Introduction – Meaning – objectives – GAAP – Concepts and Conventions – Capital and Revenue Transactions – Income Recognition (Cash and Accrual basis) – Classification of Assets and Liabilities – Contingent liabilities – Basis of profits – Types of accounts – Recording of transactions (Journal) – Classification of accounts (Ledger) – Verification (Trial balance).

Bill of exchange: Meaning – Credit sales – Debtors – Creditors – Drawer – Drawee – features of bill of exchange – Accounting for Honour and Dishonour of Bill of Exchange – Accommodation Bills.

Average Due Date – Account Current: Interest Method, Product Method, and Table Method – Red Ink Interest. Bank reconciliation statement: Meaning – Preparation of customer account in the Bank Book and bank account in Customer Book (with common 10 entries covering two financial periods) – Identifying the reasons for disagreement of balances – Reconciliation for normal and overdraft closing and opening balances.

Rectification of Errors – Final Accounts – Adjustments: Provision for bad and doubtful debts, Depreciation, Tax, Expenses and Income – Calculation of Profit under Cash basis – Preparation of Trading Account, Profit and Loss account and Balance Sheet.

Non-Profit Organization – Meaning – Types: Social Clubs, Sports Clubs, Educational Institutions – Major Receipts and Payments – Preparation of Receipts and Payment account – Preparation of Balance Sheet at the beginning - Preparation of Income and Expenditure account – Preparation of Balance Sheet at the end.