1.

3 ACCOUNTING FOR BUSINESS

OBJECTIVE: The objective of this course is to help the students acquire conceptual knowledge
of the discipline financial accounting and to impart skills for preparation of financial statements
of different undertakings for acquiring practical wisdom

UNIT-1 INTRODUCTION TO ACCOUNTING 06 Hrs

Meaning, Book keeping & accounting, Need for accounting, (GAAP) Generally Accepted
Accounting Principles Concepts and Conventions, list of Indian Accounting Standards, Ind AS-
IFRS (Concept only)

UNIT-2 BASIC ACCOUNTING PROCEDURES 12 hrs

(i) Double Entry System of Book-Keeping – Golden rules of accounting
(ii) Journal– Books of original entry
(iii) Ledger – Posting – Balancing an account - simple problems on Journal & ledger

UNIT-3 SUBSIDIARY BOOKS 14 Hrs

Purchase book – Sales book – Returns books – Bills of exchange –Bills book – Journal proper.-
Cash Book – kinds of cash book & Petty Cash Book Imprest system –simple problems

UNIT-4 FINAL ACCOUNTS OF PROPRIETARY CONCERN 14 Hrs

Classification of Transaction in to revenue and capital- Preparation of Trial balance &
Rectification of errors,- Parts of Final Accounts – Income statement and Balance sheet Final
Accounts vertical form only

UNIT: 5: CONSIGNMENT 10 hrs

Meaning, Definitions and Features of Consignment-Parties in Consignment – Consignor and
Consignee-Differences between Consignment and Ordinary Sale-Special terminologies in
Consignment Accounts – Proforma Invoice, Invoice Price, Account Sales, Non-recurring
Expenses, Recurring Expenses, Ordinary Commission, Overriding Commission, Del Credere
Commission, Normal Loss, Abnormal Loss. Small Problems on Commission and Valuation of
Closing Stock-Consignment Accounts in the books of Consignor – Problems on preparation of
Consignment A/c, Consignee A/c and Goods Sent on Consignment A/c in the books of
Consignor.
BUSINESS LAB ACTIVITIES: (Skill developments /Business lab exercises to be executed
with recent accounting software packages like Tally, Quick books, SAP-ERP and maintain
record)
1. Draft a chart relating to companies maintaining IFRS standard
2. Produce documentary evidence for creating accounting ledgers and groupsent on
3. Prepare a E content on subsidiary books
4. Develop a E content final accounts any sole trader concern
5. Develop E-content for a Consignment Agreement

BOOKS FOR REFERENCE:

1. Dr. S.N. Maheswari, Financial Accounting
2. Grewal and Shukla, Advanced Accounting
3. P.C. Tulasian, Pearson Editions, Introduction to Accounting
4. Jain & Narang. Financial Accounting
5. Accounting Standards - Institute of Chartered Accountants of India
6. Anil Kumar, Rajesh Kumar and Mariyappa, “Financial Accounting”, HPH