Course objective: To familiarize the students with the basic fundamentals of the accounting and

understand the accounting mechanism necessary for the preparation of the financial statements

UNIT I

Introduction: - Meaning and Scope of Accounting, Need, development; Book-keeping and

accounting, Branches of accounting; Objectives of accounting, Accounting Principles, International
Accounting Standards ; Accounting Standards in India Accounting Transactions: Accounting Cycle;
Journal; Rules of debit and credit; Compound journal entry; Opening entry; Relationships between
Journal and Ledger; Rules regarding posting; Trial balance: Types Of Accounting Errors Based On
Disclosure By Trial Balance.

UNIT II

Capital and Revenue: Classification of income; Classification of expenditure; Classification of

receipts Accounting concepts of income; Accounting concepts and income measurement; Expired
costs and income measurement. Final Accounts; Manufacturing account; Trading account; Profit and
loss account; Balance Sheet; Adjustment entries,; Suspense accounts; Effects on profit.

UNIT III

Depreciation Accounting: Meaning of depreciation, causes, objects of providing

depreciation, factors affecting depreciation, accounting treatment including provision for
depreciation accounting. Methods of depreciations: straight line method, diminishing balance
method. Bank Reconciliation Statemen: Meaning, importance and need, cause of difference between
cash book and pass book.

UNIT IV

Sectional Balancing System: Self balancing system including rectification errors. Non-profit
Institutions: Accounts of Non – Profit Institutions, Receipt and payment account, income and
Expenditure account and Balance sheet.

Suggestive Readings:

1. Gupta R.L.and Radhaswamy. M: Financial Accounting; Sultan Chand and Sons, New Delhi.
2. Compendium of Statement and Standards of Accounting: The Institute of Chartered
Accountants of India, New Delhi.
3. Anthony, RN. and Reece. J.S.: Accounting Principles: Richard Irwin Inc.
4. S.N. Maheshwari, An Introduction to Accountancy, Vikas Publication.
5. Mukherjee & Hanif, Fundamentals of Accounting, Tata McGraw Hill.