Financial Accounting

The book has been prepared strictly according to the new syllabus for B.Com. I Semester effective from academic session 2022-2023 for Aligarh Muslim University, Aligarh.

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 Aligarh Muslim University

• Unit I INTRODUCTION : Nature of accounting; Users of accounting information; Double entry book keeping system – Basic accounting equation. Bases of accounting : cash basis and accrual basis. Indian Accounting Standard and IFRS. Generally Accepted Accounting Procedures (GAAP). Accounting Cycle : Journal, Ledger and preparation of Trial Balance. Rectification of Errors and Bank Reconciliation Statements
• UNIT II ACCOUNTING FOR DEPRECIATION, RESERVES AND PROVISIONS : Concept of Depreciation, Depletion and Amortisation, Objective and Methods of Depreciation-Straight line, Written
  Down Value (WDV), Disposal of depreciable assets; change in estimate and method of charging depreciation. Accounting for depreciation : Asset-depreciation, Asset-provision. Reserves and provisions : Meaning; Objective; Significance, Reserves Vs Provision, Types & Accounting treatment.
• Unit III FINAL ACCOUNTS OF PROFIT AND NON-PROFIT CONCERNS : Preparation of financial statements : of sole proprietorship business entities from a trial balance – Manufacturing A/C, Trading, P/L A/c and Balance Sheet. Treatment of adjustments in final accounts. Preparations of financial statements of a non-profit concern.
• Unit IV ACCOUNTING FOR PARTNERSHIP FIRMS : Fundamentals of Partnership accounts, admission, retirement, death of a partner. Dissolution of a partnership firm including insolvency of partnership firms, Gradual realization of assets and piecemeal payment of liabilities.