Our experience in teaching commerce subjects, especially Accountancy, is in the form of this book in your hands. This book “Financial Accounting” is prepared for the New SEP syllabus requirements of First Semester B.Com.
Being student friendly is the unique feature of this book. The subject matter has been presented systematically, which can enable the reader to master the topics covered, without any additional guidance. Most later provisions have been incorporated in this book.
Contents –
Module 1 INTRODUCTION TO ACCOUNTING
Introduction – Meaning and Definition of Accounting – Objectives of Accounting –Accounting Principles – Accounting Concepts and Accounting Conventions – Accounting Process – Journal – Ledger – Trial Balance – Adjusting entries, debit notes, credit notes, accounting equation- simple problems on accounting equation and adjusting entries only.
Module 2 ACCOUNTING FOR SALE OF GOODS FOR APPROVAL OR RETURN
Introduction – Meaning – Sale of goods for approval or Returned – Relevance and common Industries for Sale of goods for approval or Return – Revenue recognition principles – conditions for revenue recognition. Accounting Treatment: Initial Recognition (recording the shipment) – Revenue Recognition (on goods approval) – Reversing entries (Goods returned) – Illustrations.
Module 3 CONSIGNMENT ACCOUNTS
Introduction – Meaning of Consignment – Consignment Vs Sales – Consignor and his responsibilities – Consignee and his responsibilities – Types Commission – Ordinary Commission, Del-credere Commission and over-riding commission – Illustration on commission – Calculation of consignment stock value under cost price and invoice price – Accounting for Consignment Transactions & Events – (Include Treatment of Normal & Abnormal Loss, Cost Price and Invoice Price). Illustration in the books of Consignor only.
Module 4 ROYALTY ACCOUNTS
Introduction – Meaning – Definition – Differences between Rent and Royalty – Types of Royalty – Terms used in Royalty – Lessor – Lessee – Short Workings – Irrecoverable Short Workings – Recoupment of Short Workings – Methods of Recoupment of Short Workings – Preparation of Royalty Analysis Table (Excluding Government Subsidy) – Journal Entries and Ledger Accounts in the books of Lessee only – i) With Minimum Rent Account ii) Without Minimum Rent Account under fixed and Floating recoupment methods.
Module 5 FIRE INSURANCE CLAIM
Introduction – Meaning of Fire Insurance Claim – Features and Principles of Fire Insurance. Concept of Loss of Stock – Loss of Profit and Average Clause. Steps in calculation of Fire Insurance Claim – Illustrations on Computation of Claim for loss of stock (including Over valuation and Under Valuation of Stock, Abnormal Items) and application of Average Clause).
