Course Overview:
Financial Accounting – I is a foundational course designed to introduce students to the basic principles and practices of financial accounting. It equips learners with the knowledge to record, classify, and summarize financial transactions, and prepare essential financial statements. The course emphasizes understanding the accounting cycle, journal entries, ledger posting, trial balance, and final accounts of sole proprietorship.
🎯 Objectives:
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To introduce fundamental concepts of accounting.
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To enable students to maintain books of accounts systematically.
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To impart knowledge about preparation of final accounts.
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To develop practical skills in preparing subsidiary books, bank reconciliation, and depreciation accounting.
🗂️ Major Topics / Units:
| Unit | Topics Covered |
|---|---|
| Unit 1 | Introduction to Accounting: Meaning, scope, objectives, principles (GAAP), types of accounts |
| Unit 2 | Journal, Ledger, Trial Balance – rules of debit and credit |
| Unit 3 | Subsidiary Books: Cash book, purchase/sales book, journal proper |
| Unit 4 | Bank Reconciliation Statement – reasons for difference, preparation |
| Unit 5 | Final Accounts of Sole Proprietor: Trading, Profit & Loss Account and Balance Sheet |
| Unit 6 | Depreciation Accounting – methods: Straight Line, Diminishing Balance |
🛠️ Learning Outcomes:
After successful completion, students will be able to:
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Understand accounting concepts and process.
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Record business transactions using appropriate books.
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Prepare Trial Balance and identify errors.
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Reconcile bank balances accurately.
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Prepare final accounts independently.
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Apply correct depreciation methods as per situation.
📘 Suggested Books:
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R.L. Gupta & V.K. Gupta – Principles and Practice of Accounting
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T.S. Grewal – Introduction to Accountancy
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S.N. Maheshwari – Financial Accounting
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Karnataka Textbook Society materials (if prescribed)
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