Fundamentals of Accounting

Financial Accountancy is mostly regarded as a difficult subject but the reader of this book will realize 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. After going through the theory, illustrations and questions of this book, one can easily solve questions of university examinations.

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

1. Books of Original Records: Journal
2. Sub-Division of Journal: Cash Book
3. Ledger
4. Trial Balance
5. Final Accounts
6. Accounting for Non-Trading Institutions
7. Concept and Accounting of Depreciation
8. Shares and Share Capital
9. Issue and Redemption of Preference Shares
10. Issue and Redemption of Debentures.

• A new chapter on ‘Journal Entries of G.S.T.’ has been included.

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, suitable 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, latest and up-to-date knowledge of this 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. Another important feature of the book is the inclusion of the latest examination questions of various universities

Fundamentals of Accounting Syllabus For B.B.A. Semester I of Dr. Bhim Rao Ambedkar University, Agra

Unit I – Meaning: Nature and concepts of financial accounting, Users of accounting information, Accounting Process; Users of Accounting Information; Single Entry and Double Entry bookkeeping system; Principles of Accounting; Journal; Ledger: Meaning, Need and Importance, Advantages, Posting of transactions to Ledger; Numerical Problems on Ledger. Trial Balance: Preparation, Errors and their Rectification, Numerical Problems on Preparation and Correction of Trial Balance.

Unit II – Financial Accounts: Meaning, Types and Objectives, Trading Account, Profit & Loss Account, Balance Sheet Adjustments; Final Accounts of sole traders, Partnership Firm and Non-Profit Organizations; Adjustments at the end of the financial year. Bank Reconciliation Statements.

Unit III – Depreciation, Provisions and Reserves: Concept of Depreciation, Causes of Depreciation, Basic Features of Depreciation, Meaning of Depreciation Accounting, Objectives of Providing Depreciation, Fixation of Depreciation Amount, Method of Recording Depreciation, Methods of providing Depreciation, Depreciation Policy, AS-6 (Revised) Depreciation Accounting, Provisions and Reserves. Goodwill: Meaning, Importance, and Methods of Valuation.

Unit IV – Shares and Share Capital: Shares, Share Capital, Accounting Entries, Under subscription, Over-subscription, Calls in Advance, Calls in Arrears, Issue of Share at Premium, Issue of Share at Discount. Forfeiture of Shares, Surrender of Shares, Issue of Two Classes of Shares, Right Shares, Reissue of shares.

Debentures: Classification of Debentures, Issue of Debentures, different Terms of Issue of Debentures, Writing off Loss on Issue of Debentures, Accounting Entries, Redemption of Debentures.

Fundamentals of Accounting Book Contents

1. Accounting
2. Basic Accounting Principles, Concepts, and Conventions
3. Accounting Standards in India [with International Financial Reporting Standards (IFRS)]
4. Concept of Double Entry System
5. Book of Original Records: 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. Rectification of Errors
14. Concept and Accounting of Depreciation
15. Provisions, Reserves, and Funds
16. Accounts of Non-Trading Institutions
17. Bank Reconciliation Statement
18. Shares and Share Capital
19. Issue and Redemption of Preference Shares
20. Issue and Redemption of Debentures

• Question Paper of the Year 2018