Financial Accounting

Paper Code: 
AAF 115
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

The objective of this course is to develop a conceptual understanding of financial accounting system and their application in business.

10.00

Introduction: Accounting standards and its relevance; Financial Reporting context and purpose, important elements of financial reports; Financial Statements and its scope and purpose for external reporting, users’ and stakeholders’ needs. Regulatory framework: legislation andregulation, reasons, limitations, duties and responsibilities of those chargedwith governance. Characteristics of financial information;uses and principles of double-entry and accounting systems, including maintenance of accounting records and sources of accounting information; ledger accounts, books of prime entry and journals

7.00

Recording of transactions and events related to sales and purchases, cash, inventory, tangible non-current assets; Intangible non-current assets and amortization; Accruals and prepayments; Receivables and payables; Provisions and contingencies; Capital structure and finance costs Preparation of trial balance; Correction of errors; Control accounts and reconciliations; Bank reconciliations statement; Suspense accounts

8.00

Preparation of financial statements: Statements of financial position; Statements of profit or loss and other comprehensive income, including disclosure notes; events after the reporting period; Depreciation Accounting: Introduction, meaning and definition, methods of recording depreciation;

10.00

Consolidated Financial Statements:Preparation of consolidated financial statements for Subsidiaries and Associates Preparation of Accounts from Incomplete Records (Single Entry System): Nature of Incomplete Records, Limitations of the Single Entry System, Ascertainment of Profit or Loss, Difference between Double Entry System and Single Entry System Cash flow Analysis: Introduction, Concept of Cash, Use of Cash Flow Analysis, Construction of Cash Flow Statement

10.00

Financial Statements: Importance, purpose, interpretation and analysis of financial statements
Ratio Analysis: Meaning and classification of ratio- Liquidity ratio, Activity ratios, Profitability ratios, Leverage ratios and Investment ratios.

Essential Readings: 

• Financial Accounting-R.L Gupta, V.K Gupta( Sultan Chand& Sons)

• Modern Accountancy-A. Mukharjee, M. Hanif. (Tata Mc- Graw-Hill)

• Fundamentals of Financial Accounting- Dr Ashok Sehgal, Dr Deepak Sehgal (TaxMann’s)

• Financial Accounting- Jain, Khandelwal Pareek( Ajmera Book Company)

References: 

• Accountancy- PC Tulsian (Tata Mc- Graw-Hill)

• Accountancy-DK Goel, Rajesh Goel (Arya Publications)

• An Introduction to Accountancy- S.N Maheshwari (Vikash Publishers)

• Fundamental of Accounting-Dr T P Ghosh (Sultan Chand& Sons)

Academic Year: