Integrated B. Com @ Semester-I Paper- BCH 1.2-FINANCIAL ACCOUNTING Duration: 2.5 hrs Total Marks: 60(Term end examination 56 (Marks for Attendance 4) Lectures: 65 Objectives: The objective of this paper is to help students to acquire conceptual knowledge of the financial accounting and to impart skills for recording various kinds of business transactions. Unit 1: (a) Theoretical Framework i, 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 acerual basis. ii, The nature of financial accounting principles ~ Basic concepts and conventions: entity, ‘money measurement, going concern, cost, realization, accruals, periodicity, consistency, prudence (conservatism), materiality and full disclosures. iii. Financial accounting standards: Concept, benefits, procedure for issuing accounting standards in India, Salient features of First-Time Adoption of Indian Accounting Standard Ind-AS) 101. International Financial Reporting Standards (IFRS): - Need and procedures. (b) Accounting Process i, From recording of a business transaction to preparation of trial balance including adjustments. 2; (a) Business Income i, Measurement of business income-Net income: the accounting period, the continuity doctrine and matching concept. Objectives of measurement. Revenue recognition: Recognition of expenses. ‘The nature of depreciation. The accounting concept of depreciation. Factors in the measurement of depreciation. Methods of computing depreciation: straight line method and diminishing balance method; Disposal of depreciable assets-change of method. Inventories: Meaning. Significance of inventory valuation. Inventory Record Systems: periodic and perpetual. Methods: FIFO, LIFO and Weighted Average. Salient features of Indian Accounting Standard (IND-AS- 2) (b) Final Accounts Capital and revenue expenditures and receipts: general introduction only. Preparation of financial statements of non-corporate business entities Unit 3: Accounting for Hire-Purchase and Instalment Systems, Consignment, and Joint Venture i) Accounting for Hire-Purchase Transactions, Journal entries and ledger accounts in the books of Hire Vendors and Hire purchaser for large value items including Default and repossession, ii) Consignment: Features, Accounting treatment in the books of the consignor and consignee. iii) Joint Venture: Accounting procedures: Joint Bank Account, Records Maintained by Co- Venturer of (a) all transactions (b) only his own transactions. (Memorandum joint venture account). Unit 4: Accounting for Inland Branches and Dissolution of Firm i) Concept of dependent branches; accounting aspects; debtors system, stock and debtors system, branch final accounts system and whole sale basis system. Independent branches: MXIntegrated B. Com Semester-I concept accounting treatment: important adjustment entries and preparation of consolidated profit and loss account and balance sheet. ) Accounting of Dissolution of the Partnership Firm Including Insolvency of partners, sale to a limited company and piecemeal distribution. Unit V and Unit IV (For Internal Assessment) Tutorials Analysis of case studies based on syl i of Unit I to Unit 1V/ Assignments based on field survey/subject tours wherever feasible/Quiz. programmes‘moot courts wherever feasible/class presentations/class room seminars/Group discussions Suggested Readings: 1. Robert N Anthony, David Hawkins, Kenneth A. Merchant, Accounting: Text and Cases. McGraw-Hill Education, 13th Ed. 2013, 2. Charles T. Homgren and Donna Philbrick, Introduction to Financial Accounting, Pearson Education. 3. LR, Monga, Financial Accounting: Concepts and Applications. Mayur Paper Backs, New Delhi, 4. MCShukla, T.S. Grewal and S.C.Gupta Advanced Accounts. Vol-I. 8. Chand & Co., New Del 5. S.N. Maheshwari, and. S. K. Maheshwari. Financial Accounting. Vikas Publish House, New Delhi. 6. Deepak Sehgal. Financial Accounting. Vikas Publishing H House, New Delhi. 7. Bhushan Kumar Goyal and HN Tiwari, Financial Accounting, International Book House 8 Goldwin, Alderman and Sanyal, Financial Accounting, Cengage Learning 9. Tulsian, P.C. Financial Accounting, Pearson Education 10. Compendium of Statements and Standards of Accounting. The Institute of Chartered Accountants of India, New Delhi Journals: 1. The Journal of Business Finance & Accounting, John Wiley & Sons. 2. Journal of Financial Reporting and Accounting - Emerald Insight