Units

Marks

Part A: Financial Accounting 1

Unit 1

Theoretical Framework

12

Accounting Process

44

Part B: Financial Accounting 2

Unit 3

Financial Statements of Sole Proprietorship

24

Part C: Project work

20

Total

100

Units

Topics

Part A: Financial Accounting-1

Unit 1: Theoretical Framework

Introduction to Accounting

• Meaning of Accounting

• Accounting as a Source of Information

• Objectives of Accounting

• Role of Accounting

• Basic Terms in Accounting

Theory Base of Accounting

• Generally Accepted Accounting Principles

• Basic Accounting Concepts

• Systems of Accounting

• Basis of Accounting

• Accounting Standards

Unit 2: Accounting Process

Recording of Business Transactions

• Business Transactions and Source Document

• Accounting Equation

• Using Debit and Credit

• Books of Original Entry

• The Ledger

• Posting from Journal

• Cash Book

• Purchases (Journal) Book

• Purchases Return (Journal) Book

• Sales (Journal) Book

• Sales Return (Journal) Book

• Journal Proper

• Balancing the Accounts

Bank Reconciliation Statement

• Need for Reconciliation

• Preparation of Bank Reconciliation Statement

Depreciation, Provisions and Reserves

• Depreciation

• Depreciation and Other Similar Terms

• Causes of Depreciation

• Need for Depreciation

• Factors Affecting the Amount of Depreciation

• Methods of Calculating Depreciation Amount

• Straight Line Method and Written Down Method: A Comparative Analysis

• Methods of Recording Depreciation

• Disposal of Asset

• Effect of any Addition or Extension to the Existing Asset

• Provisions

• Reserves

• Secret Reserve

Trial Balance and Rectification of Errors

• Meaning of Trial Balance

• Objectives of Preparing the Trial Balance

• Preparation of Trial Balance

• Significance of Agreement of Trial Balance

• Searching of Errors

• Rectification of Errors

Part B: Financial Accounting-II

Unit 3: Financial Statements of Sole Proprietorship

Financial Statements

• Stakeholders and Their Information Requirements

• Distinction between Capital and Revenue

• Financial Statements

• Trading and Profit and Loss Account

• Operating Profit (EBIT)

• Balance Sheet

• Opening Entry

Incomplete Records

• Features

• Reasons and limitations

• Ascertainment of Profit/Loss by Statement of Affairs method (excluding conversion method)