FINANCIAL
ACCOUNTING
CIA 1
Submitted to:- Submitted by:-
Abhinav Pingle
Prof. Rajesh R 1 BBA D
2220446
Items & Concepts Identified
1. Identified Item:- Property, plant and Equipment
Statement in which identified:- Balance Sheet
Principle related with:-Cost Concept
Reason:- Assets are recorded on their cost for all further accounting periods
2. Identified Item:- Investments
Statement in which identified:- Balance Sheet
Principle related with:- Money Measurement Concept
Reason:- Transactions are to be recorded only in monetary terms
3. Identified Item:- Goodwill
Statement in which identified:- Balance Sheet
Principle related with:- Money Measurement Concept
Reason:- This is recorded only when goodwill is purchased
4. Identified Item:- Assets
Statement in which identified:- Balance Sheet
Principle related with:- Dual Aspect Concept
Reason:- Total assets have been calculated to match them with total Liabilities &
Equity because each Transaction has Two-fold aspect so their totals must be equal.
5. Identified Item:- Equity
Statement in which identified:- Balance Sheet
Principle related with:-Business Entity Concept
Reason:- Company and owner is different entities in eyes of Law. Therefore owner
has a separate account.
6. Identified Item:- Revenue from Operations
Statement in which identified:- Statement of P&L
Principle related with:- Realisation Concept
Reason:- Revenue is considered only when it is realised
7. Identified Item:- Other Income
Statement in which identified:- Statement of P&L
Principle related with:- Convention of Materiality
Reason:- All information which is relatively important & relevant should be disclosed
in accounting statements.
8. Identified Item:- Depreciation
Statement in which identified:- Statement of P&L
Principle related with:- Going Concern concept
Reason:- Business is considered to be going on for infinitely. In order to show true
value of assets, they are depreciated.
9. Identified Item:- Profit before Tax
Statement in which identified:- Statement of P&L
Principle related with:- Matching Concept
Reason:- During the conclusion of an accounting period, expenditures and revenues
are matched to calculated Net Profit/Loss
10. Identified Item:- Capital
Statement in which identified:- Balance sheet
Principle related with:- Separate Entity Concept
Reason:- Proprietor is different from business so Capital is liability of a business.
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