Financial Accounting (Major) Bihar B.Com 1st Semester

Unit

Topics to be Covered

No. of Lectures

1

Theoretical Framework

a)       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. Meaning, Characteristics and Scope of Accounting, Function, Advantages and Limitations of Accounting, Branches of Accounting.

b)       Basic Concepts and Conventions of Accounting,

c)       Accounting Standards: Concept, Benefits and Process of Formulation of Accounting Standards Including Indian AS (IFRS Converged Standards) and IFRSs; Convergence Vs. Adoption; Application of Accounting Standards (AS and Ind AS) on Various Entities in India. International Financial Accounting Standards (IFRS) – Meaning, Need and Scope; Process of Issuing IFRS.

10

2

Accounting for Depreciation, Inventory Valuation and Business Entities

a)       Definition, Nature and Concept of Depreciation. Factors in the Measurement of Depreciation, Methods of Charging Depreciation- SLM and DBM.

b)       Valuation of Inventory: Meaning and Significance of Inventory, Methods of Computing Depreciation: FIFO, LIFO.

c)       Accounting for Non Corporate Business Entities:

Preparation of Final Accounts with Adjustments; Accounting For Non Profitable Organisations; Preparation of Receipts and Payments Accounts, Income and Expenditure Account and Balance Sheet; Accounting under Single Entry System: Expenditure Account and Balance Sheet; Accounting under Single Entry System: Computation of Profit and Loss, Conversion of Single Entry into Double Entry.

15

3

Accounting for Hire Purchase, Installment and Royalty

a)       Hire Purchase System-Concept -Concept Transaction, Journal Ledger Accounts in the Books of Hire Vender and Hire Purchase including Default and Repossession.

b)       Installment Payment System-Concept, Transaction, Journal, Ledger, Accounts in the Books of Credit Purchase and Seller.

c)       Royalty: Concept Journal, Ledger, Accounts in the Books of Lessor and Lessee.

15

4

Accounting for Inland Branches/Departments

a)       Concepts of Branch System, Different Types of Branches, Accounting Aspects of Dependant and Independent Branches, Stock and Debtor System, Final Accounts System and Wholesale Basis System.

b)       Departmental Accounts: Concept Departmental System, Preparation of Final Accounts of Departmental Including Adjustments and Various Methods.

10

5

Accounting for Dissolution of Partnership Firm and Insolvency

a)       Concept of Dissolution of Firm: Distinction between Dissolution of Partnership and Dissolution of Firm. Accounting of Dissolution of the Partnership Firm including Insolvency of Partners,

b)       Concept of Insolvency of an Individual, Process of Declaration of Insolvency, Defined under Law, Preparation of Statement of Affairs and Deficiency Accounts including Revised Statement of Affairs.

10