CMA Foundation – Fundamentals of Accounting
Fundamentals of Accounting of CMA Foundation Syllabus Structure.
- Fundamentals of Financial Accounting 80%
- Fundamentals of Cost Accounting 20%
Fundamentals of Financial Accounting covers Accounting Fundamentals, Accounting for Special Transactions, Preparation of Final Accounts.
Accounting Fundamentals covers Accounting Principles, Concepts and Conventions, Capital and Revenue transactions – capital and revenue expenditures, capital and revenue receipts, Double entry system, Books of prime entry, Subsidiary Books, Cash Book, Journal, Ledger, Trial Balance, Depreciation – Methods (Straight Line and Diminishing Balance methods) , Rectication of Errors , Opening entries, Transfer entries, Adjustment entries, Closing entries, Bank Reconciliation Statements,
Accounting for Special Transactions covers
Bills of Exchange (excluding accommodation bill, insolvency)
Consignment (cost price, invoice price, commission & valuation of stock)
Preparation of Final Accounts covers
Profit making concern (for sole proprietorship concern only)
Not-for-Profit making concern
accounting principles are guidelines to establish standards for sound accounting practices and procedures in reporting the financial status and periodic performance of a business.
These principles can be classified into two categories (i) Accounting concepts; and (ii) Accounting conventions.
Concepts and Conventions
Accounting concepts are defined as basic assumptions on the basis of which financial statements of a business entity are prepared.
financial statements, namely, the profit and loss account and
balance sheet are prepared according to the following accounting conventions:
Consistency, Disclosure, Conservatism, Materiality.