Certified Business Accountant

VS-1015

Certified Business Accountant

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Certified Business AccountantCertified Business AccountantCertified Business AccountantCertified Business Accountant

Certification CodeCertification CodeCertification CodeCertification Code VS-1015

Business AccountancyBusiness AccountancyBusiness AccountancyBusiness Accountancy is a very fast growing area of employment with great demand from small and

medium industries sector. Vskills Certified Business Accountant record and analyze the financial

information of the companies for which they work. They are usually part of executive and finance

teams. Vskills Certified Business Accountants can find jobs in SMEs all over the country.

Why should one take this certification?Why should one take this certification?Why should one take this certification?Why should one take this certification?

In order to demonstrate a clear understanding of the subject and evaluating the practical aspects of

accounting with a view to get a visible recognition for the knowledge possessed.

Who will benefit from taking this certification?Who will benefit from taking this certification?Who will benefit from taking this certification?Who will benefit from taking this certification?

Students looking to find employment in accountancy jobs, teachers of accounts, managers of

companies who wish to understand accountancy, small and medium enterprise proprietors who

want to have a better control over their accounts and anyone having interest in the Accountancy

area.

TesTesTesTest Details:t Details:t Details:t Details:

Duration:Duration:Duration:Duration: 60 minutes

No. of questions:No. of questions:No. of questions:No. of questions: 50

Maximum marks:Maximum marks:Maximum marks:Maximum marks: 50, Passing marks: 25 (50%); There is no negative marking in this module.

Fee Structure:Fee Structure:Fee Structure:Fee Structure:

Rs. 3,500/- (Includes all taxes)

Companies that hire Vskills Certified Companies that hire Vskills Certified Companies that hire Vskills Certified Companies that hire Vskills Certified Business AccountantBusiness AccountantBusiness AccountantBusiness Accountant

Business Accountant are in great demand and major companies in India hire them.

International job consultants also are constantly looking for overseas jobs. The skill is also greatly in

demand in super specialized government projects on contract basis.

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Table of Content

Meaning And Scope Of AccountingMeaning And Scope Of AccountingMeaning And Scope Of AccountingMeaning And Scope Of Accounting

� Meaning of Accounting

� Basics of Bookkeeping and Accounting

� Accounting Concepts and Principles

� Branches of Accounting

� Classification of Expense, Income, Assets and Liabilities

� Financial Statements

� Systems of Accounting

� Source Document

� Journal

� Ledger

� Trial Balance

� Subsidiary Books

� Types of Subsidiary Books

� Journal Proper

� Cash Book

� Bank Pass Book

� Petty Cash Book

� Imprest system

� Bank Reconciliation Statement

� Rectification of Errors

� Suspense Account

� Capital Expenditure and Revenue Expenditure

� Capital Receipts and Revenue Receipts

� Depreciation

� Company Final Accounts

� Shares

TaxationTaxationTaxationTaxation

� Terminologies

� Residential Status of an entity

� Income Tax Liability

� Computation of Total Income

� Heads of Income Tax

� Taxability of Income

� Income under House and Property

� Deductions from Gross Total Income

� Income from other source

� Advance Tax

� Tax Deduction at Source (TDS)

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� Wealth Tax in India

� Service Tax and statutory provisions

� VAT General Provisions

� CENVAT

Banking & FinanceBanking & FinanceBanking & FinanceBanking & Finance

� Introduction

� Banking Acts and Regulations

� Types of Banks

� Services offered by a Bank

� Deposit Products

� Mortgage and Loans

� Banking Instruments

� Clearing House

� MICR – Magnetic Ink Character Recognition

� ATM – Automated Teller Machine

� Electronic Banking

� Corporate Banking

� Telebanking/Telephone Banking

� Voice-Mail Facility

� Plastic Money

� Loan Scheduling and Development

Costing & AuditingCosting & AuditingCosting & AuditingCosting & Auditing

� Introduction to Costing

� Concept of Cost Accounting

� Material / Inventory

� Activity Based Costing (ABC)

� Marginal Costing/ Break Even Analysis

� Variance Analysis

� Introduction to Auditing

� Book-keeping, Accountancy and Auditing

� Advantages of Auditing

� Limitations of Auditing

� Purpose of Audit

� Types of Audit

� Vouching

� Verification of Assets and Liabilities

� Valuation

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Investment & Financial MarketInvestment & Financial MarketInvestment & Financial MarketInvestment & Financial Market

