Page 1
Accountancy (Code No.055)
Couse Structure
Class-XI (2018-19)
One Paper Theory: 90 Marks
3 Hours
Units
Periods Marks
Part A: Financial Accounting-1
Unit-1: Theoretical Framework 25 15
Unit-2: Accounting Process 105 40
130 55
Part B: Financial Accounting-II
Unit-3: Financial Statements of Sole Proprietorship from Complete and
Incomplete Records
60 25
Unit-4: Computers in Accounting 20 10
80 35
Part C: Project Work 30 10
SYLLABUS: CLASS-XI ACCOUNTANCY
PART A: FINANCIAL ACCOUNTING - I 55 Marks
Unit-1: Theoretical Frame Work 25 Periods
Units/Topics Learning Outcomes
Introduction to Accounting 11 Periods
? Accounting- concept, objectives, advantages and
limitations, types of accounting information;
users of accounting information and their
needs. Qualitative Characteristics of Accounting
Information. Role of Accounting in Business.
? Basic Accounting Terms- Business Transaction,
Capital, Drawings. Liabilities (Non Current and
Current). Assets (Non Current, Current); Fixed
assets (Tangible and Intangible), Expenditure
(Capital and Revenue), Expense, Income, Profit,
Gain, Loss, Purchase, Sales, Goods, Stock, Debtor,
Creditor, Voucher, Discount (Trade discount and
Cash Discount)
Theory Base of Accounting 14 Periods
? Fundamental accounting assumptions: GAAP:
Concept
? Business Entity, Money Measurement, Going
Concern, Accounting Period, Cost Concept, Dual
Aspect, Revenue Recognition, Matching, Full
Disclosure, Consistency, Conservatism, Materiality
and Objectivity
? System of Accounting. Basis of Accounting: cash
basis and accrual basis
? Accounting Standards: Need, benefits, limitations,
applicability; IFRS- Need
After going through this Unit, the students will be able
to:
? describe the meaning, significance, objectives,
advantages and limitations of accounting in the
modem economic environment with varied
types of business and non-business economic
entities.
? identify / recognise the individual(s) and entities
that use accounting information for serving their
needs of decision making.
? explain the various terms used in accounting and
differentiate between different related terms
like current and non-current, capital and
revenue.
? give examples of terms like business transaction,
liabilities, assets, expenditure and purchases.
? explain that sales/purchases include both cash
and credit sales/purchases relating to the
accounting year.
? differentiate among income, profits and gains.
? state the meaning of fundamental accounting
Page 2
Accountancy (Code No.055)
Couse Structure
Class-XI (2018-19)
One Paper Theory: 90 Marks
3 Hours
Units
Periods Marks
Part A: Financial Accounting-1
Unit-1: Theoretical Framework 25 15
Unit-2: Accounting Process 105 40
130 55
Part B: Financial Accounting-II
Unit-3: Financial Statements of Sole Proprietorship from Complete and
Incomplete Records
60 25
Unit-4: Computers in Accounting 20 10
80 35
Part C: Project Work 30 10
SYLLABUS: CLASS-XI ACCOUNTANCY
PART A: FINANCIAL ACCOUNTING - I 55 Marks
Unit-1: Theoretical Frame Work 25 Periods
Units/Topics Learning Outcomes
Introduction to Accounting 11 Periods
? Accounting- concept, objectives, advantages and
limitations, types of accounting information;
users of accounting information and their
needs. Qualitative Characteristics of Accounting
Information. Role of Accounting in Business.
? Basic Accounting Terms- Business Transaction,
Capital, Drawings. Liabilities (Non Current and
Current). Assets (Non Current, Current); Fixed
assets (Tangible and Intangible), Expenditure
(Capital and Revenue), Expense, Income, Profit,
Gain, Loss, Purchase, Sales, Goods, Stock, Debtor,
Creditor, Voucher, Discount (Trade discount and
Cash Discount)
Theory Base of Accounting 14 Periods
? Fundamental accounting assumptions: GAAP:
Concept
? Business Entity, Money Measurement, Going
Concern, Accounting Period, Cost Concept, Dual
Aspect, Revenue Recognition, Matching, Full
Disclosure, Consistency, Conservatism, Materiality
and Objectivity
? System of Accounting. Basis of Accounting: cash
basis and accrual basis
? Accounting Standards: Need, benefits, limitations,
applicability; IFRS- Need
After going through this Unit, the students will be able
to:
? describe the meaning, significance, objectives,
advantages and limitations of accounting in the
modem economic environment with varied
types of business and non-business economic
entities.
