Financial Accounting Including Computerised Accounting

The book has been prepared strictly according to the new syllabus for B.Com. Semester I effective from the academic session 2023-2027 for Ranchi University.
The publishers are grateful to Dr Manoj Bansal, who has prepared the chapters relating to the Computerised Accounting System as per the new syllabus.
Some of the special features of this book are :

• A new chapter on Journal Entries of G.S.T. has been included in the book so that students may study the accounting of G.S.T.
• In each chapter of the book final accounts have been closed on 31st March only.
• The book covers the syllabus of both major compulsory papers Financial Accounting and Computerised Accounting.
• The unique feature of the book is that each and every topic of both papers has been included in the book.
• In each chapter Descriptive Answer Type Questions, Short Answer  Type Questions, and the large number of M.C.Q. with Answers have been given.

Financial Accounting Including Computerised Accounting Syllabus For B.Com. Ist Semester of Ranchi University

Unit I : (a) Theoretical Framework
1 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.
2 Financial accounting principles : Concepts and Conversations.
3 Accounting standards : Concept, benefits and Process of formulation of Accounting Standards including Ind 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 I : (b) Accounting Process
1 From recording of a business transaction to preparation of trial balance including adjustments.Application of Generally Accepted Accounting Principles in recording financial transactions and preparing financial statements.
Unit 2 : Computerized Accounting Systems
1 Computerized Accounting Systems : Computerized Accounts by using any popular accounting software Creating a Company; Configure and Features settings;
2 Creating Accounting Ledgers and Groups; Creating Stock Items and Groups; Vouchers Entry;
3 Generating Reports-Cash Book, Ledger Accounts, Trial Balance, Profit and Loss Account, Balance Sheet;
4 Cash Flow Statement
5 Selecting and shutting a Company; Backup, and Restore data of a Company.
Unit 3 : Business Income, Accounting for Depreciation and Inventory Valuation System
1 Business income : Concept of Revenue and Business Income, Measurement of business income; relevance of accounting period, continuity doctrine and matching concept in the measurement of business income; Objectives of measurement of Business income.
2 Revenue recognition : Recognition of expenses and income. Recognition of expenses and income with
a reference to AS 9 and Ind AS 18.
3 The nature of Depreciation. 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 in method of Depreciation and its impact of on measurement of business income.
3.4 Inventories : Meaning. Significance of inventory valuation. Inventory Record Systems : periodic and perpetual. Methods of computing depreciation: FIFO, LIFO and Weighted Average. Application of Accounting Standard in valuation of Inventory. Impact of inventory valuation on measurement of business income.
Unit 4 : Financial statements of Sole Proprietorship and Partnership Firms and Non-for-Profit Making Concern
1 Capital and revenue expenditures and receipts: general introduction only.
2 Preparation of financial statements of non-corporate business entities-Sole Proprietorship and Partnership firms (both manual and using appropriate software).
3. Preparation of financial statements of Not-for-Profit Organisations.
Unit 5 : Accounting for Branch
1 Concept of Dependent branches; Branch Accounting – debtors system, stock and debtors’ system,
branch final account system and wholesale basis system.
2 Independent branches : concept, accounting treatment with necessary adjustment entries; Incorporation of Branch Trial Balance in Head Office Books for home branches.
Unit 6 : Accounting for Hire Purchase, Instalment Payment System and Royalty
1 Overview of hire purchases and instalment payment system. Difference between Hire-purchase system and Instalment payment system, journal entry and accounting treatment in case of hire purchases and instalment payment system (In the Books of Both Parties).
2 Royalty Accounting.

Financial Accounting Including Computerised Accounting Contents:-

Financial Accounting

1. Meaning And Scope of Accounting
2. Accounting Principles
3. Accounting Standards In India (With International Accounting Standards & IFRS)
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. Adjustments Entries
12. Final Accounts (Financial Statements Of Non-Corporate Entities)
13. Rectification Of Errors
14. Accounting For Non-Trading Institutions (Receipts & Payment Account—Income And Expenditure Account)
15. Concept And Accounting Of Depreciation
16. Provisions, Reserves And Funds
17. Hire-Purchase System
18. Instalment Payment System
19. Measurement Of Business Income
20. Revenue Recognition As-9 And Ind As-18
21. Valuation Of Inventories
22. Branch Accounts
23. Royalty Accounts
24. Journal Entries Of G
25. Partnership Accounts (Preliminary & Final Accounts)

Computerised Accounting

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