Course

Unit 1

Accounting – meaning –definition – objectives –advantages – limitations – Types of accounting- Financial accounting – Management accounting – Cost accounting – Book keeping – sources of information – difference between book keeping and accounting – Basic Accounting Terms- Entity, Business Transaction, Capital, Drawings. Liabilities, Assets, Expenditure, Expense, Revenue, Income, Profit, Gain, Loss, Purchase, Sales, Goods, Stock, Debtor, Creditor, Voucher, Discount.

Unit 2

Basic accounting concept: Business Entity, Money Measurement, Going Concern, Accounting Period, Cost Concept, Dual Aspect, Revenue Recognition, Matching, Full Disclosure, Consistency, Conservatism, Materiality and Objectivity – Basis of Accounting: cash basis and accrual basis – GAAP – Accounting standards – Goods and Services Tax (GST): Characteristics and Advantages.

Unit 3

Rules of Debit and Credit – Classification of Accounts – Personal Accounts – real accounts – nominal accounts – Recording of Transactions: Books of Original Entry- Journal – Journalizing.

Unit 4

Ledger – meaning – posting from journal -Balancing of accounts – Trial balance: meaning, objectives and preparation.

Unit 5

Financial Statements of Sole Proprietorship – meaning – objectives – Trading account – profit and loss account – balance sheet- Adjustments: Closing stock- prepaid expenses- outstanding expenses (Simple problems)

Course Objective:

To help the students to understand the accounting principles and practices, including the types of accounting, basic accounting concepts, rules of debit and credit, ledger management, and preparation of financial statements for sole proprietorship.

Course Outcomes:

The student will able:

CO1: To understand the basic accounting terms such as entity, transaction, capital, liabilities, assets, etc.

CO2: To apply the accounting concept like money measurement, revenue recognition, matching, and full disclosure in accounting practices.

CO3: To analyze how transactions are recorded and classified based on their nature.

CO4: To evaluate the effectiveness of ledger maintenance and trial balance preparation in ensuring the integrity of financial data.

CO5: To apply accounting principles to prepare trading account, profit and loss account, and balance sheet.

Textbooks:

1. S. Grewal, S.C Gupta – Introduction to Financial Accounting – S. Chand
2. SN Maheswari, SK Maheswari – An Introduction to Accountancy – Vikas Publishing House

References:

1. Narayanaswamy – Financial Accounting – Prentice Hall of India
2. Wayne Lavel – Accounting for Non-Accountants: The Fast and Easy Way to Learn the Basics– Sourcebooks Publication