? identify / recognise the individual(s) and entities
that use accounting information for serving their
needs of decision making.
? explain the various terms used in accounting and
differentiate between different related terms
like current and non-current, capital and
revenue.
? give examples of terms like business transaction,
liabilities, assets, expenditure and purchases.
? explain that sales/purchases include both cash
and credit sales/purchases relating to the
accounting year.
? differentiate among income, profits and gains.
? state the meaning of fundamental accounting
? Goods and Services Tax (GST): Characteristics and
Objective.
assumptions and their relevance in accounting.
? describe the meaning of accounting assumptions
and the situation in which an assumption is
applied during the accounting process.
? explain the meaning and objectives of
accounting standards.
? appreciate that various accounting
standards developed nationally and globally are
in practice for bringing parity in the accounting
treatment of different items.
? acknowledge the fact that recording of
accounting transactions follows double entry
system.
? explain the bases of recording accounting
transaction and to appreciate that accrual basis
is a better basis for depicting the correct
financial position of an enterprise.
? Understand the need of IFRS
? Explain the meaning, objective and
characteristic of GST.
Unit-2: Accounting Process 105 Periods
Units/Topics Learning Outcomes
Recording of Business Transactions 30 Periods
? Voucher and Transactions: Source documents and
Vouchers, Preparation of Vouchers, Accounting
Equation Approach: Meaning and Analysis, Rules of
Debit and Credit.
? Recording of Transactions: Books of Original Entry-
? Journal
? Special Purpose books:
? Cash Book: Simple, cash book
with bank column and petty
cashbook
? Purchases book
? Sales book
? Purchases return book
? Sales return book
Note: Including simple GST calculations
? Ledger: Format, Posting from journal and subsidiary
books, Balancing of accounts
15 Periods
Bank Reconciliation Statement:
? Need and preparation, Bank Reconciliation Statement
with Adjusted Cash Book
Depreciation, Provisions and Reserves. 20 Periods
? Depreciation: Concept, Features, Causes, factors
? Other similar terms: Depletion and Amortisation
After going through this Unit, the students will be able
to:
? explain the concept of accounting equation
and appreciate that every transaction affects
either both the sides of the equation or a
positive effect on one item and a negative
effect on another item on the same side of
accounting equation.
? explain the effect of a transaction (increase
or decrease) on the assets, liabilities, capital,
revenue and expenses.
? appreciate that on the basis of source
documents, accounting vouchers are
prepared for recording transaction in the
books of accounts.
? develop the understanding of recording of
transactions in journal and the skill of
calculating GST.
? explain the purpose of maintaining a Cash
Book and develop the skill of preparing the
format of different types of cash books and
the method of recording cash transactions in
Cash book.
Page 3
Accountancy (Code No.055)
Couse Structure
Class-XI (2018-19)
One Paper Theory: 90 Marks
3 Hours
Units
Periods Marks
Part A: Financial Accounting-1
Unit-1: Theoretical Framework 25 15
Unit-2: Accounting Process 105 40
130 55
Part B: Financial Accounting-II
Unit-3: Financial Statements of Sole Proprietorship from Complete and
Incomplete Records
60 25
Unit-4: Computers in Accounting 20 10
80 35
Part C: Project Work 30 10
SYLLABUS: CLASS-XI ACCOUNTANCY
PART A: FINANCIAL ACCOUNTING - I 55 Marks
Unit-1: Theoretical Frame Work 25 Periods
Units/Topics Learning Outcomes
Introduction to Accounting 11 Periods
? Accounting- concept, objectives, advantages and
limitations, types of accounting information;
users of accounting information and their
needs. Qualitative Characteristics of Accounting
Information. Role of Accounting in Business.
? Basic Accounting Terms- Business Transaction,
Capital, Drawings. Liabilities (Non Current and
Current). Assets (Non Current, Current); Fixed
assets (Tangible and Intangible), Expenditure
(Capital and Revenue), Expense, Income, Profit,
Gain, Loss, Purchase, Sales, Goods, Stock, Debtor,
Creditor, Voucher, Discount (Trade discount and
Cash Discount)
Theory Base of Accounting 14 Periods
? Fundamental accounting assumptions: GAAP:
Concept
? Business Entity, Money Measurement, Going
Concern, Accounting Period, Cost Concept, Dual
Aspect, Revenue Recognition, Matching, Full
Disclosure, Consistency, Conservatism, Materiality
and Objectivity
? System of Accounting. Basis of Accounting: cash
basis and accrual basis
? Accounting Standards: Need, benefits, limitations,
applicability; IFRS- Need
After going through this Unit, the students will be able
to:
? describe the meaning, significance, objectives,
advantages and limitations of accounting in the
modem economic environment with varied
types of business and non-business economic
entities.
