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