Topics
Accountancy I : Accounting for Partnership Firms and Companies
Overview of Computerised Accounting System
- Computerized Accounting System (CAS)
- Grouping of Accounts
- Codification of Accounts
- Methodology to Develop Coding Structure and Coding
- Using Software of Computerised Accounting System
- Accounting Information System (AIS)
- Accounting Software
- Steps in Installation of CAS (Computerised Accounting System)
- Codification and Hierarchy of Account Heads
- Using Computerized Accounting System - Creation of Accounts
- Using Computerized Accounting System
Accounting for Partnership : Basic Concepts
- Concept of Partnership
- Partnership Deed
- Provisions of the Indian Partnership Act, 1932
- Special Aspects of Partnership Accounts> Partner's Capital Account
- Partner's Capital Account> Fixed Capital Account
- Partner's Capital Account> Fluctuating Capital Account
- Difference Between Fixed Capital Account and Fluctuating Capital Account
- Distribution of Profit Among Partners
- Profit and Loss Appropriation Account
- Interest on Capital and Current Accounts
- Interest on Drawings
- Guarantee of Profit to a Partner
- Past Adjustments
Reconstitution of a Partnership Firm – Admission of a Partner
- Modes of Reconstitution of a Partnership Firm
- Admission of Partner
- New Profit Sharing Ratio
- Sacrificing Ratio
- Concept of Goodwill
- Admission of Partner> Accounting Treatment of Goodwill
- Methods of Valuation of Goodwill
- Admission of Partner> Hidden Goodwill
- Average Profit Method
- Average Profit Method> Simple Average Profit Method
- Average Profit Method> Weighted Average Profit Method
- Super Profit Method
- Capitalisation Method> Capitalisation of Average Profit
- Capitalization Method> Capitalisation of Super Profit
- Admission of Partner> Reserves and Accumulated Profit/Losses
- Admission of Partner> Revaluation of Assets and Liabilities
- Admission of Partner> Adjustment of Capital
- Change in Profit Sharing Ratio Among the Existing Partners
Reconstitution of a Partnership Firm – Retirement/Death of a Partner
- Computation of Amount Due to the Retiring Partner
- Determination of Amount due to the Deceased Partner
- Retirement/Death of a Partner> New Profit Sharing Ratio
- Retirement/Death of a Partner> Gaining Ratio
- Retirement/Death of a Partner> Treatment of Goodwill
- Hidden Goodwill
- Retirement/Death of a Partner> Revaluation of Assets and Liabilities
- Retirement/Death of a Partner> Reserves and Accumulated Profits/Losses
- Retirement During the Accounting Year
- Payment of Amount due to Retiring Partner
- Retirement/Death of a Partner> Adjustment of Capitals
- Death of Partner
Dissolution of Partnership Firm
- Concept of Dissolution of Partnership
- Concept of Dissolution of Partnership Firm
- Difference Between Dissolution of Partnership and Dissolution of Firm
- Accounting at the Time of Dissolution of a Firm
- Process of Dissolution> Realisation Account
- For Closing Assets Accounts
- For Closing Liabilities Accounts
- For Realisation of Assets
- For Payment of Outside Liabilities
- For Payment of Realisation Expenses
- For Closing Realisation Account
Spreadsheet
- Introduction to Spreadsheet
- Basic Concepts of Spreadsheet
- Labels
- Formulas
- Functions
- Useful Functions
- Useful Functions > Date and Time Function
- Useful Functions > Mathematical Function
- Useful Functions > Text Manipulation Function
- Useful Functions > Logical Function
- Useful Functions > Lookup and References Function
- Useful Functions > Financial Functions
- Data Entry, Text Management and Cell Formatting
- Data Entry
- Data Validation
- Data Validation
- Data Formatting
- Output Reports
- Preparation of Reports Using Pivot Table
- Advantages of Pivot Table (Report)
- Common Errors (Messages) in Spreadsheet
- Data Representation - Graphs, Charts and Diagrams
- Concept of Electronic Spreadsheet (ES)
- Features Offered by Electronic Spreadsheet
- Using Computerised Accounting System - Data
Accountancy II : Financial Statement Analysis
Accounting for Share Capital
- Concept of Company
- Kinds of Companies
- Shareholder's Fund> Share Capital of a Company
- Concept of Shares
- Kinds of Shares> Preference Shares
- Kinds of Shares> Equity Shares
- Terms of Issue of Shares> Issue of Shares at Par
- Terms of Issue of Shares> Issue of Shares at Par
- Calls-In-Arrears
- Interest on Calls-In-Arrears
- Calls-In-Advance
- Interest on Calls-In-Advance
- Over Subscription of Shares
- Under Subscription of Shares
- Terms of Issue of Shares> Issue of Shares at Premium
- Terms of Issue of Shares> Issue Shares at Discount
