Financial Accounting

Paper Code: 
AAF115
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.

10.00
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

7.00
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

8.00
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

10.00
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

10.00
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: 

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)