Why Education

KVS PGT Commerce

Accountancy Volume - I

By : Dheeraj K. Singh

According to New Revised Syllabus - 2022
Chapter Covered in Volume I

Introduction to Accounting

Accounting- concept, meaning, as a source of information objectives, advantages and limitations, types of accounting information; users of accounting information and their needs. Qualitative Characteristics of Accounting Information. Role of Accounting in Business.
Basic Accounting Terms- Business Transaction, entity, Capital, Drawings. Liabilities (Non-Current and Current). Assets (Non-Current, Current); Fixed assets (Tangible and Intangible), Expenditure (Capital and Revenue), Expense, Revenue, Income, Profit, Gain, Loss, Purchase, Sales, Goods, Stock, Debtor, Creditor, Voucher, Discount (Trade discount and Cash Discount)

Theory Base of Accounting

Fundamental accounting assumptions: GAAP: Concept
Business Entity, Money Measurement, Going Concern, Accounting Period, Cost Concept, Dual Aspect, Revenue Recognition, Matching, Full Disclosure, Consistency, Conservatism,
Materiality and Objectivity System of Accounting. Basis of Accounting: cash basis and accrual basis
Accounting Standards: Applicability in IndAS
Goods and Services Tax (GST): Characteristics and Advantages.

Recording of Business Transactions

Voucher and Transactions: Source documents and Vouchers, Preparation of Vouchers, Accounting Equation Approach: Meaning and Analysis, Rules of Debit and Credit.
Recording of Transactions: Books of Original Entry- Journal
Special Purpose books
Cash Book: Simple, cash book with bank column and petty cashbook
Purchases book
Sales book
Purchases return book
Sales return book
Journal Proper
Ledger: Format, Posting from journal and subsidiary books, Balancing of accounts
Bank Reconciliation Statement:

➢ Need and preparation, Bank Reconciliation, Statement with Adjusted Cash Book

➢ Depreciation: Meaning, Features, Need, Causes, factors

➢ Other similar terms: Depletion and Amortisation

➢ Methods of Depreciation: i. Straight Line Method (SLM) ii. Written Down Value Method (WDV)

i. Charging to asset account

ii. Creating provision for depreciation/accumulated depreciation account

iii. Treatment for disposal of asset

Provisions and Reserves: Difference
Types of Reserves: i. Revenue reserve ii. Capital reserve iii. General reserve iv. Specific reserve v. Secret Reserve
Difference between capital and revenue reserve

Trial balance and Rectification of Errors

Trial balance: objectives and meaning & preparation
Errors: types-errors of omission, commission, principles, and compensating; their effect on Trial Balance. Detection and rectification of errors; preparation of suspense account.

Financial Accounting – II

Financial Statements Meaning, objectives, and importance; Revenue and Capital Receipts; Revenue and Capital Expenditure;
Deferred Revenue expenditure.
Trading and Profit and Loss Account: Gross Profit, Operating profit and Net profit. Preparation.
Balance Sheet: need, grouping and marshalling of assets and liabilities. Preparation.
Adjustments in preparation of financial statements with respect to closing stock, outstanding expenses, prepaid expenses, accrued income, income received in advance, depreciation, bad debts, provision for doubtful debts, provision for discount on debtors, Abnormal loss, Goods taken for personal use/staff welfare, interest on capital and managers commission.
Preparation of Trading and Profit and Loss account and Balance Sheet of a sole proprietorship with adjustments.

Index & Chapter wise MCQs Details

Chapter	Topic		No. of MCQs	Page No
Chapter 1	Basic of Accounting		176	5 - 37
	Accounting Terminology	44
	Rules of Double Entry Book–Keeping	91
	Classification of Accounts	41
Chapter 2	Accounting Process		173	38 - 76
	Accounting Process - Introduction	16
	Vouchers	10
	Journal	41
	Subsidiary Books	31
	Ledger	37
	Trail Balance	38
Chapter 3	Rectification of Errors		40	77 - 93
Chapter 4	Cash Book & Bank Reconciliation Statement		38	94 - 110
	Cash Book	24
	Bank Reconciliation Statement	14
Chapter 5	Meaning and Scope of Accounting		51	111 - 124
Chapter 6	Accounting Concepts, Principles and Conventions		106	125 - 141
Chapter 7	Accounting Standard & Policies		50	142 - 154
	Accounting Standard	35
	Accounting Policies	15
Chapter 8	Capital and Revenue Expenditure and Receipts		51	155 - 165
Chapter 9	Depreciation Accounting		53	166 - 182
Chapter 10	Final Accounts		128	183 - 205
Chapter 11	Provision and Reserve		11	206 - 208

Tuesday, 18 February 2025