UkaTarsadia University

B.V. Patel Institute of Business

Management, Computer & Information
Technology

BBA
Semester - I
030030121 – CC3 Financial Accounting

EFFECTIVE FROM July-2017

Syllabus Version: 1.01
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SEMESTER-I
030030121 – CC3 Financial Accounting
Credits: 4: Theory Contact Hours Per week: 4: Theory

Objective of the Course:

 To provide the conceptual frame work of Accounting.

 To impart the description of the assumptions made while communicating accounting
information and structure of Balance sheet for preparing financial statements.
 To evaluate the statement of fund flow and cash flow statement through calculation
and interpretation of ratio analysis.

Student Learning Outcomes:

 The learners will gain the knowledge about the accounting cycle.
 They get opportunity to prepare and analyse the financial statement.
 The learners will get the knowledge of maintaining the inventory record.

Instructional Methods and Pedagogy:

Faculty members shall explain in a class room using black board (chalk and talk method) and
multimedia projector through Power Point Presentation, IT enabled audio-visual techniques,
Case Analysis, Filed Assignment, Role play, etc.

Outline of the Course:

Unit No. of Contact Approx.

Topic of Unit
No. Hours (Th.) Weight age %
1 Introduction to Financial Accounting 8 16.67
2 Preparation of final Account 8 16.67
3 Depreciation and Valuation of Inventory 8 16.67
4 Ratio Analysis 8 16.67
5 Fund Flow and Cash Flow Statement 8 16.67
6 Budgetary Control 8 16.67
Total 48 100
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BBA Subject Hours
Sem. I 030030121 – CC3 Financial Accounting 4hrs/week
(Theory) 4 Credits

Sr. No. Topic Hours

Unit I
1 Introduction to Financial Accounting 08
1.1 Need for Accounting; Development of Accounting; Definition
and Functions of Accounting; Book – Keeping and
Accounting; End Users of Accounting Information; Role of
Accountants; Branches of Accounting; Difference Between
Management Accounting and Financial Accounting;
Objectives of Accounting; [S.N.M. Chapter 1; Page 1.1 – 1.13;
2 Hours]
1.2 Meaning of Accounting Principles; Accounting Concepts and
Conventions; [S.N.M. Chapter 2; Page 1.15 – 1.21; ½ Hour]
1.3 Accounting Equation; Nature of Accounts; [S.N.M. Chapter
2; Page 1.41 – 1.45; ½ Hour]
1.4 Rules of Debit and Credit; Recording transactions in Journal,
Recording transactions in three columns Cash Book; [S.N.M.
Chapter 4; Page 1.56 – 1.76; 2 Hours]
1.5 An overview of Subsidiary books - Purchase Book, Purchase
Return Book, Sales Book, Sales Return Book, opening and
Closing entries. [S.N.M. Chapter 6; Page 1.99 – 1.124; 3
Hours]
Unit II
2 Preparation of final Account 08
2.1 Preparation of Ledger Accounts; Trial Balance; [S.N.M.
Chapter 5; Page 1.77 – 1.94; 2 Hours]
2.2 Preparation of Financial Statements; [S.N.M. Chapter 11; Page
1.202 – 1.215; 2 Hours]
2.3 Trading Account, Profit & Loss Account, and Balance Sheet
of Sole proprietor; [S.N.M. Chapter 11; Page 1.215 – 1.262; 4
Hours]
Unit III
3 Depreciation and Valuation of Inventory 08
3.1 Introduction of Depreciation
3.1.1 The accounting concept of depreciation; Causes of
Depreciation; Basic Features of Depreciation;
Depreciation, Depletion, Amortisation and Dilapidation;
[S.N.M. Chapter 13; Page 1.307 – 1.309; 1/2 Hour]
3.1.2 Meaning of Depreciation Accounting; Objectives of
Providing Depreciation; Fixation of Depreciation Amount;
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Methods of Recording Depreciation; [S.N.M. Chapter 13;
Page 1.309 – 1.311; 1/2 Hour]
3.1.3 Methods of computing depreciation: straight line method
and diminishing balance method; [S.N.M. Chapter 13;
Page 1.311 – 1.323; 1 Hour]
3.1.4 Practical Problems; [S.N.M. Chapter 13; Page 1.347 –
1.348; 2 Hours]
3.2 Valuation of Inventory
3.2.1 Meaning; Objective of inventory valuation; Inventory
Systems; [S.N.M. Chapter 6; Page 2.233 – 2.234; 1/2
Hour]
3.2.2 Methods of Valuation of Inventories; [S.N.M. Chapter 6;
Page 2.234 – 2.246; 1 Hour]
3.2.3 Practical Problems of FIFO, LIFO and Weighted Average;
[S.N.M. Chapter 6; Page 2.253 – 2.257; 2 Hours]
3.2.4 Salient features of Indian Accounting Standard (Ind- AS):
2; [S.N.M. Chapter 6; Page 2.250 – 2.252; 1/2 Hour]
Unit IV
4 Ratio Analysis 08
4.1 Introduction; Meaning of Ratio; Steps in Ratio Analysis;
Importance of Ratio Analysis; Nature of Ratios; Importance of
Ratios; Limitations of Ratio Analysis; [R.S.N.P. Chapter-3;
Page 55 – 60; 2 Hours]
4.2 Interested Parties; Classification of Ratios; Problems of
Window Dressing; Significance of Balance sheet Ratios;
[R.S.N.P. Chapter-3; Page 60 – 104; 2 Hours]
4.3 Projections through Ratios; Cautions in using Ratio Analysis;
Du-Pont Chart; [R.S.N.P. Chapter-3; Page 104 – 128; 1 Hour]
4.4 Practical Problems; [R.S.N.P. Chapter-3; Page 128 – 158; 3
Hours]
Unit V
5 Fund Flow and Cash Flow Statement 08
5.1 Meaning of Fund; Flow of Fund; Current and Non- Current
Account; Fund Flow Statement; Importance of Fund Flow
Statement; Preparation of Fund Flow Statement; Statement
Showing Changes in Working Capital; [R.S.N.P. Chapter-4;
Page 176 – 194; 1 Hour]
5.2 Practical Problems; [R.S.N.P. Chapter-4; Page 195 – 261; 4
Hours]
5.3 Introduction to Cash Flow Statement; Uses of Cash Flow
Statement; Distinguish between Fund Flow Statement and
Cash Flow Statement; Limitations of Cash Flow Statement;
Accounting Standard 3; [R.S.N.P. Chapter-5; Page 262 – 264;
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1 Hour]
5.4 Meaning; Objectives; Scope; Benefits of CFS; Classification
of CFS; [R.S.N.P. Chapter-5; Page 264 – 267; 2 Hours]
Unit VI
6 Budget and Budgetary Control 08
6.1 Definition; Forecast and Budget; Objectives of Budget;
Budgeting; Objectives of Budgeting; [R.S.N.P. Chapter-10;
Page 564 – 566; 1 Hour]
6.2 Budgetary Control; Characteristics; Advantages; Essentials of
a Successful Budgetary Control; Limitations of Budgetary
Control; [R.S.N.P. Chapter-10; Page 566 – 568; 1 Hour]
6.3 Organization; Master Budget; Classification of Budgets;
[R.S.N.P. Chapter-10; Page 568 – 589; 1 Hour]
6.4 Zero Based Budgeting; Practical Problems; [R.S.N.P. Chapter-
10; Page 590 – 599; 5 Hour]

