfair).

 

Make strong your practical on PROFIT OR LOSS PRIOR TO INCORPORATION . it is simple and easy to understand. We can say it is cakewalk topic. You can easily solve if it comes in exam.

 

 

D)   CORPORATE RESTRCTURING :   VERY VERY IMP CHAPTER.  THIS CHAPTER REQUIRES HARD PRACTICE.   ( very imp from practical point of view)

 

YES there are some imp theory question from this chapter.

·        Meaning of corporate restructuring.

·        Kinds of restructuring.

·        Meaning of amalgamation and its method.

 

E)     CONSOLIDATION :   Again most important chapter. Try to solve more practical based question. And solve past year question.

 

try to solve adjustment on your own then compare with answers.

 

Compulsory question : 5 to 10 makrs.

 

Try to solve 1 question of this chapter on daily basis, slowly slowly your grip on this chapter will increase.

F)     VALUATION OF SHARES AND INTANGIBLE ASSESTS :   very imp chapter.

 

Solve practical questions of valuation of goodwill and shares. Refer scanner also. ( 5 marks )

 

Also read theory for your own safety.

 

G)   LIQUIDATION OF COMPANY :

Preparation of statement of affairs including deficiency/surplus account.

 

H)   CORPORATE FINANCIAL REPORTING :  ( GIFT )

It is purely theory based chapter. Understand the concept and note down the key words and revise on weekly basis.

 

Refer questions from scanner.

 

If examiner in happy mood, sometime they ask 5 to 12 makrs theory questions from this chapter.

 

On an average one question comes in exam in almost every attempt. So my suggestion is : DON’T SKIP THIS CHAPTER.

 

IN this chapter there are certain practical aspects like : EVA AND VALUE ADDED STATEMENTS. ( EVA AND VALUE ADDED STATEMENT’S THEORY QUESTIONS ARE ALSO IMP.)

 

I)       ACCOUNTING STANDARDS :   

I  don’t think students should devote his/her time on this chapter. Because there are bunch of accounting standards.  It is impossible to remember every accounting standards.

 

My suggestion : go through the chapter once, and make list of imp accounting standard. And revise it .

 

This is my personal suggestion. You can do whole chapter as per your requirement.

 

 

OTHER IMPORTANT SUGGESTIONS :

ü All most students just audit the adjustments, that’s huge mistake. Do not audit the questions from answer. Always try to solve the question on your own then compare it with the answer.

ü Do daily 1 question of consolidation or amalgamation. Yes, on daily basis or at regular interval.  Choice is yours.

ü Regular practicing will keep you in touch with the chapter and eventually you will get proper grip on that particular chapter.

ü Always give time for theory.

 

Monday = practice only .

Tuesday = practice with theory .

Wednesday=  audit .

Thursday = practice only.

Friday = practice with theory

Saturday = audit .

Sunday = whole week revision.

 

ü You can adjust your timing as per your choice.

ü You have to give at least 2 to 3 hours in a day for accounts subject. Do not give directly.       1.5hours in the morning and 1.5hours in evening( for revision purpose)  

ü Whenever you are free pick any random chapter of audit or any practical question for revision.

ü Always remember  MORE PRACTICE, MORE ACCURACY.

 

I HOPE THIS POST WILL HELP YOU IN YOUR PREPARATION. AND  PLEASE SHARE IT WITH YOUR FRIENDS AND GROUPS.

IF YOU LIKE MY POST KINDLY GIVE YOUR FEEDBACK IN COMMENT SECTION.

THANK YOU SO MUCH.

HAPPY LEARNING.

 

if you are facing problem in TAXATION SUBJECT. no need to worry

Read my post HOW TO STUDY TAX?  i am 100%  sure that post will really help you in tax subject.  

TO READ THE POST  CLICK HERE