� Investment Market and its operation

� Risk and Return

� Financial Market, Participants and Instruments

� Security Market and Emerging Trends

� Company Capital/Shares

� Portfolio Management

� Bonds and Debentures

� Derivatives

� Hedging

� Depository

� Dematerialisation and Rematerialisation

� Mutual Funds

� Stock Exchange/Screen Based Trading

� Investors Protection, Grievance and Education

� Time Value Money

� Ratio Analysis

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Course OutlineCourse OutlineCourse OutlineCourse Outline

Meaning And Scope Of AccountingMeaning And Scope Of AccountingMeaning And Scope Of AccountingMeaning And Scope Of Accounting

� Understand the Meaning and scope of Accounting

� Explains the basics concepts of Bookkeeping and Accounting

� Understand the Concepts and Principles of Accounting

� Explains about the Branches of Accounting and there applications

� Explain the Classification of Expense, Income, Assets and Liabilities

� Explains the various financial statements used in the accounting system

� Brief on the structure of accounting system

� Describes about the source documents used

� Explains the methodology of journalizing, the type of entries recorded in the journal and the

advantages of journalizing.

� Understand the type of ledger accounts that can be maintained, procedure of posting ledger

and how the accounts are balanced after posting

� Describes about the objectives, methodology and drawbacks of preparing trial balance

� Introduction to the types of subsidiary books, advantages of preparing a subsidiary

� Describes the types of Subsidiary Books such as purchase book, sales book, purchase return

book, sales return book, bills receivable book and bills payable book

� Explains the concepts of Journal Proper i.e., how to pass an opening entry, transfer entry,

adjusting entries and entries with rare transactions.

� Distinction between cash and non-cash transactions and the documents required to be

maintained in a cash book

� Explains the types of cash books such as single column, double column and triple column cash

book and provides with the rules and procedures of posting entries in these different types of

cash book.

� Describes the Imprest system and the procedure of maintaining a Petty Cash Book

� Explains the causes of difference between the bank statements and cash book maintained, need

and practice of maintaining Bank Reconciliation Statement

� Describes the types of accounting errors and the various stages of rectification of these

accounting errors

� Explains the need for maintaining a suspense account and the procedure of disposal of

suspense account

� Describes the types of capital and revenue expenditure incurred and distinction between capital

and revenue expenditure.

� Describes the types of Capital Receipts and Revenue Receipts distinction between capital and

revenue receipt.

� Explains the characteristics and objectives of charging depreciation

� Understand the causes of depreciation and explain the various methods of charging

depreciation

� Explains the characteristics of a company and elaborates on the classification of companies on

the basis of liability, number of members

� Provides details about the documents required to be filed in the formation of a company.

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� Understand the types of shares issued by a company

� Gives details on the guidelines issued by SEBI on issue of shares to raise capital

� Explains the procedure of issue of shares and the treatment in case of over-subscription and

under-subscription of shares

� Describes the conditions of forfeiture and surrender of shares and the procedure of re-issue of

forfeited shares

� Explains the conditions and process of redemption of preference shares,

� Explains the guidelines for issue of bonus shares and the procedure of buy-back securities

TaxatioTaxatioTaxatioTaxationnnn

� Understand the basic terminologies used in taxation

� Explains the income tax liability depending on the Residential Status of an entity such as an

individual, an association of persons, a company, every other person and Hindu Undivided

Family (HUF).

� Explains the classification of liability of income tax depending on Indian and Foreign income.

� Explains the procedure of Computation of Total Income

� Describes the five heads under which Income Tax is charged such as Income from salary,

Income from house and property, Income from capital gains and Income from other sources

� Details of the mathematical computation of tax liability

� Describes the Taxability of Income under Partnership firm, Domestic company and Foreign

company

� Elaborates the various deductions applicable from Gross Total Income such as Section 80C,

80CCC, 80CCD, 80D, 80DD, 80DDB, 80E, 80G, 80GG, 80GGA, 80GGC, 80QQB, 80RRB,

80U.

