Financial Accounting

Course Title: Financial Accounting (3 Cr.) 
Course Code: CAC152 
Class Load: 5 Hrs. / Week (Theory: 3 Hrs, Tutorial: 1 Hr., Practical: 1 Hr.)

 Unit 1 Theoretical Framework. 

 Meaning and Scope of Accounting,Meaning of Accounting, Procedural Aspects of Accounting. Evolution of Accounting as a Social Science, Objectives of Accounting. Functions of Accounting, Sub-fields of Accounting, Users of Accounting Information, Relationship of Accounting with Other Disciplines, Limitation of Accounting, Role of Accountant in the Society. Accounting Concepts, Principles and Conventions: Accounting Concepts. Principles & Conventions — an Overview, Qualitative Characteristics of Financial Statements, Fundamentals Accounting Assumptions. Accounting Standards: Concepts. Objectives. Benefits & An Overview of Nepal Accounting Standards Accounting Policies: Meaning, Selection of Accounting Policies and Changes in Accounting Policies 

Unit 2 Accounting Process 

 Books Of Accounts Leading to The Principle of Trial Balance, Journal Entries. Double Entry System. Advantage of Double Entry System, Concepts of Transaction and Events, Classification of Accounts, Golden Rules of Accounting, Advantages of Journal, Ledger, Trial Balance, Subsidiary Books Including Cash Books, Capital and Revenue Expenditures and Receipts, Contingent Assets and Contingent liabilities, Errors Including Rectifications Thereof. 

Unit 3 Bank Reconciliation Statement 

 Introductions, Ascertaining the Causes of differences of Bank Balance in Bank. Column of the Cash-Book and in Pass- Book. procedure for Reconciling the Cash- Book Balance with the Pass-Book balance. Importance :of Bank Reconciliation Statement.

Unit 4 Depreciation Accounting 

 Concepts of Depreciation. Objectives for Providing Depreciation. Methods for Providing Depreciation. Accounting for Depreciation 

Unit 5 Inventories 

Meaning, Basis and technique of Inventory Valuation, Inventory Recording • System, Stock Taking 

Unit 6 Preparation of Final Accounts for Sole Proprietors

Concept of Closing Entries in respect of Trading and Profit & Loss Account, Concept of Accrual Basis of Accounting. Matching Concept and Dual Aspects, Concept on Manufacturing Account, Preparation of Balance Sheet, Arrangement and Classification of Assets and Liabilities 

Unit 7 Introduction to Company Accounts 

 Meaning of Company. Salient Features of Company, Types of Company, Preparation of Financial Statements. Share Capital and its types. Debentures and its types, Distinction between Debentures and Shares, Issue of Shares and Debentures, Redemption of Preference Shares