CMA Foundation Fundamentals of Accounting

Section A: Fundamentals of Financial Accounting (80%)

1. Accounting Fundamentals

• Accounting Principles, Concepts and Conventions

• Capital and Revenue transactions

• The double-entry system, prime entry books, subsidiary books, cash Book etc

• Journal, Ledger, Trial Balance

• Depreciation

• Rectification of Errors

• Opening entries, Transfer entries, Adjustment entries, Closing entries

• Bank Reconciliation Statements

35%

2. Accounting for Special Transactions

• Bills of Exchange (excluding accommodation bill, insolvency)

• Consignment

• Joint Venture

20%

3. Preparation of Final Accounts

• Profit-making concern

• Accounting treatment of bad debts, reserve for bad and doubtful debts, provision for discount on debtors, provision for discount on creditors.

• Preparation of trading account, profit & loss account, balance sheet.

• Not-for-Profit making concern

• Preparation of Receipts and payment account

• Preparation of Income and Expenditure Account

25%

Section B: Fundamentals of Cost Accounting (20%)

4. Fundamentals of Cost Accounting

• Cost Accounting, its relationship with Financial

Accounting & Management Accounting.

• Classification of Costs

• Format of Cost Sheet

20%