Financial accounting is the process of recording, summarizing and reporting a company’s business transactions through financial statements. These statements are: the income statement, the balance sheet, the cash flow statement and the statement of retained earnings.
Course Objective: To equip the students with the skill of preparing accounts and financial statements of various types of business units other than corporate undertakings
Module – I
Preparation of Financial Statements –Conceptual framework- Accounting Principles – Accounting Concepts – Accounting Conventions- – Capital and Revenue Expenditure – Capital and Revenue Receipts – Capital and Revenue Losses – Deferred Revenue Expenditure–Accounting Standards- Objectives -Final Accounts of Sole Trader – Trading Account – Manufacturing Account – Profit and Loss Account – Balance Sheet – Adjusting entries – Closing Entries- Practical Problems with all Adjustments.
Accounting of Incomplete Records – Single Entry System – Features – Advantages – Disadvantages – Distinction between Single Entry and Double Entry System- Ascertainment of Profit/loss – Statement of Affairs Method – Conversion Method – Steps for Conversion of Single Entry into Double Entry – Preparation of Trading and Profit and Loss Account and Balance Sheet.
Module – III
Royalty Accounts – Meaning – Minimum Rent – Short Working – Recovery– Journal Entries in the books of Lessor and Lessee – Preparation of Minimum Rent Account – Short Working Account – Royalty Account (Excluding Sublease)– Special Circumstances :Adjustment of Minimum Rent in the event of Strike and Lock – outs – Govt. Subsidy in case of Strikes/Lockouts
Module – IV
Accounting for Consignment – Meaning – Important Terms – Journal Entries in the books of Consignor and Consignee – Preparation of Consignment Account – Consignee’s Account – Goods Sent at Cost or Invoice Price Delcredre commission- Valuation of Stock – Normal and Abnormal Loss
Module – V
Farm Accounts- Meaning- Characteristics- Objectives and advantages- Recording of farm transactions-Preparation of farm account, crop account, dairy account, livestock account etc- Preparation of final accounts of farming activities
1. Jain, S.P., & Narang, K.L., Advanced Accountancy, Kalyani Publishers, New Delhi
2. Maheshwari, S.N., & Maheswari, S.K., Advanced Accountancy, Vikas Publishing House, New Delhi.
3. Shukla, M.C., & Grewal, T.S., Advanced Accountancy, S Chand and Company (Pvt.) Ltd, New Delhi.
4. Ashok, Sehgal, & Deepak Sehgal, Financial Accounting Taxmann Allied Service (Pvt.) Ltd,
5. MA Arulanandam and KS Raman, Advanced Accountancy, Himalaya Publications, Mumbai.
6. Paul, S. K., & Chandrani, Paul, Advanced Accountancy, New Central Book Agency, New Delhi.
7. Raman B S, Financial Accounting- United Publishers
8. The Chartered Accountant(Journal), Institute of Chartered Accountants of India, New Delhi.
Module – I Preparation of Financial Statements
- Accounting Principles – Accounting Concepts – Accounting Conventions
- Capital and Revenue Expenditure – Capital and Revenue Receipts
- Accounting Standards
- Final Accounts of Sole Trader without adjustment
- Final Accounts of Sole Trader with Adjusting entries – Closing Entries
- Review the final accounts of a sole trader
Module -II Accounting of Incomplete Records
Module - III Royalty Accounts
Module - IV Accounting for Consignment
Module – V Farm Accounts