Financial Accounting

About The Book

• The new revised edition of the book has been published strictly according to the new syllabus for B.Com. Semeter-I effective from the academic session 2023-24 under New Education Policy (NEP), 2020.
• In the chapter of Valuation of Inventories, Accounting Standard-2 (Revised) on Valuation of Inventories has been included which is unique feature of the book.
• This book has several unparalleled features which make it distinct from other available text books on Accountancy. The presentation of the subject is designed on ‘‘teach yourself’’ technique which enables the students to learn faster.
• 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.
• A simplified, systematic approach to the understanding of a complex subject written in a unique, simple and easy to understand language.
• Each topic, after a theoretical exposition, is followed by illustrations to facilitate the students to master the practical application of Accountancy.
• User-friendly examination-oriented style facilitating easy comprehension of each topic.
• Solved Illustrations and Questions for exercise are largest in number in comparison to other books on Financial Accounting.

Financial Accounting Syllabus For B.Com. 1st Semester of Various Universities of Bihar

Unit-1 : Theoretical Framework 
(a) Accounting as an information system, the users of financial accounting information and their needs. Qualitative characteristics of accounting information. Functions, advantages and limitations of accounting. Branches of accounting. Bases of accounting, cash basis and accrual basis. Meaning, Characteristics and scope of Accounting, Function, advantages and limitations of Accounting, Branches of Accounting.
(b) Basic Concepts and Conventions of Accounting,
(c) Accounting standards : Concept, benefits and Process of formulation of Accounting Standards including Indian AS (IFRS converged standards) and IFRSs; convergence Vs. adoption; Application of accounting standards (AS and Ind AS) on various entities in India. International Financial Accounting Standards (IFRS)—Meaning, Need and Scope; Process of issuing IFRS.
Unit-2 : Accounting for Depreciation, Inventory Valuation and Business Entities 
(a) Definition, nature and concept of depreciation, Factors in the measurement of Depreciation, Methods of charging Depreciation—SLM and DBM.
(b) Valuation of inventory, Meaning and significance of inventory valuation, Methods of computing depreciation : FIFO, LIFO.
(c) Accounting for Non-Corporate Business Entities. Preparation of Final Accounts with adjustment; Accounting for Non-profitable organizations; Preparation of Receipts and Payments Account, Income and Expenditure Account and Balance Sheet; Accounting under Single Entry System; Computation of Profit and Loss, Conversion of Single Entry into Double Entry.
Unit-3 : Accounting for Hire Purchase, Installment and Royalty 
(a) Hire Purchase System : Concept–Concept Transation, Journal Leger Accounts in the books of Hire Vendor and Hire Purchase including Default and Repossession.
(b) Installment Payment System : Concept, Transaction, Journal, Ledger, Accounts in the books of Credit Purchase and Seller.
(c) Royalty : Concept Journal, ledger, accounts in the books of Lessor and Lessee.
Unit-4 : Accounting for Inland Branches/Departments 
(a) Concepts of Branch System, different types of Branches, accounting aspects of Dependant and independent Brnaches, Stock and Debtor System, Final Accounts system and Wholesale Basis System.
(b) Departmental Accounts : Concept Departmental System, Preparation of Final Accounts of Departmental
including Adjustments and various methods.
Unit-5 : Accounting for Dissolution of Partnership Firm and Insolvency : 
(a) Concept of Dissolution of Firm; Distinction between Dissolution of Partnership and Dissolution of Firm, Accounting of Disolution of the Partnership Firm including Insolvency of Partners.
(b) Concept of Insolvency of an Individual, Process of Declaration of Insolvency, Defined under law, Preparation of Statement of Affairs and Deficiency Accounts including Revised Statement of Affairs.

Financial Accounting Contents :

1. Meaning and Scope Of Accounting
2. Accounting : Basic Concepts and Conventions
3. Accounting Standards : Indian and International
4. Accounting For Depreciation
5. Valuation of Inventory
6. Adjustment Entries
7. Final Accounts
8. Accounting of Non-Profit Organizations (Preparation of Receipts and Payment Account, Income and
   Expenditure Account and Balance Sheet)
9. Single Entry System
10. Hire-Purchase System
11. Instalment Payment System
12. Royalty Accounts
13. Branch Accounts
14. Departmental Accounts
15. Dissolution of Partnership Firm—1
16. Dissolution of Partnership Firm—2 (With Insolvency of Partner)
17. Piecemeal Distribution
18. Insolvency Accounts