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 Outcomes (COs):

Course

Learning outcome (at course level)

Learning and teaching strategies

Assessment Strategies

Paper Code

Paper Title

AAF-115

Financial Accounting

CO 20:Understand the need and objectives of Accounting standards and its relevance.       

CO 21:Develop skills in Recording of transactions and events of Business.

CO 22:Inculcate skills among the students in the field of Preparation of financial statements and the uses of Results.                                     CO 23: Enable Students to prepare Consolidated Financial Statements & Preparation of Accounts from Incomplete Records.

CO 24:Enable Students 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: 
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’ need.
  • 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: 
Financial Statements
  • 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: 
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.
References: 
  • Financial Accounting-R.L Gupta, V.K Gupta( Sultan Chand& Sons)
  • Financial Accounting- Jain, KhandelwalPareek( Ajmera Book Company)
  • Accountancy- PC Tulsian (Tata Mc- Graw-Hill)
  • Accountancy-DK Goel, Rajesh Goel(Arya Publications
Academic Year: 
2020-2021
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