Paper2: Accounting (One Paper: 3 hours: 100 marks)
1. Basics of Bookkeeping and
accounting 10%
a)
Definitions
and its usefulness
b)
Financial
Accounting principles, concept and convention – measurement of business income
c)
Position
statement
d)
Accounting
Standards – national and international (basic knowledge)
2. Systems of Bookkeeping 10%
a)
Double
entry system, books of prime entry, subsidiary books
b)
Recording
of cash and Bank transactions
c)
Preparation
of ledger accounts
d)
Preparation
of trial balance – interpretation and usefulness
3. Bank Reconciliation statements 5%
Need for
reconciliation between cashbook and bank pass book and problems relating to the
preparation of bank reconciliation statements.
4. Accounting
System 25%
a)
Concept of
capital, revenue, deferred revenue expenditures, opening entries, closing
entries, adjustment entries and rectification entries.
b)
Accounting
treatment for bad debts, reserve for bad debts and other adjusting entries.
c)
Depreciation-
significance, accounting and various methods of calculation of depreciation.
d)
Concept of
single entry system, conversion of single entry system into double entry system
of accounting.
e)
Preparation
of receipts and payments accounts, income and expenditure accounts.
f)
Significance
of reserves and provisions.
g)
Bill of
Exchange, consignment and joint venture
5. Elements of Cost Accounting 15%
a)
Basics of
cost and management accounting: Evolution of cost accounting and management
accounting, cost concepts and cost object, Cost classification, cost
organization and its relationship with other departments. Elements of cost and
cost determination.
b)
Material
cost-purchase procedure, store keeping and stock control, pricing issue of
material and accounting thereof, perpetual inventory and physical stock taking,
identification of slow, non-moving and fast moving items, ABC analysis, JIT
system, level of inventories and economic order quantity, analysis,
investigation and corrective steps for treatment of stock discrepancies –
control through other means.
c)
Labour
costs – remuneration methods, monetary and non-monetary incentive schemes,
payroll procedures, labour analysis and idle time, measurement of labour
efficiency and productivity, analysis of non productive time and its cost, labour
turnover and remedial measures, treatment of idle time and overtime.
d)
Direct
expenses – nature, collection, classification and treatment of direct expenses.
e)
Overheads
– nature, collection and classification. Production overheads – collection,
apportionment, absorption, use of predetermined recovery rates, treatment of under
and over absorption, fixed, variable and semi variable overhead, report for
control of overhead cost. Administration, selling and distribution overheads –
analysis, accounting and control, treatment of miscellaneous items in cost
accounting.
6. Cost Sheets
15%
a)
Cost data
collection
b)
Cost Sheet
formats
c)
Preparation
of cost sheets.
7. Behaviour of
Costs 20%
a)
Fixed
& Variable costs
b)
Direct
& Indirect costs
c)
Cost
Behaviour for decision making
d)
Marginal
Costing and Break Even Analysis