ICWA FOUNDATION ACCOUNTING
Section A : Fundamentals of Financial Accounting [60 marks]
1. Accounting Process
Theoretical Framework
Capital and Revenue transactions- capital and revenue expenditures, capital and revenue receipts
Measurement, Valuation and Accounting estimates
Double entry system, Books of prime entry, Subsidiary Books
Recording of Cash and Bank transactions
Preparation of Ledger Accounts
Preparation of Trial Balance- interpretation and usefulness
Rectification of Errors
Opening entries, Transfer entries, Adjustment entries, Closing entries
2. Reconciliation Statements
Bank Reconciliation Statement
Receivables / Payables Reconciliation Statement
Stock Reconciliation Statement
3. Accounting for Depreciation
Depreciation Policy
Methods, computation and Accounting treatment
4. Preparation of Final Accounts:
Of a Profit making concern (for sole proprietorship concern and partnership firm only)
Of a Not-for-Profit making concern
Under Single Entry System including conversion of single entry into double entry system
5. Accounting for Special Transactions
Bills of Exchange
Consignment
Joint Venture
Sale of goods on approval or return basis
Section B: Fundamentals of Cost & Management Accounting[40 marks]
6. Fundamentals of Cost Accounting
Cost and Management Accounting – Generally Accepted Cost Accounting Principles
Accounting for Material cost
Accounting for Labour costs, Direct Expenses and Overheads
7. Preparation of Cost Statements
Cost Data collection, Cost Sheet formats,
Preparation of Cost Sheets (historical cost sheets and estimated cost sheets)
8. Fundamentals of Management Accounting
Marginal Costing and Break-even analysis – basic knowledge
Application of Marginal Costing for decision-making