Principles and Practice of Accounting

Paper Code: 
BCP-111
Credits: 
6
Contact Hours: 
90.00
Max. Marks: 
100.00
Objective: 

Course Objectives:

To develop an understanding of the basic concepts and principles of Accounting and acquire the ability to apply the same in preparing financial statements and simple problem solving

Course Outcomes (COs): 

 

Course

Learning outcome (at course level)

Learning and teaching strategies

Assessment Strategies

Paper Code

Paper Title

BCP-111

Principles and Practice of Accounting

Upon successful completion, students will have the knowledge and skills to:

  • CO 1 Acquire conceptual knowledge of basics of accounting
  • CO 2 Identify events that need to be recorded in the accounting records
  • CO 3 Develop the skill of recording financial transactions and preparation of reports in accordance with GAAP
  • CO 4 Describe the role of accounting information and its limitations
  • CO 5 Equip with the knowledge of accounting process and preparation of final accounts of sole trader
  • CO 6 Identify and analyze the reasons for the difference between cash book and pass book balances
  • CO 7 Recognize circumstances providing for increased exposure to errors and fraud
  • CO 8 Determine the useful life and value of the depreciable asset

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

 

 

18.00
Unit I: 
-

• Theoretical Framework: Meaning and Scope of accounting, Accounting Concepts, Principles and Conventions, Accounting terminology – Glossary, Capital and revenue expenditure, Capital and revenue receipts, Contingent assets and contingent liabilities, Accounting Policies, Accounting as a Measurement Discipline – Valuation Principles, Accounting Estimates, Accounting Standards – Concepts and Course Objectives: s, Indian Accounting Standards – Concepts and Course Objectives: s.
• Accounting Process: Books of Accounts, Preparation of Trial Balance, Rectification of Errors
• Bank Reconciliation Statement Introduction, reasons, preparation of bank reconciliation statement.
• Theoretical Framework: Meaning and Scope of accounting, Accounting Concepts, Principles and Conventions, Accounting terminology – Glossary, Capital and revenue expenditure, Capital and revenue receipts, Contingent assets and contingent liabilities, Accounting Policies, Accounting as a Measurement Discipline – Valuation Principles, Accounting Estimates, Accounting Standards – Concepts and Course Objectives: s, Indian Accounting Standards – Concepts and Course Objectives: s.
• Accounting Process: Books of Accounts, Preparation of Trial Balance, Rectification of Errors
• Bank Reconciliation Statement Introduction, reasons, preparation of bank reconciliation statement.

18.00
Unit II: 
-

• Inventories Cost of inventory, Net realizable value, Basis and technique of inventory valuation and record keeping.
• Concept and Accounting of Depreciation Concepts, Methods of computation and accounting treatment of depreciation, Change in depreciation methods.

18.00
Unit III: 
-

• Bills of exchange and promissory notes Meaning of Bills of Exchange and Promissory Notes and their Accounting Treatment; Accommodation bills.
• Sale of goods on approval or return basis Meaning of goods sent on approval or return basis and accounting treatment.
• Consignments Meaning and Features of consignment business, Difference between sale and consignment, accounting treatments for consignment transactions and events in the books of consignor and consignee.
• Average due Date Meaning, Calculation of average due date in various situations.
• Account Current Meaning of Account Current, Methods of preparing Account Current.
• Final Accounts of Sole Proprietors Elements of financial statements, Closing Adjustment Entries, Trading Account, Profit and Loss Account and Balance Sheet of Manufacturing and Non-manufacturing entities.

18.00
Unit IV: 
-

• Partnership Accounts: Final Accounts of Partnership Firms, Admission, Retirement and Death of a Partner including Treatment of Goodwill, Introduction to LLPs and Distinction of LLPs from Partnership.
• Financial Statements of Not-for-Profit Organizations: Significance of Receipt and Payment Account, Income and Expenditure Account and Balance Sheet, Difference between Profit and Loss Account and Income and Expenditure Account. Preparation of Receipt and Payment Account, Income and Expenditure Account and Balance Sheet.

18.00
Unit V: 
-

• Introduction to Company Accounts: Definition of shares and debentures, Issue of shares and debentures, forfeiture of shares, re-issue of forfeited shares, Statement of Profit and Loss and Balance Sheet as per Schedule III to the Companies Act, 2013.

References: 

Modern Accountancy-A Mukharjee, M Hanif. (Tata Mc- Graw-Hill)
• Advanced Accountancy-B.M Agarwal (Suchitra Publication)
• Study Material Published by Institute of Chartered Accountants of India
• Accountancy- PC Tulsian (Tata Mc- Graw-Hill)
• An Introduction to Accountancy- S.N Maheshwari(Vikas Publishers)
• Fundamental of Accounting-Dr T P Ghosh,(Sultan Chand& Sons)
• Financial Accounting-R.L Gupta, V.K Gupta( Sultan Chand& Sons)
• Scanner-Arun Kumar(Suchitra Prakashan (P) Ltd)
• Fundamentals of Financial Accounting- Dr Ashok Sehgal, Dr Deepak Sehgal (Taxman’s)

Note- The candidate shall be permitted to use battery operated pocket calculator that should not have more than 12 digits, 6 functions and 2 memories and should be noiseless and cordless

Academic Year: 
2020-2021
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