� Explain the concepts of Advance Tax and the section that are applicable

� Understand the concept and the procedure of application of Tax Deduction at Source

(TDS) under different circumstances

� Gives details on the various types of assets that are subject to wealth tax and the assets that are

exempted from wealth tax.

� Explains the procedure of filing return and the process of payment of wealth tax

� Explains the concepts and statutory provisions of service Tax in India

� Understand the general provisions of VAT, different stages of application of VAT and the

method of calculation of VAT.

� Describe the new CENVAT scheme, the types of input and output services

� Provides details about the documents on the basis of which CENVAT credit can be availed

and the penalty with respect to wrong availment of CENVAT credit

Banking & FinanceBanking & FinanceBanking & FinanceBanking & Finance

� Describes the present system of banking with respect to the various banking Acts and

regulations such as Banking regulation act, Reserve bank of India act

� Explains the categorization of Banks in the Indian banking system and the services that are

offered by a bank

� Describes the various type of deposit products such as Demand deposit and Term deposit and

their further categorization

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� Explains the various type of business loans, procedure of taking a home loan, characteristics of

a personal loan ad the documents required for applying consumer loans

� Give details on the various type of banking instruments, their provision and working such as

deposit slips, cheque etc.

� Explains the clearing process, membership in a clearing house, settlement of funds, and return

clearing

� Introduction to MICR – Magnetic Ink Character Recognition and its advantages

� Understand the type of ATM facilities that are offered in general and its benefits

� Explains the benefits and limitations of Electronic Banking

� Explain the concept of Tele-banking/Telephone Banking and voice-mail services offered

� Understand the usage, benefits and limitation of plastic money such as Debit card and Credit

card

� Understand the Loan Scheduling and Development procedure and elaboration on

presentation of a loan

Costing & AuditingCosting & AuditingCosting & AuditingCosting & Auditing

� Introduction to Costing

� Explains the Concept and the primary features of Cost Accounting

� Explains the type of Material / Inventory, motives of holding inventory, types of cost incurred

in maintaining inventory and the factors affecting the level of stock

� Explain the various methods of material valuation, describes the various methods of

remuneration and the steps for setting up an incentive scheme

� Understand concept of Activity Based Costing (ABC) and the ABC modeling

� Explains the concept of Marginal Costing/ Break Even Analysis and distinguish between

marginal costing and absorption costing

� Understand the theory of Variance Analysis and explains the types of variances such as

Material variance, Labour variance, Overheads variance and Sales variance

� Introduction to Auditing, steps involved in auditing, need of auditing

� Understand the objectives and purpose of auditing, describes the qualities of an auditor

� Distinction between accountancy and auditing

� Distinction between investigation and auditing

� Describes the advantages and limitations of auditing

� Explains the different types of Audits

� Explain the concept of Vouching, objectives of vouching , techniques of vouching, need of a

voucher and inspection of a voucher

� Explains the procedure involved in vouching of cash sales

� Understand the concept of Verification of Assets and Liabilities

� Introduction to valuation of assets depending on their classification and the responsibility of an

auditor in valuation of assets

Investment & Financial MarketInvestment & Financial MarketInvestment & Financial MarketInvestment & Financial Market

� Understand the Investment environment, investment process, motives of investment and the

various factors of sound investment

� Classification and distinction between different investment activities

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� Explains the concept of risk and return when investing in financial market

� Understand the current financial system, classification of Financial markets, members in the

financial market and the various financial instruments used in the Financial Market

� Describes the Security Market and Emerging Trends, methods of issuing securities (Public

issue through prospectus, offer for sale, private placement, offer through book-building process

� Understand the working of the primary market, methods of issuing securities in primary market

� Explains the process of Initial Public Offer (IPO), method of applying IPO, allotment of shares

in IPO sales

� Understand the working of the secondary market, listing and delisting of securities

� Understand the distribution of Capital/Shares in an organization

� Understand the procedure of Portfolio Management, need and benefits of diversification

� Explain the various Debt instruments issued in the financial market and its features

� Describes the issue of Bonds and Debentures under primary and secondary market

� Explains the characteristics and features of derivatives

� Understand the functioning of the various types of financial derivatives such as forwards,

futures, options and swaps

� Explains the need and principles of Hedging

� Describes the need of a depository, services offered by a depository and the constituents of the

depository system

� Explains the concept and need for Dematerialisation and Rematerialisation

� Understand the benefits of investing in mutual funds, procedure of setting-up a mutual fund,

types of mutual funds and the performance evaluation of mutual funds

� Understanding the different types of stock exchange, explains the trading system of NSE

