Account - XII Syllabus
UNIT 1: ACCOUNT FOR COMPANIES (35 LECTURE HOURS)
Company formation, types and documents:
- Company and its formation: Meaning and concept of company
- Characteristics of a company
- Types of companies
- Statutory company
Registered company:
- Companies limited by shares and guarantee
- Unlimited Company
- Private company
- Public company
- Characteristic and privileges of private company
- Advantage of company form of organization
- Company promoters
- Concept of memorandum of association
- Article of Association and Prospectus relating to shares and debentures
Shares and share Capital of a Company:
- Meaning of share capital
- Types of share capital
- Authorized
- Issued
- Subscribed
- Called up an paid up Capital
- Methods of Raising Capital
- Meaning and types of shares – ordinary and Preference shares
- Types of preference shares – cumulative
- Non – cumulative
- Participating and redeemable
Accounting treatment for:
- Share application
- Share allotment
- Share calls
- Issue of shares
- At par, at discount and at premium
- Calls in arrears
- Calls in advance
- Share forfeiture
- Re-issue of forfeited shares
- Minimum subscription
- Under subscription
- Over subscription and share allotment
- Refund and transfer of excess application money to allotment and share calls and pro-rata allotment
- Share underwriting
- Commission and brokerage
- Issue of shares in consideration for other than cash
Accounting for Debentures:
- Meaning
- Characteristics
- Importance and types of debentures
- Bearer and Registered
- Naked and secured
- Redeemable and Irredeemable
- Convertible and non-convertible
- First and second debentures
Accounting treatment for:
- Debenture application
- Allotment and calls
- Issue of debentures for cash
- Consideration for other than cash and as collateral security
- Issue of debenture
- At par, at a premium and at a discount
- Issue of debentures with redeemable conditions
- Treatment of shares and debentures in the Balance Sheet of a Company
UNIT 2: FINAL ACCOUNT OF A COMPANY (30 LECTURE HOURS)
Trading Account:
- Concept and Preparation of Trading Account
Profit and Loss Account:
- Concept and preparation of Profit and Loss Account
Profit and Loss Appropriation Account:
- Concept and preparation of Profit & Loss Appropriation Account
Balance Sheet:
- Concept
- Objectives and marshalling of assets and liabilities
- And preparation of a Balance Sheet
Preparation of a company’s final account with or without the following adjustments:
- Outstanding expenses
- Prepared expenses
- Accrued income
- Income received in advance
- Depreciation and amortization
- Appreciation
- Closing stock
- Bad debts
- Loss of goods
- Provision for bad debts
- Provision for discount on debtors
- Interest on loans
- Interest on investments
- Purchase or sale of fixed assets
- Gods distributed as samples
- Transfer to reserves and funds, tax paid and provision for tax
- Proposed dividend and final dividend
- Manager’s commission
- Bonus and retirement benefits to employees in cash and goods sent to customers on sale or return basis
- Concept and preparation of Income Statement and Balance Sheet and prescribed by the Company Act 2053 BS using as work sheet.
UNIT 3: FINANCIAL STATEMENT ANALYSIS (35 LECTURE HOURS)
- Meaning
- Concept
- Objectives
- And limitation of financial statement analysis
- Partied interested in financial statement analysis
Ratio analysis:
- Concept and limitations of ratio analysis
- Calculation of following ratios (without interpretation)
- Current ratio
- Quick ratio
- Debt – equity ratio
- Debt to total capital ratio
- Inventory turnover ratio
- Debtor turnover ratio
- Average collection period
- Fixed assets turnover ratio
- Total assets turnover ratio
- Capital employed turnover ratio
- Gross profit margin
- Net profit margin
- Return on assets
- Return on shareholder’s equity
- Return on common shareholder’s equity
- Return on capital employed
- Earning per share
- And dividend per share
Statement of Changes in Financial Position:
- Meaning
- Objectives
- And preparation of statement of changes in financial position on working capital and cash basis – determination of funds from operations
- Cash from operations
- Cash from investing and financing activities with sample and direct adjustments.
UNIT 4: COST ACCOUNTING (50 LECTURE HOURS)
Conceptual Foundation:
- Concept
- Objectives
- Importance and limitations of cost accounting
- Limitations of financial accounting
- Difference between financial and cost accounting
- Methods of costing
- Job order costing
- Process costing
- Service costing
- Unit costing
- Batch costing and
- Multiple costing
Introduction and classification of costs:
- Concept of cost
- Classification of cost on the basis of production and process
- Element
- Functions
- Variability and controllability
Materials and material control:
- Meaning and types of materials
- Material control
- Objectives and essential of material control
Material Scheduling or Routing:
Purchases:
- Material purchasing and purchase department
- Centralized and decentralized purchasing
- Purchase order
- Preparation of purchase Requisition form
- Tender form
- Purchase Order form
- And inspection and Receiving form
Store keeping:
- Meaning
- Types and location of stores
- Storekeeper
- Duties and responsibilities of storekeeper
- Classification and condification of materials
- Bin cards
Issuing:
- Meaning and preparation of inventory requisition form
- Pricing of materials issued
- And valuation of closing stock under LIFO and FIFO by preparing store ledgers
Stock Level:
- Meaning and computation of stock levels
- Minimum stock level
- Maximum stock level
- Average stock level
- Reordering level
- And reordering quantity
Economic Order quantity (EOQ):
- Meaning
- Concept
- And computation of EOQ and total cost at EOQ using formula
Accounting for labour:
Labour cost:
- Meaning and importance
- Labour cost control and its need
- Departments and their functions
- Personnel department
- Engineering department
- Rate or time and motion study department
- Time keeping department
- Payroll department
- And cost accounting department
- Basic knowledge about the following forms
- Labour Requisition form
- Employee’s History Card
- Time Card
- Piece Card and Payroll Sheet
System of wages payment:
- Piece rate and Time Rate Systems
- Meaning advantages and disadvantages of and difference between piece rate and time rate systems
- Determination of total wages using piece rate and time rate systems
Accounting for Overheads:
Overheads:
- Concept and meaning of overheads
- Classification of overhead on the basis of function
- Behavior
- Elements and control
- Allocation
- Apportionment and Absorption of overheads
- Meaning and importance
Unit of Output costing:
Unit Costing:
- Concept and importance of unit costing
- Components of cost sheet
- Prime cost
- Work Oncost
- Works Cost
- Office Oncost
- Cost of production
- Cost of goods sold
- Selling and Distribution Oncost
- Costofsales
- Profit and Total sales
- Preparation of cost sheet
Tender:
- Meaning and calculation of tender cost on the basis of cost sheet
Manufacturing account:
- Meaning and preparation of manufacturing Account for determination of cost of manufacturing and manufacturing profit
Cost Reconciliation Statement:
- Concept and preparation of Cost Reconciliation Statement
UNIT – WISE WEIGHTAGE
Units | Chapters | No. of questions | Marks Allocated | ||||
Th. | Pr. | Total | Th. | Pr. | Total | ||
1. | Accounting for Companies | 2 | 4 | 6 | 5 | 16 | 21 |
2. | Final Accounts of a Company | – | 2 | 2 | – | 20 | 20 |
3. | Financial Statement Analysis | 2 | 3 | 5 | 5 | 20 | 25 |
4. | Cost Accounting | 4 | 5 | 9 | 10 | 24 | 34 |
5. | Total | 8 | 14 | 22 | 20 | 80 | 100 |