? identify / recognise the individual(s) and entities
that use accounting information for serving their
needs of decision making.
? explain the various terms used in accounting and
differentiate between different related terms
like current and non-current, capital and
revenue.
? give examples of terms like business transaction,
liabilities, assets, expenditure and purchases.
? explain that sales/purchases include both cash
and credit sales/purchases relating to the
accounting year.
? differentiate among income, profits and gains.
? state the meaning of fundamental accounting
? Goods and Services Tax (GST): Characteristics and
Objective.
assumptions and their relevance in accounting.
? describe the meaning of accounting assumptions
and the situation in which an assumption is
applied during the accounting process.
? explain the meaning and objectives of
accounting standards.
? appreciate that various accounting
standards developed nationally and globally are
in practice for bringing parity in the accounting
treatment of different items.
? acknowledge the fact that recording of
accounting transactions follows double entry
system.
? explain the bases of recording accounting
transaction and to appreciate that accrual basis
is a better basis for depicting the correct
financial position of an enterprise.
? Understand the need of IFRS
? Explain the meaning, objective and
characteristic of GST.
Unit-2: Accounting Process 105 Periods
Units/Topics Learning Outcomes
Recording of Business Transactions 30 Periods
? Voucher and Transactions: Source documents and
Vouchers, Preparation of Vouchers, Accounting
Equation Approach: Meaning and Analysis, Rules of
Debit and Credit.
? Recording of Transactions: Books of Original Entry-
? Journal
? Special Purpose books:
? Cash Book: Simple, cash book
with bank column and petty
cashbook
? Purchases book
? Sales book
? Purchases return book
? Sales return book
Note: Including simple GST calculations
? Ledger: Format, Posting from journal and subsidiary
books, Balancing of accounts
15 Periods
Bank Reconciliation Statement:
? Need and preparation, Bank Reconciliation Statement
with Adjusted Cash Book
Depreciation, Provisions and Reserves. 20 Periods
? Depreciation: Concept, Features, Causes, factors
? Other similar terms: Depletion and Amortisation
After going through this Unit, the students will be able
to:
? explain the concept of accounting equation
and appreciate that every transaction affects
either both the sides of the equation or a
positive effect on one item and a negative
effect on another item on the same side of
accounting equation.
? explain the effect of a transaction (increase
or decrease) on the assets, liabilities, capital,
revenue and expenses.
? appreciate that on the basis of source
documents, accounting vouchers are
prepared for recording transaction in the
books of accounts.
? develop the understanding of recording of
transactions in journal and the skill of
calculating GST.
? explain the purpose of maintaining a Cash
Book and develop the skill of preparing the
format of different types of cash books and
the method of recording cash transactions in
Cash book.
? Methods of Depreciation:
i. Straight Line Method (SLM)
ii. Written Down Value Method (WDV)
Note: Excluding change of method
? Difference between SLM and WDV; Advantages of
SLM and WDV
? Accounting treatment of depreciation
i. Charging to asset account
ii. Creating provision for
depreciation/accumulated depreciation
account
iii. Treatment for disposal of asset
? Provisions and Reserves: Difference
? Types of Reserves:
i. Revenue reserve
ii. Capital reserve
iii. General reserve
iv. Specific reserve
v. Secret Reserve
? Difference between capital and revenue reserve
Accounting for Bills of Exchange. 20 Periods
? Bill of exchange and Promissory Note: Definition,
Specimen, Features, Parties.
? Difference between Bill of Exchange and Promissory
Note
? Terms in Bill of Exchange:
i. Term of Bill
ii. Accommodation bill (concept)
iii. Days of Grace
iv. Date of maturity
v. Discounting of bill
vi. Endorsement of bill
vii. Bill after due date
viii. Negotiation
ix. Bill sent for collection
x. Dishonour of bill
xi. Retirement of bill
xii. Renewal of bill
? Accounting Treatment
Note: excluding accounting treatment for accommodation bill
Trial balance and Rectification of Errors 20 Periods
? Trial balance: objectives and preparation
(Scope: Trial balance with balance method only)
? Errors: types-errors of omission, commission,
principles, and compensating; their effect on
Trial Balance.
? Detection and rectification of errors; preparation
of suspense account.
? describe the method of recording
transactions other than cash transactions as
per their nature in different subsidiary
books .
? appreciate that at times bank balance a s
indicated by cash book is different from the
bank balance as shown by the pass book /
bank statement and to reconcile both the
balances, bank reconciliation statement is
prepared.
