WORLD CLASS SKILL CENTRE

Vivek Vihar, Delhi 95

Course Manual
Subject: Accounting Principles
Theory Hours: 50
Practical Hours: 120
Unit 1: Accounting Concepts
- Meaning and definition of accounting
- Users of accounting information
- Career in accounting
- Generally accepted accounting principles
- Practical assignments
Unit 2: Recording
- Books of recording
- Journal
- Types of accounts
- Rules of debit and credit
- Practical assignments
- Passing of journal entries
Unit 3: Classification
- Books of classification
- Methods of classification
- Balancing of accounts
- Balance carry forward
- Practical assignments
Unit 4: Summarizing
- Trial balance
- Uses of trial balance
- Preparation of trial balance
- Mathematical accuracy of trial balance
- Practical Assignments
Unit 5: Final Accounts
- Significance of trial balance in preparation of final accounts of the company
- Profit and loss account
- Balance sheet
- Preparation of final accounts
- Treatment of inventory

Treatment of debtors
Closure of books
Practical assignments

Unit 6: Financial statement analysis

- Creative accounting and window dressing in practice
- Principal financial statements like balance sheet, profit and loss account and cash flow
statement
- Understanding financial statements
- Methods of presentation and limitations thereof
- How users of accounting information interpret the balance sheet
- Practical assignments
Unit 7: Cash flow statement
- Importance of cash flow statement
- Cash flow from operation activities
- Cash flow from investing activities
- Cash flow from financing activities
- Preparation of cash flow statement
- How information regarding operating, investing and financing activities obtained.
- Practical assignments
Unit 8: Ratio analysis
- Understanding balance sheet and principal ratios
- Liquidity ratios
- Profitability ratios
- Capital structure ratios
- Ownership ratios
- Inter firm and intra firm analysis
- Practical assignments
Unit 10: Company and capital formation
- Methods of capital formation (Equity, debt, IPO, Public issue, Rights and bonus)
- Capital structure and cost of capital
- Concept of dividends
- Capital budgeting
- Practical assignments