CATEGORY-III

B.A. COMMERCE BASED PAPER

BAC: DSC-2: Financial Accounting

CREDIT DISTRIBUTION, ELIGIBILITY AND PRE-REQUISITES OF THE COURSE

Course Credits Credit distribution of the course Eligibility Pre-

title criteria requisit
e of the
& Lecture Tutorial Practical/ course
Code Practice (if any)

Financial 4 3 0 1 Pass in XII NIL

Accounti
ng
BAC:
DSC-2

Learning Objectives
The course aims to help learners to acquire conceptual knowledge of financial accounting, to impart
skills for recording various kinds of business transactions and to prepare financial statements.

Learning Outcomes
After completion of the course, learners will be able to:
1. Analyse the applicability of Accounting Standards in the preparation of Financial statements of
companies.
2. Apply the Generally Accepted Accounting Principles while recording transactions and preparing
financial statements.
3. Measure business income applying relevant accounting standards.
4. Evaluate the impact of depreciation and inventories on Business Income.
5. Prepare the Financial Statements of sole proprietor firms and Not-For-Profit Organisations.
6. Prepare the accounts for Inland Branches, Departments and Leases.
7. Demonstrate accounting process under a computerized accounting system.

SYLLABUS OF BAC: DSC-2

Unit 1: Theoretical Framework and Accounting Process (9 hours)

(A) Theoretical Framework

(i) Accounting as an information system, the users of financial accounting information and their
needs. An overview of Artificial Intelligence and Data Analytics in Accounting.
(ii) Qualitative characteristics of accounting information. Functions, advantages and limitations of
accounting. Branches of accounting. Bases of accounting: cash basis and accrual basis. Capital

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 and revenue expenditures and receipts. Events occurring after the balance sheet date,
Extraordinary Items, Prior Period Items, Accounting Estimate. Accounting Policies, Fair Value,
Meaning, Recognition and Disclosure Requirements of Provision, Contingent Liability and
Contingent Asset.

(iii) Financial Accounting Principles: Meaning and need; Generally Accepted Accounting Principles
(GAAP): Entity, Money Measurement, Going Concern, Cost, Revenue Recognition, Realization,
Fundamental Accounting Assumptions, Accruals, Periodicity, Full Disclosure, Consistency,
Materiality, and Prudence (Conservatism). Fundamental Accounting Assumptions as per AS 1.

(iv) Accounting Standards: Concept, benefits, and Process of formulation of Accounting Standards
including Ind AS (IFRS converged standards) and IFRSs; convergence vs adoption; Application of
accounting standards (AS and Ind AS) on various entities in India. International Financial
Accounting Standards (IFRS) –meaning, need, and scope.

(B) Accounting Process

From the recording of a business transaction to the preparation of trial balance including adjusting,
transfer and closing entries. Application of Generally Accepted Accounting Principles in recording
financial transactions and preparing financial statements and accounting treatment of GST.

Unit 2: Business Income, Accounting for Property, Plant and Equipment, and Valuation of Inventory
(9 hours)

(a) Business income: Concept of Revenue and Business Income, Measurement of business income;
relevance of accounting period, continuity doctrine and matching concept in the measurement
of business income; Objectives of measurement of Business income.

(b) Revenue recognition with reference to AS 9.

(c) Accounting for Property, Plant, and Equipment with reference to AS 10. Impact of Depreciation
on measurement of business income. Accounting for Intangible Assets with reference to AS 26.
(d) Valuation of Inventory with reference to AS 2. Impact of inventory valuation on measurement
of business income by using FIFO, LIFO, and Weighted Average Method.

