ADC-I Fundamentals of Financial Accounting Syllabus

Weeks

Topics
Covered

Detail

1

Basic accounting
Structure

1. Explain what accounting is.
2. Identify the users and uses of accounting
3. Understand why ethics is a fundamental business concept.
4. Explain accounting standards and the measurement principles.
5. Explain the monetary unit assumption and the economic entity
   assumption.

2

The
Accounting Equation

1. State the accounting equation, and define
   its components.
2. Analyze the effects of business transactions
   on the accounting equation

3

The Recording
Process

1. Explain what an account is and how it helps
   in the recording process.
2. Define debits and credits and explain their use in recording
   business transactions.
3. Identify the basic steps in the recording process.

4

The Recording
Process

4. Explain what a journal is and how it helps
   in the recording process.
5. Explain what a ledger is and how it helps in
   the recording process.
6. Explain what posting is and how it helps in
   the recording process.
7. Prepare a trial balance and explain its
   purposes.

5

Books of Prime
Entry

1. Understand the use
   of business documents as source of information
2. Describe the
   basic contents of the sales day book and the customer/ debtors ledger
3. Record entries in
   the sales day book and the customer/debtors ledger
4. Describe the
   basic contents of the purchase journal and purchase ledger/creditors
   ledger
5. Record entries in
   the purchase journal and purchase ledger/creditors ledger.

6

The Adjusting
Process of Accruals and prepayments

1. Explain the time period assumption.
2.  Explain the accrual basis of
   accounting.
3. Prepare adjusting entries for prepayments.
4. Prepare adjusting entries for accruals.
5. Explain the reasons for adjusting entries.
6. Describe the nature and purpose of an
   adjusted trial balance.

7

Depreciation

on Fixed Assets

1. Explain nature of depreciation expense and
   accumulated depreciation
2. Calculate depreciation expense using
   straight line, diminution balance, sum-of-digits and number of units
   produced methods
3. Post journal entry to record depreciation
   expense

8

Allowance for
Bad Debts and Write Off

1. Estimate allowance for bad debts based on a
   given policy
2. Post journal entry to record bad debt
   expense
3. Compute and record write off and understand
   its impact on allowance for bad debts

9

Completing The
Accounting Cycle

4. Prepare a worksheet.
5. Explain the process of closing the books.
6. Describe the content and purpose of a post‐closing trial balance.

10

Completing The
Accounting Cycle

7. State the required steps in the accounting
   cycle.
8. Explain the approaches to preparing to correct entries.
9. Identify the sections of a classified
   statement of financial position.

11

Bank reconciliation and
related adjustments

1. Understand the need for bank
   reconciliation
2. Identify the main reason for the difference between the cash book and bank statements
3. Prepare a bank
   reconciliation statement in the circumstances of simple and well-explained transactions
4. Correct cash book errors and
   post journal entries after identifying the same in the bank
   reconciliation statements

12

Control accounts –  Reconciliation and adjustments

1.        Understand the mapping between
the control accounts and subsidiary ledgers for account receivables and
account payables

2.        Prepare control account and
subsidiary ledgers from well-explained information provided

13

Control accounts – 
Reconciliation and adjustments

3.        Perform control accounts
reconciliation of the account receivable and account payable

4.        Identify error after performing
reconciliation

5.        Identify and correct errors in the
control account and subsidiary ledger

14

Correction of errors in the record

keeping

1. Identify the type
   of error which may occur in a record-keeping  system
2. Calculate and
   understand the impact of the error on the financial statement within a Trial
   Balance

15

Correction of errors in the record

keeping

3. Calculate and
   understand the impact of the error on the financial statement within financial statements.
4. Prepare journal
   entries to correct errors that have occurred within a reporting period.

16

Receipt and payment
accounts

1. Understand the
   need for the receipt and the payment account
2. Prepare a simple
   receipt and payment account from the information