FINANCIAL ACCOUNTING

Paper Code: 
CATG 101
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

Course Outcomes (COs):

Course Outcomes

Learning and teaching strategies

Assessment Strategies

  
 

On completion of this course, the students will be able to:

CO1: Execute the accounting process and demonstrate the understanding of theoretical framework of accounting and accounting standards

CO2: Determine depreciation and value of inventory

CO3: Prepare Financial Statements and demonstrate its use for the growth of Organization.

CO4: Apply the concept of accounting for Hire Purchase System and lease.

CO5: Apply the concept of Branch Accounts  in preparation of accounts of branch.

 

Interactive Lectures, Discussion, Tutorials,  Practical Cases, Power point presentation and Solving Questions.  

Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Presentation, Individual and group projects.

  

 

12.00
Unit I: 
Accounting Process and theoretical Framework of Accounting:
  • Accounting as an information system, the users of financial accounting information and their needs.
  • Qualitative characteristics of accounting information.
  • Functions, advantages and limitations of accounting.
  • Branches of accounting, Bases of accounting- cash basis and accrual basis.
  • The nature of financial accounting principles – Basic concepts and conventions: entity, money measurement, going concern, cost, realization, accruals, periodicity, consistency, prudence (conservatism), materiality and full disclosures.
  • Financial accounting standards: Concept, benefits, procedure for issuing accounting standards in India. International Financial Reporting Standards (IFRS): - Need and procedures.
  • Accounting Process: From recording of a business transaction to preparation of trial balance including adjustments

 

12.00
Unit II: 
Depreciation Accounting and Inventory valuation:
  • Meaning and nature of depreciation
  • Factors in the measurement of depreciation
  • Methods of computing depreciation: straight line method and diminishing balance method
  • Disposal of depreciable assets-change of method.
  • Inventories: Meaning. Significance of inventory valuation. Inventory Record Systems: periodic and perpetual. Methods: FIFO, LIFO and Weighted Average.
  • Salient features of Indian Accounting Standard (Ind-AS): 2 (b)

 

12.00
Unit III: 
Preparation of final accounts:
  • Capital and revenue expenditures and receipts: general introduction only.
  • Preparation of financial statements of non-corporate business entities including adjustments of closing stock, outstanding expenses, prepaid expenses, accrued income, unearned income, depreciation, interest on capital and interest on drawings, manager’s commission, abnormal losses, bad debts including provision

 

12.00
Unit IV: 
Special Types of Accounting:
  • Accounting for Hire Purchase and Installment Systems : Calculation of interest, partial and full repossession
  • Hire purchase trading (total cash price basis), stock and debtors system;
  • Concepts of operating and financial lease (theory only)

 

12.00
Unit V: 
Accounting for Inland Branches:
  • Concept of dependent branches: accounting aspects
  • Debtors system, Stock and debtors’ system, Branch final accounts system and Whole sale basis system.
  • Independent branches: concept-accounting treatment: important adjustment entries and preparation of consolidated profit and loss account and balance sheet.

 

 

Essential Readings: 
  • Gupta, R.L., &Gupta, V.K.Financial accounting. Sultan Chand and sons
  • Mukharjee, A., & Hanif, M. Modern accountancy. TataMcGrawhill.
  • Sehgal, A., &Sehgal, D.Fundamentals of financialaccounting. TaxMan
  • Jain, K. P. Financial accounting. Ajmera Book Company

 

References: 
  • Tulsian, P.C,  Accountancy  Tata Mc  Graw Hill
  • GoelD.K ,Goel R., Accountancy Arya Publications
  • Maheshwari, S.N., An Introduction to AccountancyVikash Publishers
  • Ghosh, T. P.,  Fundamental of Accounting,Sultan Chand& Sons

 

 

e RESOURCES:

 

REFERENCE JOURNALS

  • The Indian Journal of Commerce
  • IUP Journal of Accounting Research
  • The Chartered Accountant

 

Note: The candidate shall be permitted to use battery operated pocket calculator that should not have more than 12 digits, 6 functions and 2 memories and should be noiseless and cordless

 

 

Academic Year: 
2023-2024
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