Principles of Accounting

Categories: Accounting, Degree 1st Year

Course Content

Chaptrer-1 Accounting – The Language of Business
Definition and Scope of Accounting, Its role and Functions, History of Accounting, Purpose and Nature of Accounting InformationUsers of Accounting Information. Branches of AccountingNature of Business and Accounting.

Chapter-2 Conceptual Framework for Financial Accounting
FASB Conceptual Frame for Financial Accounting-First Level: Basic Objectives (SFAC- 1); Second Level: Qualitative Characteristics of Accounting Information (SFAC-2); Third Level: Operational Guidelines.

Chapter-3 The Accounting Process
Double-Entry Accounting System. Accounting Equation – Effects of Transactions on the Accounting Equation. The Account-Classification of AccountsSelection of Account titles-Chart of Accounts-Coding-Rules of Debit and Credit-Balancing and Normal Balance-Recording (Bookkeeping). Aspect of Accounting Cycle: Documentary Evidence and Identification, Analysis and Recording of Transactions and Other Events-Journalization-Posting to the Ledger-Preparation of Trial Balance-Limitations of Trial Balance, Errors and their Rectification.

Chapter-4.1 The Adjustment Process and Completing the Accounting Cycle
Key aspects of the Accrual basis accounting, Cash basis accounting Adjustments-Adjusted Trial Balance-Preparation of Work Sheet-Closing Entries-Post-Closing Trial BalanceReversing Entries.

Chapter-4.2 The Adjustment Process and Completing the Accounting Cycle WorkSheet
Key aspects of the Accrual basis accounting, Cash basis accounting Adjustments-Adjusted Trial Balance-Preparation of Work Sheet-Closing Entries-Post-Closing Trial BalanceReversing Entries.

Chapter-5 Merchandising Operations and Accounting System:
Merchandising Operations and Classifying InventoryPurchases, Sales, Other Use or Loss and Returns of Merchandise Inventory-Periodic and Perpetual Inventory Systems and Journal Entries-Specific Identification Method and Inventory Cost Flow Assumption (FIFO, LIFO and Average Cost).

Chapter-6 Accounting Systems and Special Ledgers
Manual and Computerized Accounting Systems and their effectiveness-The Voucher System-General Ledgers and Subsidiary Ledgers: General Ledger Control Accounts and Subsidiary Ledger Individual Accounts. Special Journals: Advantages of Special Journals-Cash Receipts Journal-Sales Journals-Purchase Journal-Cash Payments Journal and General Journal.

Chapter-7 Control of Cash
Controlling cash, Internal control. Petty Cash, Bank Reconciliation Statement.

Chapter-8 Accounting for Receivable Types
Receivable-Types of Receivables valuing and disposing uncollectible accountsAllowance for doubtful accounts.

Chapter-9 Financial Statements
Idea on a Complete Set of Financial Statement. Purpose and interrelationship of the Financial Statement. Importance, Limitations & Preparation of Financial Statements. Supplementary Statements/Schedules. Preparation of Financial Statements for Sole-proprietorship Organizations.

Chapter-10 Financial Statement Analysis
Ratio Analysis-Basic Ratios of Liquidity, Activity, Profitability and Solvency.