Financial Accounting Key 2025

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)