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

The Principles of Accounting syllabus for I.Com (Intermediate in Commerce) in full: 11 chapters and 38 topics, every one listed below, plus 50 Principles of Accounting flashcards with answers.

11Chapters
38Topics
50Flashcards

Principles of Accounting syllabus: all 11 chapters

Expand any chapter to see its topics and sub-topics.

  1. Introduction to Accounting

     4 topics
    • Meaning, Scope and Functions of Accounting
    • Bookkeeping vs Accounting
    • Branches of Accounting
    • Users of Accounting Information

  2. Transactions and the Accounting Equation

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

  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. Journal: The Book of Original Entry

     4 topics
    • Recording in the Journal
    • Journalizing Transactions
    • Compound Journal Entries
    • Narration and Format

  5. Ledger: The Main Book of Accounts

     3 topics
    • Posting from Journal to Ledger
    • Balancing of Accounts
    • Standard and Running Balance Forms

  6. Subsidiary Books and Cash Book

     3 topics
    • Special Journals
    • Single, Double and Triple Column Cash Book
    • Petty Cash Book and Imprest System

  7. Trial Balance

     3 topics
    • Preparation of Trial Balance
    • Errors and Their Rectification
    • Suspense Account

  8. Bank Reconciliation Statement

     3 topics
    • Causes of Difference
    • Preparation of Reconciliation Statement
    • Adjusted Cash Book

  9. Adjustments and Closing Entries

     4 topics
    • Outstanding and Prepaid Items
    • Accrued and Unearned Income
    • Bad Debts and Provisions
    • Closing Entries

  10. Depreciation

     3 topics
    • Concept and Causes of Depreciation
    • Straight Line Method
    • Diminishing Balance Method

  11. Final Accounts

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

I.Com (Intermediate in Commerce) Principles of Accounting flashcards — 50 questions with 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.

  19. Differentiate between a transaction and an event in accounting.

    A transaction is a financial dealing between two parties involving exchange of value; an event is an occurrence that may or may not be financial. Only events with financial effect are recorded.

  20. Distinguish cash transactions from credit transactions.

    In a cash transaction payment is made immediately; in a credit transaction payment is postponed to a future date.

Show the other 30 Principles of Accounting flashcards

  1. Give the essential feature that makes a transaction recordable in accounting.

    It must be measurable in terms of money and must affect the financial position of the business.

  2. Define assets.

    Assets are economic resources owned by a business that have monetary value and are expected to provide future benefit.

  3. Distinguish between fixed assets and current assets.

    Fixed assets are held for long-term use (e.g., land, machinery); current assets are held for short-term and convertible into cash within a year (e.g., cash, stock, debtors).

  4. What are tangible and intangible assets? Give an example of each.

    Tangible assets have physical existence (e.g., building); intangible assets have no physical form (e.g., goodwill, patents).

  5. Define liabilities.

    Liabilities are the financial obligations or debts of a business that it owes to outsiders and must pay in the future.

  6. Distinguish current liabilities from long-term liabilities.

    Current liabilities are payable within one year (e.g., creditors, bank overdraft); long-term liabilities are payable after one year (e.g., long-term loans, debentures).

  7. Define owner's equity (capital).

    Owner's equity is the owner's claim on the assets of the business; it is the amount the business owes to its owner, equal to assets minus liabilities.

  8. How do drawings affect owner's equity?

    Drawings (cash or goods withdrawn by the owner for personal use) reduce owner's equity/capital.

  9. State the basic accounting equation.

    Assets = Liabilities + Owner's Equity (Capital).

  10. Rearrange the accounting equation to find capital.

    Owner's Equity (Capital) = Assets - Liabilities.

  11. Rearrange the accounting equation to find liabilities.

    Liabilities = Assets - Owner's Equity (Capital).

  12. What principle is the accounting equation based on?

    The dual aspect concept / double entry principle, which states every transaction has two equal and opposite effects.

  13. If assets are Rs.100,000 and liabilities are Rs.40,000, what is the capital?

    Capital = Assets - Liabilities = 100,000 - 40,000 = Rs.60,000.

  14. How is the expanded accounting equation written including revenue and expenses?

    Assets = Liabilities + Capital + Revenues - Expenses - Drawings.

  15. What is an account?

    An account is a summarized record of all transactions relating to a particular person, asset, liability, income or expense, kept in the ledger.

  16. What are the two sides of an account called?

    The left side is the debit side and the right side is the credit side.

  17. What does 'debit' (Dr.) and 'credit' (Cr.) mean in an account?

    Debit refers to an entry on the left side of an account; credit refers to an entry on the right side of an account.

  18. What is the standard format of an account called?

    The 'T' account, because it is shaped like the letter T with debit on the left and credit on the right.

  19. Under the traditional approach, name the three classes of accounts.

    Personal accounts, real accounts, and nominal accounts.

  20. What are personal accounts? Give an example.

    Accounts of persons, firms or institutions with whom the business deals, e.g., a debtor's, creditor's or bank account.

  21. What are real accounts? Give an example.

    Accounts of assets and properties, e.g., cash account, building account, machinery account.

  22. What are nominal accounts? Give an example.

    Accounts of expenses, losses, incomes and gains, e.g., salaries account, rent account, commission received account.

  23. State the rule of debit and credit for personal accounts.

    Debit the receiver, credit the giver.

  24. State the rule of debit and credit for real accounts.

    Debit what comes in, credit what goes out.

  25. State the rule of debit and credit for nominal accounts.

    Debit all expenses and losses, credit all incomes and gains.

  26. Under the modern approach, how are assets and expenses affected by debit and credit?

    Assets and expenses increase with a debit and decrease with a credit.

  27. Under the modern approach, how are liabilities, capital and income affected by debit and credit?

    Liabilities, capital and income increase with a credit and decrease with a debit.

  28. Define the double entry system.

    The double entry system is a method of recording transactions in which every transaction is recorded in two accounts, with an equal debit and credit, reflecting its dual aspect.

  29. State two advantages of the double entry system.

    It provides a complete and accurate record of transactions and enables arithmetical accuracy to be checked through a trial balance (debits always equal credits).

  30. What is a journal and what is the process of recording in it called?

    The journal is the book of original/first entry in which transactions are recorded chronologically; the process of recording in it is called journalizing, and each record is a journal entry with a narration.

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

What is in the I.Com (Intermediate in Commerce) Principles of Accounting syllabus?

I.Com (Intermediate in Commerce) Principles of Accounting is split into 11 chapters: Introduction to Accounting, Transactions and the Accounting Equation, Analysis of Transactions and Double Entry System, Journal: The Book of Original Entry, Ledger: The Main Book of Accounts, Subsidiary Books and Cash Book, Trial Balance, Bank Reconciliation Statement, Adjustments and Closing Entries, Depreciation and Final Accounts. Together they contain 38 topics.

How many chapters are in I.Com (Intermediate in Commerce) Principles of Accounting?

11 chapters, containing 38 topics. The largest chapter is Introduction to Accounting, with 4 topics.

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

Yes — a 50-card Principles of Accounting deck, printed in full in the flashcards section of this page and available in the Examius app with spaced repetition. The free plan covers one exam of your choice, including its flashcards; Examius Pro, a one-time purchase, unlocks every other exam and deck.