Financial Accounting

Paper Code: 
AAF 115
Credits: 
03
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 and regulation, reasons, limitations, duties and responsibilities of those charged with 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
 

 

9.00
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: 

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: 

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: 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: 

EssentialReadings:                                                                                         

  • Financial Accounting-R.L Gupta, V.K Gupta( Sultan Chand& Sons)                      
  • Financial Accounting- Jain, KhandelwalPareek( Ajmera Book Company)
References: 

    References:

  • Accountancy- PC Tulsian (Tata Mc- Graw-Hill)
  • Accountancy-DK Goel, Rajesh Goel(Arya Publications)
Academic Year: 
2019-2020
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