Financial Accounting

₹495.00

Availability: In Stock

Author(s): Thothadri S

Product Code: vn81

This book Financial Accounting is a comprehensive textbook that delves into the core concepts of accounting practices. It elucidates the principles governing the preparation and interpretation of financial statements. financial statements. Salient Featues: Written in a clear and lucid style. Serves as a self learning tool. Includes 28 chapters that cover the TANSCHE Syllabus and Autonomous college Syllabus across Tamil Nadu. Provides step by step hints for complex exercise problems. Questions are designed as per Bloom's Taxonomy. Contain 603 illustration problems,754 Exercise Problems,and 344 Review Questions. offers solutions for problems from past year question papers of all universities in Tamil Nadu.

Cover

Half-title

Title Page

Dedication

Contents

Preface

Chapter 1: Introduction to Accounting

1.1 Accounting

1.2 Need for Accounting

1.3 Objectives of Accounting

1.4 Advantages of Accounting

1.5 Limitations of Accounting

1.6 Users of Accounting

1.6.1 Internal Users

1.6.2 External Users

1.7 Functions of Accounting

1.8 Branches of Accounting

1.8.1 Financial Accounting

1.8.2 Cost Accounting

1.8.3 Management Accounting

1.8.4 Social Responsibility Accounting

1.8.5 Human Resource Accounting

1.9 Bookkeeping Versus Accounting

1.10 Accounting Cycle

1.11 Methods of Accounting

1.11.1 Single Entry System

1.11.2 Double Entry System

1.12 Accounting Terminologies

Theory Questions

Chapter 2: Accounting Concepts and Conventions

2.1 Accounting Concepts

2.2 Need for Accounting Concepts

2.3 Accepted List of Accounting Concepts

2.3.1 Business Entity Concept

2.3.2 Going Concern Concept

2.3.3 Money Measurement Concept

2.3.4 Dual Aspect Concept

2.3.5 Accounting Period Concept

2.3.6 Cost Concept

2.3.7 Revenue Realisation Concept

2.3.8 Matching Concept

2.3.9 Accrual Concept

2.3.10 Objective Evidence Concept

2.4 Accounting Conventions

2.4.1 Convention of Conservatism

2.4.2 Convention of Consistency

2.4.3 Convention of Full Disclosure

2.4.4 Convention of Materiality

2.5 Accounting Equation

2.5.1 Fundamental Accounting Equation

Theory Questions

Chapter 3: Journal

3.1 Journal

3.1.1 Format of Journal

3.1.2 Importance of Journal

3.1.3 Objectives of Preparing a Journal

3.2 Journalising

3.2.1 Ledger Folio

3.2.2 Compound Journal Entry

3.2.3 Opening Entry

3.2.4 Golden Rules of Accounting

3.2.5 Journalising the Transaction

Theory Questions

Exercise Problems

Chapter 4: Ledger and Trial Balance

4.1 Ledger

4.2 Proforma of Ledger Account

4.3 Sub-division of Ledger

4.3.1 Debtors’ Ledger

4.3.2 Creditors’ Ledger

4.3.3 General Ledger

4.4 Posting of Accounts

4.4.1 Balancing of Ledger Accounts

4.5 Trial Balance

4.5.1 Definition

4.5.2 Format

Theory Questions

Exercise Problems

Chapter 5: Subsidiary Books

5.1 Cash Book

5.2 Kinds of Cash Book

5.3 Single-column Cash Book

5.3.1 Balancing of Cash Book

5.4 Two-column Cash Book

5.4.1 Cash Book with Discount and Cash Columns

5.4.2 Cash Book with Cash and Bank Columns

5.5 Contra Entry

5.6 Returns Books

5.6.1 Kinds of Returns Books

Theory Questions

Exercise Problems

Chapter 6: Rectification of Errors

6.1 Errors

6.2 Types of Errors

6.2.1 Errors of Principle

6.2.2 Clerical Errors

6.3 Disclosure and Non-disclosure of Errors by Trial Balance

6.4 Suspense Account

6.4.1 Suspense Account

Theory Questions

Exercise Problems

Chapter 7: Final Accounts

7.1 Final Accounts

7.2 Trading Account

7.3 Profit and Loss Account

7.4 Balance Sheet

7.5 Adjustment Entries

7.5.1 Closing Stock

7.5.2 Outstanding Expenses

7.5.3 Prepaid Expenses

7.5.4 Accrued Income

7.5.5 Income Received in Advance

7.5.6 Depreciation of Assets

7.5.7 Interest on Capital

7.5.8 Interest on Drawings

7.5.9 Bad Debts

7.5.10 Provision for Bad and Doubtful Debts

7.5.11 Provision for Discount on Debtors

7.5.12 Provision for Discount on Creditors

7.5.13 Loss of Stock by Accident, Fire, etc.

Theory Questions

Exercise Problems

Chapter 8: Bank Reconciliation Statement

8.1 Cash Book

8.2 Pass Book

8.3 Bank Reconciliation Statement

8.3.1 Purpose of Bank Reconciliation Statement

8.3.2 Favourable Balance

8.3.3 Unfavourable Balance/Overdraft Balance

8.4 Reasons for Differences in Cash Book and Passbook

Theory Questions

Exercise Problems

Chapter 9: Depreciation

9.1 Depreciation

9.2 Need for Providing Depreciation

9.3 Causes of Depreciation

9.3.1 Internal Causes

9.3.2 External Causes

9.4 Terms Used for Depreciation

9.5 Factors Determining the Amount of Depreciation

9.6 Methods of Calculating Depreciation

9.6.1 Straight Line Method or Fixed Instalment Method or Original Cost Method

9.6.2 Written Down Value Method or Diminishing Balance Method or Reducing Balance Method

9.6.3 Annuity Method

9.6.4 Insurance Policy Method

9.6.5 Revaluation Method

9.6.6 Depletion Method

9.6.7 Machine Hour Rate Method

9.7 Journal Entries for Recording Depreciation

9.8 Calculation of Profit or Loss on Sale of Asset

