Fundamentals of Accounting

CA: Common Proficiency Test
[One paper: Four Sections - 200 marks]

SESSION – I : (Two Sections – Two hours – 100 Marks)
Section A : Fundamentals of Accounting (60 Marks)

Level of Knowledge :

Basic knowledge.

Objective . . .

1. To develop conceptual understanding of the fundamentals of financial accounting system.

Contents ...

1.	Theroretical Framework
	(i) Meaning and Scope of accounting (ii) Accounting Concepts, Principles and Conventions (iii) Accounting Standards – concepts, objectives, benefits (iv) Accounting Policies (v) Accounting as a measurement discipline – valuation principles, accounting estimates
2.	Accounting Process
	Books of Accounts leading to the preparation of Trial Balance, Capital and revenue expenditures, Capital and revenue receipts, Contingent assets and contingent liabilities, Fundamental errors, including rectifications thereof.
3.	Bank Reconciliation Statement
4.	Inventories
	Basis of inventory valuation and record keeping.
5.	Depreciation accounting
	Methods, computation and accounting treatment of depreciation, Change in depreciation methods.
6.	Preparation of Final Accounts for Sole Proprietors
7.	Accounting for Special Transactions
	(a) Consignments (b) Joint Ventures (c) Bills of exchange and promissory notes (d) Sale of goods on approval or return basis.
8.	Partnership Accounts
	Final accounts of partnership firms – Basic concepts of admission, retirement and death of a partner including treatment of goodwill.
9.	Introduction to Company Accounts
	Issue of shares and debentures, forfeiture of shares, re-issue of forfeited shares, redemption of preference shares.