- Issue of Shares for Consideration other than Cash
- Forfeiture of Shares
- When Shares Were Originally Issued at a Premium
- When Shares Were Originally Issued at Discount
- Reissue of Forfeited Shares
Issue and Redemption of Debentures
- Difference Between Debentures and Shares
- Concept of Debentures
- Types of Debentures
- Issue of Debentures for Cash
- Terms of Issue of Debentures> Issue of Debentures at Par
- Terms of Issue of Debentures> Issue of Debentures at Premium
- Terms of Issue of Debentures> Issue of Debentures at Discount
- Oversubscription of Debentures
- Issue of Debentures for Consideration Other than Cash
- Issue of Debentures as Collateral Security
- Issue of Debentures with Terms of Redemption
- Debentures Issued at Par and are Redeemable at Par
- Debentures Issued at Discount and are Redeemable at Par
- Debentures Issued at Premium and are Redeemable at Par
- Debentures Issued at Par and are Redeemable at Premium
- Debentures Issued at Discount and are Redeemable at Premium
- Debentures Issued at Premium and redeemable at Premium
- Interest on Debentures
- Writing off Discount/Loss on Issue of Debentures
- Concept of Redemption of Debentures
- Methods of Redemption of Debentures> Redemption by Payment in Lump Sum
- Methods of Redemption of Debentures> Redemption by Payment in Instalments by Draw of Lots
- Methods of Redemption of Debentures> Redemption by Purchase in Open Market
- Methods of Redemption of Debentures> Redemption of Debentures by Conversion
Financial Statements of a Company
- Concept of Financial Statements
- Format of Company's Balance Sheet
- Contents of Balance Sheet> Equity and Liabilities
- Shareholder's Fund> Share Capital of a Company
- Shareholders' Fund> Reserves and Surplus
- Shareholders' Fund> Money Received Against Share Warrants
- Equity and Liabilities> Share Application Money Pending Allotment
- Equity and Liabilities> Non-Current Liabilities
- Equity and Liabilities> Current Liabilities
- Contents of Balance Sheet> Assets
- Assets> Non-Current Assets
- Assets> Current Assets
- Statement of Profit and Loss
Analysis of Financial Statements
Accounting Ratios
- Concept of Ratio Analysis
- Classification of Ratios
- Liquidity Ratios
- Current Ratios/Working Capital Ratios
- Quick Ratio/Acid Test Ratio/Liquid Ratio
- Solvency Ratios
- Debt to Equity Ratio
- Debt to Total Assets Ratio
- Proprietary Ratio
- Total Assets to Debt Ratio
- Interest Coverage Ratio
- Activity Ratios
- Inventory Turnover Ratio
- Trade Receivables Turnover Ratio
- Trade Payables Turnover Ratio
- Capital Employed Turnover Ratio
- Profitability Ratios
- Gross Profit Ratio
- Operating Ratio
- Operating Profit Ratio
- Net Profit Ratio
- Return on Investment
- Return on Shareholders’ Funds
- Earnings Per Share
- Book Value Per Share
- Dividend Payout Ratio
- Price Earnings Ratio
Cash Flow Statement
Accounting for Partnership Firms and Companies
Use of Spreadsheet in Business Applications
- Introduction to Use of Spreadsheet in Business Application
- Payroll Accounting
- Payroll Components
- Elements Used in Payroll Calculation
- Template Design
- Asset Accounting
- Introduction to Asset Accounting
- Computerised Asset Accounting
- Straight Line Method
- Written Down Value (WDV) Method
- Schedule Forming Part of the Balance Sheet
- Loan Repayment Schedule
- Application in Generating Accounting Information - Bank Reconciliation Statement
- Application in Generating Accounting Information - Asset Accounting
- Application in Generating Accounting Information - Loan Repayment of Loan Schedule
- Concept of Ratio Analysis
Accounting for Partnership Firms
- Concept of Partnership
- Partnership Deed
- Special Aspects of Partnership Accounts> Partner's Capital Account
- Profit and Loss Appropriation Account
- Distribution of Profit Among Partners
- Guarantee of Profit to a Partner
- Methods of Valuation of Goodwill
- Concept of Goodwill
- Accounting for Partnership Firms - Reconstitution and Dissolution
- Change in the Profit Sharing Ratio Among the Existing Partners
- New Profit Sharing Ratio
- Retirement/Death of a Partner> Reserves and Accumulated Profits/Losses
- Admission of Partner> Accounting Treatment of Goodwill
- Retirement/Death of a Partner> Gaining Ratio
- Admission of Partner> Revaluation of Assets and Liabilities
- Admission of Partner> Adjustment of Capital
- Examples on Admission of Partner
- Retirement/Death of a Partner> Treatment of Goodwill
- Retirement/Death of a Partner> Revaluation of Assets and Liabilities
- Calculation of Deceased Partner's Share of Profit Till the Date of Death
