BANASTHALI VIDYAPITH

FMS-WISDOM

Handout for the semester: July – December 2024

Class: BA I Semester Course Title: Financial Accounting

Course Teacher: Nidhi Solanki
Class Timings: TBD Estimated Contact Hrs: 60
Credits: 4, Max. Marks: 100 (CA: 40 + ESA: 60) Teacher’s Email: [email protected]

About the Course:

Commerce is an academic discipline that encompasses various aspects of business, trade, and the exchange of
goods and services. It is a multidisciplinary field that combines elements of economics, accounting, finance,
marketing, management, and law to understand the functioning of commercial activities. Financial accounting, a
subject of commerce, focuses on the recording, summarizing, and reporting of financial transactions and
information for external users, such as investors, creditors, and regulatory authorities. It involves the preparation
of financial statements, which provide a comprehensive overview of a company's financial performance and
position.

Course Objective:

1. To develop and understand the nature and purpose of financial statements in relationship to decision
making.
2. To develop the ability to use the fundamental accounting equation to analyze the effect of business
transactions on an organization's accounting records and financial statements
3. To develop the ability to use a basic accounting system to create (record, classify, and summarize) the
data needed to solve a variety of business problems.
4. To develop the ability to use accounting information to solve a variety of business problems.

Course Contents:
Unit I
 Introduction to Financial Accounting, Accounting Cycle, Accounting as an Information System,
 Users of Accounting Information and their needs,
 Basic Accounting Terminologies, Accounting Principles (GAAP)
 Concepts & Conventions, Basic Concept, Benefits and Distinction between
 Indian Accounting Standards
 International Financial Reporting Standards (IFRS),
 Double Entry System
 Overview of Single Entry System.

Unit II
 Source Documents of Accountancy.
 Analyzing Transactions, Preparation of Journal, Ledger and Cash Book
 Accounting for Goods and Services Tax.
 Unit III
 Trial Balance
 Rectification of Errors
 Bank Reconciliation Statement meaning & methods of preparing
Unit IV
 Depreciation- Straight Line Method & Written Down Value Method,
 Accounting for Bills of Exchange, Reserves & Provisions
Unit V
 Preparation of final accounts- Trading, Profit & Loss account and balance sheet, Format & Adjustments

Learning Outcomes:

Upon completion of the course, the student will be able to:

✔ Knowledge of the Accounting Cycle ✔ Ability to prepare financial statements
✔ Ability to evaluate financial results ✔ Ability to describe main elements of financial
statements

Suggested E-Learning Resources (ER):

1. Accounting MasterClass (2021) Accounting Principles |Accounting Concepts and Conventions | BBA |
Principles Of Accounting. Retrived from https://www.youtube.com/watch?v=Ww7pvRwI2BM.
2. CA. Naresh Agarwal (2018) #1 Bank Reconciliation Statement (Introduction). Retrieved from
https://www.youtube.com/watch?v=jy2lF1GpSEc.
3. CA. Naresh Agarwal (2017). #1 Final Accounts ~ Introduction and Basic Concepts. Retrieved from
https://www.youtube.com/watch?v=lRq58tmMpJc.

Suggested Readings (SR):

1. Goel, D. K., Goel, R., & Goel, S. (2018). Accountancy class XI (CBSE Syllabus). New Delhi: Arya
publication.
2. Grewal T.S., Gupta S.C. (2014), Introduction to Accountancy, S. Chand and Company Pvt. Ltd.
3. Maheshwari, S. N., & Maheshwari, S. K. (2011). An introduction to accountancy. Noida: Vikas Pub.
House.
4. Gupta R.L. and Gupta V.K. (2014), Financial Accounting, Sultan & Sons.
5.
Innovative approach:

Short cases/ Problem Statements, online quizzes for practice, online videos and interactive materials on portals
like YouTube, Swayam, use of Google Classroom, easy online submissions and interactions.

COURSE PLAN

No. of contact hours = 60

Unit I
Learning Objectives:
i. To advance knowledge of Accounting
ii. To empower students with principles of accounting
iii. To develop the concept of Single-entry system
iv. To find difference between capital and Revenue expenditure
 Text Book
Lecture No. Topics to be Covered
Ref. Book

Financial Accounting: Definition and its difference with cost

1-2 T1, T2
accounting and management accounting

GAAP- concepts and conventions International Financial Reporting

3-4 T1, T2
Standards (IFRS

Capital and revenue: Concept, difference between capital expenditure

5 T1, T2
and revenue expenditure

Single entry system: Concept, features, advantages, disadvantages,

6-10 difference between single entry system and double entry system, T1, T2,
practical problems

Unit II

Learning Objectives:

 To complete rules of Debit and Credit with types of accounts

 To build knowledge about source documents
 To form entries in journal and ledger

Types of voucher, format of different vouchers, invoices and

11-12 T1
memos

13-17 Rules of debit & credit T1

18-24 Preparation of journal, Ledger and cash book T1, T2

Unit III

Learning Objectives:

 To develop trial balance

 To create Bank reconciliation statement

Trial balance: Concept, objectives, preparation of trial balance,

25-28 T1, T2
Meaning and preparation of rectification of errors.

29-36 Meaning and methods of preparing Bank reconciliation statement T1, T2

Unit IV

Learning Objectives:

 To solve the problems of depreciation

 To establish the knowledge of accounting treatment of bill transactions
 To invent difference between provisions and reserves

37-41 Depreciation: Meaning, merits, demerits, Straight line method, Written T1, T2
 down value method

Accounting for bill of exchange: Concept, features, parties of a bill of

42-47 exchange, preparation of bills of exchange T1, T2

Concept of reserves and provisions, difference between reserve and

48-50 T1
provisions, classification of reserves

Unit V

Learning Objectives:

 To achieve the account treatment of different adjustments.

 To discuss the preparation of trading A/c and P&L A/c

51-56 Preparation of Final accounts: Trading A/c, Profit and loss account T1

57-60 Balance sheet: Format and adjustments T1

Case Studies: Small cases are an integral part of the subject which are often referred as sums, other than that
practical examples related to accounting will be shared in the class

Assessment Schedule:

Component Marks Submission/ Allotment

Examination date
Home assignment I 10 23 August, 2024 Topics shall be allotted in the
class by 7 August 2024
Periodical test I 10 4-7 September, 2024 -
Home assignment II 10 30 September, 2024 Topics shall be allotted in the
class by 14 September, 2024
Periodical test II 10 23-26 October, 2024 * -
Semester Examination 60 7-24 December, 2024 -

*subject to change.

Ms. Nidhi Solanki

(Signature of the Teacher/s)

(Signature of the HOD) (Signature of the Dean)