Useful for APPSC
Financial accounting as the APPSC subject papers ask for it: item 4 of the ten-item subject syllabus, which is Paper-2 for the Assistant Director and Paper-II for the Assistant Statistical Officer. Both papers are objective, so the aim here is to be able to do each computation quickly and to know which account takes which side without stopping to think.
The accounting equation, the nine concepts and four conventions, the three types of account and the rules of debit and credit — with every transaction shown leaving the equation balanced.
UNIT 2Sixteen transactions journalised, posted and balanced. The cash account is shown in full, and the fifteen closing balances it produces become the trial balance of Unit 5.
UNIT 3Why the journal is split, which book takes which transaction, a purchases book totalled and posted, the three-column cash book with discount columns, contra entries and the imprest system.
UNIT 4The six reasons the cash book and pass book differ, a full statement worked forwards and then backwards as a check, which differences need entries in the books, and how overdrafts reverse every sign.
UNIT 5What a trial balance proves and what it cannot, the five errors that survive it, rectification, and the trading account, profit and loss account and balance sheet drawn from the same books.
UNIT 6Straight line and written down value schedules worked in full, provisions against reserves, profit from a statement of affairs, and the accounts of clubs and societies.
Units 2 to 5 follow one firm through one month. The same sixteen transactions are journalised in Unit 2, posted and balanced there, listed as a trial balance in Unit 5 and closed into final accounts on the same page. Nothing is invented between units.
So the cash balance of 81,000 that comes out of the ledger in Unit 2 is the 81,000 in the trial balance and the 81,000 on the balance sheet. The trial balance totals 3,02,500 on both sides; the balance sheet totals 2,21,000 on both sides. Those agreements are the point: they are what tells you the bookkeeping was right, and they are the first thing to check in an examination answer.
The syllabus line this subject answers, as both notifications word it:
“Introduction to accounting — Accounting concepts and conventions – Accounting process — Journalizing, Posting to ledger accounts — Subsidiary books including Cash book — Bank Reconciliation Statement — Preparation of Trial Balance and Final Accounts — Errors and Rectification — Depreciation and Reserves – Single entry and non trading concerns.”
Every clause of it is covered above. The APPSC map grades each line against these pages, and the Assistant Director and Assistant Statistical Officer pages show where the item sits in each paper.