? develop understanding of preparing bank
reconciliation statement.
? appreciate that for ascertaining the position
of individual accounts, transactions are
posted from subsidiary books and journal
proper into the concerned accounts in the
ledger and
develop the skill of ledger posting.
? explain the necessity of providing
depreciation and develop the skill of using
different methods for computing
depreciation.
? understand the accounting treatment of
providing depreciation directly to the
concerned asset account or by creating
provision for depreciation account.
? appreciate the method of asset disposal
through the concerned asset account or by
preparing asset disposal account.
? appreciate the need for creating reserves
and also making provisions for events which
may belong to the current year but may
happen in next year.
? appreciate the difference between reserve
and reserve fund.
? acquire the knowledge of using bills of
exchange and promissory notes for financing
business transactions;
? understand the meaning and distinctive
features of these instruments and develop
the skills of their preparation.
? state the meaning of different terms used in
bills of exchange and their implication in
accounting.
? explain the method of recording of bill
transactions.
? state the need and objectives of preparing
Page 4
Accountancy (Code No.055)
Couse Structure
Class-XI (2018-19)
One Paper Theory: 90 Marks
3 Hours
Units
Periods Marks
Part A: Financial Accounting-1
Unit-1: Theoretical Framework 25 15
Unit-2: Accounting Process 105 40
130 55
Part B: Financial Accounting-II
Unit-3: Financial Statements of Sole Proprietorship from Complete and
Incomplete Records
60 25
Unit-4: Computers in Accounting 20 10
80 35
Part C: Project Work 30 10
SYLLABUS: CLASS-XI ACCOUNTANCY
PART A: FINANCIAL ACCOUNTING - I 55 Marks
Unit-1: Theoretical Frame Work 25 Periods
Units/Topics Learning Outcomes
Introduction to Accounting 11 Periods
? Accounting- concept, objectives, advantages and
limitations, types of accounting information;
users of accounting information and their
needs. Qualitative Characteristics of Accounting
Information. Role of Accounting in Business.
? Basic Accounting Terms- Business Transaction,
Capital, Drawings. Liabilities (Non Current and
Current). Assets (Non Current, Current); Fixed
assets (Tangible and Intangible), Expenditure
(Capital and Revenue), Expense, Income, Profit,
Gain, Loss, Purchase, Sales, Goods, Stock, Debtor,
Creditor, Voucher, Discount (Trade discount and
Cash Discount)
Theory Base of Accounting 14 Periods
? Fundamental accounting assumptions: GAAP:
Concept
? Business Entity, Money Measurement, Going
Concern, Accounting Period, Cost Concept, Dual
Aspect, Revenue Recognition, Matching, Full
Disclosure, Consistency, Conservatism, Materiality
and Objectivity
? System of Accounting. Basis of Accounting: cash
basis and accrual basis
? Accounting Standards: Need, benefits, limitations,
applicability; IFRS- Need
After going through this Unit, the students will be able
to:
? describe the meaning, significance, objectives,
advantages and limitations of accounting in the
modem economic environment with varied
types of business and non-business economic
entities.
? identify / recognise the individual(s) and entities
that use accounting information for serving their
needs of decision making.
? explain the various terms used in accounting and
differentiate between different related terms
like current and non-current, capital and
revenue.
? give examples of terms like business transaction,
liabilities, assets, expenditure and purchases.
? explain that sales/purchases include both cash
and credit sales/purchases relating to the
accounting year.
? differentiate among income, profits and gains.
? state the meaning of fundamental accounting
? Goods and Services Tax (GST): Characteristics and
Objective.
assumptions and their relevance in accounting.
? describe the meaning of accounting assumptions
and the situation in which an assumption is
applied during the accounting process.
? explain the meaning and objectives of
accounting standards.
? appreciate that various accounting
standards developed nationally and globally are
in practice for bringing parity in the accounting
treatment of different items.
? acknowledge the fact that recording of
accounting transactions follows double entry
system.
? explain the bases of recording accounting
transaction and to appreciate that accrual basis
is a better basis for depicting the correct
financial position of an enterprise.
? Understand the need of IFRS
? Explain the meaning, objective and
characteristic of GST.
Unit-2: Accounting Process 105 Periods
Units/Topics Learning Outcomes
Recording of Business Transactions 30 Periods
? Voucher and Transactions: Source documents and
Vouchers, Preparation of Vouchers, Accounting
Equation Approach: Meaning and Analysis, Rules of
Debit and Credit.
