Course
Code
1.
2.
3.
4.
HMT
3
0
Course
Title
5
Financial Accounting
L
T
P
Credit or Maximum
Marks
3
1
0
4
Introduction to Basic Accounting
a) Accounting as an Information
b) Concepts ,Conventions and Principles of accounting
c) Role of accounting in an Organization
i.
Branches of Accounting: Financial ,Cost and Management Accounting
ii.
Inter-Relationhips between Financial,Cost and Management
Accounting
Preparation of Books of Accounts
a) Preparaion of Journal
b) Ledger
c) Trial Balance
d) Final accounts of a sole trader and a Partnership firm (With simple
adjustments)
e) Introduction to Depreciation Accounting
f) Methods of Calculating Depreciation: Straight Line Method and Reducing
Balance Method
Final Accounts
a) Preparation of manufacturing,
b) Trading Profit & Loss Accounts and BAlance with adjustments.
Analysis and Interpretation of Financial Statement
a) Methods of Analysis
b) Comparative Statements
c) Common Size Statement
d) Trend Percentage or Trend Ration (Horizontal
e) Analysis)
Ratios
a) Fund Flow Statement
b) Ratio Analysis
c) Meaning of Ratio
d) Necessity and Advantages of Ratio Analysis
e) Interpretation of Ratios
5.
6.
7.
8.
Types of Ratio
a) According to the nature of items
b) Balance Sheet Ratios
c) Revenue Statements or Profit and Loss
Account Ratios
a) Inter Statement or Composite Ratios
b) Functional Classification
c) Liquidity Ratios
Fund Flow Statement and Cash Flow Statement
a) Meaning of Funds, Fund Flow Statement, Flow of Funds,
b) Working Capital, Causes of changes in working Capital,
c) Proforma of Sources and Application of Funds,
d) Proforma of Adjusted Profit and Loss Account
Working Capital
a) Meaning, Objective and Importance,
b) Factors determining requirement of Working Capital,
c) Sources of Working Capital, Computation of Working Capital
Marginal Costing
a) Meaning and Definition of Marginal cost and Marginal Costing,
b) Contribution, Profit Volume Ratio, Advantages of Marginal Costing,
Limitation, Problems
Budget and Budgetary Control
a) Meaning of Budget and Budgetary Control, Definition,
b) Nature of Budget and Budgetary Control, Objective of
c) Budget and Budgetary Control, Limitations of Budget and
d) Budgetary Control, Steps in Budgetary Control
e) Types/classification of Budgets
According to Time
a) Short Term
b) Long Term
According to Flexibility
a) Flexible
b) ii) Fixed
SUGGESTED READINGS:
1. Gupta R.L., Advanced Accounting Vol. I, S. Chand & Sons, New Delhi
2. Shah: Basic Financial Accounting, Oxford University Press.
3. Grewal T.S. and M.C. Shukla, Advanced Accounting Vol. I, S. Chand & Sons, New Delhi.
4. Monga, J.R., Financial Accounting, Margin Paper Bank, New Delhi
5. Maheshwari S.N., Advanced Accounting Vol. I, Vikas Publications
NOTE FOR THE PAPER SETTER
The syllabus has been divided into three units. Paper setter will set 3 questions from each
unit and 1 compulsory question spread over the whole syllabus consisting of 5 short answer
questions. Compulsory question will be placed at number one. Candidate shall be required to
attempt 6 questions in all including compulsory question and selecting not more than 2
questions from each unit. All questions carry equal marks.