Financial Accounting

The present edition of the book stands out distinctly from others on account of the following salient features Financial Accounting 

• Complete New Syllabus of B.Com & B.Com (Hons) Semester-I Examination is covered.
• The book is thoroughly revised with a view to making it more student-friendly.
• Chapter on ‘Sale of Partnership Business to a Limited Company’ has been revised on the basis of the Companies Act, 2013.
• 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.Authentic material on First-Time Adoption of Indian Accounting Standard (IND-AS) 101, Indian Accounting Standard (IND-AS) 2 and International Financial Reporting System (IFRS) has been given in the book.
• Relevant Indian Accounting Standards in line with the IFRS have been covered in the book, such as AS-6 in the chapter on Depreciation and AS-9 in the chapter on Revenue Recognition
• In the book material on Computerized Accounting System has been given in the book.
• The subject has been presented on ‘Teach yourself’ technique with out assuming any prior knowledge of the subject.
• Theoretical text has been supplemented with numerous illustrations.
• The Book contains more than 300 solved problems and an equal number of unsolved exercises with correct answers and Hints to solutions wherever necessary.

Financial Accounting Book New Syllabus For Hemvati Nandan Bahuguna Garhwal University of B.Com. : Semester I

Unit 1. (a) Theoretical Framework

i. 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.

ii. The nature of financial accounting principles – Basic concepts and conventions:entity, money measurement, going concern, cost realization, accruals,periodicity, consistency, prudence (conservatism), materiality and full disclosures.

iii. Financial accounting standards : Concept, benefits, procedure for issuing accounting standards in India. Salient features of First-Time Adoption of Indian Accounting Standard (Ind-AS) 101. International Financial Reporting Standards(IFRS) :- Need and procedures.

(b) Accounting Process

From recording of a business transaction to preparation of trial balance including adjustments.

(c) Computerised Accounting System

Computerised Accounting System: Computerized Accounts by using any popular accounting software: Creating a Company; Configure and Features setting; Creating Accounting Ledgers and Groups; Creating Stock Items and Groups;Vouchers Entry; Generating Reports – Cash Book, Ledger Accounts, Trial Balance, Profit and Loss Account, Balance Sheet, Funds Flow Statement, Cash Flow Statement, Selecting and shutting a Company; Backup and Restore data of a Company.

Unit 2. (a) Business Income

i. Measurement of business income-Net income: the accounting period, the continuity doctrine and matching concept. Objectives of measurement.

ii. Revenue recognition: Recognition of expenses

iii. The nature of depreciation. The 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 of method

iv. Inventories: Meaning. Significance of inventory valuation. Inventory Record Systems: periodic and perpetual. Methods: FIFO, LIFO and Weighted Average. Salient features of Indian Accounting Standard (IND-AS)  

(b) Final Accounts

Capital and revenue expenditures and receipts: general introduction only.Preparation of financial statements of non-corporate business entities.

Unit 3. Accounting for Hire-Purchase and Installment Systems, Consignment, and Joint Venture

i. Accounting for Hire-purchase Transactions, Journal entries and ledger accounts in the books of Hire Vendors and Hire purchaser for large value items including Default and repossession.

ii. Consignment: Features, Accounting treatment in the books of the consignor and consignee.

iii. Joint Venture: Accounting procedures: Joint Bank Account, Records Maintained by Coventurer of (a) all transactions (b) only his own transactions. (Memorandum joint venture account).

Unit 4. Accounting for Inland Branches: Concept of dependent branches; accounting aspects; debtors system, stock and debtors system, branch final accounts system and wholesale basis system. Independent branches: concept-accounting treatment: important adjustment entries and preparation of consolidated profit and loss account and balance sheet.

Unit 5. Accounting for Dissolution of the Partnership Firm Accounting of Dissolution of the Partnership Firm including Insolvency of partners, sale to a limited company and piecemeal distribution.

Financial Accounting Book Contents

1. Introduction to Accounting
2. Financial Accounting Principles (Basic Conventions and Concepts)
3. Financial Accounting Standards [With International Financial Reporting Standards (Ifrs)]
4. Journal: Rules of Debit and Credit
5. Sub-Division of Journal: Cash Book
6. Sub-Division of Journal: Subsidiary Books
7. Ledger (Including Rules of Posting)
8. Trial Balance
9. Capital and Revenue
10. Adjustment Entries
11. Financial Statements of Non-Corporate Entities (Manufacturing Account, Trading Account, Profit & Loss Account and Balance Sheet)
12. Hire-Purchase System
13. Instalment Payment System
14. Branch Accounts (Accounting for Inland Branches)
15. Consignment Accounts
16. Joint Venture Accounts
17. Dissolution of Partnership Firm – 1 (including Piecemeal Distribution)
18. Dissolution of Partnership Firm – 2 (with Insolvency of Partner)
19. Piecemeal Distribution
20. Sale of Partnership Business to a Limited Company (Revised on the Basis of The Companies Act, 2013)
21. Measurement of Business Income
22. Revenue Recognition : AS-9
23. Methods of Recording Depreciation
24. Valuation of Inventories
25. Computerised Accounting System
    ● Appendix Multiple Choice Type Questions