(One paper- Four hours- 200 Marks)

Level of Knowledge: Basic knowledge



SESSION- I

(Two Sections- Two hours- 100 Marks)

Section A: Fundamentals of Accounting ( 60 Marks )



Objective:

To develop conceptual understanding of the fundamentals of financial accounting system.

Contents

1. Theoretical Framework

(i) Meaning and Scope of accounting

(ii) Accounting Concepts, Principles and Conventions

(iii) Accounting Standards- concepts, objectives, benefits

(iv) Accounting Policies

(v) Accounting as a measurement discipline- valuation principles, accounting estimates



2. Accounting Process

Books of Accounts leading to the preparation of Trial Balance, Capital and revenue expenditures, Capital and revenue receipts, Contingent assets and contingent liabilities, Fundamental errors including rectifications thereof.



3. Bank Reconciliation Statement



4. Inventories

Basis of inventory valuation and record keeping.



5. Depreciation accounting

Methods, computation and accounting treatment of depreciation, Change in depreciation methods.



6. Preparation of Final Accounts for Sole Proprietors



7. Accounting for Special Transactions

(a) Consignments

(b) Joint Ventures

(c) Bills of exchange and promissory notes

(d) Sale of goods on approval or return basis.



8. Partnership Accounts

Final accounts of partnership firms- Basic concepts of admission, retirement and death of a

partner including treatment of goodwill.



9. Introduction to Company Accounts

Issue of shares and debentures, forfeiture of shares, re-issue of forfeited shares, redemption of preference shares.



Section B: Mercantile Law ( 40 Marks )



Objective:

To test the general comprehension of elements of mercantile law

Contents

1. The Indian Contract Act , 1872: An overview of Sections 1 to 75 covering the general nature ofcontract , consideration , other essential elements of a valid contract , performance of contract andbreach of contract.



2. The Sale of Goods Act, 1930: Formation of the contract of sale- Conditions and Warranties-Transfer of ownership and delivery of goods- Unpaid seller and his rights.



3. The India Partnership Act, 1932: General Nature of Partnership- Rights and duties of partners-Registration and dissolution of a firm.