? Recording of Transactions: Books of Original Entry-
? Journal
? Special Purpose books:
? Cash Book: Simple, cash book
with bank column and petty
cashbook
? Purchases book
? Sales book
? Purchases return book
? Sales return book
Note: Including simple GST calculations
? Ledger: Format, Posting from journal and subsidiary
books, Balancing of accounts
15 Periods
Bank Reconciliation Statement:
? Need and preparation, Bank Reconciliation Statement
with Adjusted Cash Book
Depreciation, Provisions and Reserves. 20 Periods
? Depreciation: Concept, Features, Causes, factors
? Other similar terms: Depletion and Amortisation
After going through this Unit, the students will be able
to:
? explain the concept of accounting equation
and appreciate that every transaction affects
either both the sides of the equation or a
positive effect on one item and a negative
effect on another item on the same side of
accounting equation.
? explain the effect of a transaction (increase
or decrease) on the assets, liabilities, capital,
revenue and expenses.
? appreciate that on the basis of source
documents, accounting vouchers are
prepared for recording transaction in the
books of accounts.
? develop the understanding of recording of
transactions in journal and the skill of
calculating GST.
? explain the purpose of maintaining a Cash
Book and develop the skill of preparing the
format of different types of cash books and
the method of recording cash transactions in
Cash book.
? Methods of Depreciation:
i. Straight Line Method (SLM)
ii. Written Down Value Method (WDV)
Note: Excluding change of method
? Difference between SLM and WDV; Advantages of
SLM and WDV
? Accounting treatment of depreciation
i. Charging to asset account
ii. Creating provision for
depreciation/accumulated depreciation
account
iii. Treatment for disposal of asset
? Provisions and Reserves: Difference
? Types of Reserves:
i. Revenue reserve
ii. Capital reserve
iii. General reserve
iv. Specific reserve
v. Secret Reserve
? Difference between capital and revenue reserve
Accounting for Bills of Exchange. 20 Periods
? Bill of exchange and Promissory Note: Definition,
Specimen, Features, Parties.
? Difference between Bill of Exchange and Promissory
Note
? Terms in Bill of Exchange:
i. Term of Bill
ii. Accommodation bill (concept)
iii. Days of Grace
iv. Date of maturity
v. Discounting of bill
vi. Endorsement of bill
vii. Bill after due date
viii. Negotiation
ix. Bill sent for collection
x. Dishonour of bill
xi. Retirement of bill
xii. Renewal of bill
? Accounting Treatment
Note: excluding accounting treatment for accommodation bill
Trial balance and Rectification of Errors 20 Periods
? Trial balance: objectives and preparation
(Scope: Trial balance with balance method only)
? Errors: types-errors of omission, commission,
principles, and compensating; their effect on
Trial Balance.
? Detection and rectification of errors; preparation
of suspense account.
? describe the method of recording
transactions other than cash transactions as
per their nature in different subsidiary
books .
? appreciate that at times bank balance a s
indicated by cash book is different from the
bank balance as shown by the pass book /
bank statement and to reconcile both the
balances, bank reconciliation statement is
prepared.
? develop understanding of preparing bank
reconciliation statement.
? appreciate that for ascertaining the position
of individual accounts, transactions are
posted from subsidiary books and journal
proper into the concerned accounts in the
ledger and
develop the skill of ledger posting.
? explain the necessity of providing
depreciation and develop the skill of using
different methods for computing
depreciation.
? understand the accounting treatment of
providing depreciation directly to the
concerned asset account or by creating
provision for depreciation account.
? appreciate the method of asset disposal
through the concerned asset account or by
preparing asset disposal account.
? appreciate the need for creating reserves
and also making provisions for events which
may belong to the current year but may
happen in next year.
? appreciate the difference between reserve
and reserve fund.
? acquire the knowledge of using bills of
exchange and promissory notes for financing
business transactions;
? understand the meaning and distinctive
features of these instruments and develop
the skills of their preparation.
? state the meaning of different terms used in
bills of exchange and their implication in
accounting.
? explain the method of recording of bill
transactions.
? state the need and objectives of preparing
trial balance and develop the skill of
preparing trial balance.
? appreciate that errors may be committed
during the process of accounting.
? understand the meaning of different types of
errors and their effect on trial balance.
? develop the skill of identification and
location of errors and their rectification and
preparation of suspense account.
Part B: Financial Accounting - II 35 Marks
Unit 3: Financial Statements of Sole Proprietorship: From Complete and Incomplete Records 60 Periods
Units/Topics Learning Outcomes
Financial Statements
Receipts and Expenditure: Revenue receipts and capital
receipts. Capital expenditure, Revenue expenditure and
deferred expenditure
Objective and Importance.
