ACCOUNTS

This subject of accounts is the most scoring paper of group I of CA Inter (IPC). Students have regularly scored 97% in this paper in the past. So if one works on this subject properly and with dedication under proper guidance, this paper can help in bringing rank. Accounts have 15 chapters in all. Although some chapters may look to have been done at previous levels but actually the depth and content are very different from the previous work done. There are both full practical questions of 16 marks and small questions of 4 marks. Accounting standards are usually asked for 16 marks. Partnership, Accounts from incomplete records and funds flow and cash flow statements are most popular topics from which lengthy questions have been asked.

Syllabus:

(One paper – three hours – 100 marks)

  1. A General Knowledge of the framing of the accounting standards, national and international accounting authorities, adoption of international financial reporting standards.
  2. Accounting Standards Working knowledge of:
    AS 1,AS 2, AS 3, AS 6, AS 7, AS 9, AS 10, AS 13, AS 14

    • Preparation of financial statements – Profit and Loss Account, Balance Sheet and Cash Flow Statement.
    • Profit (Loss) prior to incorporation.
    • Alteration of share capital, Conversion of fully paid shares into stock and stock into shares, Accounting for bonus issue.
    • Simple problems on Accounting for business acquisition, Amalgamation and reconstruction (excluding problems of amalgamation on inter-company holding).
  3. Average Due Date, Account Current, Self-Balancing Ledgers.
  4. Financial Statements of Not-for-Profit Organisations.
  5. Accounts from Incomplete Records.
  6. Accounting for Special Transactions.
    • Hire purchase and instalment sale transactions.
    • Investment accounts.
    • Insurance claims for loss of stock and loss of profit.
  7. Issues in Partnership Accounts Final accounts of partnership firms – Admission, retirement and death of a partner including treatment of goodwill;
  8. Accounting in Computerised Environment.

Note : If either old Accounting Standards (ASs), Announcements and Limited Revisions to ASs are withdrawn or new ASs, Announcements and Limited Revisions to ASs are issued by the Institute of Chartered Accountants of India in place of existing ASs, Announcements and Limited Revisions to ASs, the syllabus will accordingly include/exclude such new developments in place of the existing ones with effect from the date to be notified by the Institute.