Unit 1. Theoretical Framework
i. Accounting as an information system. The users of financial accounting information and their needs. Qualitative
characteristics of accounting, information. Functions, advantages and limitations of accounting .Branches of
accounting.Bases of accounting; cash basis and accrual basis.
ii. The nature of financial accounting principles-Basic concepts and conventions: entity, money measurement,
going concern, cost, realization, accruals, periodicity, consistency, prudence (conservatism), materiality and full
disclosures.
iii. Financial accounting standards: Concept, benefits, procedure for issuing accounting standards in India. Salient
features of Accounting Standard (AS): 1 (ICAI). International Financial Reporting Standards (IFRS) :- Need and
procedures.
Unit 2. Business Income
i. Accounting For Non-Profit Organisations
ii. The nature of depreciation .The accounting concept of depreciation .factors in the measurement of
depreciation. Methods of computing depreciation : straight line method and diminishing balance method;
disposal of depreciable assets – change of method .Salient features of Accounting Standard (AS): 6 (ICAI)
iii. Inventories: Meaning. Significance of inventory valuation. Inventory Record Systems: periodic and
perpetual. Methods: FIFO, LIFO and weighted Average. Salient features of Accounting Standard (AS):2
(ICAI)

Unit 3.Accounting for Inland Branches
Concept of dependent braches; accounting aspects; debtors system, stock and debtors system, branch final
accounts system and whole sale basis system. Independent branches: concept-accounting treatment: important
adjustment entries and preparation of consolidated profit and loss account and balance sheet.
Unit 4. Accounting for hire Purchase and Instalment Systems

Unit 5. Accounting for Dissolution of the Partnership Firm
Accounting of Dissolution of the Partnership Firm including Insolvency of partners, sale to a limited company
and piecemeal distribution.