Financial Accountancy

Course Outcomes: On successful completion of the course, the Students will be able to
● Understand the Basic Concepts of Accountancy
● Exercise the accounting treatments for consignment transactions & events in the books of
consignor and consignee.
● Demonstrate various accounting treatments for dependent & independent branches
● Learn various methods of accounting for hire purchase transactions.
● Outline the emerging trends in the field of accounting

Module No. 1: Introduction to Accountancy (10 Hrs)

Introduction – Meaning, Definition of Accounting – Uses & Users of Accounting – Accounting
Principles – Accounting process – Types of Reconciliation (Concepts) – Recognition of Capital &
Revenue and Problems on Accounting Equation (Operating in Spreadsheet).

Module No. 2: Consignment Accounts (12 Hrs )

Introduction-Meaning of Consignment-Consignment vs Sales-Proforma Invoice-Accounts
Sales-Types Commission-Accounting for Consignment Transactions & Events in the books of
Consignor only – Treatment of Normal & Abnormal Loss. -Valuation of Closing Stock-Goods sent at
Cost Price and Invoice Price. (Operating in Spreadsheet )

Module No. 3: Accounting for Inland Branches ( 12 Hrs )

Introduction – Meaning – Objectives – Types of Branches –Meaning and features of Inland Branches
– Dependent Branches – Independent Branches – Foreign Branches – methods of Maintaining books
of Accounts by Head office – Meaning & Feature of Debtor system, stock & Debtor system, wholesale
branch system and Final Account system – Supply of Goods at Cost Price & Invoice Price – Problems
on preparation of Dependent Branch A/c in the books of Head Office under Debtor system only.
(Operating in Spreadsheet )

Module No. 4: Leasing & Hire Purchase ( 14 Hrs )

Leasing – Elements of lease – Major Components of Lease Agreement – Types of Leasing – Leasing
Financial institution in India. (Theory) – Hire Purchase – Meaning of Hire Purchase and Instalment
Purchase System- difference between Hire Purchase and Instalment Purchase – Important
Definitions – Hire Purchase Agreement – Hire Purchase Price – Cash Price – Hire Purchase Charges –
Net Hire Purchase Price – Net Cash Price – Calculation of Interest – Calculation of Cash Price –
Journal Entries and Ledger Accounts in the books of Hire Purchaser (Asset Accrual Method only). (
Calculation of EMI in Spreadsheet )

Module No. 5: Emerging Trends in Accounting ( 08 Hrs )

Digital Transformation of Accounting-Big Data Analytics in Accounting- Accounting through Cloud
Computing – Green Accounting – Human Resource Accounting – Inflation Accounting – Database
Accounting (Concepts only)

Skill Developments Activities:
● Preparation of Proforma invoice and accounts sales with imaginary figures.
● Collect hire purchase agreements and draft dummy hire purchase agreements with
imaginary figures.
● Collect the procedure and documentations involved in the establishment of various branches.
● List out Capital & Revenue Items
● Identify latest innovations and developments in the field of accounting.
● Any other activities, which are relevant to the course.

Reference Books:
● ICAI Study Materials on Principles & Practice of Accounting, Accounting and Advanced
Accounting.
● SP Iyengar (2005), Advanced Accounting, Sultan Chand & Sons, Vol. 1.
● Robert N Anthony, David Hawkins, Kenneth A. Merchant, (2017) Accounting: Text and
Cases, McGraw-Hill Education, 13th Edition.
● Charles T. Horngren and Donna Philbrick, (2013) Introduction to Financial Accounting,
Pearson Education, 11th Edition.
● J.R. Monga, Financial Accounting: Concepts and Applications. Mayur PaperBacks, New
Delhi, 32nd Edition.
● S.N. Maheshwari, and. S. K. Maheshwari. Financial Accounting. Vikas Publishing House,
New Delhi, 6th Edition.
● B.S. Raman (2008), Financial Accounting Vol. I & II, United Publishers & Distributors
● Compendium of Statements and Standards of Accounting. The Institute of Chartered
Accountants of India, New Delhi.