C.M.10 Financial Accounting
Module I
Introduction - Nature of financial Accounting - scope – objects –limitations – Accounting concepts and conventions- Financial accounting standards –Object of accounting standards – Accounting Standard Board of India and Indian Accounting Standards – Accounting process from recording of business transactions to preparation of Trial Balance (an overview only)
Module II
Conceptual Frame work for preparation and presentation of financial statements - Capital,
Revenue and deferred revenue expenditure – Capital and revenue receipts -
Final accounts of Sole Proprietor and not –for- profit organizations – accounting from
incomplete records – statement of affairs method and conversion method
(simple problems only)
Module III
Accounting for Hire Purchase and Installment System -Meaning – Features of hire purchase
agreement – Distinction between hire purchase and sale –Interest calculation
– Recording of transaction in the books of both parties - Default and repossession -
Installment system – Features – Distinction between hire purchase and installment
Module IV
Departmental Accounts - Meaning – Objects – Advantages - Accounting procedure –
Allocation of expenses and incomes – Interdepartmental transfers – Provision for unrealized
profit - Branch Accounts - Features – Objects- Types of branches – Dependent branches –
Account Systems –Stock and Debtors System –Independent branch – Features – Preparation of
consolidated Profit and Loss Account and Balance Sheet
Module V
Accounting for hotels and restaurants – Introduction - features - revenue earning and non
revenue earning departments - heads of revenue and heads of expenditure -
Working papers, journals – posting - preparation of trial balance – preparation of final
statements -
Trading accounts, Profit and Loss Accounts and Balance sheet