Financial Accounting-I & II – Detailed Syllabus

Part-I : Financial Accounting-I

Unit-1: Introduction to Accounting (Marks: 06)

• Meaning, Objectives, and Sources of Accounting Information
• Internal and External users of Accounting Information
• Qualitative Characteristics: Reliability, Relevance, Understandability, Comparability
• Basic Accounting Terms: Asset, Liability, Capital, Expense, Income, Expenditure, Revenue, Debtors, Creditors, Goods, Cost, Gain, Stock, Purchase, Sales, Loss, Profit, Voucher, Discount, Transaction, Drawings

Unit-2: Theory Base of Accounting (Marks: 06)

• Accounting Principles: Meaning and Nature
• Accounting Concepts: Entity, Money Measurement, Going Concern, etc.
• Accounting Standards: Concept and List of Indian Standards
• Accounting Mechanisms: Single and Double Entry
• Bases of Accounting: Cash Basis, Accrual Basis

Unit-3: Recording of Business Transactions (Marks: 20)

• Origin of Transactions: Source Documents and Vouchers
• Accounting Equation Approach and Rules of Debit and Credit
• Books of Original Entry: Journal, Cash Book, Purchases Book, Sales Book, etc.
• Ledger: Meaning, Utility, Format; Posting and Balancing
• Bank Reconciliation Statement: Need and Preparation

Unit-4: Trial Balance and Rectification of Errors (Marks: 08)

• Meaning, Objectives and Preparation of Trial Balance
• Types of Errors; Rectification; Suspense Account

Unit-5: Depreciation, Provisions and Reserves (Marks: 10)

• Depreciation: Meaning, Need, Factors, Methods (SLM, WDV)
• Provision and Reserve: Meaning, Importance, Differences
• Types of Reserves: Revenue, Capital, General, Specific, Secret

Unit-6: Accounting for Bills of Exchange Transactions (Marks: 10)

• Bills of Exchange and Promissory Notes: Definition, Features, Parties
• Important Terms: Term of Bill, Negotiation, Endorsement, Dishonour, etc.
• Accounting Treatment of Bill Transactions

Part-II : Financial Accounting-II

Unit-7: Financial Statements (Marks: 18)

• Financial Statements: Meaning, Users, Types
• Capital and Revenue Expenditure Distinction
• Trading, Profit & Loss Account; Balance Sheet
• Adjustments: Closing stock, Outstanding expenses, Accrued income, etc.

Unit-8: Accounts from Incomplete Records (Marks: 12)

• Meaning, Uses, Limitations of Incomplete Records
• Statement of Affairs Method
• Preparation of Trading, Profit & Loss Account, and Balance Sheet
• Ascertainment of Missing Figures

Unit-9: Computers in Accounting (Marks: 06)

• Introduction to Computer and Accounting Information Systems (AIS)
• Applications: Automation, MIS Reporting, Data Exchange
• Manual vs Computerized Accounting: Advantages and Limitations
• Sourcing of Accounting Systems: Readymade, Customised, Tailor-made

Unit-10: Accounting and Database System (Marks: 04)

• Concept of Database Management System in Accounting
• Entities, Relationships, Simple Tables, Forms, Queries and Reports

Prescribed Textbooks:

• Accountancy Part I & II, NCERT
• AHSEC Accountancy Publications