We have great pleasure in presenting the first edition “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 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. This title “Financial Accounting” provides them an opportunity to develop the skills necessary to meet the challenges.
Contents –
1. Theoretical Framework
i) Accounting as an Information System, The users of Financial Accounting Information and their Needs. Qualitative Characteristics of Accounting Information. Functions, Advantages and Limitations of Accounting. Branches of Accounting. Bases of Accounting: Cash Basis and Accrual Basis.
ii) Financial Accounting Principles: Meaning and Need, Generally Accepted Accounting Principles: Entity, Money Measurement, Going Concern, Cost, Revenue Recognition, Realization, Accruals, Periodicity, Consistency, Prudence (conservatism), Materiality and Full Disclosure.
iii) Accounting Standards: Concept, Benefits and Process of Formulation of Accounting Standards including Ind AS (IFRS Converged Standards) and IFRSs, Convergence vs Adoption, Application of Accounting Standards (AS and Ind AS) on Various Entities in India. International Financial Accounting Standards (IFRS), Meaning, Need and Scope, Process of Issuing IFRS.
(b) Accounting Process
From Recording of a Business Transaction to Preparation of Trial Balance Including Adjustments. Application of Generally Accepted Accounting Principles in Recording Financial Transactions and Preparing Financial Statements.
2. Computerized Accounting Systems
Computerized Accounting Systems: Computerized Accounts by using any Popular Accounting Software Creating a Company, Configure and Features Settings, Creating Accounting Ledgers and Groups, Creating Stock Items and Groups, Vouchers Entry, Generating Reports, Cash Book, Ledger Accounts, Trial Balance, Profit and Loss Account, Balance Sheet, Cash Flow Statement. Selecting and Shutting a Company, Backup, and Restore data of a Company.
3. Business Income, Accounting for Depreciation, and Inventory Valuation
a) Business Income: Concept of Revenue and Business Income, Measurement of Business Income, Relevance of Accounting Period, Continuity Doctrine and Matching Concept in the Measurement of Business Income, Objectives of Measurement of Business Income.
b) Revenue Recognition: Recognition of Expenses and Income. Recognition of Expenses and Income with a Reference to AS 9 and Ind AS 18.
c) The nature of Depreciation. 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 in Method of Depreciation and its Impact of on Measurement of Business Income.
d) Inventories: Meaning. Significance of Inventory Valuation. Inventory Record Systems: Periodic and Perpetual. Methods of Computing Depreciation: FIFO, LIFO and Weighted Average. Application of Accounting Standard in Valuation of Inventory. Impact of Inventory Valuation on Measurement of Business Income.
4. Financial Statements of Sole
Proprietorship and Partnership Firms Capital and Revenue Expenditures and Receipts, General Introduction Only. Preparation of Financial Statements of Non-corporate Business Entities, Sole Proprietorship and Partnership Firms (both manual and using appropriate software).
5. Accounting for Branch and Not-for Profit Organisations
(a) Accounting for Branch: Concept of Dependent Branches, Branch Accounting, Debtors System, Stock and Debtors’ System, Branch Final Account System and Wholesale Basis System. Independent Branches: Concept, Accounting Treatment with Necessary Adjustment Entries, Incorporation of Branch Trial Balance in Head Office Books for Home Branches.
(b) Accounting for Not-for-Profit Organisations: Meaning of Not-for-Profit Organisation, Significance of Receipt and Payment Account, Income and Expenditure Account and Balance Sheet, Difference between Profit and Loss Account and Income and Expenditure Account, Preparation of Receipt and Payment Account, Income and Expenditure Account and Balance Sheet.
Last Minute Revision (LMR)