Principles of Accounting - Syllabus

Principles of Accounting - Syllabus 

Paper Code : 212501	Marks : 100	Credits : 4	Class Hours : 60
Paper Title :	PRINCIPLES OF ACCOUNTING

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