Text Books:
 R.S.N. Pillai, Bagavathi, Management Accounting for B.Com, M.Com, M.B.A,
ICWA & ICAI, S.Chand Publishing House Pvt. Ltd.
 Maheshwari, S.N. & Maheshwari, S.K. , Financial Accounting for B. Com., CA, CS,
& ICWA (Foundation) Courses, Vikas Publishing House Pvt. Ltd.

References:
 M.N.Arora, Management Accounting, Theory, Problems and Solutions, Himalaya
Publishing House
 Tulsian, P.C., Financial Accounting, Pearson
 Ghosh, T.P., Financial Accounting for Managers, Taxmann Allied Services (P) Ltd.
 Horngren, C.T., Foster, G, and Datar, S.M., Cost Accounting: A Managerial
Emphasis, Prentice Hall of India Pvt. Ltd., New Delhi.
 Henke, E.O., and Spoede, C.W., Cost Accounting: Managerial Use of Accounting
Data, PWS-KENT Publishing Company, Boston.
 Maheshwari, S.N., and Mittal, S.N. Cost Accounting: Theory and Problems, Shree
Mahavir Book Depot (Publishers), Delhi.
 Bhattacharyya, Asish K., Financial Accounting for Business Managers.
 Jain, S.P. & Narang, K.L., Advanced Accountancy.

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Course Outcomes
Upon completion of the course students shall be able to:
CO1: know classification, Principles and basics of accounting cycle.
CO2: prepare ledger, trail balance and final account.
CO3: Compute different methods of depreciation and valuation of inventory.
CO4: Compare financial statements through various ratios.
CO5: Prepare and analyse fund flow and cash flow statement.
CO6: Cash budget and Production analysis.
Course Objectives and Course Outcomes Mapping:
 To provide the conceptual frame work of Accounting. (CO1, CO2, CO4, CO5)
 To impart the description of the assumptions made while communicating accounting
information and structure of Balance sheet for preparing financial statements. (CO2,
CO3, CO5)
 To evaluate the statement of fund flow and cash flow statement through calculation
and interpretation of ratio analysis. (CO2, CO4, CO5, CO6)

Course Units and Course Outcomes Mapping

Unit Course Outcome

Unit
No. CO1 CO2 CO3 CO4 CO5 CO6
1 Introduction to Financial Accounting  
2 Preparation of final Account  
3 Depreciation and Valuation of Inventory 
4 Ratio Analysis 
5 Fund Flow and Cash Flow Statement   
6 Budgetary Control 