Functional Accounting (Theory)

Paper Code: 
25CATG113
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

This course will enable the students to develop a conceptual understanding of functional accounting systems and their application in business.

Course Outcomes: 

Course

Learning outcome

(at course level)

Learning and teaching strategies

Assessment Strategies

Course Code

Course title

25CATG113

Functional Accounting

(Theory)

 

CO13: Analyze the various aspects of royalty accounts and apply them in practice

CO14: Compare and contrast departmental accounts, apply different methods of allocating departmental expenses and ascertaining departmental profit.

CO15: Apply the concept of accounting for Hire Purchase System

CO16: Understand the accounting of dependent & independent branches

CO17: Estimate claims under fire insurance policies, loss of stock and loss of profit

CO18: Contribute effectively in course-specific interaction

Approach

in

teaching:

Interactive

Lectures,

Discussion,

Tutorials,

Reading

assignments; Solving

Questions.

 

Learning

activities

for the

students:

Self-learning

assignments, Effective

questions,

Seminar

presentation.

  

Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Presentation, Individual and group projects.

 

12.00
Unit I: 
Royalty Accounts:

● Meaning of Minimum Rent, Short Working, Excess Working, Recoupment of Short Workings
● Accounting in the books of Lessee and Lessor

12.00
Unit II: 
Departmental Accounts:

● Meaning and advantages 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

12.00
Unit III: 
Special Types of Accounting:

● Accounting for Hire Purchase and Installment Systems : Calculation of interest, partial and full repossession

● Hire purchase trading (total cash price basis), stock and debtors system

12.00
Unit IV: 
Accounting for Inland Branches:

● Concept of dependent branches: accounting aspects
● Debtors system, Stock and debtors’ system, Branch final accounts system and Whole sale basis system.
● Independent branches: concept-accounting treatment: important adjustment entries and preparation of consolidated profit and loss account and balance sheet.

12.00
Unit V: 
Insurance Claims:

● Claims under fire insurance policies
● Claim for Loss of Stock
● Claim for Loss of Profit

Essential Readings: 

● Gupta, R.L. & Gupta, V.K. Financial Accounting. Sultan Chand & Sons
● Mukharjee, A., Hanif, M. Modern Accountancy. Tata Mc- Graw-Hill
● Sehgal, A. & Sehgal, D. Fundamentals of Financial Accounting . TaxMann’s
● Jain. Khandelwal & Pareek. Financial Accounting. Ajmera Book Company

References: 

Suggested Readings:
● Ghosh, T. P. Fundamentals of Accounting. Sultan Chand & Sons.
● Goel, D. K., & Goel, R. Accountancy. Arya Publications.
● Maheshwari, S. N. An Introduction to Accountancy. Vikash Publishers.
● Tulsian, P. C. Accountancy. Tata Mc Graw Hill.

e-Resources
● https://web.s.ebscohost.com/ehost/search/basic?vid=0&sid=0c7f189a-083f-4...
● https://www.scopus.com/home.uri
● http://www.e-book.com.au/freebooks.htm
● https://www.doaj.org/

Reference Journals::
● Business Perspectives and Research
● FIIB Business Review
● Harvard Business Review
● IUP Journal of Accounting Research
● Jindal Journal of Business Research
● Nirma University Journal of Business & Management Studies
● Oorja
● The Chartered Accountant
● The ICFAI reader
● The Indian Journal of Commerce
● Vikalpa: Journal for Decision Makers

Academic Year: 
2025-2026
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