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