JR Monga Financial Accounting book pdf

Syllabus Applicable for the students seeking admission to

B.Com. (P) Course in 2019

B.COM.(P) SEMESTER – I (2019)

FINANCIAL ACCOUNTING

Course Objective

This course provides conceptual knowledge of financial accounting and provides

knowledge about the techniques for preparing accounts in different type of business

organisations.

Course Learning Outcomes

After completing the course, the student shall be able to:

CO1: build an understanding of theoretical framework of accounting and be able to prepare financial statements.

CO2: explain and determine depreciation and inventory value

CO3: develop understanding of accounting for hire purchase transactions and lease transactions

CO4: understand branch and departmental accounting

CO5: develop the skill of preparation of trading and profit and loss account and balance sheet using computerized accounting or prepare accounts for dissolution of a partnership firm

Course Contents

Unit-I: Introduction: Conceptual Framework:

1. Accounting principle, Concepts and Conventions,
2. Introduction to Accounting Standards and Indian Accounting Standards (AS & Ind AS)
3. Accounting Process: Journal, ledger, Trial Balance, Financial Statements (overview)Capital Expenditure (and Receipts), Revenue Expenditure (and Receipts) and Deferred Revenue Expenditure (overview)
4. Preparation of Financial Statements of a profit making sole proprietorship trading firm with additional information.
5. Preparation of Financial Statements of a not for profit organisations.

Unit-II: Depreciation accounting and inventory valuation (Accounting for Plant Property and Equipment & Depreciation)

1. Meaning of Depreciation, Depletion and Amortization,
2. Objective and Methods of depreciation (Straight line, Diminishing Balance), Change of Method,
3. Inventory Valuation: Meaning, Significance of Inventory Valuation, Inventory Record System-Periodic and Perpetual,
4. Methods of Inventory Valuation-FIFO, LIFO and Weighted Average,

Unit-III: Accounting for hire purchase and lease transaction

1. Hire Purchase Accounting: Calculation of Interest, Partial and Full Repossession,
2. Profit Computation (Stock & Debtors System only) 
3. Lease Transactions: Concept, Classification of leases – an overview

Unit-IV: Branch and departmental accounting

1. Accounting for Branches (excluding foreign branches): Dependent branches (‘Debtors system and ‘Stock & debtors System’).
2. Departmental Accounting: Concept, Type of departments, basis of allocation of departmental expenses, Methods of departmental accounting (excluding memorandum stock and memorandum mark-up account method).

Unit-V: Computerized accounting system

Practical lab

1. Computerized Accounting System: Computerized accounts by using any popular accounting software: Creating a company; Configure and Features settings; 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 of Data of a Company.

OR

Unit-V: Accounting for partnership firm

1. Partnership accounts: Fundamentals, Admission, Retirement and Death of a partner (only an overview)
2. Accounting for Dissolution of Partnership Firm: Dissolution of Partnership Firm including Insolvency of partners (excluding sale to a limited company), Gradual realization of assets and piecemeal payment of liabilities. 

(This is an option in lieu of Computerized Accounting System)

Notes:

1. Latest Accounting Standards to be followed.
2. There shall be 4 credit hours for lectures + one credit hour (Two Practical Periods per week per batch) for practical lab + one credit hour for tutorials (per group).
3. Examination scheme for computerized accounting system – Practical for 20 marks.

The practical exam will be of one hour.

Theory external exam shall carry 75 marks and will be of 3 hours if (unit 5) Accounting

for partnership firms is opted and for the students who opt for computerized accounting

(Unit 5), theory external exam shall carry 55 marks and will be of 2½ hours.

References

1. Goyal, Bhushan Kumar. Basic Financial Accounting, Taxmann, New Delhi.
2. Lal, Jawahar, Seema Srivastava & Shivani Abrol. Financial Accounting Text and problems, Himalaya Publishing House, New Delhi.
3. Lt Bhupinder, Principles of Financial Accounting, Cengage
4. Monga, J. R. Financial Accounting: concept and Applications. Mayur publication, New Delhi
5. Sehgal, Ashok & Sehgal Deepak. Fundamentals of Financial Accounting. Taxmann, New Delhi.

Additional Resources

1. Charles, T Horngren, Gart L. Sundem, John A Elliot and Donna R. Philbrick. Introduction to Financial Accounting, Pearson.
2. Leonardo, A. Robinson, James R. Qanis, C. Wayne Alderman, Accounting Information Systems: A cycle Approach. Publisher Wiley.
3. Marshall, B Romney and Paul, John Steinbart, Accounting Information Systems, Pearson Education Limited.
4. Robert, L. Hurt, Accounting Information Systems: Basic Concepts and Current Issues, McGraw Hill.

Note: Latest edition of readings may be used.

Teaching Learning Process

Theory and numerical with examples, Practical Lab Lectures.

Assessment Methods

Class participation, Presentation, Practicals, Viva/ test, End Semester Exam.

Keywords

Financial Statements, Depreciation, Inventory Valuation, Hire Purchase, Branch

Accounting, Departmental Accounting.

AECC