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 Second Semester BBA.
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: ACCOUNTING STANDARDS
Meaning and Objectives of Accounting Standards – importance and benefits – Standard setting Bodies (IASB, FASB, ICAI) – Indian Accounting Standards Vs. International Financial Reporting System (IFRS)- Procedure for issuing Standards in India – Need for IFRS Convergence into Ind AS –Opportunities and Challenges– Role of Institute of Chartered Accountants of India (ICAI) in issuance of Standards.
Module 2: DEPARTMENTAL ACCOUNTING
Meaning and Features of Departmental Undertaking-Examples of Department Specific Expenses and Common Expenses -Need and Basis of Apportionment of Common Expenses. Preparation of Trading and Profit and Loss Account in Columnar Form and General Profit and Loss Account. Illustrations on inter- departments in vertical form involving adjustment on Closing Stock, Depreciation and Inter Departmental Transfers at Cost Price.
Module 3: BRANCH ACCOUNTING
Meaning – Objectives – Types of Branches –Meaning and features of Branches – Dependent Branches – Independent Branches – Foreign Branches. Methods of maintaining books of accounts by Head office – Debtor System, Stock & Debtors System, Wholesale Branch System and Final Account system. Illustrations on preparation of Dependent Branch A/c in the books of Head Office under Debtors System only when the goods are supplied at (a) Cost Price and (b) Invoice Price.
Module 4: ACCOUNTING FOR FIRE INSURANCE CLAIMS
Meaning, Features and Principles of Fire Insurance. Meaning of Fire Claim. Procedure for making a Fire Insurance Claim. Concept of Loss of Stock, Salvage and Average Clause. Illustrations on ascertainment of claim amount covering the adjustments for over-valuation and under-valuation of stock and abnormal line of items.
Module 5: ACCOUNTING FOR BILLS OF EXCHANGE
Introduction to Bills of Exchange – Definition and characteristics of bills of exchange – parties involved – drawer, drawee, acceptor, payee – Types of Bills of exchange – Documentary, Clean, Inland, Foreign, Trade and Accommodation bill – Essential elements in BOE, Types of Endorsement – Blank, Special and Restrictive endorsements – Discounting of Bills, Acceptance, Payments, Negotiability and Transferability, Dishonour and noting. Illustrations.
