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. 

Course Outcome (COs):

Course

Learning outcome (at course level)

Learning and teaching strategies

Assessment Strategies

Paper Code

Paper Title

 

AAF-115

Financial Accounting

Upon successful completion of this course, the student will be able to:

 

CO 20: Explain the need and objectives of Accounting standards.        

CO 21: Develop skills in Recording Transactions and Events of Business.

CO 22: Generalize skills among the students in the field of Preparation of financial statements and the uses of Results.             

CO 23: Make Consolidated Financial Statements & Preparation of Accounts from Incomplete Records.                    

CO 24: Facilitate to prepare Financial Statements: Importance, purpose, interpretation, and analysis of financial statements & Ratio Analysis.

Approach in teaching:

Explanations, Discussion, Solving Questions, Project, Field Trip

 

Learning activities for the students:

Field activities, Presentation, Giving tasks

Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Presentation, Individual and group projects.

 

9.00
Unit I: 
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 andsources of accounting information; ledger accounts, books of prime entry, andjournals

9.00
Unit II: 
UNIT II

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: 
UNIT III

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: 
UNIT IV

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: 
UNIT V

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)
  • Financial Accounting- Jain, KhandelwalPareek( Ajmera Book Company)
References: 
  • Accountancy- PC Tulsian (Tata Mc- Graw-Hill)
  • Accountancy-DK Goel, Rajesh Goel(Arya Publications)

 

Note- The candidate shall be permitted to use battery operated pocket calculator that should not have more than 12 digits, 6 functions and 2 memories and should be noiseless and cordless

 

Academic Year: 
2021-2022
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