Financial Accounting

The book has been prepared strictly according to the new syllabus of H.N.B. Garhwal University, Srinagar for B.Com. First Semester effective from academic session 2022-23.

As per new syllabus following new chapters have been included in the book :

• Basic Knwledge of G.S.T. in Accounting with Practicals
• Measurement of Business Income
• Revenue Recognition of Expenses : A.S.-9
• Valuation of Inventories
• Financial Statements of Not-for-Profit Organisations.

Some of the special features of this book are :

• In each chapter of the book final accounts have been closed on 31st March only.
• In each chapter Descriptive Answer Type Questions, Short Answer
• Type Questions and large number of M.C.Q. with Answer have been given.
• After going through the theory, illustrations and questions of this book, one can easily solve questions of university examinations.

Financial Accounting Syllabus For B.Com. Ist Semester of Hemvati Nandan Bahuguna Garhwal University, Srinagar

• Unit 1 : Theoretical Framework of Accounting : Introduction, Meaning and Scope of Accounting; Objectives of Accounting; Importance of Accounting; Functions of Accounting; Terminologies used in accounting; Users of Accounting Information; Accounting Process; Basis of Accounting : Cash Basis and Accrual Basis; Branches
  of Accounting; Principles of Accounting; Accounting Concepts and Conventions; Basic knowledge of Accounting Standards; Basic knowledge of Indian Accounting Standards (IND AS); Basic knowledge of GST in Accounting with practicals; Accounting Process from recording of a business transaction to preparation of
  trial balance including adjustments.
• Unit 2 : Business Income, Depreciation Accounting and Inventory Valuation :
  (a) Measurement of business income; Net income; the accounting period; the continuity doctrine and matching concept; Objectives of measurement.
  (b) Revenue Recognition : Recognition of expenses.
  (c) 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 of Depreciating.
  (d) Inventories : Meaning; Significance of Inventory Valuation; Inventory Record Systems : Periodic and Perpetual; Methods of Valuation of Inventories : FIFO, LIFO and Weighted Average Methods; Salient features of Accounting Standard (AS) – 2.
• Unit 3 : Financial Statements of Sole Proprietors : Introduction; Meaning of Financial Statements; Financial statements of Business Concerns of sole proprietor : Preparation of Trading Account and Profit and Loss Account and Balance Sheet, with Adjustments.
• Unit 4 : Consignment Accounts and Joint Venture :(a) Consignment Accounts : Introduction; Meaning of Consignment; Consignment vs Sales; Types of Commissions; Accounting for Consignment Transactions and Events in the books of Consignor and Consignee; Treatment of Normal and Abnormal Loss; Valuation of Closing Stock; Numerical Problems on Goods sent at Cost Price and Invoice Price.
  (b) Joint Venture : Accounting procedures : Joint Venture Account, Joint Bank Account; Records Maintained by Co-venture of (a) all transactions (b) only own transactions. (Memorandum joint venture account).
• Unit 5 : Financial Statements of Not-for-Profit Organizations : Meaning and uses of Receipts and Payments Account, Income and Expenditure Account and Balance Sheet; Difference between Profit and Loss Account and Income and Expenditure Account; Preparation of Receipts and Payments Account, Income and Expenditure Account and Balance Sheet.

1. Introduction To Accounting
2. Financial Accounting Principles (Basic Conventions And Concepts)
3. Indian Accounting Standards
4. Journal : Rules Of Debit And Credit
5. Journal Entries Of G.S.T.
6. Sub-Division Of Journal : Cash Book
7. Sub-Division Of Journal : Subsidiary Books
8. Ledger (Including Rules Of Posting)
9. Trial Balance
10. Measurement Of Business Income
11. Revenue Recognition : A.S.-9
12. Accounting Concept Of Depreciation
13. Valuation Of Inventories
14. Financial Statements Of Sole Proprietors (Manufacturing Account, Trading Account, Profit & Loss Account And Balance Sheet)
15. Adjustment Entries
16. Consignment Accounts
17. Joint Venture Accounts
18. Financial Statements Of Not-For-Profit Organisations