Capital Expenditure & Revenue Expenditure

Capital and Revenue Receipt / Payment

Meaning, objectives and importance of preparing Trading, Profit and Loss Account and Balance sheet

Preparation of Trading, Profit and Loss and Balance Sheet of sole trader without adjustment

Outstanding expenses, Prepaid expenses, Accrued income, Income received in advance,

Adjustment related to Interest on Capital and Drawings, Depreciation and Closing Stock

Adjustment related to Bad debts, Provision for doubtful debts, Provision for discount on Debtor, Creditor

Adjustment related to Manager’s Commission, Goods distributed as free samples and Goods taken by the owner for personal use,

Meaning, objectives, necessity, treatment of some important items

Receipts and Payments Accounts

Income and Expenditure Accounts:

Preparation of Income and Expenditure Account and Closing Balance Sheet

Depreciation: Meaning, need, causes, objectives and characteristics of depreciation,

Methods of Charging Depreciation- Simple depreciation method and provision for depreciation method

Method of calculating depreciation: Straight Line and Written down Value method

Meaning, characteristics and limitations of single entry system, Difference between single entry and double entry system,

Ascertainment of profit and Loss

Meaning, Features, Partnership Deed and Provisions of Partnership act 1932 in the absence of partnership deed

Fixed vs. Fluctuating Capital accounts

Preparation of Profit and Loss Appropriation A/c

Goodwill – Meaning, nature and Factors affecting Goodwill

Methods of Valuation of Goodwill (Average profit, super profit method and capitalization method)

Reconstitution of partnership firm

Accounting for revaluation of Assets and Liabilities

Accounting for distribution of reserves and accumulated profits and loss.

Admission of a Partner – Simple Problems without Adjustment of Capital

Shares and share capital: Nature and types as per Companies Act, 2013

Issue of Shares at par, Premium and Discount

Calls in Advance, Calls in Arrear, over subscription and under subscription of shares

Accounting for Forfeiture of Shares and re-issue of shares

Disclosure of share capital in companies’ balance sheet (Vertical Format).