COM 250 PRINCIPLES OF ACCOUNTING

Description
The subject is aimed to provide basic concept, conventions, assumptions
and procedures to prepare financial statements so that they can represent
true and fair financial position of the business entity. The subject deals
with accounting theory, preparation of final accounts and asset treatment.
Objectives
1. To familiarize with book-keeping and recording transactions in the
books of prime and second entry and to verify its arithmetical
accuracy
2. To understand the subsidiary books and posting balances to the
ledger
3. To familiarize with the various errors that creeps in due to omission
and commission and the rectification process
4. To understand the process of final statements that reports results
as well as the financial position of the company
Assessment
The subject would comprise of theory, applications and numerical. The
assessment of the learner would be done through assignments, problem
solving & case discussion. The students would be expected to do a
project, quiz and comprehend the application part of the concepts taught
in the class.
Contents
Unit I
3
Sessions
Theoretical Framework of Accounting: Accounting as an information
system. The users of financial accounting information and their needs,
Qualitative characteristics of accounting information, Functions,
advantages and limitations of accounting, Branches of accounting. Bases
of accounting; cash basis and accrual basis, Important terms used in
accounting.
The nature of financial accounting principlesBasic concepts and
conventions: entity, money measurement, prudence conservatism,
materiality and full disclosures. Financial accounting standards: concept,
benefits, procedure for issuing accounting standards in India.
Unit II
6
Sessions
Accounting Process: Preparation Journal, Ledger and Trial Balance, Cash
Book only two and three Columns other subsidiary books only concept.

Unit III
8
Sessions
Final accounts: Capital and revenue expenditures and receipts general
introduction only, Trading and Profit & Loss L A/c and Balance Sheet sole
proprietorship only, Final account for not-for-profit organizations. Final
account from incomplete records: statement of affairs, conversion
method.
Unit IV
4
Sessions
Sectional and Self balancing ledger: Concept of sectional balancing,
preparation of control accounts. Self balancing Ledger: advantages;
Recording process; preparation of Adjustment accounts.
Unit V
8
Sessions
Partnership accounts: Concept, nature and types of partnership firm,
dissolution of partnership and firm. P/L Appropriation account; Capital &
Current account; Guarantee, by firm, by partner and both ; correction of
appropriation items with retrospective effect. Change in constitution of
firm, change in P/S ratio, admission, retirement and retirement cum
admission: revaluation of assets & liabilities with/without alteration of
books.
Unit VI
4 Sessions
Accounting for Dissolution of Firm: insolvency of one or more partner,
consideration of private estate and private liabilities. Piecemeal
distribution: surplus capital basis.
Unit VII
4
Sessions
Sale of Partnership to A Limited Company: Meaning of Purchase
Consideration, Method of calculation of Purchase Consideration, Journal
Entries and Preparation of Ledger Accounts in the books of Vendor,
Treatment of certain items: Dissolution Expenses, Unrecorded Assets and
Liabilities, Assets and Liabilities not taken over by the Purchasing
Company.
Unit VIII
3
Sessions
Depreciation Accounting: Concept and characteristics, reason for charging
depreciation,
Methods of depreciation, accounting treatment under
different methods.
Recommended Textbooks
1. Shukla, M.C., T.S. Grewal and S.C.Gupta, Advanced Accounts, S.
Chand & Co

2. Maheshwari
Publishing

&

Maheshwari,

Advanced

Accountancy,

Vikas

Reference Books
1.
R. L.Gupta & Radheswamy, Advanced Accountancy, S. Chand &
Co
2.
Sehgal & Sehgal, Advanced Accountancy, Vol. I, Taxman
Publication
3.
Hanif & Mukherjee , Financial Accounting, Tata McGraw Hill
4.
Tulsian, Financial Accounting, Pearson
5.
Accounting Standards issued by ICAI