Our experience in teaching commerce subjects, especially Accountancy, is in the form of this book in your hands. This book “Fundamentals of Accounting” is prepared for the New SEP syllabus requirements of First 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 –
Unit 1 INTRODUCTION TO ACCOUNTING
Accounting: Meaning and definition, objectives and functions of accounting, stakeholder using accounting information, branches of accounting – limitations of accounting Accounting Principles: GAAP, accounting concepts and accounting conventions. Accounting Standards: Meaning, objectives, list of Indian Accounting Standards
Unit 2 ACCOUNTING PROCESS
Accounting Process: Meaning, source document, steps in accounting process Double Entry System: Meaning, accounting equation (concept only). Account: Meaning, kinds of accounts, corresponding rules for debit and credit, transaction analysis, journal, ledger, balancing of accounts, trial balance; simple problems
Unit 3 SUBSIDIARY BOOKS AND BANK RECONCILIATION STATEMENT
Subsidiary Books: Meaning, significance, types of subsidiary books: Purchases book – sales book – purchase returns book – sales return book – bills receivable book – bills payable book – cash book – journal proper (theory only) Cash Book: Meaning, types of cash book – Problems on simple cash book, three column cash book and petty cash book only Bank Reconciliation Statement: Meaning, objectives, reasons for differences in balance as per pass book and cash book, simple problems on preparation of BRS (when bank balance as per pass book or bank balance as per cash book is given)
Unit 4 ACCOUNTING FOR DEPRECIATION
Meaning, causes of depreciation, concepts related to depreciation: depreciable base, salvage value, basket purchases, group depreciation. Depreciation Accounting: Meaning, need for providing depreciation, depreciation methods: Straight line method, diminishing balance method, sum of years’ digit method and production units method. Simple problems on calculation of depreciation (excluding problems on preparation of asset account and depreciation account)
Unit 5 FINAL ACCOUNTS OF SOLE PROPRIETARY CONCERN
Meaning, objectives of preparing final accounts, components of final accounts Preparation of statement of profit and loss and balance sheet of a proprietary concern (in vertical format) with special adjustments like depreciation, outstanding expenses, prepaid expenses, accrued incomes, and incomes received in advance, provision for doubtful debts, drawings, interest on capital and interest on drawings.