MANIPAL UNIVERSITY JAIPUR

School of Business and Commerce

Department of Business Administration
Course Hand-out
Fundamentals of Financial Accounting| BB1102| 4 Credits | 3 1 0 4
Session: Sept 22 – Jan 22| Faculty: Dr Ity Patni, Dr. Tina Shivnani, Dr. Mamta Soni| Class: BBA I semester

A. Introduction: Business activities are complex processes which entail various financial and non-financial
implications. Assessing and communicating the impact of business occurrence on the health and sustainability of
business entities is utmost important for stakeholders both in the long and the short term. This course acquaints the
students with the methodology adopted by Indian Business Organizations and as specified by ICAI, for dealing with
business transactions. The students will learn accounting standards followed in India and the tools and techniques
used by accountants for completing the accounting process. It also familiarizes the students with the Corporate
Financial Statements, their analysis and interpretation.

A. Course Objectives: At the end of the course, students will be able to

[1102.1]. Understand GAAP and AS and their significance in accounting process. Hence enhancing their
entrepreneurship skills.
[1102.2]. Understand the various books of accounts maintained by the organizations and recording transactions in
them which will make the employable.
[1102.3]. Understand the importance of Final accounts and its various components.

[1102.4]. Calculate various variables of Financial Statements and prepare the accounts systematically.

[1102.5]. Understand Corporate Financial Statements and the related accounting reports and annexures.
B. Program Outcomes and Program Specific Outcomes

[PO.1]. Critical Thinking: Take informed actions after identifying the assumptions that frame our thinking and actions,
checking out the degree to which these assumptions are accurate and valid, and looking at our ideas and decisions
(intellectual, organizational, and personal) from different perspectives.
[PO.2]. Effective Communication: Speak, read, write and listen clearly in person and through electronic media in English
and in one Indian language, and make meaning of the world by connecting people, ideas, books, media and
technology.
[PO.3]. Social Interaction: Elicit views of others, mediate disagreements and help reach conclusions in group settings.
[PO.4]. Effective Citizenship: Demonstrate empathetic social concern and equity centered national development, and the
ability to act with an informed awareness of issues and participate in civic life through volunteering.
[PO.5]. Ethics: Recognize different value systems including your own, understand the moral dimensions of your decisions,
and accept responsibility for them.
[PO.6]. Environment and Sustainability: Understand the issues of environmental contexts and sustainable development.
[PO.7]. Self-directed and Life-long Learning: Acquire the ability to engage in independent and life-long learning in the
broadest context socio-technological changes.
 [PSO1]: Understanding Traditional and Contemporary Managerial Concepts and Models: Understanding in detail,
the contents of various functional areas of Business & Management and the implications of psychological and behavioral
aspects on the organizations.
[PSO2]: Analyzing Business Environment: Identifying opportunities existing in the domestic and global business and
economic environment and initiating systematic approach towards rational decision making.
[PSO3]: Application of Business Concepts and Managerial Skills: Implementing conceptual knowledge in real business
situations for ensuring business sustainability and growth.

C. Assessment Plan:

Criteria Description Maximum Marks

Sessional Exam I 20
Internal Assessment Sessional Exam II 20
(Summative) In class Quizzes and Assignments, 20
Activity feedbacks (Accumulated and
Averaged)
End Term Exam End Term Exam 40
(Summative)
Total 100
Attendance A minimum of 75% Attendance is required to be maintained by a student to be
(Formative) qualified for taking up the End Semester examination. The allowance of 25%
includes all types of leaves including medical leaves.

D. Syllabus

Introduction to Financial Accounting: Accounting as a System, – Generally Accepted Accounting

Principles; Nature of Accounts, Rules of Debit and Credit; Recording Transactions in Journal; Preparation
of Ledger Accounts; Preparation of Trial Balance; Preparation of Trading Account, Profit & Loss Account and
Balance Sheet, Adjustment Entries (not very advanced), Introduction to Accounting Standards Annual
Report of Public Limited Company - Chairman’s Statement, Directors’ Report, Management Discussion and
Analysis, Report on Corporate Governance, Auditors’ Report, Corporate Income Statement and Balance Sheet,
Introduction to Corporate Financial Statements: Preparation of Cash Flow Statement, dividends,
distributable profits and types of shares. Understanding different types of Profit, viz., PBIT, PBT, PAT,
Operating Profit and Distributable Profit. Financial Statement Analysis: Introduction to Accounting
Standards on Disclosure of Accounting Policies, Revenue Recognition.

