Functional Accounting

Paper Code: 
AAF 513
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

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 513

 

Functional Accounting

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

CO 162: Calculate and understand the difference between Royalty and Lease.

CO 163: Explain basic difference between Departmental Accounts and Branch Accounts

CO 164: Assess issues in accounting for assets, liabilities, and owner’s equity with respect to Branch Accounts.

CO 165: Evaluate accounting requirements in relation to investment and insurance companies.

CO 166: Analyse complex issues that can arise in relation to Hire Purchase transactions.

Approach in teaching:

Interactive Lectures, Discussion, Tutorials, assignments.

 

Learning activities for the students:

Self-learning assignments, Effective questions,  Giving tasks, Solving numerical problems

 

Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments,  Individual projects

 

8.00
Unit I: 
Royalty Accounts
  • Meaning of Minimum Rent, Short Working, Excess Working, Recoupment of Short Workings, Accounting in the books of Lessee and Lessor, Sub Lease
  • Accounting for Lease: Financial and Capital Lease.

 

6.00
Unit II: 
Departmental Accounts
  • Advantage Of Departmental Accounting, Allocation of Departmental Expenses, Distinction between Departmental Accounts and Branch Accounts, Cost Based    
  • Transfer Price, Market Based Transfer Price, Ascertainment of Departmental Profit
10.00
Unit III: 
Branch Accounts
  • Difference between Branch and Departmental Accounts,                               
  • Dependent  Branches:  Method  of  Accounting  for  Branch Transactions, Debtors System, Stock and Debtors System, Final Account System
  • Independent Branches: Incorporation  of  Branch  Assets and Liabilities, Abridged  Incorporation, Foreign Branches
10.00
Unit IV: 
Accounting for Investment
  • Fixed Income Bearing Securities, Variable Income Bearing Securities, Accounting
  • Arrangement of Fixed Income Bearing Security, Purchase/Sale of Investment on the Date of Payment of Interest, Purchase/Sale  of Investment  before the Date of Payment  of Interest, Adjustment for Equity Shares Investment Account
  • Insurance Claims-Claims under fire insurance policies, Claim for Loss of Stock, Claim for Loss of Profit
18.00
Unit V: 
Hire Purchase and Installment Sale Transaction
  • Nature of Hire Purchase Agreement, Ascertainment of Total Cash Price, Accounting Arrangement of Hire Purchase Transaction in the Books  of  Hire  Purchaser  and  Hire  Vendor, 
  • Hire  Purchase Agreement for Goods of Small Value
  • Installment Payment System: Difference between Hire Purchase System   and   Installment   Payment   System,   Accounting Arrangement.
Essential Readings: 
  • Financial Accounting-R.L Gupta, V.K Gupta( Sultan Chand& Sons)
  • Modern Accountancy-AMukharjee, MHanif. (Tata Mc- Graw-Hill)
  • Fundamentals of Financial Accounting- Dr Ashok Sehgal, Dr Deepak Sehgal (TaxMann’s)
  • Financial Accounting- Jain, KhandelwalPareek( Ajmera Book Company)
  • 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: 
2021-2022
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