Fundamentals of Accounting

Paper Code: 
24EBSG115
Credits: 
03
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

This course will enable the students to develop a conceptual understanding of the financial accounting system and their application in business.

 

Course

Learning outcome

(at course level)

Learning and teaching strategies

Assessment Strategies

Course Code

Course title

24EBSG115

Fundamentals of Accounting (Theory)

CO25: Evaluate the accounting process and demonstrate the understanding of theoretical framework of accounting and accounting standards

CO26: Determination & computation of depreciation

CO27: Developed the skills of Preparing Financial Statements and its use for the growth of business organization

CO28: Apply the concept of accounting for Hire Purchase System and lease

CO29: Apply the concept of Branch Accounts in preparation of accounts of inland branch

CO30: Contribute effectively in course-specific interaction

Approach in

teaching: Interactive Lectures, Discussions, Tutorials, Problem solving sessions, Presentations

 

 

Learning activities for the students: Self-learning assignments, Case Study Analysis, Presentations, Group Discussions

Continuous Assessment Test, Semester End Examinations, Quiz, Solving Numerical Problems, Assignments, Class Presentations, Individual and group projects.

 

 

9.00
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 

 

 

9.00
Unit II: 
Depreciation:
  • 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.
  • Salient features of Indian Accounting Standard (Ind-AS): 2 (b)

 

9.00
Unit III: 
Preparation of final accounts:
  • Capital and revenue expenditures and receipts: general introduction only.
  • Preparation of financial statements of non-corporate business entities     

 

9.00
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)
  • Concepts of operating and financial lease (theory only)

 

9.00
Unit V: 
Accounting for Inland Branches:
  • Concept of dependent branches: accounting aspects
  • Debtors system, Stock and debtors’ system
  • Independent branches: concept-accounting treatment: important adjustment entries                                                        

 

Essential Readings: 
  • Gupta, R.L., &Gupta, V.K.Financial accounting. Sultan Chand and sons
  • Mukharjee, A., & Hanif, M. Modern accountancy. TataMc Grawhill.
  • Sehgal, A., &Sehgal, D.Fundamentals of financial accounting. 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 Accountancy Vikash 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: 
2024-2025
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