Financial Accounting

Financial Accounting 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.

• The subject-matter has been arranged and systematized strictly according to the new syllabus and following thoroughly revised chapters have been included in the present edition :
• Hire-Purchase System
• Installment Payment System.

The book adequately satisfies the standard of B.B.A. Course. After going through the theory, illustrations and questions of this book, one can easily solve questions of university examinations.

A candidate can solve 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, suitable 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, latest and up-to-date knowledge of this subject in a very short period of time and without any exertion on his part.

Care has been taken to present the study material in a logical sequence to facilitate easy understanding by the students. Small illustrations have been incorporated in each chapter to explain the concepts/principles dealt with in the chapter.

In each chapter Short Answer Type Questions, Long Answer Type Questions, Objective Type Questions and Practical Problems with Answers have been given which will help the students in preparing for the examination.

Financial Accounting Syllabus For B.B.A. Semester I of Pt. Ravi Shankar Shukla University, Raipur

• Unit-1 : Accounting : Definition, Meaning, Advantages, Limitations and Accounting System; Relationship of Accounting with other functional Areas, Scope of Accounting, Uses of Accounting, Duble Entry of Book Keeping, Difference between Book Keeping and Accountancy.
• Unit-2 : Capital and Revenue : Classification of Capital and Revenue; Golden Rules of Accounting, Journal, Ledger, Subsidiary Book – Cash Book, Meaning and Type of Cash Book – Single Column, Double Column and Three Column Cash Book. Three Column Cash Book. Trail Balance –Meaning – Preparation of Trail Balance. Rectification of Errors : Classification of Error, Location of Error, Suspense Account, Effects on Profit.
• Unit-3 : Bank Reconciliation Statement : Meaning, Need and Importance of Bank Reconciliation Statement, Reasons of difference between Cash Book and Pass Book Balance, Methods of preparation of Bank Reconciliation Statement. Final Account : Preparation of Manufacturing Account, Trading Account, Profit and Loss Account, Balance Sheet (Simple Adjustment only).
• Unit-4 : Depreciation : Meaning, Definition, Importance, Defects of Depreciation – Method of Calculating Depreciation – Straight line method – Written down value method. Hire Purchase : Accounting of Hire Purchase and Instalment System, Advantages and Disadvantages of Higher purchase and Instalment system, Rights of Higher Purchase and Higher purchase vender. Journal Entries and proposal of ledger accounts excluding defaults and reposition.
• Unit-5 : Accounting Software : Introduction – Meaning of Accounting Software, Types of Accounting Software; Tally – Meaning of Tally Softwer–Features–Advantages, Creating a New Company, Basic Currency Information, Company features and Inventory features. Configuring Tally – General Configuration, Numerical symbols, Accounts/Inventory info – Master Configuration – Voucher Entry Configuration. Working in Tally : Groups, Ledgers, Writing Voucher, Different types of Voucher, Voucher Entry Problem on Voucher entry – Generating Basic Reports in Tally – Trail Balance, Accounts Books, Cash Book, Bank Books, Leder Accounts, Group Summary, Sales Register and Purchase Register, Journal Register, Statement of Accounts and Balance Sheet.

Financial Accounting Book Contents

1. Meaning and Scope of Accounting
2. Accounting Principles
3. Accounting Standards in India (Including International Accounting Standards)
4. Concept of Double Entry System
5. Rules of Debit and Credit: Journal
6. Sub-Division of Journal: Cash Book
7. Sub-Division of Journal: Subsidiary Books
8. Ledger (Including Rules of Posting)
9. Trial Balance
10. Capital and Revenue
11. Rectification of Errors
12. Adjustments Entries
13. Final Accounts (Manufacturing Account, Trading Account, Profit & Loss Account and Balance Sheet) 
14. Bank Reconciliation Statement
15. Concept and Accounting of Depreciation (As Per A.S.- 6)
16. Hire-Purchase System
17. Installment Payment System

Computerised Accounts

1. Computerised Accounting System
2. Introduction To Operating Software
3. Popular Accounting Software Tally
4. Creating Group, Ledger And Vouchers Entry
5. Creating Stock Groups And Stock Items And Accounting Vouchers
6. Generating Reports

• Objective Type Questions With Answer Based On Computerised Accounts