The article discusses about professional examinations. The problems were prepared by the Board of Examiners of the American Institute of Accountants and were presented as the second half of examination in accounting practice. The candidates were required to solve all problems in four and a half hours. The examination in theory of accounts of C.P.A. Examination was given in a three and one-half hour session. The management of a corporation is considered replacing a machine which is operating satisfactorily with a more efficient new model. Depreciation on the cost of the existing machine is omitted from the data used in judging the proposal, because it has little or no significance with respect to such decision. The article here discusses about the professional examinations, examinations in theory of accounts, the different questions asked in those examinations. To save candidates the time of computing their own time budgets for each problem, notations of estimated time requirements are furnished for each problem to be answered separately.

The article presents some problems prepared by the Board of Examiners of the American Institute of Accountants, U.S. and were presented as the second half of the examination in accounting practice on November 8, 1956. The candidates were required to solve any four out of five problems. The problems were of equal weight, the total for this section being 50 points. The time allowed for solution was four and a half hours. The examination in theory of accounts of the November, 1956, Certified Public Accountants Examination was given on Friday, November 9, 1956 in a three and one-half hour session from 1:30 P.M. to 5:00 P.M. There were two groups of questions induced. All four questions in the first group were required, five were to be selected from seven in the second group. To save candidates the time of computing their own time budgets for each problem, notations of estimated time requirements are furnished for each problem to be answered separately, and in the aggregate for all problems to be answered out of a group where the options are involved.

The article presents a professional examination for accounting practice. Problems were prepared by the Board of Examiners of the American Institute of accountants and were presented as the first half of the C.P.A. examination in accounting practice on May 15, 1957. The candidates were required to solve Problem 1; any two of Problems 2, 3 and 4 and either Problem 5 or Problem 6. The total weight assigned to this section was 50 points and the examiners point out that the suggested time allowances given below are closely proportional to the point value of the various problems. It is the regular practice of the business at the time a contract is received to set up the full contract price by a charge to Accounts receivable and a credit to Unearned contract sales. As work progresses on an individual contract, progress billings are sent to customers. No entry is made on the books for such progress billings. Collections are entered as a credit to Accounts receivable. Income is recognized on a completed contract basis for statement purposes. At the examination candidates were furnished a work sheet for Problem 5 containing the material in the first two columns of the solution work sheet. With respect to Problem 6, candidates were given the T accounts to be used in preparing their solutions.

Reviews three books on taxes. "Introduction to Income Tax Law, Canada," by Francis Eugene LaBrie; "Fiscal-Year Reporting for Corporate Income Tax," by W.L. Crum; "Federal Estate and Gift Taxes," by Charles L.B. Lowndes and Robert Kramer.

Students of accounting commonly have trouble with the so-called "goodwill method" of recording the admission of a new partner into a firm. Under this method, wherein the recorded capital equity of the old partners is not to be reduced and the credit to the new partner can be no less than his investment, there are the two problems of calculating the amount of goodwill to be recorded, and determining which partner or partners' capital accounts are to be credited when the goodwill is recorded. The determination of the amount of goodwill involved is approached by first calculating two amounts, both called recorded capital. The amount of goodwill involved is determined by subtracting what is termed invested capital from the larger of the two amounts of calculated recorded capital. Invested capital is the sum of the existing partners' capital equities before any adjustment for goodwill plus the contribution of the new partner. In presenting the material, the instructor must keep in mind that the students are not accounting majors. Further, he must remember that the students have enrolled in order to gain some practical knowledge. Due to the subject matter the course is difficult. Its usefulness, however, makes it a very popular elective.

If we could combine an effective inservice accounting instructional staff- training program with a well-supported professional faculty development program, we in accounting education would have an unlimited potential for greater usefulness to our institutions and the wide range of public interests which they serve. Perhaps the discussion which has gone on, and which will continue, will serve to bring the weak spots into sharper focus and encourage all of us to greater effort for the common good.