Trading and Profit and Loss Account: Gross Profit,
Operating profit and net profit. Preparation.
Balance Sheet: need, grouping and marshalling of assets
and liabilities. Preparation.
Adjustments in preparation of financial statements with
respect to closing stock, outstanding expenses, prepaid
expenses, accrued income, income received in advance,
depreciation, bad debts, provision for doubtful debts,
provision for discount on debtors, Abnormal loss, Goods
taken for personal use/staff welfare, interest on capital
and managers commission.
Preparation of Trading and Profit and Loss account and
Balance Sheet of a sole proprietorship with adjustments.
Incomplete Records
Features, Reasons and Limitations.
Ascertainment of profit/loss by statement of affairs
method.
Difference between Accounts from incomplete records
and Statement of Affairs. Preparation of Trading , Profit
and Loss account and Balance Sheet.
After going through this Unit, the students will be able
to:
? state the meaning of financial statements the
? purpose of preparing financial statements.
? state the meaning of gross profit, operating profit
and net profit and develop the skill of preparing
trading and profit and loss account.
? explain the need for preparing balance sheet.
? understand the technique of grouping and
marshalling of assets and liabilities.
? appreciate that there may be certain items other
than those shown in trial balance which may need
adjustments while preparing financial statements.
? develop the understanding and skill to do
adjustments for items and their presentation in
financial statements like depreciation, closing
stock, provisions, abnormal loss etc.
? develop the skill of preparation of trading and
profit and loss account and balance sheet.
? state the meaning of incomplete records and their
uses and limitations.
? develop the understanding and skill of
computation of profit / loss using the statement
of affairs method.
Page 5
Accountancy (Code No.055)
Couse Structure
Class-XI (2018-19)
One Paper Theory: 90 Marks
3 Hours
Units
Periods Marks
Part A: Financial Accounting-1
Unit-1: Theoretical Framework 25 15
Unit-2: Accounting Process 105 40
130 55
Part B: Financial Accounting-II
Unit-3: Financial Statements of Sole Proprietorship from Complete and
Incomplete Records
60 25
Unit-4: Computers in Accounting 20 10
80 35
Part C: Project Work 30 10
SYLLABUS: CLASS-XI ACCOUNTANCY
PART A: FINANCIAL ACCOUNTING - I 55 Marks
Unit-1: Theoretical Frame Work 25 Periods
Units/Topics Learning Outcomes
Introduction to Accounting 11 Periods
? Accounting- concept, objectives, advantages and
limitations, types of accounting information;
users of accounting information and their
needs. Qualitative Characteristics of Accounting
Information. Role of Accounting in Business.
? Basic Accounting Terms- Business Transaction,
Capital, Drawings. Liabilities (Non Current and
Current). Assets (Non Current, Current); Fixed
assets (Tangible and Intangible), Expenditure
(Capital and Revenue), Expense, Income, Profit,
Gain, Loss, Purchase, Sales, Goods, Stock, Debtor,
Creditor, Voucher, Discount (Trade discount and
Cash Discount)
Theory Base of Accounting 14 Periods
? Fundamental accounting assumptions: GAAP:
Concept
? Business Entity, Money Measurement, Going
Concern, Accounting Period, Cost Concept, Dual
Aspect, Revenue Recognition, Matching, Full
Disclosure, Consistency, Conservatism, Materiality
and Objectivity
? System of Accounting. Basis of Accounting: cash
basis and accrual basis
? Accounting Standards: Need, benefits, limitations,
applicability; IFRS- Need
After going through this Unit, the students will be able
to:
? describe the meaning, significance, objectives,
advantages and limitations of accounting in the
modem economic environment with varied
types of business and non-business economic
entities.
? identify / recognise the individual(s) and entities
that use accounting information for serving their
needs of decision making.
? explain the various terms used in accounting and
differentiate between different related terms
like current and non-current, capital and
revenue.
? give examples of terms like business transaction,
liabilities, assets, expenditure and purchases.
? explain that sales/purchases include both cash
and credit sales/purchases relating to the
accounting year.
? differentiate among income, profits and gains.
? state the meaning of fundamental accounting
? Goods and Services Tax (GST): Characteristics and
Objective.
assumptions and their relevance in accounting.
? describe the meaning of accounting assumptions
and the situation in which an assumption is
applied during the accounting process.
? explain the meaning and objectives of
accounting standards.
? appreciate that various accounting
standards developed nationally and globally are
in practice for bringing parity in the accounting
treatment of different items.
