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

Syllabus

SECTION A: FUNDAMENTALS OF FINANCIAL ACCOUNTING [70%]

1. Accounting Fundamentals - 30%
  • 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
2. Accounting for Special Transactions - 15%
  • Consignment
  • Joint Venture
  • Bills of Exchange (excluding Accommodation Bill, Insolvency)
3. Preparation of Final Accounts - 25%
  • 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%]

4. 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)