B.Com.(CBCS)
Semester- I
CC102
FINANCIAL ACCOUNTING
(6 Credit) Marks: 100
(Internal Assessment 20+
Term-end 80)
Lectures: 45, Practical: 26
Hours
Tutorial: 7 Hrs
Objectives: The objective of this paper is to help students to acquire
conceptual knowledge of the financial accounting and to impart skills for
recording various kinds of business transactions.
CONTENTS
Unit 1
(a)Theoretical Framewor --- 3 L + 1 T
(i) 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.
(ii) 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.
(iii) Financial accounting
standards: Concept, benefits, procedure for issuing accounting standards in
India. Salient features of First-Time Adoption of Indian Accounting Standard
(Ind- AS) 101. International Financial Reporting
Standards (IFRS): - Need and procedures.
(b) Accounting Process --- 2
L+ 1 T
From recording of a business transaction to
preparation of trial balance including adjustments. ---Marks:10
(c) Computerised Accounting Systems --- 26 Practical Lab*
Computerised
Accounting Systems: Computerized Accounts by using any popular accounting
software: Creating a Company; Configure and Features settings; Creating
Accounting Ledgers and Groups; Creating Stock Items and Groups; Vouchers Entry;
Generating Reports - Cash Book, Ledger Accounts, Trial Balance, Profit and Loss
Account, Balance Sheet, Funds Flow Statement, Cash Flow Statement
Selecting and shutting a Company; Backup and Restore data of a
Company
Unit 2
(a) Business
Income ---- 6 L + 1 T
(i) Measurement
of business income-Net income: the accounting period, the continuity doctrine
and matching concept. Objectives of measurement.
(ii) Revenue
recognition: Recognition of expenses.
(iii) The nature
of depreciation. The accounting concept 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.
(iv) 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)Final Accounts ---7 L
Capital and revenue expenditures and receipts: general introduction only. Preparation of financial statements of non-corporate business entities --- Marks: 20
Unit 3
Accounting for Hire-Purchase and Installment
Systems, Consignment, and Joint Venture
--- 12 L+ 1T
(i) Accounting for Hire-Purchase Transactions,
Journal entries and ledger accounts in the books of Hire Vendors and Hire
purchaser for large value items including Default and repossession.
(ii) Consignment:
Features, Accounting treatment in the books of the consignor and
consignee.
(iii) Joint Venture: Accounting procedures: Joint Bank Account, Records Maintained
by Coventurer of (a) all transactions (b) only his own
transactions. (Memorandum joint venture account). Marks:
20
Unit 4
Accounting for Inland Branches ---- 7L + 1 T
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. Marks: 15
Unit 5
Accounting for Dissolution of Partnership
Firm --- 7 L
Accounting of Dissolution of the Partnership Firm Including
Insolvency of partners, sale to a limited company and piecemeal distribution. Marks: 15
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