Financial Accounting

ICWA: Intermediate
Paper 5 : Financial Accounting
[One Paper: 3 hours:100 marks]

Objective . . .

•	To have working knowledge of accounting concepts, detailed procedures and documentation involved in financial accounting system
•	To gain working knowledge of the principles and procedures of accounting and their application to different practical situations

1.	Accounting Conventions and Practices	10%
	• Concept • Depreciation and various methods thereof • Stock valuation • Distinction between Capital and Revenue
2.	Royalty and Hire Purchase	10%
	• Royalty accounting • Need for hire purchase and installment systems and parties involved. • Accounting from the point of view various parties. • Possession and repossession in case of default in payments.
3.	Receipts & Payments/ Income & Expenditure Accounts	10%
	• Receipts & Payments • Income & Expenditure Account
4.	Partnership Accounting	10%
	• Past adjustments and guarantee • Admission & Retirement • Assignment of life policy • Amalgamation and Sale of Business • Dissolution, Insolvency • Piecemeal Distribution
5.	Branch and Departmental Accounts	10%
	• Branch accounts- Debtors system, Stock & Debtors system, Foreign Branch. • Treatment of shortages. • Calculation of net profit of various departments and allocation of expenses on the basis of suitable base. • Preparation of common balance sheet. • Treatment of Unrealized profit.
6.	Accounting Standards	10%
	• Applicability of a particular accounting standard. • Interpretation of various accounting standards. • Scope of accounting standards. • Compliance with the Accounting Standards.
7.	Joint Stock Companies	20%
	• Issues of shares at par, discount & premium, forfeiture, reissue of shares • Bonus issue and right issue • Buy back of shares • Redemption of Preference of shares • Profit prior to incorporation • Issue and redemption of debentures
8.	Preparation of Company Accounts
	• Preparation of Final Accounts under Company Law
9.	Accounting services in organizations	10%
	• Construction companies ,Project Accounting • Service sector such as Software, ITES, Telecommunication, Entertainment, Hospital, educational institutions • Banking , Electricity and Insurance companies
10.	Accounting and Interpretation of Financial Statements.	10%