Basics Of Accounting

Course Description:

UNIT 1: INTRODUCTION TO ACCOUNTING 

• Meaning and need of accounting;  
• accounting as a source of information ;  
• identify the internal and external users of accounting information;   
• explain the objectives of accounting; • describe the role of accounting;  
• explain the basic terms used in accounting 

UNIT 2: THEORY BASE OF ACCOUNTING 

• identify the need for theory base of accounting;  
• explain the nature of Generally Accepted Accounting Principles (GAAP);  
• state the meaning and purpose of the basic accounting concepts;  
• list the accounting standards issued by Institute of Chartered Accountants of India;  
• describe the systems of accounting; and   
• describe the basis of accounting 

UNIT 3: RECORDING OF TRANSACTIONS I 

• describe the nature of transaction and source documents;   
• explain the preparation of accounting vouchers;  
• apply accounting equation to explain the effect of transactions;   
• record transactions using rules of debit and credit;  
• explain the concept of book of original entry and recording of transactions in journal;  
• explain the concept of ledger and posting of journal entries to the ledger accounts. 

UNIT 4: RECORDING OF TRANSACTION II 

• state the need for special purpose books;  
• record the transactions in cash book and post them in the ledger;  
• prepare the petty cash book;  
• record the transactions in the special purpose books;  
• post the entries in the special purpose book and to the ledger;  
• balance the ledger accounts 

UNIT 5: BANK RECONCILIATION STATEMENT 

• state the meaning and need for the preparation of bank reconciliation statement;  
• identify causes of difference between bank balance as per cash book and pass book;  
• prepare the bank reconciliation statement;  
• ascertain the correct bank balance as per cash book; 

UNIT 6: TRIAL BALANCE AND RECTIFICATION OF ERRORS: 

• state the meaning of trial balance;  
• enumerate the objectives of preparing trial balance ;  
• prepare trial balance; • explain the types of errors;  
•  state various process of locating errors ;  
• identify the errors which affect the agreement of trial balance and those which do not affect the agreement of trial balance;  
• rectify the errors without preparing suspense account; and  
• rectify the errors with suspense account. 

UNIT 7: DEPRECIATION, PROVISIONS AND RESERVES 

• explain the meaning of depreciation and distinguish it from amortisation and depletion;  
• state the need for charging depreciation and identify its causes;  
• compute depreciation using straight line and written down value methods;  
• record transactions relating to depreciation and disposition of assets;  
• explain the meaning and purpose of creating provisions and reserves;  
• distinguish between reserves and provisions;  
• explain the nature of various types of provisions and reserves including secret reserve. 

UNIT 8: BILLS OF EXCHANGE 

• state the meaning of bill of exchange and a promissory note;  
•  distinguish between a bill of exchange and a promissory note;  
• state the advantages of bill of exchange;  
• explain the meaning of different terms involved in the bill transaction,  
• record bill of exchange transactions in journal;  
• record transactions relating to dishonour, retirement and renewal of bill;  
• describe the uses of bill receivable and bill payable book;  
• state the meaning and use of accommodation bill. 

UNIT 9: FINANCIAL STATEMENTS I 

• state the nature of the financial statements;  
• identify the various stakeholders and their information requirements;  
• distinguish between the capital and revenue expenditure and receipts;  
• explain the concept of trading and profit and loss account and its preparation;  
• State the nature of gross profit, net profit and operating profit;  
• describe the concept of balance sheet and its preparation;  
• explain grouping and marshalling of assets and liabilities;  
• prepare profit and loss account and balance sheet of a sole proprietary firm; and  
• make an opening entry. 

UNIT 10: FINANCIAL STATEMENTS II 

• describe the need for adjustments while preparing the financial statements;  
• explain the accounting treatment of adjustments for outstanding and prepaid expenses, accrued and advance receipts of incomes;  
• discuss the adjustments to be made regarding depreciation, bad debts, provisions for doubtful debts, provision for discount on debtors;  
• explain the concepts and adjustment of manager’s commission and interest on capital;  
• prepare profit and loss account and balance sheet with adjustments. 

UNIT 11: ACCOUNTS FROM INCOMPLETE RECORDS 

• state the meaning and features of incomplete records;  
• calculate profit or loss using the statement of affairs method;  
• distinguish between balance sheet and statement of affairs;  
• prepare trading and profit and loss account and balance sheet from incomplete records; and 
•  detect the missing figures/information by preparing relevant accounts. 

Prerequisite:

• Knowledge of basic mathematical calculations.
• Students from any stream can join.
• Active participation will be appreciated.
• Good at logical reasoning.

Recommended:

• Applicable to above 14 years who wants to build a career in accounting.
• Weekly tests.
• solving Practical problems on daily basis.

Outcome of the course:

• Identify and interpret accounting information to inform users and make decisions.
• Apply critical thinking skills by identifying and analyzing accounting issues using relevant accounting frameworks.
• Analyze financial and contextual information to make decisions, estimate costs and determine tax implications, audit risk, and engagement procedures.
• Evaluate and mitigate the risk of non-congruent behavior by implementing appropriate internal controls, incentives, and performance measures.

Mode Of Teaching:

• This will be a Remote live session on Zoom.