Course

Unit 1

Accounting – Meaning – objectives – advantages – limitations of accounting – Accounting Concepts and Conventions: entity, money measurement, going concern, cost, realization, accruals, periodicity, consistency, prudence (conservatism), materiality and full disclosures – Branches of accounting – Financial accounting standards: Concept, benefits, procedure for issuing accounting standards in India – International Financial Reporting Standards (IFRS) – Need – Distinction between Indian Accounting Standards (Ind ASS) and Accounting Standards (ASs). GST Accounting – Introduction – Journal Entries for recording GST at the time of Purchases and Sales (practical problems are excluded) – Input Tax Credit

Unit 2

Final Accounts of Sole Trader – Trading Account – Manufacturing Account – Profit and Loss Account – Balance Sheet – Adjusting entries – Closing Entries – Practical Problems with Adjustments – Closing Stock – Outstanding expenses – Prepaid Expenses – Depreciation – Accrued Income – Unearned Income – Interest on Capital -Interest on Drawings -Bad Debts – Provision for Doubtful Debts – Provision for Discount on Debtors – Provision for Discount on Creditors – loss of stock destroyed by fire – Goods sold on sale or return on basis.

Unit 3

Accounts from Incomplete Records – Single Entry System – Features – Advantages – Disadvantages – Distinction between Single Entry and Double Entry System- Ascertainment of Profit/loss – Statement of Affairs Method – Conversion Method – Preparation of Trading and Profit and Loss Account and Balance Sheet.

Unit 4

Depreciation – Causes of Depreciation – Characteristics of Depreciation – Objective and Necessity for Providing Depreciation – Methods of Charging Depreciation: Straight Line Method – merits – Written down value method – merits – Tax aspect of depreciation.

Unit 5

Financial Statements of Non-Profit Organization – Receipt and Payment Account- features of Receipts and Payments Account- Income and Expenditure Account- Features of Income, and Expenditure Account – Difference between Receipts and Payments Account and Income and Expenditure Account – Treatment of special items – Preparation of Financial Statements of Non- Profit Organization.

Course Objective:

To equip the students with the skill of preparing accounts and financial statements of Sole Trader and Non-Profit Organizations.

Course Outcomes:

The students will be able:

CO1: To understand accounting concepts and conventions, such as entity, money measurement, going concern, and others, and explain their significance in financial reporting.

CO2: To apply the accounting concepts for preparation of the financial statement of a sole trader under double entry system.

CO3: To understand the distinction between single entry and double entry systems of accounting and apply knowledge of accounting principles to prepare trading, profit and loss account and balance sheet from incomplete records.

CO4: To Understand the objective and necessity for providing depreciation and the methods of charging depreciation, such as straight-line method and written down value method.

CO5: To understand the financial statements of non-profit organizations and analyse the financial position and performance of non-profit organizations based on their financial statements.

Textbooks:

1. Maheshwari, N., Maheshwari, S.K. – Advanced Accountancy – Vikas Publishing House
2. P. Jain, K. L. Narang – Advanced Accounting Vol. I – Kalyani Publishers

Reference:

1. Shukla, C., Grewal, T.S. – Advanced Accountancy – S. Chand and Company
2. Ashok, Sehgal, Deepak Sehgal – Financial Accounting – Taxmann
3. K M Vineeth, K R Shabu – Introduction to Accountancy – Kalyani Publishers
4. L. Gupta, M. Radhaswamy – Advanced Accountancy Vol. 1 – Sultan Chand and Sons
5. C. Shukla, T. S. Grewal – Advanced Accounts Vol. 1 – S. Chand and Co.