I.Com (Intermediate in Commerce) Principles of Accounting Syllabus

Principles of Accounting syllabus — full chapter and topic list

Expand any chapter to see its topics and sub-topics. This is the whole examinable outline for Principles of Accounting in I.Com (Intermediate in Commerce), not a summary of it.

1. 1

   Introduction to Accounting

   4 topics

   • Meaning, Scope and Functions of Accounting
   • Bookkeeping vs Accounting
   • Branches of Accounting
   • Users of Accounting Information
2. 2

   Transactions and the Accounting Equation

   3 topics

   • Business Transactions and Events
   • Assets, Liabilities and Owner's Equity
   • The Accounting Equation
3. 3

   Analysis of Transactions and Double Entry System

   4 topics

   • Concept of an Account
   • Rules of Debit and Credit
   • Classification of Accounts
   • Double Entry System
4. 4

   Journal: The Book of Original Entry

   4 topics

   • Recording in the Journal
   • Journalizing Transactions
   • Compound Journal Entries
   • Narration and Format
5. 5

   Ledger: The Main Book of Accounts

   3 topics

   • Posting from Journal to Ledger
   • Balancing of Accounts
   • Standard and Running Balance Forms
6. 6

   Subsidiary Books and Cash Book

   3 topics

   • Special Journals
   • Single, Double and Triple Column Cash Book
   • Petty Cash Book and Imprest System
7. 7

   Trial Balance

   3 topics

   • Preparation of Trial Balance
   • Errors and Their Rectification
   • Suspense Account
8. 8

   Bank Reconciliation Statement

   3 topics

   • Causes of Difference
   • Preparation of Reconciliation Statement
   • Adjusted Cash Book
9. 9

   Adjustments and Closing Entries

   4 topics

   • Outstanding and Prepaid Items
   • Accrued and Unearned Income
   • Bad Debts and Provisions
   • Closing Entries
10. 10

    Depreciation

    3 topics

    • Concept and Causes of Depreciation
    • Straight Line Method
    • Diminishing Balance Method
11. 11

    Final Accounts

    4 topics

    • Trading Account
    • Profit and Loss Account
    • Balance Sheet
    • Worksheet and Completion of Accounting Cycle

Principles of Accounting flashcards for I.Com (Intermediate in Commerce)

18 of 50 cards from the Principles of Accounting deck — real questions with worked answers.

1. Define accounting.

   Accounting is the art of recording, classifying, summarizing in a significant manner and in terms of money, transactions and events which are of a financial character, and interpreting the results thereof.

2. What are the main functions of accounting?

   Recording transactions, classifying them, summarizing into financial statements, analyzing and interpreting results, and communicating information to users.

3. What is the scope of accounting?

   It covers identifying, measuring, recording, classifying, summarizing, analyzing, interpreting and communicating all financial transactions of a business to interested users.

4. State the basic objective of accounting.

   To provide useful financial information about a business so that users can make informed economic decisions, and to ascertain profit/loss and financial position.

5. Define bookkeeping.

   Bookkeeping is the art of recording business transactions in the books of accounts in a systematic and chronological manner.

6. Give two key differences between bookkeeping and accounting.

   Bookkeeping is the routine recording of transactions and is the first stage; accounting is broader, including summarizing, analyzing and interpreting data, and begins where bookkeeping ends.

7. Which comes first, bookkeeping or accounting, and how are they related?

   Bookkeeping comes first; accounting begins where bookkeeping ends. Bookkeeping is a part (the initial stage) of accounting.

8. Does bookkeeping or accounting require greater skill and judgment?

   Accounting requires greater skill, analytical ability and judgment; bookkeeping is largely clerical and procedural.

9. Name the main branches of accounting.

   Financial accounting, cost accounting, and management accounting.

10. What is financial accounting?

    The branch concerned with recording, classifying and summarizing financial transactions to prepare financial statements showing profit/loss and financial position.

11. What is cost accounting?

    The branch that records, classifies and analyzes costs of production to determine and control the cost of products or services.

12. What is management accounting?

    The branch that provides accounting information to management to help in planning, decision-making and control.

13. Who are the internal users of accounting information?

    Owners, management, and employees of the business.

14. Who are the external users of accounting information?

    Creditors/suppliers, investors, banks/lenders, government and tax authorities, customers, and researchers.

15. Why do investors use accounting information?

    To assess the profitability and financial position of a business before deciding whether to invest or hold their investment.

16. Why do creditors and banks use accounting information?

    To judge the creditworthiness and ability of the business to repay loans and meet its obligations.

17. Why does the government use accounting information?

    To assess taxes, ensure compliance with regulations, and compile economic statistics.

18. What is a business transaction?

    An economic activity or event, measurable in money, that affects the financial position of a business and is recorded in the books of accounts.

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