Semester III: Accounting for Not-for-Profit Organisations and Partnership Firms (Total Periods 104)
Unit I: Accounting Not-for-Profit Organisation (Periods 24)
• Not-for-profit organisation: Meaning and Examples.
• Receipts and Payments: Meaning and Concept of fund based and non-fund based accounting.
• Preparation of Income and Expenditure account and Balance sheet from receipt and payment
account with additional information.
Unit II: Accounting for Partnership (Periods 16)
• Nature of Partnership Firm: Partnership deed (meaning, importance).
• Final Accounts of Partnership: Fixed v/s Fluctuating capital, Division of profit among partners, Profit and Loss Appropriation account.
Unit III: Reconstitution of Partnership (Periods 40)
Changes in profit sharing ratio among the existing partners – Sacrificing ratio and Gaining ratio.
• Accounting for Revaluation of Assets and Liabilities and Distribution of reserves and accumulated profits.
• Goodwill: Nature, Factors affecting and Methods of valuation: Average profit, Super profit, Multiplier and Capitalisation methods.
• Admission of a Partner: Effect of admission of partner, Change in profit sharing ratio, Accounting treatment for goodwill, Revaluation of assets and liabilities, Reserves (accumulated profits) and Adjustment of capitals.
• Retirement/Death of a Partner: Change in profit sharing ratio, Accounting treatment of
goodwill, Revaluation of assets and liabilities, Adjustment of accumulated profits (Reserves).
Unit IV: Dissolution of Partnership Firm (Periods 24)
• Meaning, Settlement of accounts: Preparation of realisation account and related accounts (excluding piecemeal distribution, sale to a company and insolvency of a Spartner)
Semester IV: Company Accounts and Financial Statement Analysis (Total Periods 104)
Unit V: Accounting for Share and Debenture Capital (Periods 42)
• Share Capital: Meaning, Nature and Types.
• Accounting for Share Capital: Issue and Allotment of Equity and Preference Shares; Over subscription and Under subscription; Issue at par, premium and at discount; Calls in advance, Calls in arrears, Issue of shares for consideration other than cash.
• Forfeiture of Shares: Accounting treatment, Re-issue of forfeited shares.
• Presentation of shares and Debentures Capital in company’s balance sheet.
• Issue of Debenture – At par, premium and discount; Issue of debentures for consideration other than cash.
• Redemption of debenture.
• Out of proceeds of fresh issue, accumulated profits and sinking fund.
Unit VI: Analysis of Financial Statements (Periods 42)
• Financial Statements of a Company: Preparation of simple financial statements of a company in the prescribed form with major headings only.
• Financial Analysis: Meaning, Significance and Purpose, Limitations.
• Tools for Financial Analysis: Comparative statements, Common size statements.
• Accounting Ratios: Meaning and Objectives, Types of ratios:
Liquidity Ratios: Current ratio, Liquidity ratio.
Debt to equity, Total assets to debt, Proprietary ratio. Inventory turnover, Debtors turnover, Payables turnover, Working capital turnover, Fixed assets turnover, Current assets turnover. Profitability Ratio: Gross profit, Operating ratio, Net profit ratio, Return on Investment, Earning per Share, Dividend per Share, Profit Earning ratio.
Unit VII: Statement of Changes in Financial Position (Periods 20)
• Cash Flow Statement: Meaning and Objectives, Preparation, Adjustments related to depreciation, dividend and tax, sale and purchase of non-current assets (as per revised standard issued by ICAI).
Semester IV: Computerised Accounting System (Total Periods 104)
Unit I: Overview of Computerised Accounting System (Periods 10)
• Concept and Types of Computerised Accounting System (CAS).
• Features of a Computerised Accounting System.
• Structure of a Computerised Accounting System.
Unit II: Using Computerised Accounting System (Periods 30)
• Steps in installation of CAS, Preparation of chart of accounts, Codification and Hierarchy of account heads.
• Data entry, Data validation and Data verification.
• Adjusting entries, Preparation of financial statements, Closing entries and Opening entries.
• Security of CAS and Security features generally available in CAS (Students are expected to understand and practise the entire accounting process using an accounting package.)
Unit III: Accounting Using Database Management System (DBMS) (Periods 34)
• Concepts of DBMS.
• Objects in DBMS: Tables, Queries, Forms, Reports.
• Creating data tables for accounting.
• Using queries, forms and reports for generating accounting information. Applications of DBMS in generating accounting information such as shareholders’ records, sales reports, customers’ profile, suppliers’ profile payroll, employees’ profile, petty cash register.
Unit IV: Accounting Applications of Electronic Spreadsheet (Periods 30)
• Concept of an Electronic Spreadsheet (ES).
• Features offered by Electronic Spreadsheet.
• Applications of Electronic Spreadsheet in generating accounting information, preparing depreciation schedule, loan repayment schedule, payroll accounting and other such applications.