Financial Accounting

The present text has been planned and designed to cope with the needs of B.Com students of different universities and to present the subject in simple language and lucid style.

Salient features of the Financial Accounting book:

• The subject matter has been arranged and systematized strictly according to the new syllabus and the following thoroughly revised chapters have been included in the present edition:

1. Rules of Debit and Credit: Journal
2. Sub-Division of Journal: Cash Book
3. Ledger
4. Trial Balance
5. Preparation of Final Accounts
6. Accounting for Non-Trading Organizations
7. Royalties Accounts
8. Hire-Purchase System
9. Installment Payment System
10. Branch Accounts
11. Concept and Accounting of Depreciation
12. Insolvency Accounts.

• A new chapter on ‘Journal Entries of G.S.T.’ has been included.
• In each chapter of the book, final accounts have been closed on 31st March only and the final accounts pertaining to companies have been prepared in accordance with Schedule III of the Companies Act, 2013.
• The language and style of presentation are very simple and the subject matter has been divided into various headings and sub-headings so as to give flow in studying this numerical subject.
• Both theoretical and numerical aspects of the subject have been given due importance. The numerical illustrations have been carefully graded with supporting theoretical background. In many places, explanatory notes have also been given to clarify the working of the solution.
• Numerical illustrations and questions have been arranged in a systematic and scientific sequence from simple to complex.
• Illustrations and questions both have been arranged in an identical sequence so that students can easily solve the questions after understanding the illustration in the same order.
• In the selection of illustrations and questions priority has been given to the latest university examination papers so that students may make practice according to that standard.

Financial Accounting Syllabus For B.Com I Year of Lait Narayan Mithila University, Darbhanga

Unit–I: Introduction: Meaning and Scope of Accounting, Objectives of Accounting, Principles of Accounting, Introduction of Accounting Standards & IFRS, Principles of Double Entry System. Accounting Cycle – Journal, Ledger, Trial Balance, and Final Account.

Unit–II: Branch & Departmental Accounts, Royalty Accounts, Hire Purchase, and Instalment Payment System.

Unit-III: Accounting for Partnership Business: Dissolution of Partnership firm with Insolvency of Partner.

Unit–IV: Consignment Account, Self Balancing Ledgers, Accounting for Depreciation, Reserve, Provision, and Surplus.

Unit–V: Financial statement of Not-for-Profit Organizations, Insolvency Account.

Financial Accounting Book Contents

1. Meaning and Scope of Accounting
2. Accounting Concept and Conventions
3. Accounting Standards (Including International Financial Reporting Standards (IFRS) and Indian Accounting Standards)
4. Concept of Double Entry System
5. Rules of Debit and Credit: Journal
6. Journal Entries of G.S.T
7. Sub-Division of Journal: Cash Book
8. Ledger (Including Rules of Posting)
9. Trial Balance
10. Capital and Revenue
11. Adjustment Entries
12. Final Accounts (Manufacturing Account, Trading Account, Profit & Loss Account, and Balance Sheet)
13. Branch Accounts
14. Hire-Purchase System
15. Installment Payment System
16. Royalty Accounts
17. Insolvency Accounts
18. Departmental accounts
19. Accounting for Non-trading (Non-profit) Organizations (Receipts and Payments Account, Income and Expenditure Account and Balance Sheet)
20. Dissolution of Partnership Firm—1
21. Dissolution of Partnership Firm—2 (With Insolvency of Partner)
22. Piecemeal Distribution
23. Conversion of Partnership Into a Joint Stock Company and Sale of Partnership Business
24. Concept and Accounting of depreciation
25. Single Entry System
26. Consignment Accounts
27. Self-Balancing System and Sectional Balancing System
28. Provisions, Reserves, and Funds