Basic Accounting Module
Basic Accounting Module
Basic Accounting Module
BASIC ACCOUNTING
1.
2.
3.
4.
5.
6.
7.
8.
Accounting - An Introduction
Accounting Concepts
Accounting Conventions and Standards
Accounting for Business Transactions
Journal
Ledger
Cash Book
Special Purpose Books
MODULE-II
TRIAL BALANCE AND COMPUTERS
9. Bank Reconciliation Statement
10. Trial Balance
11. Errors and their Rectification
12. Computer and Computerised Accounting System
APPENDIX-A
QUESTIONS FOR PRACTICE
1.
State the meaning of the term Accounting. Explain in brief any four objectives of accounting.
2.
3.
4.
What is Petty Cash Book? Explain with example Imprest system used in Petty Cash Book.
5.
6.
40000
2.
30000
3.
18000
4.
16000
5.
6.
7.
7500
17800
200
7.
2000
8.
2400
02
04
08
10
14
18
20
25
29
30
31
8.
9.
January 3
January 6
January 7
Enter the following transaction in Special Purchase Books of M/s Bansal Furniture Mart
for the month of October 2005.
Date
Details
2005
October
October 12
October 16
Purchase from M/s Wood Furniture Mart as per Invoice No. 472
20 glass tables @3000 each
Trade discount 10%
October 20
October 22
Goods returned to M/s Wood furniture Mart as per debit note No. 22/06
3 glass table @ 3000 each
Trade discount 10%
October 25
Goods Returned from M/s T.R. Wood craft is per credit note No. 14/06
2 chairs @ 300 each
Trade discount @ 10%
October 29
11.
12.
13.
What are one sided errors and two sided errors? Explain with examples.
14.
What can be the possible reasons of difference between the bank balance of a businessman
shown by Cash Book and bank pass book on a particular date? Enlist any four such reasons.
15.
16.
What is Trial Balance? What purpose does it serve? Explain in brief the various methods
of preparing Trial Balance.
17.
Trial Balance if tallied is not the conclusive proof of the correctness of the ledger posting
Do you agree? What are those errors that do not affect the Trial Balance?
18.
Asha a trader has the bank balance as per cash book Rs.17600 on 31st December, 2005.
While comparing with the bank pass book it was found that following discrepencies
appeeard :
(a) Cheques of Rs.18700 were deposited in the bank but of Rs.14000 were credited by
the bank.
(b) Cheques of Rs.8400 were issued by a cheque of Rs.1200 was presented in the first week
of January 2006.
(c) Bank paid Rs.1200 for insurance premium as per the instructions of the trader.
(d) A cheque of Rs.600 was paid in the bank but was returned and dishonoured.
(e) Bank has allowed an interest of Rs.140 on the balance
Prepare Bank Reconcilliation Statement as on 31st December, 2006.
19.
20.
Following are the balances of accounts taken from the ledger of Bhagawat Gupta; a trader
prepare Trial Balalnce as on 31st December, 2006
Rs
Cash in hand
2800
Cash at bank
16200
Bills Receivable
14500
Bills Payable
12700
Sundery creditors
25300
Sundry debtors
28600
Capital
50000
Drawings
18000
Salaries
Carriage Inward
6000
400
Opening stock
16200
Sales
60800
Discount Received
600
Depreciation
800
Bad debts
700
Insurances
900
Purchases
42000
Office Rent
Stationery
2000
300
APPENDIX-B
CURRICULUM IN ACCOUNTANCY
(320)
RATIONALE
The last decade has witnessed tremendous
changes in business education. The liberalisation
and globalisation have been the primary cause
for such changes. With the fast changing
economic scenario, the elementary business
education along with Accountancy as a language
of business is gaining its importance. The
curriculum in Accountancy provides a firm
foundation in basic accounting concepts and
also keeps them informed of changes in its
methodology concerning particular aspects of
the subject.
The thrust of the course follows new trends in
accounting practices and developing a basic
understanding of the nature and purpose of the
accounting information and reporting. Further,
information technology has occupied a vital
place in business activities. Therefore, a lesson
designed on computer and computerised
accounting shall expose the learners to the basic
knowledge about the utility of computers in the
COURSE STRUCTURE
S.No.
1.
2.
3.
4.
5.
6.
Modules
Core Modules
Basic Accounting
Trial Balance and Computers
Financial Statements of Profit and
Not for profit Organisations
Partnership Accounts
Accounting for Shares and Debentures
Sub total
Optional Module
Analysis of financial statements
or
Elementary cost accounting
Grand total
Study hours
Marks
55
30
45
20
13
18
40
40
210
17
17
85
30 each
15 each
or
15 each
100
240
COURSE DESCRIPTION
Module 1 : Basic Accounting
20 Marks
Approach
13 marks
Approach
This has been designed to prepare Bank
Reconciliation Statement and to know
preparation of Trial Balance and detection of
errors. This will expose the learners to the utility
of computers in the accounting.
Unit 2.1 Bank Reconciliation Statement
Module 5
Approach
This module has been designed to impart to the
learners the knowledge of shares and debentures
as a source of finance and their accounting
treatment.
Unit 5.1 Shares
5.1.1 An introduction to Company
l
OR
Issue of debentures as collateral security. Interest
on Debentures, writing off Discount and loss on
Module 6 Elementary Cost Accounting
issue of Debentures, accounting treatment.
15 marks
Module 6 Analysis of Financial Statements
15 marks
Approach
Approach
The module will give exposure to the learners
about basic cost concepts, cost sheet, methods
of stock valuation, economic order quantity etc.