Definition of Accounting and its advantages & limitations, Scope of accounting, Branches of
Accounting – Financial Accounting – Cost Accounting – Management Accounting, users of
Accounting information, Methods of Accounting, Double Entry Accounting System, Types of
Accounts and Rules for Debit and Credit. Cash and Credit Transaction, Cash discount and
Trade discount. Preparation of Journal, Ledger and Trial Balance. Final Accounts and
Accounting Ratios, Preparation of Final Accounts (Sole Proprietorship only), Preparation of
Trading A/c, Profit & Loss A/c and Balance Sheet covering simple adjustments.
Accounting Ratios: Meaning, Advantages and Limitations of Accounting ratios Computation of
following ratios only:
Gross Profit Ratio, Net Profit Ratio, Stock Turnover Ratio, Operating Ratio, Current Ratio,
Liquid Ratio, Debtors Ratio, Creditors Ratio, Return on Capital Employed, Earning Per Share,
Return on shareholders fund.
Cost Accounting: Meaning and definition of Cost Accounting – its Advantages & Limitations
Budgetary Control, Definitions – Advantages – Limitations, Procedure for setting up Budgetary
Control, Different types of budgets, Advantages and limitations of Cash Budget and
preparation of Cash Budget.
Marginal Costing: Meaning-Advantages- Limitations, Break Even Point, Margin of Safety,
Profit Volume Ratio, Application of Marginal Costing including simple problems on make or
buy and product mix.