INSTITUTE OF COMMERCE

NIRMA UNIVERSITY
PROGRAMME: B.Com.(Hons.)
Batch: __2024-25__Semester – __III__

Course Code & Title FINANCIAL ACCOUNTING

Credit Hours 3
Faculty Dr. Avani Shah
E-mail ID [email protected]
Blog avanifinac.wordpress.com
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I. Course Overview:
Accounting is required to account for the money and other economic resources
used in any activity whether business or non-business. Accounting is the
information system that measures business activity, processes the data into reports,
and communicates the results to decision makers. Accounting is “the language of
business.” The better we understand the language of business, the better we can
manage our own business. Accounting serves as an effective tool for measuring the
financial pulse rate of an entity in the dynamic environment in which it functions.
Financial Accounting deals with preparing financial statements for providing
financial information to the users of the said statements.

II. Course Objective:

1. To understand the conceptual framework of financial accounting.
2. To complete the Accounting Process
3. To acquaint students with diverse accounting requirements in select business
organizational forms and situations.

III. Course Learning Outcomes (CLO):At the end of the course, the students will be
able to:

1. Comprehend the presentation of financial statements in business as per BL -2

the accounting standard.

2. Do accounting for special transactions. BL -2

3. Explain departmental accounting and accounting for branches. BL-2

4. Solve depreciation questions accounting and interpret its impact on BL -3

financial statements.
 5. Solve consignment and joint venture problems. BL-3

Text Book:

Maheswari et al. (As per UGC and NEP 2020), An introduction to Accountancy. New Delhi:
Vikas

IV. Assessment Components & Schedule:

Component
Overall
(with No. of Brief Description of
Marks Weightage of Schedule
sub the Project
the Component
components)
As per Schedule It shall be of
Written Test 40 descriptive exam of
24% 30 marks including
the practical
questions

Allotment-After- To be circulated
Group Project 20 12% 11 Session (Field work project
& will be given)
Submission-
After
40 sessions
12% Allotment Library assignment &
Assignment 20 After-35 Session Practical questions
Submission practices
After 50 Session
12% After-10 Quizzes will have
Quizzes (Five) 20 Sessions short, MCQ,
After-15 objective questions/
Sessions true or false/one-line
After-20 questions. Four
sessions quizzes of ten
After-25 questions each shall
Sessions be conducted. Out of
which the best three
 wherein the student
has secured highest
marks will be
considered for
assessment
Total 100 60 % ------ ------

End Sem Exam 100 40 % ------ ------

V. Session Plan:
Session No. Topic/Sub Topic Session Details

Unit I: Preparation and Presentation of Financial Statements (AS 1; AS 3; AS

4; AS 5 & AS 9)

1 Meaning, Scope & Text Book Ch. 1,2

Framework and
preparations of financial
statement
Purpose of Financial Pedagogy Video Screening,
Statement; Standard setting board work
process &Discussion
CLO 1
SLO To explain the
basics of
accounting.
2 Users of Accounting Text Book Ch. 1,2
Information
Qualitative Characteristics Pedagogy Video Screening,
of Financial Statements; board work
Standard setting process; &Discussion
CLO 1
SLO To classify the
basics of
accounting.
3 Statement of Financial Text Book Ch. 11
Position
Statement of Profit or loss Pedagogy Board work
&Discussion
CLO 1
SLO To explain the
basics of
accounting.
4 Statement of Changes in Text Book Ch. 11
 Equity, Statement of Cash Pedagogy Board work
Flows &Discussion
CLO 1
SLO To explain the
basics of
accounting.
5 Notes comprising a summary Text Book Ch. 2
of significant accounting Pedagogy Board work
policies and other &Discussion
explanatory notes CLO 1
SLO To explain the
Accounting
concepts,
conventions and
principles.
6 Comparative information Text Book Ch. 2
prescribed by the standard Pedagogy Video Screening
&Discussion
CLO 1
SLO To explain the
Accounting
concepts,
conventions and
principles.
7 Practical questions Text Book Ch. 2
Pedagogy Board work
&Discussion
CLO 1
SLO To explain the
Accounting
concepts,
conventions and
principles.
Unit II: Depreciation, Provisions and Reserves (AS 6)

8,9 Depreciation, Provisions Text Book Ch. 12

and Reserves (AS 6)
Explanation of AS-6 and Pedagogy Board work &
theory aspects on methods; Discussion
CLO 4

straight Line/Equal SLO To solve the

Installment Method with practical question
Practical Calculation of Depreciation as
per SLM Method

