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 Outcomes (COs):

 

Course

Learning outcome (at course level)

Learning and teaching strategies

Assessment Strategies

Paper Code

Paper Title

AAF 513

 

Functional Accounting

CO 169: Calculate and understand the difference between Royalty and Lease.

CO 170: Frame a solid foundation in accounting and reporting requirements and relevant Accounting Standards.

CO 171: Understand basic issues in accounting for assets, liabilities and owner’s equity with respect to Branch Accounts. Translate and account for foreign currencies.

CO 172: Account for a range of financial accounting issues.

CO 173: Understand accounting requirements for a corporate group and familiarity with the theory underlying the methods used to account for inter-company investments.

CO 174: Prepare consolidated accounts for a corporate group.

CO 175: Understand principles of accounting for investments in associates.

CO 176: Analyse complex issues, to formulate well-reasoned and coherent arguments and to reach well considered conclusions.

 

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
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
Departmental Accounts:
 
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
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
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
 
11.00
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, In the Books of Buyer and Seller.
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)

 

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)

 

Academic Year: 
2020-2021
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