FINANCIAL ACCOUNTING

Syllabus

BBA103

Financial Accounting

Unit 1: Fundamentals of Financial Accounting (9 Hours)

Introduction to Financial Accounting; Accounting Conventions and Principals; Purpose, Scope, Importance and Limitations of Accounting; Users of Accounting Information; Generally Accepted Accounting Principles (GAAP) and Accounting Standards (AS), The Accounting Equation; Understanding the Assets, Liabilities, Revenues and Expenses; Concepts of Capital Expenditure, Revenue Expenditure, Deferred Revenue Expenditure, Capital Receipts, and Revenue Receipts. Nature of Accounts and Rules of Debit and Credit.

Unit 2: Basic Accounting Processes (8 Hours)

Double Entry System and Its Advantage; Basic Accounting Procedure; Journal, Journalizing, Journal Entries Processes for Accounting; Goods and Service Tax (GST) and Accounting, Ledger: Meaning, Utility, Posting Entries. Opening and Closing Entries; Trial Balance.

Unit 3: Accounting for Inventory and Partnership (7 Hours)

Accounting for Depreciation, Significance and Methods, Inventory Valuation Methods and Choice of Methods. Different Types of Reserves, Accounting for Partnership Firm-Introduction, Dissolution of Partnership Firm & Its Accounts, Provision for Bad Debts, Accrued, Prepaid, Outstanding and Unearned Income and Expenditure.

Unit 4: Recording and Classification of Transactions (10 Hours)

Recording and Classification of Transactions, Preparation of Financial Statements: Preparing Trading Account and Trial Balance, Profit & Loss Account, Without & with Adjustments and Cash Flow Statement for a Sole Proprietor. Understanding of Financial Statements of a Joint Stock Company as Per the Companies Act 2013. Preparation of Cash Flow Statements.

Unit 5: Accounting Standards (6 Hours)

Introduction to International Financial Reporting Standards (IFRS): Need and Significance. Ethical Issues in Accounting. The Meaning and Need for Convergence of India Accounting Standards with IFRS; the Benefits of Achieving Convergence with IFRSs for the Economy, Investors, Industry, and Accounting Professionals. Concept and Procedure of Issuing Indian Accounting Standards (Ind AS); Introduction to Ind AS - 7 – Statement of Cash Flows, Ind AS 16 – Property, Plant and Equipment and Ind AS 18 – Revenue Recognition.