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 accounting.

CO2: To recall the basic principles of the double-entry system and apply journalizing techniques and ledger posting procedures to record transactions.

CO3: To apply the accounting concept for the preparation of trail balance.

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 accounts.

Textbooks

1. SP Jain and KL Narang – Advanced Accounting, 1 – Kalyani Publishers
2. N. Maheshwari – Advanced Accounting, Vol. 1 – Vikas Publishing House

References

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