Financial Accounting

• Accountancy is mostly regarded as a difficult subject but the reader of this book will realise 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 most important salient feature of the revised edition of the book is that all chapters have been thoroughly revised and updated.
  A new chapter on ‘Piecemeal Distribution’ has been included also.
• Many developments have taken place in Accounting Philosophy and International Accounting Standard. An effort has been made to incorporate all such developments in this book. The book includes the latest status of all Accounting Standards issued by the Institute of Chartered Accountants of India.
• This book adequately satisfies the standard of undergraduate students. After going through the theory, illustrations and questions of this book, one can easily solve questions of university examinations.
• Acquisition of thorough knowledge of Accountancy: A candidate can solve Accountancy 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 sufficient 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, knowledge of the 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.

Financial Accounting Book Syllabus for Banaras Hindu University, Varanasi For B.Com. (Hons.) : I Semester

Unit-I: Definition of Accounting, Accounting-Principles, Concepts and Conventions, Journal, Cash Book, Subsidiary Books and Ledger, Capital Expenditure and Revenue Expenditure.

Unit-II: Trial Balance, Rectification of Errors, Final Accounts, Provisions and Reserves, Methods of Depreciation – Fixed Instalment Method and Diminishing Balance Method.

Unit-III: Concept of Partnership, Partnership Deed, Fixed and Fluctuating Capital Accounts, Valuation of Goodwill, Profit Sharing Ratio. Admission of Partners: Revaluation of Assets and Liabilities, Preparation of Profit and Loss Adjustment.

Unit-IV: Retirement and Death of Partners: Revaluation of Assets and Liabilities, Settlement of Accounts, Joint Life Policy, and Annuities.

Unit-V: Dissolution of Firm, Preparation of Realisation Account, Insolvency of Partner (s).

Financial Accounting Book Contents

1. Meaning and Scope of Accounting
2. Accounting Principles, Concept and Conventions
3. Accounting Standards In India (with International Accounting Standards and 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. Rectification of Errors
12. Adjustment Entries
13. Final Accounts (Manufacturing Account, Trading Account, Profit & Loss Account and Balance Sheet)
14. Concept and Accounting of Depreciation
15. Provisions, Reserves and Funds
16. Partnership Accounts (Preliminary & Final Accounts)
17. Partnership Accounts: Admission of a New Partner [Concept of Goodwill (As Per As-26)]
18. Partnership Accounts: Retirement of a Partner [Concept of Goodwill (As Per As-10)]
19. Partnership Accounts: Death of a Partner (Including Joint Life Policy)
20. Dissolution of Partnership Firm-1
21. Dissolution of Partnership Firm-2 (with Insolvency of Partner)
22. Piecemeal Distribution
23. Amalgamation of Partnership Firms