? acknowledge the fact that recording of
accounting transactions follows double entry
system.
? explain the bases of recording accounting
transaction and to appreciate that accrual basis
is a better basis for depicting the correct
financial position of an enterprise.
? Understand the need of IFRS
? Explain the meaning, objective and
characteristic of GST.
Unit-2: Accounting Process 105 Periods
Units/Topics Learning Outcomes
Recording of Business Transactions 30 Periods
? Voucher and Transactions: Source documents and
Vouchers, Preparation of Vouchers, Accounting
Equation Approach: Meaning and Analysis, Rules of
Debit and Credit.
? Recording of Transactions: Books of Original Entry-
? Journal
? Special Purpose books:
? Cash Book: Simple, cash book
with bank column and petty
cashbook
? Purchases book
? Sales book
? Purchases return book
? Sales return book
Note: Including simple GST calculations
? Ledger: Format, Posting from journal and subsidiary
books, Balancing of accounts
15 Periods
Bank Reconciliation Statement:
? Need and preparation, Bank Reconciliation Statement
with Adjusted Cash Book
Depreciation, Provisions and Reserves. 20 Periods
? Depreciation: Concept, Features, Causes, factors
? Other similar terms: Depletion and Amortisation
After going through this Unit, the students will be able
to:
? explain the concept of accounting equation
and appreciate that every transaction affects
either both the sides of the equation or a
positive effect on one item and a negative
effect on another item on the same side of
accounting equation.
? explain the effect of a transaction (increase
or decrease) on the assets, liabilities, capital,
revenue and expenses.
? appreciate that on the basis of source
documents, accounting vouchers are
prepared for recording transaction in the
books of accounts.
? develop the understanding of recording of
transactions in journal and the skill of
calculating GST.
? explain the purpose of maintaining a Cash
Book and develop the skill of preparing the
format of different types of cash books and
the method of recording cash transactions in
Cash book.
? Methods of Depreciation:
i. Straight Line Method (SLM)
ii. Written Down Value Method (WDV)
Note: Excluding change of method
? Difference between SLM and WDV; Advantages of
SLM and WDV
? Accounting treatment of depreciation
i. Charging to asset account
ii. Creating provision for
depreciation/accumulated depreciation
account
iii. Treatment for disposal of asset
? Provisions and Reserves: Difference
? Types of Reserves:
i. Revenue reserve
ii. Capital reserve
iii. General reserve
iv. Specific reserve
v. Secret Reserve
? Difference between capital and revenue reserve
Accounting for Bills of Exchange. 20 Periods
? Bill of exchange and Promissory Note: Definition,
Specimen, Features, Parties.
? Difference between Bill of Exchange and Promissory
Note
? Terms in Bill of Exchange:
i. Term of Bill
ii. Accommodation bill (concept)
iii. Days of Grace
iv. Date of maturity
v. Discounting of bill
vi. Endorsement of bill
vii. Bill after due date
viii. Negotiation
ix. Bill sent for collection
x. Dishonour of bill
xi. Retirement of bill
xii. Renewal of bill
? Accounting Treatment
Note: excluding accounting treatment for accommodation bill
Trial balance and Rectification of Errors 20 Periods
? Trial balance: objectives and preparation
(Scope: Trial balance with balance method only)
? Errors: types-errors of omission, commission,
principles, and compensating; their effect on
Trial Balance.
? Detection and rectification of errors; preparation
of suspense account.
? describe the method of recording
transactions other than cash transactions as
per their nature in different subsidiary
books .
? appreciate that at times bank balance a s
indicated by cash book is different from the
bank balance as shown by the pass book /
bank statement and to reconcile both the
balances, bank reconciliation statement is
prepared.
? develop understanding of preparing bank
reconciliation statement.
? appreciate that for ascertaining the position
of individual accounts, transactions are
posted from subsidiary books and journal
proper into the concerned accounts in the
ledger and
develop the skill of ledger posting.
? explain the necessity of providing
depreciation and develop the skill of using
different methods for computing
depreciation.
? understand the accounting treatment of
providing depreciation directly to the
concerned asset account or by creating
provision for depreciation account.
? appreciate the method of asset disposal
through the concerned asset account or by
preparing asset disposal account.
? appreciate the need for creating reserves
and also making provisions for events which
may belong to the current year but may
happen in next year.
? appreciate the difference between reserve
and reserve fund.
? acquire the knowledge of using bills of
exchange and promissory notes for financing
business transactions;
? understand the meaning and distinctive
features of these instruments and develop
the skills of their preparation.
