CUET (UG) Accountancy Syllabus: Check the Latest Syllabus

• Introduction
• Meaning of Not for Profit concern
• Features of Not for Profit concern
• Difference between Profit organisation and Not for Profit organisation
• Need for maintaining books of accounts and preparing final accounts

• Meaning
• Features of Receipts and Payments Account
• Types of Receipts

• i) Capital Receipts
• ii) Revenue Receipts

• Types of Payments

• i) Capital Expenditure
• ii) Revenue Expenditure
• iii) Deferred Revenue Expenditure

• Specimen of Receipts and Payments Account
• Steps in preparation of receipts and payments account
• Meaning and Concept of fund-based and non-fund-based accounting

• Preparation of Income and Expenditure Account from receipt and payment account with additional information

• Preparation of Balance sheet from receipt and payment account with additional information

• Two or More Persons
• Agreement
• Business
• Mutual Agency
• Sharing of Profit
• Liability of Partnership

• Contents of the Partnership Deed
• Importance of Partnership Deed
• Provisions Relevant for Accounting
• Format of Partnership Deed

• Distinction between Fixed and Fluctuating Capital Accounts

• Profit and Loss Appropriation Account
• Calculation of Interest on Capital
• Interest on Drawings

• Rationale of making adjustments at the time of preparing final accounts

• Sacrificing ratio and Gaining ratio

• Meaning of Goodwill
• Nature and Features of Goodwill
• Factors Affecting the Value of Goodwill
• Need for Valuation of Goodwill
• Methods of Valuation of Goodwill

1. Average Profits Method
2. Super Profits Method
3. Capitalisation Methods

• Treatment of Goodwill

1. Premium Method
2. Revaluation Method
3. Hidden Goodwill

1. Average Profits Method
2. Super Profits Method
3. Capitalisation Method
4. Multiplier Method

• Effect of admission of a partner

• Meaning
• Adjustment of accumulated Profits and Losses
• Adjustment of Capitals

• Settlement of accounts under Section 48 of The Indian Partnership Act 1932

• Capital accounts of partners
• Cash and bank a/c (excluding piecemeal distribution, sale to a company and insolvency of partner(s)).

• Meaning of Share Capital

• Calls in Arrears
• Calls in Advance
• Over Subscription
• Under Subscription
• Issue at par
• Issue of Shares at a Premium
• Issue of Shares at a Discount
• Issue of Shares for Consideration other than Cash
• In the Books of Drawer/ Promissor
• In the Books of Acceptor/ Promissor

• Issue of Debentures for Cash
• Issue of Debentures at a Discount
• Debentures issued at Premium

• To promoters
• To underwriters
• To vendors

• Payment in lump sum
• Payment in instalments
• Purchase in the open market
• By conversion into shares or new debentures

• Meaning of financial statements
• Features of financial statements
• Significance of financial statements
• Limitations of financial statements

• Preparation of simple financial statements of a company in the prescribed form with major headings only.

• Finance manager
• Top management
• Trade payables
• Lenders
• Investors
• Labour unions
• Others

• Comparative Statements
• Common Size Statements
• Trend Analysis
• Ratio Analysis
• Cash Flow Analysis

• Meaning of Accounting Ratios
• Objectives of Accounting Ratios
• Classification and Computation of Accounting Ratios

• Statement of Profit and Loss Ratios
• Balance Sheet Ratios
• Composite Ratios

Liquidity Ratios

• Current Ratio
• Quick Ratio (Liquidity ratio)

Solvency Ratios

• Debt-Equity Ratio
• Debt to Capital Employed Ratio
• Proprietary Ratio
• Total Assets to Debt Ratio
• Interest Coverage Ratio

Activity (or Turnover) Ratio

• Inventory Turnover Ratio
• Trade Receivables Turnover Ratio
• Trade Payable Turnover Ratio
• Net Assets or Capital Employed Turnover Ratio
• Debtors Turnover Ratio
• Working Capital Turnover Ratio
• Fixed Assets Turnover
• Current Assets Turnover

Profitability Ratios

• Gross Profit Ratio
• Operating Ratio
• Operating Profit Ratio
• Net Profit Ratio
• Return on Capital Employed or Investment
• Return on Shareholders’ Funds
• Earnings per Share
• Book Value per Share
• Dividend Payout Ratio
• Price / Earnings Ratio
• Return on Investment
• Dividend per Share
• Profit Earning Ratio

Current Ratio: `"Current Assets"/"Current Liabilities"`

Current Assets = Current Investments + Inventories (excluding Loose Tools and Spare Parts) + Trade Receivables + Cash and Bank Balance + Short-term Loans and Advances + Other Current Assets

Current Liabilities = Short term borrowings + Trade payables + Other Current Liabilities + Short term Provisions.

