IPCC Accounts Important Chapters, Topics Tips May 2014

Group-I Accounting is all about common sense. This is one of the important subjects, because, it helps a lot in securing the required aggregate marks in the group. A few recent facts are stated below:

On a sample survey of last four IPCC exams, it was found out that, if you take 100 students who have secured exemption in Group 1, among those 100, a staggering 60-70 number of exemptions have come from the Accounting subject.

In another survey of students who failed in the May 2013 exam but got an exemption in one or more subject, there are 68% students who have got their exemption only in Accounting.

The trick is choosing a wise material. Recent toppers have stated that, ICAI’s practice manual is the best and that’s what makes the difference.

Important Chapters/Topics:

• Partnership – Retirement
• Single Entry
• Insurance for loss of Profit
• AS 6,9 and 10

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Strategy For Preparing IPCC Accounts

Author: Karan Teli 

We all are very well aware that we have just 3 months left for the next attempt to IPCC or Finals. It`s high time now that we start our preparations to get through with flying colours. Here is some plan which I have prepared for the IPCC guys. Before checking out the same, I would disclaim, at the face of it, that better plans can be chalked out and that to at your own comfort levels.

Each subject is unique in its own terms and matters. Prepare accordingly. Here is for "Paper - 1 : Accounts"

Resources:

1. Accounting Standards = D S Rawat,

2. Non – AS = P C Tulsian,

3. Revision = Padukas for AS, Practice Manuals, Compilers, Mock Test papers.

Warning:

Do not Follow more than one book for conceptual learning. Everything would be a mess at the end. You may take up problems from other books if time permits, but solve as per your basic guiding book.

Strategy:

I would simply break the whole accounts in 3 parts –

a. Accounting Standards,

b. Company Accounts,

c. Non – Company Accounts

(a) Accounting Standards, reference material suggested over here is D S Rawat. The only intention is that ICAI has asked us to be equipped with Standards completely and hence there is no other choice other than reading it professionally. This book has the best approach indeed with simplicity.

Simple perception is that, all accounting standards are very well known to us which are asked up in group – 1. We just have to link each standard with another one and gather all information which is scattered at one place in our brains under a particular head called AS. We were much aware of basic accounting principles, valuation of stock, depreciation accounting, construction contracts at CPT level and Intermediate level, know just gather them in a sequence under AS – 1, 2, 6, 7, 10. Similarly when we read CFS, Investments accounting and Amalgamations in depth at (b) level i.e. under company accounts head we can easily gather under the head AS – 3, 12, 14. What`s next is about AS – 9 which is solely dedicated to revenue recognition principles or prudence concept.

(b) Company accounts arena is also not harder. Do you know actually, accounting subject is not tough for people who say accounts is easy for me? It`s just creation of positivity and love for the subject. The whole of company accounts is based on journal entries only. Before starting up, it is required to make our base very harder and see that we can generate journal entries for nay complex and compound transaction. Most of this form basics to presentation and reporting areas like preparation of P&L, BS, CFS, Amalgamations.

(c) This area of accounts comprises nothing but the residual part. Even the most scoring stuff is seen here like Single entry system (almost equal to a puzzle game if accounts is your cup of tea), Average due date & Account Current, Self Balancing Ledgers, Basics of Partnership, NPO accounting and Environmental accounting.

A simple order to Accounts at group – 1 is as follows,

1. Accounting Standards,

2. Environmental accounting (compulsory question),

3. CFS,

4. Amalgamations,

5. Single Entry,

6. Profit prior to incorporation,

7. NPO accounting,

8. Special cases accounting,

9. Partnership,

10. ADD, AC & SBL`s.

11. Point 1 to Point 6 would cover almost 65 marks of the paper at group – 1.

Coming up next = Paper - 2 "Business laws, Ethics and Communications"

Good Luck.

Regards

Karan Teli

(Life is just an Illusion)