FINANCIAL ACCOUNTING – II

Code: 2.1                                                                                   

           Total hours: 50                                                     Workload: 4 hours per week

Pedagogy: Lecturers, Assignment, Cases etc.

 

Objective: To get the students acquainted with knowledge of financial position and cost relating to business for decision making 

Module – I

Inventory Valuation:- Meaning, reasons for holding inventory, inventory management, valuation of inventory, factors affecting valuation of inventory, accounting standards relating to stock valuation.

(12 hrs)

Module – II 

Company accounts: - Amalgamation & Reconstruction, Accounting for amalgamation according accounting standard 14. Meaning of amalgamation in the nature of merger and purchase. (Problems). Steps in accounting for amalgamation. Meaning and methods of purchase consideration.

Reconstruction :- Internal and External reconstruction, Meaning and problems.

 (12 hrs)

Module – III 

Consignment Accounts:- Meaning of consignment accounts, Consignor, & Consignee. Entries in the book of consignor & Consignee. Valuation of stock, Normal and abnormal loss. Consigning goods at value higher then cost.

 (8 hrs)

Module – IV 

Joint Venture:- Meaning, Characteristics, difference between joint venture and consignment, Joint venture and Partnership. Methods of recording joint venture transaction. Interest.  

 (8 hrs)

Module – V

Hire Purchase transaction and decision, calculation of interest, entries in the book of higher vendor and purchases, hire purchase, trading account, installment system entries.  

     (10 hrs)

Suggested Books:  

  1. Financial Management by Khan & Jain
  2. Cost Accounting by Jain & Narang, Kalyani publication
  3. Cost Accounting by Nigam & Sharma, Himalaya publication house, New Delhi
  4. Cost Accounting by Pathan Shetty and Palekar, S.Chand and Company, Delhi
  5. Practical costing by M.N.Arora, S.Chand and Company, Delhi
  6. Financial Accounting by Dr. S N Maheshwari & Dr. S K Maheshwari.