Accounting Principles and Practices

Right answer because  goods sold are not included in inventory of a manufacturing concern, as the goods sold are supplied to the buyers and do not remain with the manufacturing concern. 

The fullform of GAAP is Generally Accepted Accounting Principles.

Till 31st March, 2011 there are 31 accounting standards (issued, applicable & mandatory).

AS - 8 (Accounting for Research and Development) was withdrawn in pursuant to AS-26 (Intangible Assets) becoming mandatory.

AS-3 belongs to cash flow statement.

Business Entity Concept defines as 'The business stands apart from other organizations as an economic unit. It is necessary to record the business's transactions to distinguish them from the owner's personal transactions.'

Share application A/c is debited because excess application adjusted with allotment.

Assets & liabilities are shown in the statement called balance sheet.

When materials are purchased for a joint venture, the Joint Venture Account is debited because it represents the venture itself as a separate business entity. All expenses and purchases related to the joint venture are recorded in this account to track the total investment and costs of the joint business operation.

When the consignor incurs expenditure on behalf of the consignee (like expenses for sending goods), the consignee's account is credited in the consignor's books. This is because the consignee is ultimately responsible for such expenses, which will be adjusted from the sale proceeds. The consignment account tracks the overall profit/loss, while the consignee account is a personal account that records mutual dues.

Under the Final Account System (also called the Debtors System), the branch account is treated as a personal account. It records transactions between the head office and branch as if dealing with an independent debtor. In contrast, the Synthetic and Analytical systems treat branch accounts differently - as impersonal accounts focusing on goods flow and profit ascertainment.

Under the Analytical System (Stock and Debtors System), separate branch accounts are maintained for stock, debtors, cash, etc. The profit is calculated directly from these accounts and a Branch Profit and Loss Account - no separate 'branch account' showing overall profit is necessary. The system breaks down branch operations into detailed components.

Revaluation account is prepared during admission, retirement, or death of partners to adjust asset/liability values when ownership changes but business continues. During dissolution, the firm ceases to exist - assets are realized (not revalued) and liabilities paid off. A Realization Account, not Revaluation Account, is prepared to record the winding-up process.

Unrecorded assets are assets that exist but weren't recorded in the books. When discovered during admission, retirement, or revaluation, they are credited to the Revaluation Account. This increases the revaluation profit/loss. The asset is then recorded in the books at its fair value, ensuring proper accounting for all firm assets.

Goodwill is an intangible fixed asset representing the reputation, brand value, and customer loyalty of a business. In company balance sheets, goodwill is classified under Fixed Assets (specifically as Intangible Assets). It's not fictitious (fictitious assets are deferred revenue expenditures like preliminary expenses written off over time).