Accounts are the art of communicating financial information about a company/business entity to users such as shareholders, managers, and directors. It is a subject of numbers, and to master it; one needs to have a good grip on the topics such as; ledgers; debiting and crediting; balance sheets, and even journal entries.
The Aim of the Subject
Topics in the Subject:
PAPER – I (THEORY) – 80 Marks
There will be one paper of 3 hours duration of 80 marks divided into two parts.
Part I (20 marks) will be compulsory and consist of short answer questions, testing knowledge, application, and skills relating to elementary/fundamental aspects of the entire syllabus.
Part II (60 marks): Candidates will be required to answer five questions out of eight from this section. Each question shall carry 12 marks.
Basic Accounting Concepts-
Journal, Ledger and Trial Balance-
Bank Reconciliation Statement-
Depreciation, Provisions, and Reserves-
Bills of Exchange-
Final Accounts and Concept of Trading, Profit and Loss account and Balance Sheet (with and without adjustments), Marshalling of Balance Sheet-
Accounts from incomplete records-
Rectification of Errors-
Introduction to the use of computers in Accounting-
Introduction to Computerized Accounting System: Components of CAS, Features, Grouping of Accounts. Advantages and Limitations of CAS, Accounting Information System.
Application of computers in Accounting (Only Theory) — Automation of accounting process, designing accounting reports (MIS reports) – Chart of accounts – Assets/liabilities/ income/ expenses/ capital, customer and supplier masters, type of transaction: cash, bank, sale, purchase, journal vouchers; general ledger/trial balance, balance sheet, profit and loss, data exchange with other information systems.
Comparison of accounting processes in manual and computerized accounting.
Part II – Project Work – 20 Marks
Candidates will be expected to have completed two projects from any topic covered in Theory. Marks allocation for each project is 10 marks.
A list of suggested projects is given below;
1. Preparation of Journal, Ledger, Trial Balance, and Financial Statements of a trading organization based on a case study.
2. Preparation of the accounts of a Non-Profit Organization based on a case study.
Develop a case study of an NPO by beginning with the primary motive of establishing it, that is, why have you decided to open a club or a library or a hospital, etc?
Write in detail about the capital fund sources, subscriptions, donations, other receipts, and payment of your NPO.
From this case study, prepare the NOP’s Receipts and Payment Accounts, its Income and Expenditure Account, and its Balance Sheet.
The various expenses, for comparison, purposes could be depicted in the form of a bar diagram, pie charts, etc.
Prepare a Bank Reconciliation Statement and Amended Cash Book from the information given in your Cash Book and Bank Statement (Pass Book).
There will be one paper of 3 hours duration of 80 marks divided into three Sections A, B, and C.
It will be compulsory for all candidates to attempt Section A.
Section A (60 Marks) will consist of two parts, Part I and Part II, and have a total of eight questions.
Part I (20 Marks): will consist of Question 1 (compulsory). This question will include short answer questions, testing knowledge, application, and skills relating to elementary/fundamental aspects of the entire syllabus. Question 1 will be based on Section A of the syllabus.
Part II (40 Marks): Candidates will be required to answer four questions out of seven from this part. Each question shall carry 10 marks. Part II will also be based on Section A of the syllabus.
Section B/ C (20 marks): Candidates will have a choice of attempting questions either from Section B or Section C. Candidates will be required to answer two questions out of three from the section of their choice. Each question shall carry 10 marks.
Joint Venture- Joint Venture: objectives; necessity and methods of accounting (recording of transactions in the books of one Co-venturer, recording of transactions in the books of all Co-ventures, recording of transactions in separate sets of books).
1. Fundamentals of Partnership
2. Reconstitution of Partnership
3. Change in profit sharing ratio
4. Retirement and death of a Partner.
5. Dissolution of a Partnership firm.
6. Joint Stock Company Accounts-
7. Financial Statement Analysis
8. Cash Flow Statement (Only for Non-Financial Companies)
9. Ratio Analysis
10. Accounting Application of Electronic Spread Sheet.
11. Database Management System (DBMS)
Candidates will be expected to have completed two projects from any topic covered in Theory.
The teacher and a visiting examiner appointed locally and approved by the council will assess the project work.
A list of suggested topics for the project is given below;
1. Preparation of Journal, Ledger, Trial Balance, and Financial Statements of a partnership form of business based on a case study.
2. Preparation of a Cash Flow Statement with the help of imaginary Balance sheets of a company for two consecutive years could be taken along with at least five additional pieces of information (depreciation, purchase/ sale of fixed assets, Dividend paid/ proposed, Tax paid/ proposed).
3. Preparation of a company’s Common Size and Comparative Income Statement and Balance Sheet by taking into account its audited financial results of two quarters of an accounting year.
4. Taking the audited/ unaudited financial results of any leading company, its liquidity, solvency, turnover, and profitability ratios of two years should be calculated. Comparing the ratios of both years should be shown graphically and/ or pictorially (bar diagrams, pie charts).
5. Employee Salary Sheet:
6. Revenue and Commission Statement.
7. The spreadsheet on Outstanding Report Prepares and Present a Spreadsheet for a list of outstanding notes receivable each month.
8. Database Management
9. The Employee database has another table called Loan Details that stores the details of loans taken by various employees. Create a query that gives a list of employees’ names along with loan details. The loan details table has the following fields: Loan Amount, Loan Date, Interest Rate, Amount Paid, and Amount Balance.
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