B.Com. (Programme) Financial Accounting Syllabus - DU 2026

Learning Objectives

• The course aims to help learners to acquire conceptual knowledge of financial accounting, to impart skills for recording various kinds of business transactions and to prepare financial statements.

Learning Outcomes

The Learning Outcomes of this course are as follows:

• 1. analyse the generally accepted accounting principles while recording transactions and preparing financial statements.
• 2. demonstrate the accounting process under a computerized accounting system.
• 3. measure business income applying relevant accounting standards.
• 4. evaluate the impact of depreciation and inventories on Business Income.
• 5. prepare the Financial Statements of sole proprietor firms and Not-For-Profit Organisations.
• 6. prepare the accounts for Inland Branches, Departments and Leases.

Unit 1: Theoretical Framework and Accounting Process (6 hours)

• (A) Conceptual Framework
• (i) Accounting as an information system, the users of financial accounting information and their needs. An overview of Artificial Intelligence and Data Analytics in Accounting.
• (ii) Qualitative characteristics of accounting information. Functions, advantages and limitations of accounting. Branches of accounting. Basis of accounting: cash basis and accrual basis. Capital and revenue expenditures and receipts. Events occurring after the balance sheet date, Extraordinary Items, Prior Period Items, Accounting Estimate. Accounting Policies, Fair Value, Meaning, Recognition and Disclosure Requirements of Provision, Contingent Liability and Contingent Asset.
• (iii) Financial Accounting Principles: Meaning and need; Generally Accepted Accounting Principles(GAPP): Entity, Money Measurement, Going Concern, Cost, Revenue Recognition, Realization, Fundamental Accounting Assumptions, Accruals, Periodicity, Full Disclosure, Consistency, Materiality, and Prudence (Conservatism). Fundamental Accounting Assumptions as per AS 1.
• (iv) Accounting Standards: Concept, benefits, and Process of formulation of Accounting Standards including Ind AS (IFRS converged standards) and IFRSs; convergence vs adoption; Application of accounting standards (AS and Ind AS) on various entities in India. International Financial Accounting Standards (IFRS) –meaning, need, and scope.
• (B) Accounting Process From the recording of a business transaction to the preparation of trial balance including adjusting, transfer and closing entries. Application of Generally Accepted Accounting Principles in recording financial transactions and preparing financial statements and accounting treatment of GST.

Unit 2: Business Income, Accounting for Property, Plant and Equipment, and Valuation of Inventory (9 hours)

• (a) Business income: Concept of Revenue and Business Income, Measurement of business income; relevance of accounting period, continuity doctrine and matching concept in the measurement of business income; Objectives of measurement of Business income.
• (b) Revenue recognition with reference to AS 9.
• (c) Accounting for Property, Plant, and Equipment with reference to AS 10. Impact of Depreciation on measurement of business income. Accounting for Intangible Assets with reference to AS 26.
• (d) Valuation of Inventory with reference to AS 2. Impact of inventory valuation on measurement of business income by using FIFO, LIFO, and Weighted Average Method.

Unit 3: Financial Statements of Sole Proprietorship and Not-for-Profit Organisations (9 hours)

• Preparation of Financial Statements of Sole Proprietorship and Not-for-Profit Organisations

Unit 4: Accounting for Inland Branches, Departments and Leases (12 hours)

• (a) Accounting for Inland Branches: Concept of Dependent branches; Branch Accounting as per- Debtors System, Stock and Debtors’ System
• (b) Accounting for Departments (excluding Mark-up Account)
• (c) Accounting for Leases with reference to AS 19

Unit 5: Computerized Accounting Systems (9 hours)

• Computerized Accounting Systems: Computerized Accounts by using any popular accounting software Creating a Company; Configure and Features settings; Creating Accounting Ledgers and Groups; Creating Stock Items and Groups; Vouchers Entry including GST; Generating Reports - Cash Book, Ledger Accounts, Trial Balance, Profit and Loss Account, Balance Sheet, Cash Flow Statement. Selecting and shutting a Company; Backup, and Restore data of a Company.

Notes

• (1) The relevant Accounting Standards (both AS Ind AS) for all of the above topics should be covered.
• (2) Any revision of the relevant Indian Accounting Standard/Accounting Standard would become applicable.

Practical Exercises (30 hours)

The learners are required to:

• 1. Download ‘Framework for the Preparation and Presentation of Financial Statements from the websites of the Institute of Chartered Accountants of India (ICAI) to analyse the qualitative characteristics of accounting information provided therein.
• 2. Collect and examine the balance sheets of business Organisations to study how these are prepared.
• 3. Examine the accounting policies and revenue recognition policies by collecting necessary data from small business firms.
• 4. Prepare Trading and Profit & Loss Account and Balance Sheet collecting necessary data from small business firms.
• 5. Prepare financial statements manually and using appropriate software.
• 6. Prepare accounts of Inland Branches.
• 7. Collect data from your college and prepare a Receipt and Payment Account, Income and Expenditure Account and Balance Sheet.

Essential and Recommended Readings

• Anthony, R. N., Hawkins, D., & Merchant, K. A. (2019) “Accounting: Text and Cases” McGraw-Hill Education India.
• Batra, J. K., (2018) Accounting and Finance for Non-finance Managers, Sage Textbook
• Bhattacharyya, A. K. (2021) Essentials of Financial Accounting, 6th ed. PHI learning
• Narayanaswamy, R. (2020) Financial Accounting: A Managerial Perspective, 7th ed. PHI learning
• Dam, B. B., & Gautam, H. C. (2011).Financial Accounting. Gayatri Publications, Guwahati.
• Goldwin, N., Alderman, W., & Sanyal, D. (2016). Financial Accounting. Cengage Learning, Boston.
• Goyal, B. K., & Tiwari, H. N. (2021). Financial Accounting. Taxmann Publication, New Delhi.
• Horngren, C. T., & Philbrick, D. (2014). Introduction to Financial Accounting. Pearson Education, London.
• Kumar, A. (2018). Financial Accounting. Singhal Publication.
• Lal, J., Srivastava, S. & Abrol, S. (2017). Financial Accounting Text & Problems. Himalaya Publishing House, Mumbai.
• Lt Bhupinder. (2020). Financial Accounting – Concepts and Applications. Cengage.
• Maheshwari, S. N., Maheshwari, S. K., & Maheshwari, S. K. (2018). Financial Accounting. Vikas Publishing House Pvt. Ltd., New Delhi.
• Monga, J. R. & Bahadur, R. (2022). Financial Accounting: Concepts and Applications. Scholar Tech Press, New Delhi.
• Mukherjee. (2018). Financial Accounting. Oxford University Press
• Sah, R. K. (2019). Concept Building Approach to Financial Accounting. Cengage Learning India Pvt. Ltd.
• Sehgal, A. & Sehgal, D. (2015). Fundamentals of Financial Accounting. Taxmann.
• Sehgal, D. (2016). Financial Accounting. Vikas Publishing House Pvt. Ltd., New Delhi.
• Shah, P. (2019). Financial Accounting for Management.Oxford University Press
• Shukla, M. C., Grewal, T. S., & Gupta, S. C. (2017). Advanced Accounts. Vol.-I. Sultan Chand Publishing, New Delhi.
• Tulsian, P. C. (2016). Financial Accounting. S. Chand Ltd., New Delhi.

Suggestive Readings

• Accounting Standards at the Website of the Institute of Chartered Accountants of India
• Indian Accounting Standards at the Website of the Ministry of Corporate Affairs.