DIRECT ENTRY TO CHARTERED ACCOUNTANCY COURSE – AMENDMENTS TO THE CHARTERED ACCOUNTANTS REGULATIONS, 1988

Notification No. 1-CA(7)/145/2012 

on August 1, 2012,

The provisions relating to Direct Entry Scheme for Graduates/Post Graduates, etc., with prescribed percentage of marks, to the Chartered Accountancy Course have come into force from August 1, 2012.

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Termination Of Agency

BY THE ACTS OF PARTIES

1. By Agreement – The Principal and agent may mutually agree to terminate the agency, at anytime
2. By Revocation (Done by the Principal)
3. By Agent; renouncing the business of Agency

BY OPERATION OF LAW

1. Completion of Business of Agency
2. Death or Insanity of the Principal or Agent
3. Where the Principal or Agent, being a Company, is dissolved
4. Destruction of subject matter of Agency
5. Principal becoming Insolvent
6. Expiration of period where agency was for a fixed period

Modes Of Creation Of Agency

1. EXPRESS AGREEMENT – An Agreement is entered into which results in the creation of Agency
2. IMPLIED AGREEMENT –
                        * Agency by Estoppel
                        * Agency by holding out
3. AGENCY BY NECESSITY
4. AGENCY BY OPERATION OF LAW
5. AGENCY BY RATIFICATION

Conditions or Essentials for a valid Tender

Below are some of the pre-requisites of a valid tender -

1. The Tender must be unconditional
2. The Tender must be for the whole obligation
3. The Tender must be given at a proper time
4. The Tender must be given at a proper place
5. The Tender must give a reasonable opportunity of inspection
6. The party giving the tender must be willing to perform its part of obligations
7. The Tender must be made to the proper person
8. The Tender must be made for the exact amount of money

Types of Tenders and their Effects

Tender is a means (arising out of certain conditions) by which a Contract is deemed to be performed. Since, recent Examination pattern of IPCC & CPT is more logic oriented rather then based on just cramming; tender qualifies the criteria to be considered as a promising topic.

Presentation of Information to Management under Marginal Costing

Sales
(-) Direct Material                                                          xxxxx             
(-) Direct Labour                                                           xxxxx              
(-) Variable Factory Overhead                                      xxxxx              
(-) Variable Selling and Distribution Expenses             xxxxx  

Presentation of Information to Management under Absorption Costing

STATEMENT OF NET PROFIT [AS PER ABSORPTION COSTING]
Sales                                                                                   xxxxx
(-) Direct Material                                                                xxxxx
(-) Direct Labour                                                                 xxxxx
(-) Direct Expenses{Factory Overhead}                            xxxxx

Performance Of A Contract - In the Light of The Indian Contract Act, 1872

The Indian Contract Act; Being the guiding protocol for execution and performance of contacts under it has laid the guidelines regarding the performance of a contract; A Contract broadly may be performed by either of the following-            

1. Actual Performance
2. Attempted Performance/Offer to Perform/Tender

Appropriations of Payments–Under Contract Act

There are some situations where a certain amount is paid by the debtor to his creditor with or without intimating its intended application, these situations are frequently asked in the form of case studies in various examinations including CPT, IPCC etc. ; these situations may be elaborated in following sub-situations and can be dealt as understated :

Case Study based on Quasi Contracts (Section 72)

CASE- Mr. Confused went to the market to buy a Car, being prejudiced regarding the price of the car he mistakenly paid to the seller a sum of Rupees 3 Lakh while the actual price payable was of rupees 2.50 Lakh only; on discovering this foolishness of himself, Mr. Confused asked the seller to return the undue sum of rupees 50 thousand but he refused by saying that- “ Once gone, forever gone”. Mr. Confused is really confused! Advice him. 

Case Study based on Quasi Contracts (Section 68)

CASE – A Minor “Naughty” who had enough assets to fulfill his obligations bought eatables to consume as lunch from a mess and refused to pay on the basis of the contention that being a minor he was not bound towards any contractual liability, Mess owner is finding himself cheated and is asking you for an advice in this case, Explain his rights to him.