Financial Accounting

L T P Cr.
3 0 0 3

Objective: The objective of this paper is to acquaint students with the conceptual knowledge
of the financial accounting and to nurture skills for recording various kinds of business
transactions in accounting books

UNIT-1- Theoretical Framework

Meaning and Scope of Accounting Need, development, and definition of accounting; Book-
keeping and accounting; Disclosures; Branches of accounting; Objectives of accounting.
Capital & Revenue classification of Income, Expenditure & Receipts.

Accounting Principles: International accounting standards (only outlines); Accounting

principles: Accounting standards in India. Financial accounting standards: Concept, benefits,
procedure for issuing accounting standards in India. International Financial Reporting
Standards (IFRS): - Need and procedures, Convergence to IFRS, Distinction between Indian
Accounting Standards (Ind ASs) and Accounting Standards (ASs)

UNIT-II-Accounting Process & Depreciation Accounting

Accounting Cycle, Journal; Rules of debit and credit; Compound journal entry; Opening
entry; Relationship between journal and ledger, Rules regarding posting; Trial balance; Sub
division of journal. From recording of a business transaction to preparation of trial balance
including adjustments: Capital and Revenue expenditure & receipts, Preparation trial balance
Final accounts; Manufacturing account; Trading account; Profit and loss account; Balance
Sheet; Adjustment entries. 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.

UNIT-IV Accounting for Hire Purchase and Instalment System& Consignment, and
Joint Venture

Hire-purchase and instalment purchase system; Meaning of hire-purchase contract;

Accounting records for goods of substantial sale values, and accounting records for goods of
small values; Instalment purchase system; After sales service. Consignment: Features,
Accounting treatment in the books of the consignor and consignee.

UNIT V Royalties Accounts & Accounting for Branches

Branch Accounts: Dependent branch; Debtors system, stock and debtor system. Final
Accounts System; Wholesale branch; Independent branch; foreign branch.

Text Books :
 1. Goldwin, Alderman and Sanyal ,Financial Accounting ,Cengage Learning
2. Horn green ,Introduction to Financial Accounting, Pearson Accounting
3. P.C. Tulsian, Financial Accounting, Tata McGraw Hill, New Delhi.

Reference Books

4. Bhushan Kumar Goyal and HN Tiwari,Financial Accounting,Vikas publishing

House, New Delhi. 7. Jain, S.P. and K.L. Narang. Financial Accounting. Kalyani
Publishers, New Delhi.
5. Shukla, M.C., T.S. Grewal and S.C.Gupta. Advanced Accounts. Vol.-I. S. Chand &
Co., New Delhi.
6. S. N. Maheshwari, Financial Accounting, Vikas Publication, New Delhi. T.S,
Grewal, Introduction to Accounting, S. Chand and Co., New Delhi.

Evaluation Scheme
Mid Semester Exam 30
End Semester Exam 45
Quizzes (Two) 10
Sectionals (may include 15
Assignments/projects
/tutorials/presentation
etc.