Grade XI. Accountancy. (Important Concepts) #GrowWithGreen

Transcription

1 Grade XI Accountancy (Important Concepts) #GrowWithGreen

2 Financial Accounting [Part-I] Chapter 1 (Introduction to Accounting) 1. Difference between Book-Keeping, Accounting and Accountancy 2. Users of Accounting Information 3. Basic Accounting Terms a. Transaction and Event b. Capital c. Drawings d. Debtors and Bills Receivable e. Creditors and Bills Payable f. Assets g. Liabilities h. Cost of Goods Sold i. Source Documents and Vouchers j. Bad-Debts and Bad-debts Recovered k. Accrued Income and Income Received in Advance l. Outstanding Expenses and Prepaid Expenses m. Depreciation and Amortisation n. Capital Expenditure Revenue Expenditure and Deferred Revenue Expenditure o. Capital Receipts and Revenue Receipts Chapter 2 (Theory Base of Accounting) 1. Fundamental Accounting Assumptions a. Going Concern b. Consistency c. Accrual 2. Accounting Principles a. Business Entity Concept b. Money Measurement Concept c. Prudence/Conservatism Concept d. Dual Aspect or Duality Concept e. Matching Concept f. Historical Cost Concept g. Accounting Period Concept h. Full Disclosure Principle i. Materiality Concept j. Objectivity Concept k. Revenue Recognition/Realisation Concept

3 3. Systems of Book-Keeping a. Single Entry System b. Double Entry System 4. Bases of Accounting a. Cash Basis b. Accrual Basis 5. Accounting Standards and their Importance 6. Concept of IFRS and IFRS Based Financial Statements Chapter 3 (Recording of Transactions-I) 1. Source Documents and Vouchers: Meaning and Types 2. Classification of Accounts: Traditional and Modern Approach 3. Journal a. Bad-Debts and Bad-Debts Recovered b. Accrued Income and Income Received in Advance c. Outstanding Expenses and Prepaid Expenses d. Interest on Capital and Interest on Drawings e. Loss by Theft/Fire a. Insurance Claim Fully Accepted b. Insurance Claim Partly Accepted c. Insurance Claim Not Accepted f. Sales Tax, VAT, Income Tax g. VPP h. Goods used to make an Asset 4. Ledger Posting Chapter 4 (Recording of Transactions-II) 1. Double Column Cash Book (Cash and Bank Column) 2. Some Specific Transactions related to Double Column Cash Book a. Contra transactions b. Cheque received and deposited on same day/other day c. Dishonour of cheque d. Endorsement of cheque e. Amount withdrawn from bank for personal use f. Discounting bill from bank g. Cash discount received/allowed h. Cancellation of discount received/allowed earlier i. Bank overdraft

4 3. Purchases and Purchases Return Book 4. Sales and Sales Return Book Chapter 5 (Bank Reconciliation Statement) 1. Causes of Differences a. Cheques issued but not presented for payment by customers b. Cheques deposited but no credited/collected by bank c. Interest/Bank charges debited by bank d. Interest/dividend credited by bank e. Direct deposit by customers in bank f. Direct payment made by bank on customer s behalf g. Dishonour of bill discounted with bank h. Dishonour of cheque deposited with bank i. Cheque sent to bank for collection but not recorded in Cash Book j. Cheque issued and presented for payment but not recorded in Cash Book k. Wrong credit/debit in Cash Book/Pass Book 2. Adjusted Cash Book Chapter-6 (Trial Balance and Rectification of Errors) 1. Rectification of Errors of Omission 2. Rectification of Errors of Commission 3. Rectification of Errors of Posting 4. Rectification of Errors of Principle 5. Rectification of Compensating Errors 6. Rectification of Single Sided Errors with Suspense A/c 7. Rectification of Single Sided Errors without Suspense A/c Chapter-7 (Depreciation, Provisions and Reserves) 1. Asset Account with Provision for Depreciation Account 2. Asset Account with Provision for Depreciation Account and Asset Disposal Account 3. Difference between Provisions and Reserves 4. Types of Reserves Chapter-8 (Bills of Exchange) 1. Accounting Treatment in case of Bill Discounted with Bank 2. Accounting Treatment in case of Bill Endorsed to Creditor

5 3. Accounting Treatment in case of Dishonour of Bill - All 4 cases 4. Accounting Treatment in case of Renewal of Bill 5. Accounting Treatment in case of Retirement of Bill 6. Accounting Treatment in case of Insolvency of Acceptor/Drawee Financial Accounting [Part-II] Chapter 1 (Financial Statements-I) 1. Preparation of Financial Statements a. Trading A/c b. Profit and Loss A/c c. Balance Sheet Some Important Formulae Gross Profit = Net Sales Cost of Goods Sold Net Sales = Sales Sales Return Cost of Goods Sold = Opening Stock + Purchases Closing Stock + Direct Expenses Cost of Goods Sold = Adjusted Purchases + Direct Expenses Adjusted Purchases = Opening Stock + Purchases Closing Stock Net Profit = Gross Profit + Indirect Incomes Indirect Expenses Net Profit = Operating Profit + Non-Operating Incomes Non-Operating Expenses Operating Profit = Net Sales Operating Cost Operating Cost = Cost of Goods Sold + Administrative and Office Expenses + Selling and Distributive Expenses Chapter 2 (Financial Statements) 1. Preparation of Financial Statements with Adjustments a. Depreciation and Provision for Depreciation b. Bad-debts, Provision for Doubtful Debts and Provision for Discount on Debtors c. Interest on Capital and Interest on Drawings d. Closing Stock e. Outstanding Expenses and Prepaid Expenses f. Accrued Income and Income Received in Advance g. Abnormal Losses: Loss of Goods/Assets by Theft/Fire h. Manager s Commission

6 Chapter 3 (Accounts from Incomplete Records) 1. Difference between Single Entry System and Double Entry System 2. Ascertainment of Profit: Statement of Affairs Method Chapter 4 (Accounting for Not-for-Profit Organisation) 1. Difference between Profit-Making Organisations and NPOs 2. Preparation of Financial Statements of NPOs a. Receipts and Payments Account b. Income and Expenditure Account c. Balance Sheet 3. Important Concepts a. Subscription b. Fund Based Accounting c. Entrance Fee, Life Membership Fee, Special Receipts d. Donations: Specific & General, Legacies, Government Aid e. Sale of Old Assets, Used Sports Material, Old Newspapers and Magazines f. Consumable Stores Chapter 5 (Applications of Computers in Accounting) 1. Meaning and Features of Computers 2. Elements of Computer 3. Accounting Information System Chapter 6 (Computerised Accounting System) 1. Advantages of Computerised Accounting System 2. Distinguish between Computerised Accounting System and Manual Accounting System 3. Accounting Software a. Ready-made b. Customised c. Tailor made