Fundamentals of Accounting

Paper Code: 
25EBSG115
Credits: 
3
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 Outcomes: 

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

 

Course Outcomes (COs): (BSG)

Course

Learning outcome

(at course level)

Learning and teaching strategies

Assessment Strategies

Course Code

Course title

25EBSG115

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: 

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: 

Suggested Readings:

  • 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: 
2025-2026
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