Financial Accounting

Accountancy is mostly regarded as a difficult subject but the reader of this book will realize that it is not so, because it has been written in simple language and in most systematic order explaining each and every point at length.

Some of the special features of Financial Accounting book are:

• Many developments have taken place in Accounting Philosophy and International Accounting Standard. An effort has been made to incorporate all such developments in this book.
• The book has been thoroughly revised. The unique feature of the book is that final accounts (Profit & Loss A/c and Balance Sheets) have been closed on 31st March only.
• Final accounts of Companies in the book have been prepared according to Schedule III of the Companies Act, 2013
• This book adequately satisfies the standard of undergraduate students. After going through the theory, illustrations and questions of this book, one can easily solve questions of university examinations.
• Acquisition of thorough knowledge of Accountancy: A candidate can solve Accountancy questions only when he has confidence and such confidence can be acquired only on the basis of real knowledge of this subject. For this purpose sufficient illustrations have been given to explain various theories, principles, rules, and procedures. Selection of practical illustrations and questions in each chapter and placing them in a systematic order is so reasonable, logical, orderly and scientific that even an ordinary student can acquire real, complete, thorough, knowledge of the subject in a very short period of time and without any exertion on his part.

Financial Accounting Syllabus B. Com (Hons.) Semester III of Vinoba Bhave University Hazaribagh, St. Xavier’s College Ranchi and Jamshedpur Women’s College, Jamshedpur

Unit-I: Inland Branch Accounting: Meaning, Objectives, Types of Branches, Accounting records of branches in the books of Head Office  – debtors method, final account method and stock and debtors method, Wholesale Branch Accounting. Independent Branches: Concept, accounting, treatment, important adjustment entries and preparation of consolidated profit and loss account and balance sheet. Departmental Accounting: Concept, Advantages, Difference between Branches and Departments, Allocation of Expense and unallocated expenses, Interdepartmental transactions, Valuation of unsold stock. Accounting treatment with (a) Final account method and (b) Statement form method.

Unit-II: Consignment Accounting: Meaning, Sale and Consignment, Consignment Accounting – different types of commission including overriding commission, Valuation of unsold stock and wastage of stock. Joint Venture Accounting: Joint Venture- Meaning, definition, characteristics, advantages, differences it with consignment and partnership. Accounting treatment – (A) when only one co-venture maintains books of accounts, (B) when all co-venture maintain books of accounts, (C) when a joint bank account is maintained, (D) when a memorandum of joint venture account prepared.

Unit-III: Depreciation: The nature of depreciation. The accounting concept of depreciation, factors in the measurement of depreciation. Methods of computing depreciation: straight-line method and diminishing balance method; disposal of depreciable
assets – change of method. Salient features of Accounting Standard (AS): 6 (ICAI).

Unit-IV: Insolvency Accounting: Meaning of Insolvency, Insolvency Laws and their Rules, Comparative study of P.T.A. and P.I.A, the difference between Balance Sheet and Statement of Affairs and Profit and Loss account and Deficiency Account, Insolvency accounting as per P.T.A. and P.I.A. rule including Omission of items from records.

Unit-V: Accounting from Incomplete Records: Meaning, Advantages, and Disadvantages, Difference between Single Entry System and Double Entry System, Accounting including Conversion of Single Entry System into Double Entry System.

Financial Accounting Book Contents

1. Inland Branch Accounting 
2. Departmental Accounting
3. Consignment Accounting 
4. Joint Venture Accounting
5. Methods of Computing Depreciation
6. Insolvency Accounting
7. Accounting from Incomplete Records