Functional Accounting (Theory)

Paper Code: 
ATG 216
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

The objective of 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

ATG 216

Functional Accounting

CO 1:To Understand the basic terms of Royalty in solving practical problem in the field of Royalty business.

CO 2:Develop skills in the students in relation to present the Financial Statements in the case of Department Accounts.

CO 3:Understand the concept of Branch Accounts and how the accounts are prepared in case national or international branch.

CO 4:Develop an insight for applying fundamental principles of Investment Analysis and evaluation of firm’s financial performance and also under the concept of Insurance claim.

CO 5:To Understand the Concept of Hire Purchase and its calculations along with the amount of interest in each installment.

 

Approach in teaching: Explanations,

Discussion, Project,

Solving Questions

 

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, Observation.

 

 

8.00
Unit I: 
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: Theoretical Concepts of lease
6.00
Unit II: 
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: 
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: 
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
  •  Insurance Claims- Claims under fire insurance policies
  • Claim for Loss of Stock, Claim for Loss of Profit
11.00
Unit V: 
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 in the Books of Buyer and Seller

References: 
  • 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, Khandelwal Pareek( 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: 
2020-2021
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