Fundamentals of Accounting – II

Course Code: HMC2306 / TRM2307 Credit Units: 02

Course Objective:
At the end of the semester students will be able to
- The concept of double entry book keeping system
- Reconcile the bank statement
- Check the accuracy of accounts
- Prepare trial balance / P&L A/c and balance sheet concept
- The hospitality revenue and non revenue producing departmental accounting system
- The for casting of expense and revenue
- The concept of budgeting
- The hotel departmental accounting system.

Course Contents:

Module I
Cash Book, Meaning, Advantages, Simple, Double and Three Column Petty Cash book with
imprest system (simple and tabular forms) , Practical

Module II: Final Accounts

Meaning, Procedure for preparation of final accounts , Difference between Trading Accounts,
Profit & Loss Accounts & Balance Sheet

Module III: Adjustments

Closing Stock, Prepaid expenses, Outstanding expenses, Depreciation

Module IV: Capital and Revenue Expenditure

Meaning, Definition of Capital and Revenue Expenditure,

Module V: Depreciation
Meaning of Depreciation, Need and Causes, Straight line method, Diminishing Balance
method, Practical

Module VI: Ratio Analysis

Importance of Ratios
 Liquidity Ratios, Current ratio, Quick ratio, Solvency Ratios, Debt equity ratio, Interest
coverage ratio
Activity Ratio, Capital turnover ratio, Stock turnover ratio, Debtors turnover ratio,
Profitability Ratios
 Gross profit ratio, Net profit ratio.

Examination Scheme:

Components V H CT A EE
Weightage (%) 05 05 15 5 70
V-viva; H-home assignment; CT-class test; A-attendance; EE-end semester examination