Unit 3: Financial Statements of Sole Proprietorship and Not-for-Profit Organisations (9 hours)

Preparation of Financial Statements of Sole Proprietorship and Not-for-Profit Organisations

Unit 4: Accounting for Inland Branches, Departments and Leases (9 hours)

(a) Accounting for Inland Branches: Concept of Dependent branches; Branch Accounting as per-
Debtors System, Stock and Debtors’ System
(b) Accounting for Departments (excluding Mark-up Account)
(c) Accounting for Leases with reference to AS 19

Unit 5: Computerized Accounting Systems (9 hours)

Computerized Accounting Systems: Computerized Accounts by using any popular accounting software
Creating a Company; Configure and Features settings; Creating Accounting Ledgers and Groups;
Creating Stock Items and Groups; Vouchers Entry including GST; Generating Reports - Cash Book,
Ledger Accounts, Trial Balance, Profit and Loss Account, Balance Sheet, Cash Flow Statement.
Selecting and shutting a Company; Backup, and Restore data of a Company.

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 Notes:
● The relevant Accounting Standards (both AS Ind AS) for all of the above topics should be
covered.
● Any revision of the relevant Indian Accounting Standard/Accounting Standard would become
applicable.

Practical Exercises
The learners are required to:
1. Identify the applicability of different accounting standards on the basis of examining the nature of
business transactions after considering Framework for the Preparation and Presentation of Financial
Statements from the websites of the Institute of Chartered Accountants of India (ICAI).
2. Analyse Generally Accepted Accounting Principles applied in financial statements of listed
companies.
3. Examine the accounting policies and revenue recognition policies by collecting necessary data from
small business firms.
4. Prepare Trading and Profit & Loss Account and Balance Sheet collecting necessary data from small
business firms and analyse the impact of depreciation and inventories on Business Income.
5. Prepare financial statements manually and using appropriate software with the help of financial
transaction data of sole proprietor firms and Not-For-Profit Organisations.
6. Prepare accounts of Inland Branches, Departments and Leases by collecting data from the annual
report of two Multinational Companies and two NGOs and prepare their relevant accounts.
7. Collect the data related to balance sheets of business Organisations and prepare the financial
statements using computerized accounting system.

Suggested Readings
● Anthony, R. N., Hawkins, D. F., Merchant, K. A., & Singh, P. (2019). Accounting: Text and Cases. (13th
Ed.). New Delhi: McGraw-Hill Education.
● Batra, J. K. (2018). Accounting and Finance for Non-finance Managers. (1st Ed.). New Delhi: SAGE
Publications Pvt. Ltd.
● Dam, B. B., & Gautam, H. C. (2019). Financial Accounting. Guwahati: Gayatri Publications.
● Goldwin, N., Alderman, W., & Sanyal, D. (2016). Financial Accounting. Boston: Cengage Learning.
● Goyal, B. K., & Tiwari, H. N. (2021). Financial Accounting. (9th Ed.). New Delhi: Taxmann Publication.
● Horngren, C., Sundem, G., Elliott, J., & Philbrick, D. (2013). Introduction to Financial Accounting. (11th
Ed.). London: Pearson Education.
● Kumar, A. (2019). Financial Accounting. (2nd Ed.). New Delhi: Singhal Publication.
● Lal, J., Srivastava, S., & Abrol, S. (2017). Financial Accounting Text & Problems. Mumbai: Himalaya
Publishing House.
● Lt Bhupinder. (2020). Financial Accounting – Concepts and Applications. New Delhi: Cengage
Learning.
● Maheshwari, S. N., Maheshwari, S. K., & Maheshwari, S. K. (2018). Financial Accounting. (6th Ed.).
New Delhi: Vikas Publishing House Pvt. Ltd.
● Monga, J. R. & Bahadur, R. (2021). Financial Accounting: Concepts and Applications. New Delhi:
Scholar Tech Press.
● Sehgal, A. & Sehgal D. (2011). Fundamentals of Financial Accounting. New Delhi: Taxmann
Publications Private Limited.
● Sehgal, D. (2014). Financial Accounting. New Delhi: Vikas Publishing House Pvt. Ltd.
● Shukla, M. C., Grewal, T. S., & Gupta, S. C. (2013). Advanced Accounts. Vol.-I. (Rev. Ed.). New Delhi:
Sultan Chand Publishing.

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● Tulsian, P. C., & Tulsian, B. (2016). Financial Accounting. (2nd Ed.). New Delhi: S. Chand Ltd.

Additional Resources
● Accounting Standards at the Website of the Institute of Chartered Accountants of India
● Indian Accounting Standards at the Website of the Ministry of Corporate Affairs.

