ACCOUNTANCY

Course Content

Financial Accounting - I

Theoretical Framework
1. Introduction to Accounting.
2. Accounting- objectives, advantages and limitations, types of accounting information; users of accounting information and their needs.
3. Basic accounting terms: business transaction, account, capital, drawings, liability (Non - current and current); asset (Non - current; tangible and intangible assets and current assets), receipts (capital and revenue), expenditure (capital, revenue and deferred), expense, income, profits, gains and losses, purchases, purchases returns, sales, sales returns, stock, trade receivables (debtors and bills receivable), trade payables (creditors and bills payable), goods, cost, vouchers, discount - trade and cash.
Theory Base of Accounting
4. Fundamental accounting assumptions: going concern, consistency, and accrual.
5. Accounting principles: accounting entity, money measurement, accounting period, full disclosure, materiality, prudence, cost concept, matching concept and dual aspect.
6. Bases of accounting - cash basis and accrual basis.
7. Accounting Standards and IFRS (International Financial Reporting Standards): Concept and Objectives
Accounting Process and Special Accounting Treatment Recording of Transactions
8. Accounting equation: analysis of transactions using accounting equation.
9. Rules of debit and credit: for assets, liabilities, capital, revenue and expenses.
10. Origin of transactions- source documents (invoice, cash memo, pay in slip, cheque), preparation of vouchers - cash (debit and credit) and non cash (transfer).
11. Books of original entry: format and recording - Journal.
12. Cash Book: Simple Cash Book, Cash Book with Discount Column and Cash Book with Bank and Discount Columns, Petty Cash Book.
13. Other books: purchases book, sales book, purchases returns book, sales returns book and journal proper.
Preparation of Bank Reconciliation Statement, Ledger and Trial Balance.
14. Bank reconciliation statement- calculating bank balance at accounting date: need and preparation.Corrected cash book balance.
15. World climates-classification (Koeppen and Thornthwaite), Global warming and climatic changes.
16. Ledger - format, posting from journal, cash book and other special purpose books, balancing of accounts.
17. Trial balance: objectives and preparation
    (Scope: Trial Balance with balance method only)
Depreciation, Provisions and Reserves
18. Depreciation: concept need and factors affecting depreciation; methods of computation of depreciation: straight line method, written down value method (excluding change in method)
19. Accounting treatment of depreciation: by charging to asset account, by creating provision for depreciation/ accumulated depreciation account, treatment of disposal of asset.
20. Provisions and reserves: concept, objectives and difference between provisions and reserves; types of reserves- revenue reserve, capital reserve, general reserve and specific reserves.
Accounting for Bills of Exchange
21. Bills of exchange and promissory note: definition, features, parties, specimen and distinction.
22. Important terms : term of bill, due date, days of grace, date of maturity, discounting of bill, endorsement of bill, bill sent for collection, dishonour of bill, noting of bill , retirement and renewal of a bill.
23. Accounting treatment of bill transactions.
Rectification of Errors
24. Errors: types-errors of omission, commission, principles, and compensating; their effect on Trial Balance.
25. Detection and rectification of errors; preparation of suspense account.

Financial Accounting - II

Financial Statements of Sole Proprietorship: From Complete and Incomplete Records
26. Financial Statements: objective and importance.
27. Profit and loss account: gross profit, operating profit and net profit.
28. Balance Sheet: need, grouping, marshalling of assets and liabilities.
29. Adjustments in preparation of financial statements : with respect to closing stock, outstanding expenses, prepaid expenses, accrued income, income received in advance, depreciation, bad debts, provision for doubtful debts, provision for discount on debtors, manager's commission, abnormal loss, goods taken for personal use and goods distributed as free samples.
30. Preparation of Trading and Profit and Loss Account and Balance Sheet of sole proprietorship.
31. Incomplete records: use and limitations. Ascertainment of profit/loss by statement of affairs method.
Financial Statements of Not-for-Profit Organizations
32. Not-for-profit organizations: concept.
33. Receipts and Payment account: features.
34. Income and Expenditure account: features. Preparation of Income and Expenditure account and Balance Sheet from the given Receipts and Payments account with additional information.
Computers in Accounting
35. Introduction to Computer and Accounting Information System {AIS}: Introduction to computers ( Elements, Capabilities, Limitations of Computer system),
36. Introduction to operating software, utility software and application software. Introduction to Accounting Information System (AIS), as a part of MIS
Map Work of features based on above units for locating and labelling on the Outline/Political/Physical map of India.
37. Automation of Accounting Process. Meaning
38. Stages in automation (a) Accounting process in a computerised environment (Comparison between manual accounting process and Computerised accounting process.) (b) Sourcing of accounting Software (Kinds of software: readymade software; customised software and tailormade software; Generic Considerations before sourcing accounting software)(c)Creation of Account groups and hierarchy ( d) Generation of reports -Trial balance, Profit and Loss account and Balance Sheet.

Project Work

39. Collection of Source Documents, Preparation of Vouchers, Recording of Transactions with the help of vouchers.
40. Preparation of Bank Reconciliation Statement with the given cash book and the pass book with twenty to twenty-five transactions.
41. Comprehensive project starting with journal entries regarding any sole proprietorship business, posting them to the ledger and preparation of Trial balance. The students will then prepare Trading and Profit and Loss Account on the basis of the prepared trial balance. Expenses, incomes and profit (loss) are to be depicted using pie chart / bar diagram.