Financial Accounting Key 2024

Unit – I Fundamentals of Financial Accounting
Financial Accounting – Meaning, Definition, Objectives, Basic Accounting Concepts and Conventions – Journal, Ledger Accounts– Subsidiary Books –– Trial Balance – Classification of Errors – Bank Reconciliation Statement – Need and Preparation
Unit – II Final Accounts
Final Accounts of Sole Trading Concern- Capital and Revenue Expenditure and Receipts – Preparation of Trading, Profit and Loss Account and Balance Sheet with Adjustments.
Unit – III Depreciation and Bills of Exchange
Depreciation – Meaning – Objectives – Accounting Treatments – Types – Straight Line Method – Diminishing Balance method – Conversion method.
Units of Production Method – Cost Model vs Revaluation
Bills of Exchange – Definition – Specimens – Discounting of Bills – Endorsement of Bill – Collection – Noting – Renewal – Retirement of Bill under rebate
Unit – IV Accounting from Incomplete Records – Single Entry System Incomplete Records -Meaning and Features – Limitations – Difference between Incomplete Records and Double Entry System – Methods of Calculation of Profit – Statement of Affairs Method – Preparation of final statements by Conversion method
Unit -V Royalty and Insurance Claims
Meaning – Minimum Rent – Short Working – Recoupment of Short Working – Lessor and Lessee – Sublease – Accounting Treatment. Insurance Claims –Calculation of Claim Amount-Average clause (Loss of Stock only)