ICWA INTERMEDIATE ACCOUNTING

SECTION A: GENERALLY ACCEPTED ACCOUNTING PRINCIPLES & ACCOUNTING SYSTEMS [10 MARKS] 

1. Accounting Process 

  • Theoretical framework (meaning, scope and usefulness of Accounting; Accounting principles, concepts and convention)
  • Accounting Life Cycle (ALC) – From Investment of Capital (Cash) to Realization of Revenue (Cash)
  • 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, cash book,
  • Rectification of errors, opening entries, transfer entries, adjustment entries, closing entries 

2. Accounting Standards 

  • AS-1: Disclosure of Accounting Policies
  • AS-2: Valuation of Inventories
  • AS-4: Contingencies and Events Occurring after the Balance Sheet Date
  • AS-5: Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies
  • AS-10: Accounting for Fixed Assets
  • AS-11: The Effects of Changes in Foreign Exchange Rates
  • AS-15: Employee Benefits
  • AS-16: Borrowing Costs

3. Reconciliation Statements 

  • Bank Reconciliation Statements
  • Stock Reconciliation Statements
  • Receivables /Payables Reconciliation Statement

SECTION B: PREPARATION OF ACCOUNTS [30 MARKS] 

4. Accounting for Depreciation, Depletion, Amortization and Impairment of Assets 

  • Depreciation Policy, Depletion, Amortization and Impairment of Assets
  • Depreciation Accounting (AS – 6); Impairment of Assets (AS -28)
  • Methods, computation and accounting treatment

5. Preparation of Financial statements : 

  • Of Profit-making organizations:
  • Of Not-for-Profit organizations :
  • Under single entry system

6. Partnership 

  • Past adjustments and guarantee, profit & loss appropriation account
  • Admission, Retirement, Death, Treatment of Joint Life Policy
  • Dissolution of partnership firms including piece meal distribution
  • Amalgamation of partnership firms, Conversion of partnership firm into a company and sale of partnership firm to a company

7. Royalty and Hire Purchase 

  • Accounting from the point of view of various parties
  • Possession and repossession in case of default in payments
  1. 8. Branch and Departmental Accounts 
  • Branch Accounts-Debtors system, Stock & Debtors system, Foreign Branch
  • Departmental Accounts: Trading Account; Profit & Loss Account
  • Calculation of net profit of various departments and allocation of expenses on the basis of suitable base,
  • Preparation of General Profit & Loss Account and Balance Sheet

SECTION C : CONTROL OF ACCOUNTING SYSTEMS [10 MARKS] 

9. Self-Balancing Ledger and Sectional Balancing Ledgers Self- Balancing Ledgers 

  • Sectional Balancing Ledger

SECTION D: ACCOUNTING IN SERVICE SECTOR [10 MARKS] 

10. Accounting for Service Sectors 

  • Revenue Recognition (AS-9)
  • Construction Companies (AS 7), Project Accounting
  • Service sectors such as Software, ITES, Telecommunication, Entertainment, Hospital, Educational Institutions

SECTION E: ACCOUNTING FOR SPECIAL TRANSACTIONS [20 MARKS] 

11. Accounting for Special Transactions 

  • Bills of Exchange, Consignment, Joint venture, Sale of goods on approval or return basis, Account Current
  • Investment Accounts (AS – 2, 13)
  • Insurance Claim ( Loss of Stock and Loss of profit)

SECTION F: ACCOUNTING FOR BANKING, INSURANCE AND ELECTRICITY COMPANIES [20 MARKS] 

11. Banking, Electricity and Insurance companies 

  • Accounts of a Banking Company (as per Banking Companies Regulation Act)
  • Accounts of an Electricity Company (as per Electricity Act)
  • Accounts of Insurance Companies (as per Insurance Act) including Stock Valuation