BMBAI103

Fundamentals Of Accounting

L-T-P3-0-0 Credits3 Session2024-25 TypeTheory
Appears in 1 semester

MBA Integrated · Sem 1 (Core)

Syllabus

5 units · 40 lecture hours
Unit1

Unit 1: Fundamentals of Financial Accounting

9 hrs

Introduction to financial accounting; Accounting conventions and principals; Purpose, scope, importance and limitations of accounting; Users of accounting information; Generally Accepted Accounting Principles (GAAP) and Accounting Standards (AS), The Accounting Equation; Understanding the Assets, Liabilities, Revenues and Expenses; Concepts of capital expenditure, revenue expenditure, deferred revenue expenditure, capital receipts, and revenue receipts. Nature of accounts and rules of debit and credit.

Unit2

Unit 2: Basic Accounting Processes

8 hrs

Double entry system and its advantage; Basic accounting procedure; Journal, Journalizing, Journal entries processes for accounting; Goods and Service Tax (GST) and accounting [ Ledger: meaning, utility, posting entries. Opening and Closing entries; Trial Balance,

Unit3

Unit 3: Accounting for Inventory and Partnership

7 hrs

Accounting for Depreciation, Significance and Methods, Inventory Valuation Methods and Choice of Methods. Different Types of Reserves, Accounting for Partnership Firm-Introduction, Dissolution of Partnership Firm & Its accounts, Provision for Bad Debts, Accrued, Prepaid, Outstanding and unearned income and expenditure

Unit4

Unit 4: Recording and Classification of Transactions

10 hrs

Recording and Classification of transactions, Preparation of Financial Statements: Preparing Trading Account and Trial balance, Profit & Loss Account, without & with adjustments and Cash Flow Statement for a Sole Proprietor. Understanding of financial statements of a Joint Stock Company as per the Companies Act 2013. Preparation of Cash flow statements

Unit5

Unit 5: Accounting Standards

6 hrs

Introduction to International Financial Reporting Standards (IFRS): Need and significance. Ethical Issues in Accounting. The meaning and need for convergence of India accounting standards with IFRS; the benefits of achieving convergence with IFRSs for the economy, investors, industry, and accounting professionals. Concept and procedure of issuing Indian Accounting Standards (Ind AS); Introduction to Ind AS - 7 – Statement of Cash Flows, Ind AS 16 – Property, Plant and equipment and Ind AS 18 – Revenue Recognition;

Course Objectives3 points
  • To familiarize students with the mechanics of preparation of financial statements,
  • Understanding corporate financial statements, their analysis and interpretation,
  • Role of IFRS in accounting discipline,

Suggested Readings

  1. Narayanaswamy R. Financial Accounting: A Managerial Perspective. PHI Learning Pvt. Ltd., Delhi
  2. Robert N. Anthony, David F. Hawkins, Kenneth A. Merchant. Accountancy- text and cases. McGraw Hill Education (India) Private Limited, New Delhi.
  3. Garg CA Kamal, and Sehrawat Neeraj Kumar. Beginner`s Guide to Ind AS & IFRS. Bharat Law House Pvt. Ltd., New Delhi
  4. Maheshwari S. N., Maheshwari Sunil K., and Maheshwari Sharad K, An Introduction to Accountancy, Vikas Publishing House Pvt. Ltd.
  5. PC Tulsian- Financial Accounting (Pearson, 2016) With the latest (current) editions (not older than 6-7 years)

Official AKTU syllabus

This subject is on page 4, 5 of the original AKTU PDF.

Official AKTU syllabus PDF ↗