Financial Accounting

Paper Code: 
CBBA102
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

This course will enable the students to understand the fundamentals of financial accounting, the principles and concepts underlying them, apply accounting rules in preparation of financial statements and understand the process of issue and forfeiture of shares.

Course Outcomes: 

Course

Learning outcomes

(at course level)

Learning and teaching strategies

Assessment

Strategies

Course Code

Course Title

25CBBA102

Financial Accounting (Theory)

CO:Explain Generally Accepted Accounting Principles (GAAP), including key concepts, conventions, and the accounting equation.

CO:Record transactions in journal and Subsidiary books.

CO:Prepare ledger accounts, trial balance and depreciation accounts.

CO: Prepare bank reconciliation

        statements and rectify

        accounting errors

CO: Create financial statements in accordance with Generally Accepted Accounting Principles.

CO: Contribute effectively in course specific interaction.

Approach in teaching:

Interactive sessions, Case Study Discussions, Tutorials, Reading assignments, Demonstration

 

Learning activities for the students:

Self-learning assignments, Classroom presentations, Group tasks

Continuous Assessment Test, Semester End Examinations, Quiz, Assignments, Presentation, Individual and group projects

 

12.00
Unit I: 
Introduction to Financial Accounting, GAAP & Accounting equations

Introduction to Financial Accounting- Definition and its usefulness, Objectives, Functions,
Advantages, Limitations and Users of Accounting Information. Generally Accepted Accounting Principles- Concepts and Conventions. Accounting Standards-Need, Nature, Objectives and Benefits of accounting standards. Accounting equations

12.00
Unit II: 
Recording of transactions in Journal and Subsidiary books

Double entry system-Meaning, Classification of accounts.
Recording of Transactions in Journal, An overview of Subsidiary books – Cash Book,
Purchase Book, Purchase Returns Book, Sales Book, and Sales Returns Book

12.00
Unit III: 
Preparation of Ledger Accounts, Trial Balance & Depreciation Accounts

Preparation of Ledger Accounts- meaning, need, rules of posting
Trial Balance-Meaning, Objectives, Methods and Preparation of Trial Balance
Depreciation Accounting -Causes and Methods of charging Depreciation – Straight-line Method and Written-down-value Method.

12.00
Unit IV: 
Bank reconciliation statement & Rectification entries

Bank reconciliation statement: Need for reconciliation between Cashbook and bank passbook,
problems relating to the preparation of Bank reconciliation statement
Rectification entries: Classification of Errors, Location of Errors, Rectification of Errors, Suspense Account, Effect on profit.

12.00
Unit V: 
Preparation of Financial Statements

Meaning, Need, Preparation of Trading Account, Profit & Loss Account and Balance Sheet with adjustments for a Sole Proprietor.

Essential Readings: 

1. Maheshwari, S. N., An Introduction to Accountancy, Vikas Publishers, New Delhi
2. Mukharjee, A. and Hanif, M., Modern Accountancy, Tata McGraw Hill, New Delhi
3. Sehgal, Ashok and Sehgal, Deepak, Fundamentals of Financial Accounting, Taxmann Allied Services
4. T.P. Ghosh, Financial Accounting for Managers: Taxmann Allied Services Pvt.Ltd.
5. Lal .J., Accounting for Management,Himalaya Publishing House
6. Sharma, Gupta and Khandelwal,Financial Accounting, RBD Publishing House

References: 

1. Jain, Khandelwal and Pareek, Financial Accounting, Ajmera Book Company, Jaipur
2. Tulsian, P.C., Accountancy, Tata McGraw-Hill, New Delhi
3. Goel, D.K. and Goel, Rajesh, Accountancy, Arya Publications, New Delhi
4. Ghosh, T.P., Fundamentals of Accounting, Sultan Chand & Sons, New Delhi.
5. Sharma& Jain, Fundamentals of Accounting, Shivam Publications.

E- resources:
1. Ellbrary.in.pearson.com
2. https://youtu.be/LzVZuBIsusU
3. www.accountingcoach.com

Academic Year: 
2025-2026
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