Financial Accounting

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

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

9.00
Unit I: 
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 thosechargedwith governance.

Characteristics of financial information;uses and principles of double-entry and accountingsystems, including maintenance of accounting records and

sources of accounting information; ledger accounts, books of prime entry, and journals

9.00
Unit II: 
Recording of Transactions

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

 

9.00
Unit III: 
Financial Statements & Depreciation

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.

9.00
Unit IV: 
Financial Analysis

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

 

9.00
Unit V: 
Financial Statements & Ratios

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: 

Study material of ACCA

Financial Accounting-R.L Gupta, V.K Gupta ( Sultan Chand& Sons) Modern Accountancy-AMukharjee, 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: 
2018-2019
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