Syllabus
Objective
To develop an understanding of the basic concepts and principles of Accounting and apply the same in preparing financial statements and simple problem solving.
Contents:
1. Theoretical framework
i. Meaning and Scope of accounting
ii. Accounting Concepts, Principles and Conventions
iii. Accounting terminology - Glossary
iv. Capital and revenue expenditure, Capital and revenue receipts, Contingent assets and contingent liabilities
v. Accounting policies
vi. Accounting as a Measurement Discipline - Valuation Principles, Accounting Estimates
vii. Accounting Standards - Concepts and Objectives
viii. Indian Accounting Standards - Concepts and Objectives
2. Accounting Process
i. Books of Accounts
ii. Preparation of Trial Balance
iii. Rectification of Errors
3. Bank Reconciliation Statement
Introduction, reasons, preparation of bank reconciliation statement.
4. Inventories
Cost of Inventory, Net realizable value, Basis and technique of inventory valuation and record keeping
5. Concept and Accounting of Depreciation
Concepts, Methods of Computation and accounting treatment of depreciation, Change in depreciation methods
6. Accounting for Special transactions
i. Bills of Exchange and promissory notes
Meaning of Bills of Exchange and Promissory Notes and their Accounting Treatment; Accommodation bills
ii. Sale of Goods on approval or return basis
Meaning of goods sent on approval or return basis and accounting treatment
iii. Consignments
Meaning and features of consignment business, differences between sale and consignment, Accounting treatments for consignment transactions and events in the books of consignor and consignee.
iv. Average due date
Meaning, Calculation of average due date in various situations
v. Account current
Meaning of Account Current, Methods of preparing Account Current
7. Final Accounts of Sole Proprietors
Elements of financial statements, closing adjustment entries, trading account, profit and loss account and balance sheet of manufacturing and non-manufacturing entities
8. Partnership Accounts
i. Final Accounts of partnership firms
ii. Admission, Retirement, and Death of a partner including treatment of goodwill.
iii. Introduction to LLPs and distinction of LLPs from partnerships.
9. Financial Statements of Not-for-Profit Organizations
Significance of Receipt and Payment Account, Income and Expenditure Account and Balance Sheet, Differences between Profit and Loss account and Income and expenditure account, Preparation of Receipt and Payment Account, Income and Expenditure Account and Balance Sheet.
10. Introduction to Company Accounts
i. Definition of shares and debentures
ii. Issue of shares and debentures, forfeiture of shares, re-issue of forfeited shares
iii. Statement of profit and loss and balance sheet as per Schedule III to the Companies Act 2013.