Call Us +91 8789155395

Paper -2 Principles of Accounting Advance Accounting – 20 Sections

Your Trusted Legal & Taxation Partner Since 2012

Paper -2 Principles of AccountingAdvance Accounting – 20 Sections

COURSE DESCRIPTION 

This is the first course in accounting. The course begins with the definition of accounting, types of accounting, basic concepts of accounting and covers basic accounting topics such as accounting cycle; accounts hierarchy (account classes, account groups, accounts, subsidiary accounts); journal entries related to sales, purchases, collections, payments, and expenses; posting; accounting of value added tax; payroll accounting; accounting of current assets (except inventories that will be covered in the subsequent course); trial balance, preparation of financial statements, and closing/opening entries

Theory –

1. Partnership Accounting

  1. Introduction to Partnership Accounting
  2. Partnership – Definition And Features
  3. Accounting Rules in the Absence of Partnership Deed
  4. Fixed Methods and Fluctuating Capital Methods
  5. Difference Between Fixed Methods and Fluctuating Capital Methods

2. Partnership

  1. Introduction to Partnership
  2. General Features of Partnership
  3. Partnership deed
  4. Capital Accounts of Partner
  5. Methods of Maintaining Capital Accounts
  6. Fixed Capital Method
  7. Proforma for Fixed Capital Methods
  8. Fluctuating Capital Methods and Proforma
  9. Distribution of Profits
  10. Interest on Capital
  11. Drawing Accounts
  12. Interest on Drawings
  13. Methods for Computing Interest on Drawing
  14. Product Methods For Interest on Drawing
  15. Average Period Method
  16. Accounting Treatments of Commission to Partners
  17. Goodwill , Supporting factors and Methods
  18. Goodwill Average Profit Method
  19. Super Profit Method
  20. Admission Of New Partner
  21. Adjustment in Accounting while admitting New Partner
  22. Recording of capital of New partner
  23. New Profit Sharing Ratio and Sacrificing Ratio
  24. Computation of New Profit Sharing
  25. Revaluation of Assets and Liabilities
  26. Transfer of Undistributed Profit or loss
  27. Transfer of Accumulated Reserve
  28. Retirement of Partner

3. Accounting of Company

  1. Introduction
  2. Features of Company
  3. Types of Company
  4. Difference Between Partnership and Company
  5. Classes of Share Capital
  6. Classification of Share Capital
  7. Issue of Shares
  8. Allotment of Shares
  9. Issues of Shares at Par
  10. Procedure for Allotment of Shares
  11. Calls in Arrear’
  12. Calls
  13. Calls in Advance
  14. Issue of Shares at Premium
  15. Issue of Shares at Discount
  16. Sweet Equity Shares
  17. Employees Stock Option Scheme
  18. Forfeiture of Shares
  19. Reissue of forfeited Shares
  20. Forfeiture Examples
  21. Issue of bonus share
  22. Non Voting Share
  23. Profit of Forfeiture of Share

4. Accounting Of Company – II

  1. Introduction to Financial Statements
  2. Balance Sheet Format
  3. General Instructions to Schedule – III of Companies Act 2013
  4. General Instructions to Asset and Liabilities
  5. General Instructions to Share Capital
  6. General Instructions to Reserve and Surplus
  7. General Instructions to Long term Borrowings
  8. General Instructions to Long term Provision
  9. General Instructions to Non Current Investment
  10. General Instructions to Long term Loans and Advance
  11. General Instructions to Other NoN Current Assets
  12. General Instructions to Inventories
  13. General Instructions to Trade Receivables
  14. General Instructions to Cash and Cash Equivalents
  15. General Instructions to Contingent liabilities and Comitments
  16. General Instructions to Short Term Loans and Advance
  17. General Instructions to Profit and Loss Statement

5. Depreciation

  1. Introduction to Depreciation
  2. Depreciation and other Similar Terms
  3. Depreciation and Depreciable Assets
  4. Objective of Providing Depreciation
  5. Causes of Depreciation
  6. Characteristics of Depreciation
  7. Factors determining amount of Depreciation
  8. Methods of Depreciation
  9. Straight Line Methods of Depreciation
  10. Merits and Limitation of Straight line of Depreciation
  11. Written Down value Method
  12. Advantages and Disadvantages of WDV
  13. Methods of Recording Depreciation
  14. Disposal of Asset
  15. Introduction TO Reserve
  16. Difference Between Provision and Reserve
  17. Different types of Reserves
  18. Difference Between Revenue Reserve and Capital Reserve
  19. Secret Reserve

