Fundamentals of Accounting
Introductory Offer
Refer a Friend
Learning Objectives
On completion of this course,
you will be able to describe and explain the basic terms used in accounting
CONCEPT BOOK
FLASH CARDS
Learning Objectives
On completion of this course, you will be able to:
- Define accounting and explain the objectives and functions of accounting
- Identify the users of accounting information
- Point out the limitations of accounting
- Describe the accounting principles including the accounting concepts and the conventions
- List out the Indian accounting standards
CONCEPT BOOK
Learning Objectives
On completion of this course, you will be able to:
- Identify the steps involved in the accounting process
- Classify accounts based on traditional approach and modern approach
- Apply the rules for debit and credit
- Describe how transactions are recorded in the journal
- Describe how transactions are posted in ledger accounts from the journal
- Describe how ledger accounts are balanced and how the trail balance is prepared from the balances of ledger accounts
CONCEPT BOOK
Learning Objectives
On completion of this course, you will be able to:
- Explain the meaning and the significance of subsidiary books
- Classify subsidiary books and prepare:
- Cash Book
- Purchases Book
- Sales Book
- Purchases Returns Book
- Sales Returns Book
- Bills Receivable Book
- Bills Payable Book
CONCEPT BOOK
Learning Objectives
On completion of this course, you will be able to:
- Explain the meaning of a bank reconciliation statement
- Identify the reasons for difference between the bank balance as per cash book and bank balance as per pass book
- Describe the procedure for preparing a bank reconciliation statement
CONCEPT BOOK
Learning Objectives
On completion of this course, you will be able to:
- Prepare trading and profit and loss account
- Draw up the balance sheet of a business
- Describe the accounting treatment of following adjustments:
- Closing stock
- Outstanding expenses
- Prepaid expenses
- Accrued income
- Income received in advance or unearned income
- Depreciation
- Bad debts
- Provision for bad debts
- Provision for discount on debtors
- Interest on capital
- Interest on drawings
CONCEPT BOOK
Learning Objectives
On completion of this course, you will be able to:
- Describe the meaning of the single entry system
- Describe the features, advantages, and limitations of the single entry system
- Distinguish the single entry system from the double entry system
- Prepare the statement of affairs, the statement of profit or loss and the revised statement of affairs
- Convert incomplete information into complete information and prepare the trading and profit and loss account and the balance sheet
CONCEPT BOOK
Learning Objectives
On completion of this course, you will be able to:
- Explain the meaning of rectification of errors
- Identify and classify accounting errors
- Describe how errors are rectified
CONCEPT BOOK
Learning Objectives
On completion of this course, you will be able to:
- Describe the steps involved in calculating the claim to be lodged for loss of stock
- Calculate gross profit and gross profit ratio using the trading account
- Calculate the value stock on the date of fire using the memorandum trading account
- Calculate the value of loss of stock after adjusting for the salvage value
- Calculate the amount of insurance claim to be lodged applying the average clause wherever applicable
- Ascertain the amount of insurance claim to be lodged when stock included abnormal items
CONCEPT BOOK
Learning Objectives
On completion of this course, you will be able to:
- Describe the meaning of a hire purchase agreement
- Identify the contents of a hire purchase agreement
- Describe the meaning of an instalment purchase agreement
- Distinguish between a hire purchase agreement and an instalment purchase agreement
- Define different terms used in a hire purchase agreement
- Describe the meaning of net cash price and net hire purchase price
- Prepare journal entries and ledger accounts in the books of hire purchaser and hire vendor
CONCEPT BOOK
Learning Objectives
On completion of this course, you will be able to:
- Describe the meaning of royalty and identify the cases where royalty is paid
- Explain some of the terms relating to royalty, such as minimum rent, shortworkings, and excess working
- Describe how shortworkings can recouped under fixed and fluctuating right
- Prepare necessary journal entries and ledger accounts in the books of lessee and landlord
CONCEPT BOOK
Learning Objectives
On completion of this course, you will be able to:
- Describe the meaning and objectives of sale or conversion of a partnership firm to a limited company
- Identify and explain the steps involved in accounting for sale/conversion of a partnership firm
- Explain different methods of calculating purchase consideration
- Identify different forms of discharging purchase consideration
- Describe how the books of the vendor firm are closed
- Prepare the incorporating entries in the books of the purchasing company
CONCEPT BOOK
Learning Objectives
On completion of this course, you will be able to:
- Describe the basic nature of a joint stock company as a form of business organisation
- Identify various kinds of companies based on liability of their members
- Identify the types of shares issued by a company
- Explain the accounting treatment of shares issued at par, at premium and at a discount including oversubsription
- Explain the accounting procedure for forfeiture of shares and reissue of forfeited shares under varying situations
- Compute the amounts to be transferred to capital reserve when forfeited shares are reissued
CONCEPT BOOK