10,11 Text Book Ch. 12

Diminishing Balance Pedagogy Discussion &
 Exercise
CLO 4
SLO To solve the
practical question
Method with practical
of Depreciation as
calculation;
per WDV and
Change in the Method of
Change in Method
Depreciation with practical
12 Text Book Ch. 12
Pedagogy Discussion &
Exercise
Retrospective effect and its
CLO 4
implication on financial
statements: Practical SLO TO explain the
questions concepts, methods
and calculations of
retrospective
effect
Unit III: Accounting for Special transactions

13,14 Fire Claim (Insurance Text Book Handouts

Claims) Pedagogy Discussion &
Types of Claims, Loss of Exercise
Stock Policy, Value of stock CLO 2
on the date of fire, Actual SLO To explain the
amount of claims to be concepts of
lodged. Insurance Claim
and solve the
problems
15,16 Calculations of Gross-Profit Text Book Handouts
& Gross –profit ratio, Pedagogy Discussion &
Average Clause, (With Exercise
practical Calculation); Loss CLO 2
of Profit Policy, (With SLO To solve the
Practical Sum) practical question
on loss of profit
policy.
17,18 Hire Purchase and Text Book Section II- Chapter
Instalment Payment 3
System: Pedagogy Discussion &
Introduction, Special Exercise
Terminology; Accounting CLO 2
arrangements of
SLO To explain the
Transactions, In Books of
concepts and solve
Hire-Purchase, Interest
the practical
Calculation with practical
questions of Hire
Calculation
purchase.
19,20 Ascertainment of Text Book Section II- Chapter
Profit/Loss: The Stock and 3
Debtors Method with Pedagogy Discussion &
 practical calculation; Exercise
Instalments with Interest CLO 2
Calculation SLO To solve the
practical
questions as per
the Stock and
Debtors method.
21,22 Utility of Departmental Text Book Section II- Chapter
Accounts; 4
Departmentalization of Pedagogy Discussion &
Expenses; Types of Exercise
Problems CLO 3
SLO To explain the
concept and solve
the practical
question of
Departmental
Accounts
Unit IV: Joint Venture and Consignment
23,24 Joint- Venture Text Book Section II- Chapter
Introductory concept, 2
Features of Joint-Venture, Pedagogy Discussion &
Difference between Exercise
Partnership and Joint- CLO 5
Venture; Methods of SLO To explain the
keeping Accounts: Separate concept and solve
set of books is kept. (With the question of
Practical Calculation) separate set of
books.
25,26 Methods of keeping Text Book Section II- Chapter
Accounts: No separate set 2
of books is kept. (With Pedagogy Discussion &
Practical Calculation) Exercise
CLO 5
SLO To solve the
practical question
as per the No
separate set of
books.
27,28 Consignment Text Book Section II- Chapter
Economics of consignment, 1
some principal terms in Pedagogy Discussion &
consignment Procedure of Exercise
consignment Transactions; CLO 5
SLO To classify the
Entries in the books of
consignment
Consigner and consignee transactions and
(With practical calculation solve the practical
 problems.
29,30 Valuation of Unsold Stock Text Book Section II- Chapter
(Closing Stock), Abnormal 1
Stock with practical Pedagogy Discussion &
calculation; Credit sales and Exercise
Del Credere Commission, CLO 5
Loss on Goods of SLO To solve the
Consignment. (With practical problems
practical calculation); on consignment.
Consignment with IP Price

Suggested Readings:

1. Ramchandran, N. & Kakani, K. (2016). Financial Accounting for Management.

Chennai: McGraw Hill Education (India) Private Limited.
2. Jain, S. P. & Narang, K.L. (2016) Financial Accounting, Mumbai: Kalyani
Publishers.
3. Gupta, R. L., & Radhaswamy, M., (2016) Financial Accounting. New Delhi:
Sultan Chand & Sons.
4. Maheswari S. N., & Maheswari S. K, (2016) Advanced accountancy. New Delhi:
Vikas
5. Shukla M. C., & Grewall T. S., (2016) Advanced Accountancy. New Delhi: S.
Chand
6. Wild, J. J. (2018). Financial Accounting, Information for Decisions. Chennai:
McGraw Hill Education (India) Private Limited.

Add on Reading Links:

1) http://www.letstute.com/coursemain?courseId=5&curriculumId=3&superCurriculumId=3
2) www.letstute.com

Tutorial No. Topic Details

1,2 Accounting standard setting Discussion on financial statement of

process and frame work companies in the computer lab
guidelines

3,4 Components of financial statement Exercise and Query Solving

5 Joint venture account Exercise and Query Solving

6 Consignment Account Exercise and Query Solving

7,8 Group presentation Group Project Work

9,10 Group presentations Group Project Work

11,12 Group presentations Group Project Work

13,14 Depreciation Accounting & Exercise and Query Solving

Departmental Accounting
15 Accounting for special transactions Exercise and Query Solving