Fundamentals of Financial And Cost Accounting (FFCA) (Paper-2) CMA Foundation

SECTION A: FUNDAMENTALS OF FINANCIAL ACCOUNTING [70%]

• Understanding of Four Frameworks of Accounting (Conceptual, Legal, Institutional and
• Regulatory) and Forms of Organization
• Accounting Principles, Concepts and Conventions
• Capital and Revenue Transactions - Capital and Revenue Expenditures, Capital and Revenue
• Receipts
• Accounting Cycle – Charts of Accounts and Codification Structure, Analysis of Transaction – Accounting Equation, Double Entry System, Books of Original Entry, Subsidiary Books and Finalisation of Accounts
•  Journal (Day Books; Journal Proper – Opening, Transfer, Closing, Adjustment and Rectification Entries), Ledger
• Cash Book, Bank Book, Petty Cash Book, Bank Reconciliation Statement
• Trial Balance
• Adjustment Entries and Rectification of Errors
• Depreciation (Straight Line and Diminishing Balance Methods only)
• Accounting Treatment of Bad Debts and Provision for Doubtful Debts

• Consignment
• Joint Venture
• Bills of Exchange (excluding Accommodation Bill, Insolvency)

• Preparation of Financial Statements of Sole Proprietorship
  • Income Statement, Balance Sheet
• Preparation of Financial Statements of a Not-for-Profit Organisation
  • Preparation of Receipts and Payments Account
  • Preparation of Income and Expenditure Account
  • Preparation of Balance Sheet

SECTION B: FUNDAMENTALS OF COST ACCOUNTING [30%]

• Meaning, Definition, Significance of Cost Accounting, its Relationship with Financial Accounting
• Application of Cost Accounting for Business Decisions
• Definition of Cost, Cost Centre, Cost Unit and Cost Drivers
• Classification of Costs (with reference to Cost Accounting Standard 1)
• Ascertainment of Cost and Preparation of Statement of Cost and Profit (Cost Sheet)