? state the meaning of different terms used in
bills of exchange and their implication in
accounting.
? explain the method of recording of bill
transactions.
? state the need and objectives of preparing
trial balance and develop the skill of
preparing trial balance.
? appreciate that errors may be committed
during the process of accounting.
? understand the meaning of different types of
errors and their effect on trial balance.
? develop the skill of identification and
location of errors and their rectification and
preparation of suspense account.
Part B: Financial Accounting - II 35 Marks
Unit 3: Financial Statements of Sole Proprietorship: From Complete and Incomplete Records 60 Periods
Units/Topics Learning Outcomes
Financial Statements
Receipts and Expenditure: Revenue receipts and capital
receipts. Capital expenditure, Revenue expenditure and
deferred expenditure
Objective and Importance.
Trading and Profit and Loss Account: Gross Profit,
Operating profit and net profit. Preparation.
Balance Sheet: need, grouping and marshalling of assets
and liabilities. Preparation.
Adjustments in preparation of financial statements with
respect to closing stock, outstanding expenses, prepaid
expenses, accrued income, income received in advance,
depreciation, bad debts, provision for doubtful debts,
provision for discount on debtors, Abnormal loss, Goods
taken for personal use/staff welfare, interest on capital
and managers commission.
Preparation of Trading and Profit and Loss account and
Balance Sheet of a sole proprietorship with adjustments.
Incomplete Records
Features, Reasons and Limitations.
Ascertainment of profit/loss by statement of affairs
method.
Difference between Accounts from incomplete records
and Statement of Affairs. Preparation of Trading , Profit
and Loss account and Balance Sheet.
After going through this Unit, the students will be able
to:
? state the meaning of financial statements the
? purpose of preparing financial statements.
? state the meaning of gross profit, operating profit
and net profit and develop the skill of preparing
trading and profit and loss account.
? explain the need for preparing balance sheet.
? understand the technique of grouping and
marshalling of assets and liabilities.
? appreciate that there may be certain items other
than those shown in trial balance which may need
adjustments while preparing financial statements.
? develop the understanding and skill to do
adjustments for items and their presentation in
financial statements like depreciation, closing
stock, provisions, abnormal loss etc.
? develop the skill of preparation of trading and
profit and loss account and balance sheet.
? state the meaning of incomplete records and their
uses and limitations.
? develop the understanding and skill of
computation of profit / loss using the statement
of affairs method.
Unit 4: Computers in Accounting 20 Periods
Units/Topics Learning Outcomes
? Introduction to computer and accounting
information system {AIS}: Introduction to
computers (elements, capabilities, limitations of
computer system)
? Introduction to operating software, utility
software and application software. Introduction
to accounting information system (AIS) as a part
of Management Information System.
? Automation of accounting process: meaning
? Stages in automation: (a) Accounting process in a
computerised environment; comparison
between manual accounting process and
computerised accounting process, (b) Sourcing
of accounting software; kinds of software:
readymade software; customised software and
tailor-made software; generic considerations
before sourcing accounting software (c) creation
of account groups and hierarchy (d) generation
of reports - trial balance, profit and loss account
and balance sheet.
Scope:
(i) The scope of the unit is to understand accounting as
an information system for the generation of
accounting information and preparation of
accounting reports.
(ii) It is presumed that the working knowledge of any
appropriate accounting software will be given to the
students to help them learn basic accounting
operations on computers.
After going through this Unit, the students will be able
to:
? state the meaning of a computer, describe its
components, capabilities and limitations.
? state the meaning of accounting information
system.
? appreciate the need for use of computers in
accounting for preparing accounting reports.
? develop the understanding of comparing the
manual and computerized accounting process
and appreciate the advantages and limitations
of automation.
? understand the different kinds of accounting
software.
Part C: Project Work (Any One) 10 Marks 30 Periods
1. Collection of source documents, preparation of vouchers, recording of transactions with the help of vouchers.
2. Preparation of Bank Reconciliation Statement with the given cash book and the pass book with twenty to twenty-
five transactions.
3. Comprehensive project of any sole proprietorship business. This may state with journal entries and their ledgering,
preparation of Trial balance. Trading and Profit and Loss Account and Balance Sheet. Expenses, incomes and profit
(loss), assets and liabilities are to be depicted using pie chart / bar diagram.
COMPREHENSIVE PROJECT
It is suggested to undertake this project after completing the unit on preparation of financial statements. The student(s)
will be allowed to select any business of their choice or develop the transaction of imaginary business.
The project is to run through the chapters and make the project an interesting process. The amounts should emerge as
more realistic and closer to reality.
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