We have great pleasure in presenting First edition “Financial Accounting” written for students of UG courses. The related matters are written in a simple and easily understandable.
This volume is an attempt to provide the students with thorough understanding of Financial Accounting. We have presented the subject matter in a systematic manner with liberal use of charts and diagrams where ever necessary so as to make it interesting and sustain students’ interest.
Contents –
Unit – 1 Foundations & Conceptual Framework
Introduction
Nature of Financial Accounting
Purpose of Financial Accounting
Scope of Financial Accounting
Users of Accounting Information (internal and external)
Qualitative Characteristics of Financial Information
Accounting Principles
Concepts and Conventions
Overview of GAAP
IFRS Frameworks
Role and Ethical Responsibilities of Accountants
Review Questions
Unit – 2 Accounting Cycle
Introduction
Concept of Accounting Cycle
Steps of the Accounting Cycle
Source Documents and Books of Original Entry
Double-entry System
Journal Entries
Ledger Posting
T-accounts
Preparation of Trial Balance
Identification/Correction of Errors
Review Questions
Unit – 3 Adjustments & Financial Statement Preparation
Introduction
Accrual Accounting
Revenue Recognition and Matching Concepts
Adjusting Entries
Prepaid Expenses
Accrued Revenues
Depreciation
Bad Debts
Preparation of Trading Account, Profit & Loss Account and
Balance Sheet (final accounts of sole proprietorships)
Review Questions
Unit – 4 Cash, Bank & Special Accounting Issues
Introduction
Cash and Cash Equivalents
Internal Controls
Petty Cash Systems
Depreciation
Methods (Straight-line, Reducing Balance)
Accounting Treatment, Provisions and Reserves:
Meaning and Accounting Treatment
Basics of Company Accounting:
Equity and Liability Transactions
Issue of Share Capital
Simple Corporate Financial Statements
Review Questions
Unit – 5 Reporting, Analysis & Contemporary Trends
Introduction
Regulatory Reporting Requirements and Disclosure Norms
Bank Reconciliation Statements
Preparation and Interpretation
Cash Flow Statement
Concepts and Basic Analysis (Operating, Investing, Financing)
Ratio Analysis
Liquidity
Profitability
Solvency Ratios
Basics of Computerized Accounting
Introduction to Accounting Information Systems (AIS).
Review Questions
