Introduction – Meaning – Objectives – GAAP – Concepts and Conventions – Capital and Revenue Transactions – Income Recognition ( Cash and Accrual basis) – Classification of Assets and Liabilities – Contingent liabilities – Basis of profits – Types of accounts – Recording of transactions (Journal) – Classification of accounts ( Ledger) – Verification (Trial balance).
Bill of Exchange: Meaning – Credit sales – Debtors – Creditors – Drawer – Drawee – features of Bill of Exchange – Accounting for Honour and Dishonour of Bill of Exchange – Accommodation Bills.
Average Due Date – Account Current: Interest Method, Product Method, and Table Method – Red Ink Interest. Bank reconciliation statement: Meaning – Preparation of customer account in the Bank Book and bank account in Customer Book (with common 10 entries covering two financial periods) – Identifying the reasons for disagreement of balances – Reconciliation for normal and overdraft closing and opening balances.
Rectification of Errors – Final Accounts – Adjustments: Provision for bad and doubtful debts, Depreciation, Tax, Expenses and Income – Calculation of Profit under Cash basis – Preparation of Trading Account, Profit and Loss account and Balance Sheet.
Non-Profit Organization – Meaning – Types: Social Clubs, Sports Clubs, Educational Institutions – Major Receipts and Payments – Preparation of Receipts and Payment account – Preparation of Balance Sheet at the beginning - Preparation of Income and Expenditure account – Preparation of Balance Sheet at the end.
Reference Book:
1. Principles of Accountancy – N.Vinayakam.P.L Mani,K.L Nagarajan –S.Chand & Co. Ltd, New Delhi, Reprint 2010 2. Financial Accounting -,R.L.Gupta, V.K. Gupta, M.C Shukla – Sultanchand & Sons. New Delhi, Reprint 2008 3. Advanced Accountancy – T.S Grewel, S.C Gupta, S.P. Jain – Sultanchand & Sons New Delhi, Reprint 2009 4. Advanced Accountancy – K.L Narang, S.N Maheswari –Kalyani Publishers, New Delhi, Reprint 2000
Text Book:
1. Financial Accounting – T. S. Reddy & A. Murthy – Margham Publication ,Chennai