Principles of Accounting - Syllabus
Paper Code : 212501
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Marks : 100
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Credits : 4
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Class Hours : 60
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Paper Title :
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PRINCIPLES OF ACCOUNTING
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1. Accounting – The Language of Business: Definition and Scope of Accounting, Its role and
Functions, History of Accounting, Purpose and Nature of Accounting
Information-Users of Accounting Information. Branches of Accounting-Nature of
Business and Accounting.
2. Conceptual Framework for Financial Accounting: FASB Conceptual Frame for Financial
Accounting-First Level: Basic Objectives (SFAC- 1); Second Level: Qualitative
Characteristics of Accounting Information (SFAC-2); Third Level: Operational
Guidelines.
3. The Accounting Process: Double-Entry Accounting System (vis-à-vis
Incomplete) System. Accounting Equation – Effects of Transactions on the
Accounting Equation. The Account-Classification of Accounts-Selection of
Account titles-Chart of Accounts-Coding-Rules of Debit and Credit-Balancing and
Normal Balance-Recording (Bookkeeping) Aspect of Accounting Cycle: Documentary
Evidence and Identification, Analysis, and Recording of Transactions and Other
Events-Journalization-Posting to the Ledger-Preparation of Trial
Balance-Limitations of Trial Balance, Errors and their Rectification.
4. The Adjustment Process and Completing the
Accounting Process: Key aspects of
the Accrual basis of accounting, Cash accounting and Break-up basis of
accounting-Adjustments-Adjusted Trial Balance-Preparation of Work Sheet-Closing
Entries-Post-Closing Trial Balance-Reversing Entries.
5. Merchandising Operations and Accounting System: Merchandising Operations and Classifying
Inventory-Purchases, Sales, Other Use or Loss and Returns of Merchandise
Inventory-Periodic and Perpetual Inventory Systems and Journal Entries-Specific
Identification Method and Inventory Cost Flow Assumption (FIFO, LIFO and
Average Cost).
6. Accounting Systems and Special Ledgers: Manual and Computerized Accounting Systems and
their effectiveness-The Voucher System-General Ledgers and Subsidiary Ledgers:
General Ledger Control Accounts and Subsidiary Ledger Individual Accounts.
Special Journals: Advantages of Special Journals-Cash Receipts Journal-Sales Journals-Purchase
Journal-Cash Payments Journal and General Journal.
7. Control of Cash: Controlling cash, Internal control. Petty Cash, Bank Reconciliation
Statement.
8. Accounting for Receivable and Current Liabilities: Receivable-Types of Receivables valuing and
disposing Uncollectible accounts-Allowance for doubtful accounts.
9. Financial Statements: Idea on a Complete Set of Financial Statement.
Purpose and interrelationship of the Financial Statement. Importance,
Limitations & Preparation of Financial Statements. Supplementary
Statements/Schedules. Preparation of Financial Statements for
Sole-proprietorship Organizations.
10. Financial Statement Analysis: Horizontal analysis and vertical analysis of
comparative financial statements; Preparation and use of common-size financial
statements; Ratio analysis-Basic Ratios of Liquidity, Activity, Profitability,
and Solvency.
Books Recommended: (Latest Edition)
1. Weygandt,
Jerry J., Kimmel, Paul : Accounting Principle, John Wiley &
Sons. Inc.
D.
and Kieso Donald