Syllabus (BUSINESS ADMINISTRATION)

Course Type: MAJ-2

Semester: 2

Course Code: BBBAMAJ02T

Course Title: Financial Accounting

(L-P-Tu): 5-0-1

Credit: 6

Practical/Theory: Theory

Course Objective: The objectives of the course are to familiarize students with the basic concept and principles of accounting and methods of recording financial transactions, concept, accounting and provisioning of depreciation, preparation of final accounts and accounting of partnership firm.

Learning Outcome: On completion of this course, students will be able to develop the required knowledge and understanding of the concept and principles of accounting, make them capable of preparing financial statements of ‘for-profit’ and ‘not-for profit’ business concerns and impart knowledge regarding the accounting for partnership firms.

Unit 1: Introduction to Financial Accounting (Lectures: 15)

Introduction and Basic Terminologies; Objectives, Importance, Scope, Branches and Limitations of Accounting; Accounting as a Language of Business; Users of Accounting Information; Generally Accepted Accounting Principles; Accounting Standards- Indian and International; Introduction to International Financial Reporting Standards (IFRS); Accounting Principles, Concepts and Conventions; Cash and Accrual Basis of Accounting; Accounting Equation and Accounting Cycle.

Unit 2: Classifications and Recording of Financial Transactions (Lectures: 20)

Nature and Types of Accounts and Rules of Debit and Credit; Journalising Transactions and Ledger Posting; Subsidiary Books; Concept and Preparation of Trial Balance, Errors not Detected by Trial Balance, Cash Book- Simple, Double Column and Triple Column; Petty Cash Book; Concept of Capital, Revenue and Deferred Revenue Expenditures; Bank Reconciliation Statement – Concept and Preparation.

Unit 3: Depreciation (Lectures: 10)

Meaning, Concepts and Causes of Deprecation; Methods of Charging Depreciation – Straight Line Method and Written Down Value method; Accounting for Depreciation; Change in the Method of Charging Depreciation; Provisioning for Depreciation; Concept of Amortization and Depletion.

Unit 4: Preparation of Final Accounts of Proprietary Concern (Including Not-for-Profit Organization) (Lectures: 20)

Preparation of Manufacturing Account, Trading Account, Profit and Loss Account and Balance Sheet; Opening and Closing Entries; Adjustments entries; Rectifications of Errors; Preparation of Receipts and Payments account, Income and Expenditure Account and Balance Sheet of non-for-profit organizations (Simple Problems).

Unit 5: Partnership Account (Lectures: 10)

Concepts of Profit and Loss Appropriation Account, Capital Accounts, Current Accounts; Admission and retirement of a partner (including treatment for goodwill).

Suggested Readings:

Basu & Das, Practice in Accountancy, Rabindra Library, Kolkata.

Belverd E. Needles & Marian Powers, Financial Accounting: (with IFRS), Cengage Learning.

Bhattacharya, Asish K., Accounting for Managers, PHI Learning.

Ghosh, T.P., Financial Accounting for Managers, Taxmann.

Goldwin, Alderman and Sanyal, Financial Accounting, Cengage Learning.

Horngren, Charles T., Introduction to Financial Accounting, Pearson Education.

Lal, Jawahar, Financial Accounting, Himalaya Publishing House.

Lal, Jawahar & Srivastava, Seema, Financial Accounting, S. Chand and Company.

Maheshwari, S.N. & Maheshwari, S.K., Financial Accounting, Vikas Publishing House.

Monga, J.R., Financial Accounting: Concepts and Applications, Mayur Paper Backs, NewDelhi.

Mukherjee, Amitabha & Hanif; Mohammed, Modern Accountancy, Tata McGraw-Hill.

Paul, S.K., Accountancy, New Central Book Agency, Kolkata.

Sehgal, Deepak, Financial Accounting, Vikas Publishing House.

Shankaranarayana, H.V., Financial Accounting for Management, Cengage Learning.

Tulsian, P.C., Financial Accounting, Pearson Education.

Tulsian, P.C. & Tulsian, Bharat, Financial Accounting, Vikas Publishing House.