Foundations of Financial Accounting for BBA/B.com First and Third Semester (RTMNU)

"Foundations of Financial Accounting" is an introductory subject designed to help students understand the basic principles and practices of accounting. It explains how financial transactions are recorded, classified, summarized, and interpreted in the books of accounts. The course builds a solid base for further studies in finance, taxation, and auditing.

This subject is crucial for learning how to prepare financial statements, interpret results, and ensure accurate and transparent accounting in businesses.

Key Concepts Covered:

Semester I (Introductory Level)

1. Introduction to Accounting

   • Meaning, features, objectives, and importance of accounting

   • Basic accounting terms and concepts

   • Accounting principles and conventions

   • Indian Accounting Standards (AS)

2. Accounting Process

   • Journal entries, ledger posting, trial balance

   • Preparation of subsidiary books

   • Rules of debit and credit

   • Cash book and bank reconciliation

3. Final Accounts of Sole Traders

   • Trading, Profit & Loss Account, and Balance Sheet

   • Adjustments like depreciation, prepaid/ outstanding expenses, provisions, etc.

4. Goodwill Valuation and Consignment Accounting

   • Methods of valuing goodwill

   • Accounting for consignment transactions

Semester III (Advanced Level)

1. Branch Accounting

   • Types of branches (dependent, independent)

   • Accounting methods for branches

2. Joint Venture Accounts

   • Accounting when two or more parties collaborate for a specific project

   • Centralized and decentralized methods

3. Accounts of Co-operative Societies

   • Preparation of final accounts of co-operative credit societies

   • Legal provisions and format as per Co-operative Societies Act