Financial Accounting

Babasaheb Bhimrao Ambedkar University · LL.B. Semester 3 · BBM-305

Unit I

Overview- Meaning and Scope of Accounting · i. Meaning and Scope of Accounting, Need for Accounting. · ii. Branches of Accounting, Accounting and other Disciplines. · iii. Role of Accountant. · iv. Difference between Management Accounting and Financial Accounting. · v. Accounting Concepts. · vi. Accounting Conventions and Principles. · vii. Introduction to Accounting Standards Issued by ICAI. · viii. Accounting Equation.

Unit II — Mechanics of Accounting

i. Double entry system of accounting. · ii. Journalizing of transactions; ledger posting and trial balance. · iii. Preparation of final accounts: Trading Account, Profit & Loss Account, Balance Sheet with Adjustments.

Unit III — Capital and Revenue, Inventory, Depreciation

i. Classification of Income. · ii. Classification of Expenditure. · iii. Classification of Receipts. · iv. Difference between Capital Expenditure & Capitalized Expenditure. · v. Revenue Recognition. · vi. Meaning of Inventory. · vii. Objectives of Inventory Valuation. · viii. Inventory Systems. · ix. Methods of Valuation of Inventories. · x. Valuation of Inventories. Depreciation Provisions and Reserves: · i. Concept of Deprecation. · ii. Causes of Depreciation. · iii. Basic Features of Depreciation. · iv. Meaning of Depreciation Accounting. · v. Objectives of Providing Depreciation. · vi. Methods of Providing Depreciation.

Unit IV

1. Introduction to Shares and Debentures · 2. Shares and Share Capital · i. Shares · ii. Share Capital · iii. Under subscription · iv. Oversubscription · v. Calls in Advance · vi. Calls in Arrears · vii. Issue of Share at Premium · viii. Issue of Share at Discount · ix. Forfeiture of Shares · x. Surrender of Shares · xi. Right Shares · xii. Re-issue of shares Debentures · i. Classification of Debentures · ii. Issue of Debentures · iii. Different Terms of Issue of Debentures · iv. Redemption of Debentures