1Concept of CompanyWhat a company is in law and in accounting: its features, the difference between a private and a public company, and the documents it cannot exist without — memorandum, articles and prospectus.Board exam — marks not publishedView topicsHide topics
Meaning and features of a company
Private company and public company: features and differences
Memorandum of association
Articles of association
Prospectus
Provisions of the Nepal Company Act relevant to accounts
6 topics
2Accounting for SharesShare capital from authorised to paid-up, ordinary against preference shares, and the journal entries for every way a share is issued — in lump sum or instalments, at par, premium or discount, under- or over-subscribed, forfeited and re-issued.Board exam — marks not publishedView topicsHide topics
Share capital: authorised, issued, subscribed, called-up and paid-up
Ordinary shares and preference shares, and their types
Issue of shares in lump sum and in instalments
Issue at par, at a premium and at a discount
Under-subscription and over-subscription: rejection, pro-rata and mixed allotment
Calls in arrears and calls in advance
Forfeiture and re-issue of shares
Issue of shares for consideration other than cash
8 topics
3Accounting for DebenturesBorrowed capital in a company's books: what a debenture is and how it differs from a share, issue at par, premium or discount against each redemption term, issue for assets or as collateral, and redemption in lump sum or by conversion.Board exam — marks not publishedView topicsHide topics
Meaning, features and types of debentures
Differences between shares and debentures
Issue of debentures for cash under different conditions of redemption
Loss on issue of debentures and premium on redemption
Issue of debentures for consideration other than cash
Issue of debentures as collateral security
Redemption of debentures in lump sum
Redemption by conversion into shares
8 topics
4Financial Statements of a CompanyThe year's results and position of a company, the traditional way and the NFRS way: trading, profit and loss and appropriation accounts and the balance sheet; the multi-step income statement; the statement of profit or loss and statement of financial position under NFRS — with the adjustments that change every figure.Board exam — marks not publishedView topicsHide topics
Trading account and profit and loss account of a company
Profit and loss appropriation account; proposed and interim dividend
Balance sheet in vertical and horizontal form; classification of assets and liabilities
Multi-step income statement and statement of retained earnings
Statement of profit or loss under NFRS
Statement of financial position under NFRS
Adjustments: closing stock, outstanding and prepaid items, depreciation, bad debts and income tax
Statement of changes in shareholders' equity; limitations of financial statements
8 topics
5WorksheetThe working paper that takes a trial balance to the financial statements in one sheet: adjustments, adjusted trial balance, income statement and balance sheet columns — and the adjusting entries behind them.Board exam — marks not publishedView topicsHide topics
Meaning, need and importance of a worksheet
Adjusting entries
Format of a ten-column and a twelve-column worksheet
Preparation of a worksheet from a trial balance with adjustments
Adjusted trial balance
Extending figures to the income statement and balance sheet columns
6 topics
6Cash Flow StatementWhere the cash came from and where it went: operating, investing and financing activities, by the direct and the indirect method, from a worksheet, a trial balance or two balance sheets and an income statement.Board exam — marks not publishedView topicsHide topics
Meaning, objectives and importance of a cash flow statement
Classification into operating, investing and financing activities
Cash collected from customers and cash paid to suppliers and for expenses
Cash flow from operating activities by the direct method
Cash flow from operating activities by the indirect method
Cash flow from investing and financing activities
Preparation from comparative balance sheets and an income statement
Preparation from a worksheet or trial balance
8 topics
7Concept of Cost AccountingWhat cost accounting is for and what financial accounting cannot tell a manager: its objectives, importance and limitations, the methods of costing, and the classification of costs.Board exam — marks not publishedView topicsHide topics
Meaning and objectives of cost accounting
Importance and limitations of cost accounting
Limitations of financial accounting
Differences between cost accounting and financial accounting
Methods of costing: job, contract, process, service, unit, batch and multiple
Cost concepts and classification of cost
6 topics
8Materials and Material ControlBuying, storing and issuing materials so that nothing is lost and every issue is priced: purchase procedure and documents, centralised and decentralised purchase and store, bin cards, FIFO, LIFO and average pricing, stock levels and the economic order quantity.Board exam — marks not publishedView topicsHide topics
Meaning, types and objectives of material control
Purchase procedure and documents: purchase requisition, purchase order, goods received note
Centralised and decentralised purchasing
Store-keeping: centralised and decentralised store; duties of a storekeeper
Classification and codification of materials; bin card and stores ledger
Pricing of material issues: FIFO, LIFO, simple average and weighted average
Stock levels: re-order, maximum, minimum and danger levels
Economic order quantity
8 topics
9Accounting for LabourLabour as a cost to be recorded and controlled: the records from requisition to payroll, and wages computed on the time rate and the piece rate.Board exam — marks not publishedView topicsHide topics
Meaning of labour cost and labour cost control
Labour records: requisition, history card, time card, biometric machine, job card and piece card
Payroll sheet
Time rate system: advantages and disadvantages
Piece rate system: advantages and disadvantages
Computation of wages
6 topics
10OverheadsThe indirect costs: classified by function, behaviour, element and control, then allocated, apportioned and absorbed into the cost of a product.Board exam — marks not publishedView topicsHide topics
Meaning of overheads
Classification by function: factory, office, selling and distribution
Classification by behaviour: fixed, variable and semi-variable
Classification by element and by controllability
Allocation, apportionment and absorption of overheads
5 topics
11Unit or Output CostingThe cost sheet built line by line — prime cost, works cost, cost of production, cost of goods sold, cost of sales, profit and sales — with stock adjustments, and the tender price worked out from it.Board exam — marks not publishedView topicsHide topics
Meaning and importance of unit or output costing
Elements of cost and components of the cost sheet
Prime cost, works cost and cost of production
Cost of goods sold, cost of sales, profit and sales
Adjustment of opening and closing stock of materials, work-in-progress and finished goods
Preparation of a cost sheet
Profit on cost and profit on sales
Estimated cost sheet and tender price
8 topics
12Cost Reconciliation StatementWhy the profit in the cost books and the profit in the financial books disagree, and the statement that reconciles them item by item.Board exam — marks not publishedView topicsHide topics
Meaning and need of reconciliation
Causes of difference: items shown only in financial accounts
Causes of difference: items shown only in cost accounts
Over- and under-absorption of overheads
Different bases of stock valuation
Preparation of a cost reconciliation statement
6 topics
13Computer System in AccountingThe computer as an accounting system: its elements, why it matters and where it falls short, the source documents it reads and the records it keeps — including Excel schedules for depreciation, loan repayment and payroll.Board exam — marks not publishedView topicsHide topics
Elements of a computer system in accounting
Importance, advantages and limitations of computers in accounting
Sources of information: invoices, purchase orders, receipts and barcodes
Processing information into journals, ledgers and reports; storing data
Excel records: depreciation schedule, loan repayment schedule and payroll sheet
5 topics
14Accounting SoftwareWhat accounting software does and how it is used: its features, creating a company, the account and inventory masters, vouchers and journals, and the reports it produces.Board exam — marks not publishedView topicsHide topics
Meaning and features of accounting software
Creating a company in accounting software
Account masters: groups and ledgers
Recording vouchers: journal, ledger and trial balance
Generating financial statements and bank reconciliation reports