- Preparation of Deceased Partner's Capital Account, Executor's Account
- Accounting Entries To Close The Books Of Accounts
- Concept of Dissolution of Partnership Firm
- Types of Firm Dissolution> Simple Dissolution
- Past Adjustments
Accounting for Companies
- Accounting for Companies - Introduction
- Theory on Shares
- Shareholder's Fund> Share Capital of a Company
- Concept of Shares
- Employee Stock Option Plan (ESOP)
- Private Placement of Shares
- Terms of Issue of Shares> Issue of Shares at Par
- Under Subscription of Shares
- Over Subscription of Shares
- Types of Share Issue
- Forfeiture of Shares
- Pro-rata Allotment
- Concept of Private Placement
- Concept of Debentures
- Terms of Issue of Debentures> Issue of Debentures at Par
- Issue of Debentures for Consideration Other than Cash
- Issue of Debentures with Terms of Redemption
- Issue of Debentures as Collateral Security
- Interest on Debentures
- Redemption of Debentures for Immediate Cancellation - Draw of Lots, Lump Sum and Purchase in the Open Market
- Creation of Debenture Redemption Reserve
- Accounting for Debentures - Conversion Method
- Concept of Redemption of Debentures
Financial Statement Analysis
Graphs and Charts for Business Data
- Introduction to Graphs and Charts for Business Data
- Graphs and Charts
- Basics Steps for Graphs/Charts/Diagrams Using Excel
- Elements of a Chart/Graph
- Formatting of Chart
- Change the Chart Type
- Resizing of Chart/Graph
- 2D - 3D Charts/Graphs
- Advantages in Using Graph/Chart
Analysis of Financial Statements
- Concept of Financial Statements
- Statement of Profit and Loss
- Concept of Financial Statement Analysis
- Comparative Financial Statement
- Common-Size Statement
- Concept of Cash Flow Statement
- Concept of Ratio Analysis
- Quick Ratio/Acid Test Ratio/Liquid Ratio
- Debt to Equity Ratio
- Debt to Total Assets Ratio
- Proprietary Ratio
- Interest Coverage Ratio
- Inventory Turnover Ratio
- Trade Receivables Turnover Ratio
- Trade Payables Turnover Ratio
- Working Capital Turnover Ratio
- Classification of Ratios> Income Statement Ratio
- Earnings Per Share
- Price Earnings Ratio
- Classification of Ratios> Combined/Mixed Ratio
Cash Flow Statement
Data Base Management System for Accounting
- Introduction Data Base Management System for Accounting
- Introduction to Database Concepts Using Libre Office Base
- Features of Database Management System (DBMS)
- Understanding and Defining the Database Requirement
- Identification of Data to Be Stored in Tables
- Logical Structuring of Data in Tables
- Creating Database Tables in Microsoft Access
- Creation of Query in Microsoft Access
- Creation of Forms in Microsoft Access
- Creation of Reports in Microsoft Access
Accountancy : Computerised Accounting System
- Journal Entries
- Example
CBSE: Class 12
CISCE: Class 12
CISCE: Class 12
Journal Entries: Debentures Issued at Discount and are Redeemable at Par
A. When Application Money is Received in Lump Sum
1. On receipt of application money:
Bank A/c ...Dr.
To Debentures Application and Allotment A/c
( Being application money received)
(ii) On allotment of debentures and accounting for discount:
Debentures Application and Allotment A/c ...Dr.
Discount on Issue of Debentures A/c ...Dr.
To ...% Debentures A/c
(Being debentures allotted and discount recorded)
B. When Application Money is Received in Instalments
(i) On receipt of application money:
Bank A/c ...Dr.
To Debentures Application A/c
(Being application money received)
(ii) On allotment and transfer of application money:
Debentures Application A/c ...Dr.
To ...% Debentures A/c
(Being application money adjusted on allotment)
(iii) On recording discount and allotment due:
Debentures Allotment A/c ...Dr.
Discount on Issue of Debentures A/c ...Dr.
To ...% Debentures A/c
(Being debentures allotted at discount and allotment due)
(iv) On receipt of allotment money:
Bank A/c ...Dr.
To Debentures Allotment A/c
(Being allotment money received)
Note: If the question doesn’t specify when the discount is allowed, it is assumed to be allowed on allotment.
C. Writing Off Discount on Issue of Debentures:
As Discount on Issue of Debentures is a capital loss, it is written off in the year incurred using the following order of preference:
Securities Premium A/c ...Dr.
Capital Reserve A/c ...Dr.
Statement of Profit and Loss ...Dr.
To Discount on Issue of Debentures A/c
(Being discount on issue of debentures written off)
These accounts are used in sequence depending on availability. If none exist, the entire amount is charged to Statement of Profit and Loss.
