1. Accounting for Not-for-profit
Organizations
Content: This chapter explains the accounting practices used by not-for-profit
organizations like clubs, hospitals, and educational institutions. It covers
the preparation of Receipts and Payments Account, Income and Expenditure
Account, and Balance Sheet. The focus is on understanding the specific nature
of accounting for organizations that do not aim to make a profit.
Objective: To comprehend the structure of financial statements for not-for-profit
organizations and understand the preparation and presentation of accounts based
on their activities.
2. Accounting for Partnership Firms
Content: Discusses accounting procedures specific to partnership
firms. It covers the fundamentals of partnership agreements, profit sharing
ratios, admission of a new partner, retirement or death of a partner,
dissolution of partnership firms, and the reconstitution of firms. It also
deals with accounting treatment for goodwill, revaluation of assets and
liabilities, and distribution of profits.
Objective: To understand the mechanics of partnership accounting,
including changes in partnership structure, and how to prepare accounts for
various partnership firm scenarios.
3. Company Accounts and Financial Statements
Content: Focuses on accounting for companies, including issuing and
redeeming shares and debentures, company capital structure, and financial
statement preparation. It also explains the preparation of financial statements
as per the Companies Act, including the Balance Sheet and Profit and Loss
Account.
Objective: To understand the process of accounting for share
capital, debentures, and the creation of company financial statements.
4. Analysis of Financial Statements
Content: This chapter explains how to analyze financial statements
for assessing the financial performance of a business. It covers techniques
like ratio analysis, trend analysis, and comparative financial statements. Key
ratios such as liquidity, profitability, solvency, and efficiency ratios are
discussed in detail.
Objective: To learn how to analyze and interpret financial
statements using different tools and techniques, aiding in the decision making
process for businesses.
5. Cash Flow Statement
Content: Explains the preparation of a Cash Flow Statement as per
the Accounting Standard 3 (AS3). It deals with the classification of cash flows
into operating, investing, and financing activities. This chapter highlights
how to use cash flow statements to understand the liquidity and cash position
of a business.
Objective: To understand how to prepare and analyze a Cash Flow
Statement and how it helps in evaluating the cash movements and liquidity of a
company.