E. Text Books
T1. Accountancy Dk Goel, Rajesh Goel, Shelly Goel, Arya Publications Financial Accounting,

T2 Mukerjee and Hanif, Mc Graw Hill

T3. Financial Accounting, P.C. Tulsian, S Chand

Reference Books

R1. Financial Accounting, Paresh Shah, Oxford Publication

R2. Financial Accounting, Ashok Sehgal, Taxmann Publication

 F. Lecture Plan:

Lec No Topics Session Outcome Mode of Corresponding Mode of Assessing the Outcome
Delivery CO
1 Introduction and Course Hand-out briefing To acquaint the students with the Lecture NA NA
course relevance and the expected
course outcomes.
2 Accounting Process Describe the Meaning, A/c Process, Lecture 1102.1 Mid Term I
Objectives, Features, Users of End Term
accounts
3 GAAP, Accounting concepts and Explaining the various accounting Lecture 1102.1 Mid Term I
conventions concepts and conventions and their End Term
implications
4 Accounting Books Describing the various books prepared Lecture 1102.1 Mid Term I
and maintained by business End Term
organizations
5,6 Accounting Terminologies Understanding the terminologies used Lecture 1102.1 Mid Term 1
in accounting process End Term
7,8 Golden Rules of Accounting Understanding how items are Lecture 1102.1 Mid Term 1
identified as per rules of accounting
9,10 Accounting Equation Analysing how accounting equations Lecture 1102.1 End Term
are prepared
11 Introduction to Journal Explain the meaning and significance Lecture 1102.2 Mid Term I
of Journal Discussion End Term
12 Journal Types of Accounts: Traditional and Lecture 1102.2 Mid Term I
Modern Classification End Term
13 Journalizing: Process and Examples Recording basic and special Lecture 1102.2 Mid Term I
transactions in a Journal by applying End Term
rules
14,15 Tutorial Journalising Worksheet 1102.2 Mid Term I
End Term

16 Introduction to Ledger Explain the meaning and significance Lecture 1102.2 Mid Term I
of Ledger Tutorial End Term

17 Ledger Posting Posting transactions from Journal to a Lectures 1102.2 Mid Term I
Ledger and Balancing and Totalling Numerical End Term
accounts Examples
18 Tutorial: Ledger Preparation of Ledger Worksheet 1102.2 Mid Term I
End Term
Worksheet
19,20 Trial Balance Explain the meaning and format of Lecture 1102.2 Mid Term I
 Trial Balance and the its objectives Tutorial End Term
Worksheet
21 Introduction to Final Accounts Discuss the meaning and importance Lecture 1102.3 Mid Term II
of Final Accounts to various Discussion End Term
stakeholders and significance of
Income and Position Statements
22 Trading Account Explain the meaning, Format and Lecture 1102.3 Mid Term II
Contents of Trading A/c Discussion End Term
23 Tutorial Preparation of Trail Balance Worksheet 1102.3& 1102.4 Mid Term II
End Term
24 Profit and Loss A/c Explain the Meaning, Format and Lecture 1102.3 Mid Term II
Contents of P&L a/c Discussion End Term
25 Profit and Loss A/c Describing the various adjustments to Lecture 1102.3 Mid Term II
be carried out while preparing P&L a/c Presentation End Term
26 Tutorial Preparing Trading and P&L A/c Worksheet 1102.3& 1102.4 Mid Term II
End Term
27 Balance Sheet Explain the Meaning and Relevance of Lecture 1102.3 Mid Term II
Balance Sheet End Term
28 Types of Assets and Liabilities Describing the various types of Assets Lecture 1102.3& 1102.4 Mid Term II
and Liabilities stated in a balance sheet Presentation End Term
Quiz
29 Revenue and Capital Explain the differentiation between Lecture 1102.3& 1102.4 Mid Term II
revenue and capital expenditure and Presentation End Term
receipts Quiz
30 Tutorial Preparation of Balance sheet Worksheet 1102.3& 1102.4 Mid Term II
End Term

