Paper2: Accounting (One Paper: 3 hours: 100 marks)
1. Basics of Bookkeeping and
and its usefulness
Accounting principles, concept and convention – measurement of business income
Standards – national and international (basic knowledge)
2. Systems of Bookkeeping 10%
entry system, books of prime entry, subsidiary books
of cash and Bank transactions
of ledger accounts
of trial balance – interpretation and usefulness
3. Bank Reconciliation statements 5%
reconciliation between cashbook and bank pass book and problems relating to the
preparation of bank reconciliation statements.
capital, revenue, deferred revenue expenditures, opening entries, closing
entries, adjustment entries and rectification entries.
treatment for bad debts, reserve for bad debts and other adjusting entries.
significance, accounting and various methods of calculation of depreciation.
single entry system, conversion of single entry system into double entry system
of receipts and payments accounts, income and expenditure accounts.
of reserves and provisions.
Exchange, consignment and joint venture
5. Elements of Cost Accounting 15%
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-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.
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.
expenses – nature, collection, classification and treatment of direct expenses.
– 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
6. Cost Sheets
of cost sheets.
7. Behaviour of
& Variable costs
& Indirect costs
Behaviour for decision making
Costing and Break Even Analysis