9.9 Methods of Recording Depreciation

9.9.1 When Provision for Depreciation Account is Not Maintained

9.9.2 When a Provision for Depreciation Account is Maintained

9.10 Exchange of Assets with New Assets

9.11 Change in Method of Depreciation

Theory Questions

Exercise Problems

Chapter 10: Fire Insurance Claims

10.1 Fire Insurance

10.2 Need for Fire Insurance

10.3 Important Terms

10.3.1 Gross Profit Ratio

10.3.2 Stock on Date of Fire

10.3.3 Memorandum Trading Account

10.3.4 Salvaged Stock

10.3.5 Amount of Claim

10.3.6 Average Clause

10.3.7 Undervaluation of Stock

10.3.8 Overvaluation of Stock

10.3.9 Extraordinary Items

10.3.10 Loss of Profit

10.4 Steps in Calculation of Claims

Theory Questions

Exercise Problems

Chapter 11: Average Due Date

11.1 Average Due Date

11.2 Areas of Application of Average Due Date

11.3 Steps in Calculation of Average Due Date

11.4 Points to be Noted

Formulae

Theory Questions

Exercise Problems

Chapter 12: Current Account

12.1 Account Current

12.2 Scope of Account Current

12.3 Points to be Noted for Calculation of Days

12.4 Methods of Calculating Number of Days

12.4.1 Forward Method

12.4.2 Backward Method/Epoque Method

12.4.3 Daily Balance/Step/Periodic Balance Method

12.5 Methods of Calculation of Interest

12.5.1 Interest Table Method

12.5.2 Product Method/Forward Method

12.5.3 Interest Number Method

Theory Questions

Exercise Problems

Chapter 13: Sale of Goods on Approval or Return Basis

13.1 Methods of Recording Sale on Approval or Return Basis

13.1.1 When there are Only a Few Transactions

13.1.2 When there are Considerable Number of Transactions

13.1.3 When there are Many Transactions

Theory Questions

Exercise Problems

Chapter 14: Single Entry System

14.1 Single Entry System

14.2 Features of Single Entry

14.2.1 Suitable Only for Sole Traders and Partnership Firms

14.2.2 Records Personal Accounts and Cash Transactions

14.2.3 Lack of Uniformity

14.2.4 Dependence on Original Vouchers

14.2.5 Profit only an Estimate

14.2.6 True Financial Position cannot be Ascertained

14.3 Limitations of Single Entry

14.3.1 Incomplete and Unscientific Method

14.3.2 Trial Balance cannot be Prepared

14.3.3 Lack of Arithmetical Accuracy

14.3.4 Performance of the Business cannot be Ascertained

14.3.5 True Financial Position cannot be Ascertained

14.3.6 Frauds and Errors

14.3.7 Comparison cannot be Made

14.3.8 Unacceptable to Tax Authorities

14.4 Distinction Between Double Entry System and Single Entry System

14.5 Distinction Between Statement of Affairs and Balance Sheet

14.6 Methods of Ascertaining Profit or Loss

14.6.1 Statement of Affairs Method

14.6.2 Conversion Method

Theory Questions

Exercise Problems

Chapter 15: Accounts of Non-trading Organisations

15.1 Non-trading Organisations

15.2 Important Terms

15.2.1 Subscription

15.2.2 Entrance Fees or Admission Fees

15.2.3 Life Membership Fees

15.2.4 Endowment Fund

15.2.5 Donation

15.2.6 Legacy

15.2.7 Sale of Old Newspapers

15.2.8 Sale of Old Sports Material

15.2.9 Purchase of Fixed Assets

15.2.10 Payment of Honorarium

15.2.11 Purchase of Consumable Items

15.2.12 Capital Fund

15.2.13 Special Fund

15.3 Receipts And Payments Account

15.3.1 Features of Receipts and Payments Account

15.3.2 Proforma of Receipts and Payments Account

15.4 Income And Expenditure Account

15.4.1 Steps to Prepare Income and Expenditure Account

15.4.2 Specimen Form of Income and Expenditure Account

15.5 Distinction Between Receipts and Payments Account and Income and Expenditure Account

15.6 Distinction between Receipts and Payments Account and Cashbook

15.7 Balance Sheet

Dr. S. Thothadri is an Assistant Professor of the Postgraduate and Research Department of Commerce, The New College, Chennai. He is a triple postgraduate and a seasoned academician with 25 years of teaching experience and 16 years of research experience. He is a Qualified Independent Director and Social Auditor. He holds eight textbooks to his credit as both author and co-author which include Industrial and Labour Laws, Company Law, Taxation Law & Practice, Cost Accounting and so on. Under his able guidance seven scholars have been awarded Doctorate Degrees and 20 M.Phil scholars have been awarded M.Phil Degrees.

Dr. S. Nafeesa Mahabubkhan, an Assistant Professor & Research Supervisor, PG & Research Department of Commerce, The Quaide Milleth College for Men, possesses a total experience of 19 years including 14 years of PG & Research Experience. She has produced 10 M.Phil scholars and three scholars are pursuing Ph.D. under her guidance. She has authored a textbook on Logistics and Supply Chain Management under the banner of Vijay Nicole Imprints Pvt Ltd. She has done her Doctorate in the area of Knowledge Management. The author’s areas of interest are Accounting and Human Resource Management. She has completed NPTEL courses and also acted as regional language translator for Swayam courses. She has Presented and Published numerous papers in UGC Care list journals and in National and International Conferences.