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Doubts of Insurance claims........

vikas gupta (c.a final....) (714 Points)

25 December 2010

1. Why do we prepare memorandum trading A/c.what it means?

2.Suppose if i practice by hand A/cs all questions in February and i have to pursue for november exam,and if i see questions every month and dont practice by hand again after february...will there be any probs ?

3.How to recognise which expenses are fixed and variable in a/cs ....in cost i can easily identify through difference in cost?

4. Suppose if i learn Audit in February and just read every month and dont learn again and give exam in november,will there be any probs?

Doubts are doubts whether its small or funny...everyone borns a layman :)

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2 Replies

phanindra (IFA) (121 Points)
Replied 26 December 2010

Originally posted by : cute viru
	1. Why do we prepare memorandum trading A/c.what it means? 2.Suppose if i practice by hand A/cs all questions in February and i have to pursue for november exam,and if i see questions every month and dont practice by hand again after february...will there be any probs ? 3.How to recognise which expenses are fixed and variable in a/cs ....in cost i can easily identify through difference in cost? 4. Suppose if i learn Audit in February and just read every month and dont learn again and give exam in november,will there be any probs? Doubts are doubts whether its small or funny...everyone borns a layman :)

1. We prepare memorandum trading account usually to find the approximate values of the missing information ...which is generally the closing stock.

2. It is completely dependent on your mindset there cannot be a generalized answer for it. All i can say if u r conceptually good...little practice would suffice.

3. Fixed cost remains fixed and variable remains variable whether in cost accounts or financial accounts. i seriously doubt how can u recognize the same in cost accounting.

4. Learning is a continuous process. If u have learned it a quick revision before the exam would suffice.

I hope these are useful to u 'Layman" (just kiddin) :-)

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Manmohan ACA, CS (Chartered Accountant ) (14243 Points)
Replied 02 January 2011

1. Why do we prepare memorandum trading A/c.what it means?

Memorandum means " brief or informal note in writing of some transaction". Memorandum accounts are prepared for computing some missing figure, or for some short term purpose say computing income of a months for control purpose. The main issue is mote that MEMORANDUM ACCOUNTS does not form part of double entry system .

it all depends on your knowledge , if u r a common student then my answer is Big NO

3.How to recognise which expenses are fixed and variable in a/cs ....in cost i can easily identify through difference in cost?

see where it will increase with increase in output or not. GENERALLY all item comes in trading debit are variable in nature and item those come in P?L are fixed. (but remember it is generally ). Apply principle that you gave applied in cost and try to develop a practical attitude.

example with clear ur memory

4. Suppose if i learn Audit in February and just read every month and dont learn again and give exam in november,will there be any probs?

Most probably No problem here , b again it depends on your memory power .

-- Hpy New Yr and regards,,,,,,,