Course

Unit 1

Meaning of Book-Keeping – Definition of Accounting – Difference between Book-Keeping and Accounting

– Accounting cycle – Objectives of Accounting – Merits of Accounting – Users of Accounting information – Functions of Accounting – Limitations of Accounting – Branches of Accounting – Management Accounting – Cost Accounting – Basic Concepts and Conventions: entity, money measurement, going concern, cost, realization, accruals, periodicity, consistency, prudence (conservatism), materiality and full disclosures – basic accounting terms.

Unit 2

Basics principles of Double Entry System – Meaning of an Account – Types of Account – Personal Account, Real Accounts, Nominal Account – Rules of Debit and Credit – Journalizing – Journal Proper – Ledger Posting

– Subsidiary Books – Purchases Book – Purchases Returns Book – Sales Book–Sales Returns Book – Cash Book – Petty Cash Book– Bills Receivable Book –Bills Payable Book.

Unit 3

Trial Balance – Features – Preparation of Trial Balance – Purpose – Forms of a Trial Balance. Accounting Errors – types of errors – Error of principle – Error of Omission – Errors of commission – Compensating errors.

Unit 4

Depreciation – Meaning – Definition – Causes of Depreciation – Characteristics of Depreciation – Objective and Necessity for Providing Depreciation- Accounting Treatment of Depreciation – Methods of Depreciation

• Fixed Instalment Method – Diminishing Balance Method (Practical Problems).

Unit 5

Final Accounts of Sole Trader – Trading Account – Profit and Loss Account – Balance Sheet – Practical Problems with Adjustments – Closing Stock – Accrued expenses – Prepaid Expenses – Depreciation – Accrued Income – Unearned Income -Interest on Capital -Interest on Drawings.

Course Objective:

To demonstrate a comprehensive understanding of fundamental accounting principles and practices, including bookkeeping, double-entry system, preparation of financial statements, and accounting for depreciation, enabling them to analyse financial data accurately and make informed decisions in business contexts.

Course Outcome:

The student will be able:

• CO1: To understand the basic accounting concepts and principles of financial
• CO2: To recall the basic principles of the double-entry system and apply journalizing techniques and ledger posting procedures to record
• CO3: To apply the accounting concept for the preparation of trail
• CO4: To understand the concept of depreciation and to apply methods such as fixed instalment method and diminishing balance to calculate depreciation.
• CO5: To apply the concepts for the preparation of financial accounts of sole proprietor and analyse the financial performance and position of a sole trader based on prepared final

Text Books:

• SP Jain and KL Narang – Advanced Accounting, 1 – KalyaniPublishers
• N. Maheshwari – Advanced Accounting, Vol. 1 – Vikas Publishing

References:

• Shukla and Grewal – Advanced Accounting, Vol. 1 – Chand
• R L Gupta and Radhaswamy – Advanced Accounting, 1 – Sultan Chand and Sons