Quick Ratio / Liquid Ratio : `"Quick Assets"/"Current Liabilities"`

Or

`"All Current Assets- Inventories(excluding Loose Tools and Spare Parts)- Prepaid Expenses"/"Current Liabilities"`

Or

`"Liquid Assets"/"Current Liabilities"`

Debt to Equity Ratio: `"Debt / Long Term Debt"/"Equity / Shareholders' Funds"`

Debt = Long Term Borrowings + Long Term Provisions

Equity / Shareholders’ Funds = Share Capital + Reserves and Surplus

Or

Non Current Assets + (Current Assets – Current Liabilities) - Non Current Liabilities

= Non Current Assets + Working Capital- Non Current Liabilities

= (Tangible Assets + Intangible Assets + Non Current Investments + Long Term Loans and Advances) +  Working Capital – (Long Term Borrowings + Long Term Provisions)

Debt to Total Assets Ratio: Debt/Total Assets

Proprietary Ratio: `"Shareholders Funds/ Equity"/"Total Assets"`

Total Assets = Non Current Assets + Current Assets = Tangible Assets + Intangible Assets + Non Current Investments + Long Term Loans and Advances

+

Current Investments + Inventories (including Loose Tools and Spare Parts) + Trade Receivables + Cash
and Bank Balance + Short-term Loans and Advances + Other Current Assets

Inventory Turnover Ratio = (Cost of Goods Sold /Cost of Revenue from Operation)/Average Inventory

Cost of goods sold= Opening Stock + Net Purchases + Direct Expenses – Closing Stock

Cost of Revenue from Operations = Revenue from Operations – Gross Profit

Or

Cost of Material Consumed (including direct expenses) + Change in inventories of WIP and Finished Goods

Or

Opening Inventory + Net Purchases+ Direct Expenses – Closing inventory

Average Inventory = (Opening Inventory + Closing Inventory)/2

Trade Receivable Turnover Ratio: = Credit Revenue from Operation/Average Trade Receivable

Credit Revenue from Operation = Revenue from Operation – Cash Revenue from Operation

Average Trade Receivables = Opening Trade Receivable + Closing Trade Receivable/2

Trade Payable Turnover Ratio: = Net Credit Purchases/Average Trade Payable

Average Trade Payables = Opening Trade Payable + Closing Trade Payable  / 2

Working Capital Turnover Ratio = Revenue from Operations/Working Capital

Gross Profit Ratio: `"Gross Profit"/"Revenue from Operations"xx100`

Gross Profit = Revenue from Operations – Cost of Revenue from Operations/ Cost of Goods Sold
Cost of Revenue from Operations = Cost of Material Consumed (including direct expenses) + Change in inventories of WIP and Finished Goods.

Or

Opening Inventory + Net Purchases + Direct Expenses – Closing inventory

Operating Ratio =``

Operating Expenses = Employee Benefit Expenses + Depreciation and Amortisation Expenses + Selling
and Distribution Expenses+ Office and Administrative Expense

Operating Income = Sale of scrap, trading commission received, cash discount received, revenue from services.

Net Profit Ratio = `"Net Profit"/"Revenue from Operations"xx100`

Net Profit = Gross profit + Other Income – Indirect Expenses – Tax

Return on Investment = `"Net Pr ofit before Interest and Tax"/"Capital Employed"xx100`

`"Earning per share" = "Net Profit after Tax and Preference Dividend"/"No. of Equity Shares"`

• Meaning of Cash Flow Statement
• Objectives of Cash Flow Statement
• Importance of Cash Flow Statement
• Preparation of Cash Flow Statement
• (as per AS3 (Revised) (Indirect Method only)

• Adjustments related to depreciation,
• Dividend and tax,
• Sale and purchase of non-current assets (as per revised standard issued by ICAI)

1. Simple and Integrated
2. Transparency and Control
3. Accuracy and Speed
4. Scalability
5. Reliability

• Data entry, Data validation, and Data verification

• Adjusting entries, Preparation of financial statements, preparation of balance sheet, profit and loss account with closing entries and opening entries.

• Security of CAS and Security features are generally available in CAS

• Tables, Queries, Forms, Reports

• Using queries, forms, and reports for generating accounting information.
• Database design, tables, fields, relationships, forms reports and indexing.
• Applications of DBMS in generating accounting information such as shareholders’ records, sales reports, customers’ profiles, suppliers’ profiles payroll, employees’ profiles, and petty cash registers.
• The following examples of DBMS in business applications:

1. Accounting Information
2. Debtors and Creditors
3. Bank Reconciliation Statement
4. Asset Accounting