Financial Accounting (Sem 1, BCom Tumkur Univ)

We feel great pleasure in presenting the first edition of “Financial Accounting” written for students of UG courses. The subject matter is written in a simple and easily understandable language with sufficient support from real Financial Accounting information.

The language of the book is simple and the coverage of various unit is exhaustive with examples. This work is prepared as a basic material for the learners to know fully about Financial Accounting. We have tried to make the book very useful for the students but still we will thankfully solicit and incorporate the suggestions of our readers. This title “Financial Accounting” provides them an opportunity to develop the skills necessary to meet the challenges.

Contents –

UNIT – 1 THEORETICAL FRAMEWORK OF ACCOUNTING
• Introduction
• Meaning and scope of accounting
• Objectives of accounting
• Importance of accounting
• Functions of accounting
• Terminologies used in accounting
• Users of accounting information
• Accounting process
• Basis of accounting
• Branches of accounting
• Principles of accounting
• Concepts and conventions of accounting
• Accounting standards
• International financial reporting standards
• Accounting standards board
• International accounting standards board
• ICAI
• Needs and objectives of IND AS
• List of IND AS
• Exercise Questions

UNIT – 2 FINANCIAL STATEMENTS OF SOLE PROPRIETORS
• Introduction
• Meaning of sole proprietor
• Financial statements of non-manufacturing entities
• Trading account
• Profit and loss account / Income statement
• Balance sheet
• Financial statements of manufacturing entities
• Manufacturing account
• Exercise Questions

UNIT – 3 CONVERSION OF SINGLE-ENTRY SYSTEM INTO DOUBLE-ENTRY SYSTEM
• Meaning of Single Entry
• Features
• Types
• Merits
• Demerits
• Double Entry system
• Features of Double Entry system
• Differences between Single Entry System and Double Entry System
• Conversion Method
• Meaning of Conversion
• Objectives of Conversion
• Steps in Conversion
• Illustrations
• Exercise Questions

UNIT – 4 CONSIGNMENT ACCOUNTS
• Introduction
• Meaning
• Consignor and Consignee
• Consignment vs. Sales
• Proforma invoice
• Account sales
• Types of commission
• Goods sent at cost price
• Goods sent at invoice price
• Normal and Abnormal loss
• Valuation of stock
• Journal entries
• Ledger accounts in the books of consignor
• Exercise Questions

UNIT – 5 HIRE PURCHASE SYSTEM
• Introduction
• Meaning of hire purchase agreement
• Hire purchaser
• Hire seller
• Hire purchase price
• Cash price
• Calculation of Interest
• Calculation of cash price and installment amount
• Calculation of depreciation
• Journal entries
• Ledger accounts in the books of hire purchaser
• Exercise Questions