(NEAT )

� Describes the drawback of not trading on a recognized stock exchange

� Explains the concept of foreign capital issuance and explains the functioning of ADR, ADS and

GDR

� Explains the guidelines issued by SEBI to for Investors Protection, the procedure to resolve the

investors grievance and educating the investor about its rights and responsibilities

� Understand the various compounding techniques to evaluate present and future value of

money

� Explains the procedure of evaluating financial accounting ratios such as liquidity ratios, leverage

ratios, profitability ratios and market value ratios.

Certified Business Accountant

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Sample QuestionsSample QuestionsSample QuestionsSample Questions

1.1.1.1. Which of the following statements is not true? Which of the following statements is not true? Which of the following statements is not true? Which of the following statements is not true?

A. The auditor’s responsibility for detection and prevention of errors and frauds is similar.

B. Management fraud is more difficult to detect than employee fraud

C. Internal control system reduces the possibility of occurrence of employee fraud and

management fraud

D. All the statements are correct

2. ‘Goods sent on approval basi2. ‘Goods sent on approval basi2. ‘Goods sent on approval basi2. ‘Goods sent on approval basis’ have been recorded as ‘Credit sales’. Which Type s’ have been recorded as ‘Credit sales’. Which Type s’ have been recorded as ‘Credit sales’. Which Type s’ have been recorded as ‘Credit sales’. Which Type

of an error is it?of an error is it?of an error is it?of an error is it?

A. Error of Omission

B. Error of Commission

C. Error of Principle

D. Compensating Error

3. Cost of material consumed under LIFO costing method is Rs3. Cost of material consumed under LIFO costing method is Rs3. Cost of material consumed under LIFO costing method is Rs3. Cost of material consumed under LIFO costing method is Rs.6,000. Conversion .6,000. Conversion .6,000. Conversion .6,000. Conversion

Cost is Rs.Cost is Rs.Cost is Rs.Cost is Rs.16, 50016, 50016, 50016, 500. 1,000 units of the product were manu. 1,000 units of the product were manu. 1,000 units of the product were manu. 1,000 units of the product were manufactured out of which 800 factured out of which 800 factured out of which 800 factured out of which 800

@ Rs.@ Rs.@ Rs.@ Rs.30 units sold. There were no beginning and ending inventories of work in 30 units sold. There were no beginning and ending inventories of work in 30 units sold. There were no beginning and ending inventories of work in 30 units sold. There were no beginning and ending inventories of work in

process and finished goods. Theprocess and finished goods. Theprocess and finished goods. Theprocess and finished goods. Then n n n per unit cost is:per unit cost is:per unit cost is:per unit cost is:

A. Rs.10

B. Rs.16.50

C. Rs.22.50

D. Rs.28.50

4. Deduction under4. Deduction under4. Deduction under4. Deduction under section 80D in respect of medical insurance premium is section 80D in respect of medical insurance premium is section 80D in respect of medical insurance premium is section 80D in respect of medical insurance premium is

allowed to:allowed to:allowed to:allowed to:

A. Any assessee

B. An individual or HUF

C. Individual or HUF who is resident in India d) Individual only

D. None of the above

5. The future value of a Rs.12, 000 investment made today, whi5. The future value of a Rs.12, 000 investment made today, whi5. The future value of a Rs.12, 000 investment made today, whi5. The future value of a Rs.12, 000 investment made today, which gives an annual ch gives an annual ch gives an annual ch gives an annual

rate of return of 10% per annum, after one year should be _________.rate of return of 10% per annum, after one year should be _________.rate of return of 10% per annum, after one year should be _________.rate of return of 10% per annum, after one year should be _________.

A. Rs.13,250

B. Rs.13,200

C. Rs.12,900

D. Rs.12,600

Answers:Answers:Answers:Answers: 1 (C), 2 (C), 3 (C), 4 (B), 5 (B)1 (C), 2 (C), 3 (C), 4 (B), 5 (B)1 (C), 2 (C), 3 (C), 4 (B), 5 (B)1 (C), 2 (C), 3 (C), 4 (B), 5 (B)