Assessment Method:

(1) There shall be 2 credit hours for lectures + one credit hour (Two Practical Periods per week per
batch) for practical lab + one credit hour for tutorials (per group).
(2) Examination scheme for computerized accounting system: Practical for 20 marks. The practical
exam will be for one hour.
(3) Theory exam shall carry 80 marks (Including Internal Assessment of 25 Marks). The theory exam
will be for 2.5 hours.

Note: Suggested readings will be updated by the Department of Commerce and uploaded on the
Department's website.

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 Entrepreneurship and Small Business

BAC: Discipline (ESB)- A2: Fundamentals of Entrepreneurship

CREDIT DISTRIBUTION, ELIGIBILITY AND PRE-REQUISITES OF THE COURSE

Course title Credits Credit distribution of the course Eligibility Pre-requisite of

& Lecture Tutorial Practical/ criteria the course
Code (if any)
Practice
Fundamentals 4 3 1 0 Pass in XII Pass in
of Fundamentals of
Entrepreneurs Business of
hip organisation for
BAC: Discipline Entrepreneurs
(ESB) – A2 (BAC: Discipline
(ESB) - A1)

Learning Objectives
The basic objective of this paper is to promote entrepreneurial awareness among the learners so as
to understand its need and relevance in Indian society as well as to make students aware of the
existing environmental support system for the promotion of entrepreneurship in the country.

Learning Outcomes
After completion of the course, learners will be able to:
1. Analyse the process of entrepreneurship and the role of entrepreneurs in an organisation.
2. Assess the personality and competency desirable in an entrepreneur.
3. Analyse the entrepreneurial process for establishing a new venture.
4. Evaluate the entrepreneurial environment.
5. Analyse the risk and rewards associated with an entrepreneurial venture.

SYLLABUS OF BAC: Discipline (ESB) – A2

Unit I: Entrepreneur and Enterprise (9 hours)

Meaning and types of entrepreneurs, characteristics of entrepreneurs, entrepreneur vs. manager;
Role and functions of entrepreneurs in relation to the enterprise and in relation to the economy.

Unit II: Entrepreneurial Person (9 hours)

Entrepreneurial personality; Entrepreneurial competencies; EDI’s prescribed competencies; Social
groups and their entrepreneurial actions; Entrepreneurial motivation; Motivation theories and
entrepreneurial behavior- need for achievement.

Unit III: Entrepreneurship and its Process (9 hours)

Entrepreneurial process and its dynamics in the environment; Opportunity identification process;

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 Business plan and feasibility analysis of business ideas; Contents of a business plan/project.

Unit IV: Entrepreneurial Environment (9 hours)

Entrepreneurial support system- social, economic and financial support system; Contemporary role
models; Family business in India and their contribution to entrepreneurship; Role of educational
institutions in the promotion of entrepreneurship.

Unit V: Entrepreneurial Performance and Rewards (9 hours)

Measures of entrepreneurial performance; Financial and psychological rewards; Entrepreneurial
risks; Risk-rewards compatibility; Entrepreneurial rewards in the context of socio-economic
environment of India.

Practical Exercises
The learners are required to:
1. Evaluate the role of entrepreneur in a new venture.
2. Assess their strengths and weaknesses as an entrepreneur.
3. Analyse the entrepreneurial process a newly established venture.
4. Assess the role of different environmental factors that have promoted an entrepreneurial venture.
5. Analyse the risk and return trade off for an entrepreneurial venture.

Suggested Readings
● Holt, D. H. (1992). Entrepreneurship: New Venture Creation. New Delhi: Prentice Hall of India.
● Panda, S. C. (2008). Entrepreneurship Development. New Delhi: Anmol Publications.
● Taneja, S., & Gupta, S. L. (2001). Entrepreneurship Development-New Venture creation. New Delhi:
Galgotia Publishing House.

Additional Resources
Journals & Periodicals:
● Journal of Entrepreneurship
● SEDME
● Laghu Udyog Samachar

Note: Suggested readings will be updated by the Department of Commerce and uploaded on the
Department's website.

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