course structure

course syllabus

part a: accounting for partnership firms and companies

unit 1: accounting for partnership firms

• partnership −

  • features

  • partnership deed

• provisions of the indian partnership act 1932 in the absence of partnership deed

• fixed v/s fluctuating capital accounts

• preparation of profit and loss appropriation account- division of profit among partners, guarantee of profits

• past adjustments (relating to interest on capital, interest on drawing, salary and profit sharing ratio)

• goodwill − nature, factors affecting and methods of valuation - average profit, super profit and capitalization

accounting for partnership firms - reconstitution and dissolution

• change in the profit sharing ratio among the existing partners −

  • sacrificing ratio

  • gaining ratio

  • accounting for revaluation of assets and reassessment of liabilities and treatment of reserves and accumulated profits

  • preparation of revaluation account and balance sheet

• admission of a partner −

  • effect of admission of a partner on change in the profit sharing ratio

  • treatment of goodwill (as per as 26)

  • treatment for revaluation of assets and reassessment of liabilities

  • treatment of reserves and accumulated profits

  • adjustment of capital accounts and preparation of balance sheet

• retirement and death of a partner −

  • effect of retirement / death of a partner on change in profit sharing ratio

  • treatment of goodwill (as per as 26)

  • treatment for revaluation of assets and reassessment of liabilities

  • adjustment of accumulated profits and reserves

  • adjustment of capital accounts and preparation of balance sheet

  • preparation of loan account of the retiring partner

  • calculation of deceased partner’s share of profit till the date of death

  • preparation of deceased partner’s capital account

  • executor’s account and preparation of balance sheet

• dissolution of a partnership firm −

  • types of dissolution of a firm

  • settlement of accounts - preparation of realization account, and other related accounts

  • capital accounts of partners and cash/bank a/c (excluding piecemeal distribution, sale to a company and insolvency of partner(s))

unit-2 accounting for companies

accounting for share capital

• share and share capital −

  • nature

  • types

• accounting for share capital −

  • issue and allotment of equity shares

  • private placement of shares

  • employee stock option plan (esop)

  • public subscription of shares - over subscription and under subscription of shares

  • issue at par and at premium

  • calls in advance and arrears (excluding interest)

  • issue of shares for consideration other than cash

• accounting treatment of forfeiture and re-issue of shares

• disclosure of share capital in company’s balance sheet.

accounting for debentures

• debentures −

  • issue of debentures at par, at a premium and at a discount

  • issue of debentures for consideration other than cash

  • issue of debentures with terms of redemption

  • debentures as collateral security-concept, interest on debentures

• redemption of debentures −

  • lump sum, draw of lots and purchase in the open market (excluding exinterest and cum-interest)

  • creation of debenture redemption reserve

part b: financial statement analysis

unit 3: analysis of financial statements

• financial statements of a company −

  • statement of profit and loss and balance sheet in the prescribed form with major headings and sub headings (as per schedule iii to the companies act, 2013)

• financial statement analysis −

  • objectives

  • importance

  • limitations

• tools for financial statement analysis −

  • comparative statements

  • common size statements

  • cash flow analysis

  • ratio analysis

• accounting ratios −

  • objectives

  • classification

  • computation

• liquidity ratios −

  • current ratio

  • quick ratio

• solvency ratios −

  • debt to equity ratio

  • total asset to debt ratio

  • proprietary ratio

  • interest coverage ratio

• activity ratios −

  • inventory turnover ratio

  • trade receivables turnover ratio

  • trade payables turnover ratio and working capital turnover ratio

• profitability ratios −

  • gross profit ratio

  • operating ratio

  • operating profit ratio

  • net profit ratio and return on investment

unit 4: cash flow statement

• meaning
• objectives
• preparation (as per as 3 (revised) (indirect method only)

part b: computerised accounting

unit 3: computerised accounting

• overview of computerised accounting system −

  • introduction: application in accounting

  • features of computerised accounting system

  • structure of cas

  • software packages: generic; specific; tailored

• accounting application of electronic spreadsheet −

  • concept of electronic spreadsheet

  • features offered by electronic spreadsheet

  • application in generating accounting information - bank reconciliation statement; asset accounting; loan

  • repayment of loan schedule, ratio analysis

  • data representation - graphs, charts and diagrams

• using computerized accounting system

  • steps in installation of cas, codification and hierarchy of account heads, creation of accounts

  • data − entry, validation and verification

  • adjusting entries, preparation of balance sheet, profit and loss account with closing entries and opening entries

  • need and security features of the system

• database management system (dbms)

  • concept and features of dbms

  • dbms in business application

  • generating accounting information – payroll

to download pdf click here.