31 Final A/c: Adjustment Entries Passing adjustments regarding Closing Lecture 1102.3& 1102.4 Mid Term II
Stock, Depreciation in Financial End Term
statements

32 Final A/c: Adjustment Entries Passing adjustments regarding Lecture 1102.3& 1102.4 Mid Term II
Outstanding and Prepaid Income and End Term
Expenses in Financial statements
33 Final A/c: Adjustment Entries Passing adjustments regarding various Lecture 1102.3& 1102.4 Mid Term II
Provisions in Financial statements End Term

34 Tutorial: Final A/c Preparing Final a/c after incorporating worksheet 1102.3& 1102.4 Mid Term II
necessary adjustments End Term
35 Accounting Standards Describing various accounting Lecture 1102.1 End Term
standards and their implications on Presentation Quiz
accounting practice
36 Introduction to Annual reports of JSC: Explaining the various annexures to Lecture 1102.5 End Term
Chairman’s Statement, Directors’ Report, Financial statements prepared by Presentation Quiz
Management Discussion and Analysis, Report corporate entities and their
on Corporate Governance, Auditors’ Report significance to the stakeholders
37 Introduction to Corporate Income Statements Explaining the contents of corporate Lecture 1102.5 End Term
financial statements and the related Presentation Quiz
provisions
38 Corporate Financial Statement: Interpretation Describing the relationship and Lecture 1102.5 End Term
significance of various terms present Discussion Quiz
in corporate financial statements and
their rational for stakeholders
39 Corporate Financial Statement: Interpretation Describing the relationship and Lecture 1102.5 End Term
significance of various terms present Discussion Quiz
in corporate financial statements and
their rational for stakeholders
40 Types of Shares, Dividend, Distributable Profits Explaining the different types of Lecture 1102.5 End Term
shares issued by corporate entities and Discussion
their related pros and cons
41 Types of profits: PBIT, PBT, PAT, Operating Describing the types of profits that Lecture 1102.5 End Term
Profit appear in Corporate statements and Discussion
their significance for stakeholders
42 Reading Financial Statement and Interpret the Understanding of Financial Statement Discussion 1102.5 End Term
Meaningful Information of the corporates
43 Introduction to Accounting Standards on Understanding Disclosure of Lecture 1102.5 End Term
Disclosure of Accounting Policies Accounting Policies
44 Introduction to Revenue Recognition. Understanding how revenues are Lecture 1102.5 End Term
recognised
45 Exercise on Analysis of Corporate Financial Interpreting the meaningful Presentation 1102.5 End Term
Statements information
46 Exercise on Analysis of Corporate Financial Interpreting the meaningful Presentation 1102.5 End Term
Statements information
47 Exercise on Analysis of Corporate Financial Interpreting the meaningful Presentation 1102.5 End Term
Statements information
48 Exercise on Analysis of Corporate Financial Interpreting the meaningful Presentation 1102.5 End Term
Statements information
 G. Course Articulation Matrix: (Mapping of COs with POs)

CORRELATION WITH PROGRAM OUTCOMES CORRELATION WITH

CO STATEMENT PROGRAM SPECIFIC
OUTCOMES
PO 1 PO 2 PO 3 PO 4 PO 5 PO 6 PO 7 PSO 1 PSO 2 PSO 3
BB 1102.1 Understand the concepts and Conventions of 2 1 2 2 3 2 3
Accounting and developing skills decision making skills
. Hence enhancing their employability for business
BB 1102.2 Understand the various books of accounts 1 1
maintained by the organizations and recording
transactions in them.
BB 1102.3 Understand the importance of Final accounts and 1 1 1 1
its various components
BB 1102.4 Calculate various variables of Financial Statements 1 1 2 3 1 3
and prepare the accounts systematically.

BB 1102.5 Understand Corporate Financial Statements and the 1 1 1 2 3 3

related accounting reports and annexures.

1- Low Correlation; 2- Moderate Correlation; 3- Substantial Correlation