Syllabus (COMMERCE)

Course Type: MAJ-3

Semester: 3

Course Code: BBCOMMAJO3T

Course Title: Advanced Financial Accounting

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

Credit: 6

Practical/Theory: Theory

Course Objective: The course aims to: 1. Help the learners to impart knowledge about accounting for branches and various departments of firms; 2. The course also focuses on computation of loss on stock and loss of profit and also computes the claim amount under insurance; 3. Help the learners to understand the accounting procedures of convergence of partnership firm to a limited firm and impart knowledge about the new trends in accounting.

Learning Outcome: After completion of the course, learners will be able to: 1. Assess the loss of stock and loss of profit and also compute the claim amount under insurance; 2. Solve various challenges in accounting in multi-branch firms and various departments; 3. Maintain accounting treatment of acquisition or convergence of partnership firms to limited firms; 4. Understand and compute the new trends in the field of accounting.

Subject: Advanced Financial Accounting

Unit 1: Insurance for Loss of Stock and Loss of Profit (Lectures: 15)

Loss of stock: Physical & ownership concept. Under insurance and average clause, Computation of claim with price changes, unusual selling price and price reduction.

Loss of profit: Concept, insured and uninsured standing charges, G.P. rates, short sales and increased cost of working, average clause and computation of claim.

Unit 2: Branch Accounting (Lectures: 15)

Concept of Branch; Different types; Methods of Accounting:-Synthetic method-Branch A/C, Branch trading and P/LA/C (at cost & at IP); Analytical Method with normal & abnormal losses.

Independent Branch- Concept, wholesale profit and retail profit, incorporation of branch trial balance in the books of H.O.

Unit 3: Hire Purchase and Instalment Payment System (Lectures: 15)

Meaning, Difference between Hire Purchase and Instalment payment, Books of Account in Buyer’s books, allocation of interest, Interest Suspense Account, Repossession-Partial and complete.

In the books of seller- Stock- Debtors system (with repossession). Hire Purchase Trading A/C (with repossession).

Unit 4: Departmental Accounts (Lectures: 10)

Concepts, and objectives of preparing Departmental Accounts. The difference with the branch. Apportionment of common costs, Preparation of Departmental Trading and P/L/A/C. Consolidated Trading and P/L/A/C; Inter-departmental transfer of goods and provisions for unrealised profit.

Unit 5: Business Acquisition and Conversion of Partnership into Limited Company (Lectures: 10)

Accounting for the acquisition of a business. Conversion of partnership into a limited company- with or without same set of books.

Unit 6: New Trends in Accounting: (Lectures: 10)

Human Resource Accounting, Inflation Accounting, Brand Valuation and Accounting, Environmental Accounting, Big Data Analytics in Accounting

Reading References:

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.
Dhamija, Financial Accounting For Managers, Pearson Education.

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

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

Goyal & Goyal, Financial Accounting, PHI Learning.

Gupta, R.L., Advanced Accountancy, Sultan Chand & Sons.

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

Jain, S.P. & Narang, K.L., Advanced Accountancy, Kalyani Publishers.

Lal, Jawahar, Financial Accounting, Himalaya Publishing House.

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

Maheshwari, S.N. & Maheshwari, S.K., Advanced Accountancy, 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.

Pillai, R.S.N., Bagavathi & Uma, S., Fundamentals of Advanced Accounting, S. Chand & Co.
Sehgal, Deepak, Financial Accounting, Vikas Publishing House.

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

Shukla, M.C., Grewal, T.S. & Gupta, S.C., Advanced Accounts, S.Chand & Co..

Thukaram Rao, M.E., Advanced Accountancy, New Age International.

Tulsian, P.C. & Tulsian Bharat, Financial Accounting, S.Chand & Co.

Compendium of Statements and Standards of Accounting, The Institute of Chartered Accountants of India, New Delhi.