Syllabus - Modified Scheme of Study

Operational Level-1


(O1)FUNDAMENTALS OF FINANCIAL ACCOUNTING

PART - A WEIGHTAGE 10%
Conceptual, System and Regulatory Framework
1. Accounting Nature and Objectives
• Financial Accounting definition & objectives,
• Cost Accounting definition & Objectives
• Management Accounting definition & Objectives
2. Introduction to Financial Accounting
• Capital
• Assets
• Liabilities
• Expenditures (Capital & Revenue)
• Revenue
• Accounting Equation
3. Accounting Regulatory Framework
• Company Law
• IAS
• IFRS
• Accounting bodies
• Stock Exchanges
4. Accounting Concepts and Conventions
• Accounting Concepts & Principles (Going Concern, Accruals, Prudence, Consistency, Materiality, Substance over form, Business Entity, Money Measurement)
• Cost and Values (Historical Cost Convention, Theory of Capital Maintenance, Current Purchasing Power Accounting, Current Cost Accounting, Fair Value, Value to the business)
PART - B WEIGHTAGE 50%
Accounting Systems and Accounts Preparation
5. Source Documents and Books
• Source Documents (Sale & Purchase Order, Credit & Debit Note, GRN)
• Books (Sale day book, Purchase day book, Sales Return day book, Purchase Return day book, Cash book, Petty Cash book)
6. Double Entry and Ledger Accounting
• Principles of double entry bookkeeping
• Journal
• Nominal Ledger
• Posting from day book to nominal ledger
• Sales and Purchase accounts, including personal accounts and Control accounts
7. Trial balance and Financial statements
• Trial Balance
• Income Statement
• Balance Sheet/Statement of Financial Position
• Accounts Coding System
8. Accruals and prepayments
• Accruals
• Prepayments
9. Tangible non-current assets
• Depreciation
• Re-valuation of non-current assets
• Non-current asset disposal
• Non-current asset register
10. Intangible non-current assets
• Accounting treatment of Intangible Assets
• Research and Development Cost
11. Bad debts and allowances for receivables
• Sales and Accounting Concepts
• Bad and Doubtful Debts
• Bad Debts Recovered
12. Provisions and Contingencies
• Categorization of liabilities
• Cash and Credit Purchases
• Provisions
• Contingent liabilities and Assets
13. Accounting for Inventories
• Stock and Work -in-progress
• Accounting for Stocks - closing stock
• Ledger Accounts for stock
• Physical Count
• Statement of Profit or Loss and Statement of Financial Positions from Trial Balance
14. Accounting for Sales Tax
• Principles of Sales Tax
• Bookkeeping Entries for Sales Tax
• Standard Rated, Zero Rated and Exempt Supplies
15. Accounting for Payroll
• Wages and Salaries
• Wages from the Employee's Viewpoint
• The Wages Book
• Accounting for Payroll
16. Bank Reconciliation’s
• Statement and the Cash Book
• Outstanding Payments and Receipts
• Performa Bank Reconciliation
17. Control accounts
• ledger Accounts and the Division of the edger Understanding of Control Accounts
• Use of Control Accounts
• Purchase and Sale Day Books
• Control Accounts Reconciliation
• Cash Book
• Petty Cash Book
18. Correction of Errors
• Types of Errors
• Suspense Accounts
• Correcting Entries
PART - C WEIGHTAGE 40%
Final Accounts
19. Sole traders' accounts
• Chart of Accounts
• Preparation of Financial Statements
20. Company accounts
• Types of Limited Company
• Company Finance
• Financial Statements
• Issuance of Shares Reserves
• Financial Statements of Companies
21. Manufacturing accounts
• Preparation of Manufacturing Accounts
22. Incomplete records
• Incomplete Records: Basic Approach
• Cash and Bank Transactions
• Using Ratios and Percentages
• Preparation of Financial Statements
23. Income and expenditure accounts
• Format of Income and Expenditure Accounts
• Preparation of Income and Expenditure Accounts
• Special Funds
• Preparation of Financial Statements
Interpretation of Accounts
24. Statements of cash flows
• Format of a Statement of Cash Flows
• Preparation ion of a statement of Cash Flows by Direct and Indirect Method
• Uses of Statement of Cash Flows
25. Financial Ratios
• Analysis of Accounting Statements and Use of Ratios
• Liquidity, Working Capital and Solvency Ratios
• Financial Gearing
• Investor Ratios
• Possible Drawbacks of Ratio Analysis
• Appraising the Position and Prospects of a Business
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