6. Capital and Revenue Items

  1. Introduction to Capital And Revenue Transaction
  2. Consideration in determining Revenue and Capital Expenditure
  3. Classification of Expenditure
  4. Capital Expenditure
  5. Revenue Expenditure
  6. Deferred Revenue Expenditure
  7. Difference Between Capital revenue and Deferred Revenue Expenditure
  8. Capital receipts and Revenue Receipts
  9. Diffrence Between Capital receipts and Revenue Receipts
  10. Examples of Capital receipts and Revenue Receipts
  11. Golden Rules of Accouting

7. Basic Accounting Procedures

  1. Business Transactions and Source Document
  2. Final
  3. Cash Memo and Invoice
  4. Debit and Credit Notes
  5. Pay in Slip and Cheque
  6. Voucher

8. Journalising Process

  1. Books of Original Entry
  2. Steps in Journalising
  3. Journalising Comprehensive Examples
  4. Case Study

9. Ledger

  1. Ledger
  2. Utility of Ledger
  3. Ledger Format
  4. Ledger for Real Personal Nominal Accounts
  5. Posting and Procedures
  6. Case Studies
  7. Ledger Accounts from Opening Entry
  8. Ledger Posting from Component Entry

10. Subsidiary Books Covering Sales and Purchase Book

  1. Need and Advantages
  2. Purchase Book
  3. Case Study
  4. Sales Book
  5. Case Study

11. Purchase And Sales Return Books

  1. Returns Books
  2. Purchase Return Book
  3. Case Study
  4. Sales Return Book
  5. Case Study

12. Cash Book

  1. Cash Book
  2. Kinds of Cash Book
  3. Single Column Cash Book
  4. Double Column Cash Book with Discount Column
  5. Double Column Cash Book with Bank Column
  6. Key Points In Cash Books
  7. Triple Column Cash Books

13. Bill of Exchanges and related Books

  1. Bill of Exchange
  2. BoE Technical Terms
  3. Bill Books
  4. Promissory Notes
  5. Parties to a Promissory Notes
  6. Difference between Bill Of Exchange and Promissory Notes
  7. Advantages of Bill of Exchanges
  8. Maturity of Bill
  9. Accounting Treatment – Drawer Books
  10. Accounting Treatment – Drawee Books
  11. Bill Of Exchange – Journal entries Problem
  12. Dishonour of a Bill
  13. Case Study

15. Trail balance

  1. Introduction
  2. Objectives of Preparing Trial Balance
  3. Methods and Formats of Trial balance
  4. Case Study

16. Errors in Accounting

  1. Introduction
  2. Error of Principle
  3. Error of Omission
  4. Error of Commission
  5. Compensating Errors
  6. Errors and Trial Balance
  7. Steps to locate Errors
  8. Suspense Account
  9. Case Study

18. Bank Reconciliation Statement

  1. Cash book and bank book
  2. Bank Pass Book
  3. Diffrence Between Cash Book and Pass Book
  4. Bank Reconciliation Statement
  5. Importance of BRS
  6. Causes For Disagreement
  7. Bank Overdraft
  8. Overview of BRS

19. Final Accounts

  1. Introduction
  2. Stakeholders and their Information
  3. Trading and Profit Loss Account
  4. Closing Stock
  5. Trading Account – Need and format
  6. Profit And Loss Account – Need and Format
  7. Outstanding and Prepaid Expenses
  8. Prepaid Expenses
  9. Income Received in Advance
  10. Shortcuts for Final Account Adjustment
  11. Interest on Capital
  12. Interest on drawing
  13. Interest on Loan Outstanding
  14. Interest on Investment Outstanding/ Accrued
  15. Adjustments – Accrued  Income  and Income Receive in Advance
  16. Depreciation
  17. Bad Debts
  18. Provisions for Bad and Doubtful debts
  19. Provision for Discount on Debtors

20. Accounts and Incomplete Records

  1. Introduction to Single Entry System
  2. Features of Single Entry System
  3. Introduction to Incomplete Records
  4. Limitations of Single Entry System
  5. Difference Between Single Entry and Double Entry System
  6. Methods for Finding Profits
  7. Statement of Affairs Method
  8. Conversion Method
  9. Calculation of Missing Figures
  10. Difference between Balance Sheet and Statement of Affairs
  11. Methods for Ascertaining Profit or loss
  12. Computation of Profits Under Statement of Affair Methods
  13. Ascertainment of Total Purchase
  14. Ascertainment of Total Sales
  15. Ascertainment of Credit Sales