It is well said that ‘change is the only permanent thing in this world’. Therefore, any change in the curriculum of a subject is part of the natural process of development. Advancement in knowledge is possible only if a subject is taught and learned differently at different times. Since KBC North Maharashtra University is adopting a New Education Policy for First Year Students of Bachelor of Commerce, it is our duty to present the necessary learning material to them.
We are pleased to present the textbook on ‘Financial Accounting’ for F.Y.B.Com. students. It has been written in a teach-yourself style, following a student-friendly approach. Sufficient theory content and numerous examples covering all typical points are given. Illustrations in the book include questions from KBC NMU and other university examinations. Topics are arranged exactly according to the new syllabus.
The syllabus is divided into six units, each designed to provide a thorough understanding of key accounting principles and practices. Unit 1 covers the theoretical framework, including valuation principles, accounting estimates, and the scope of GAAP, Ind AS, and IFRS. Unit 2 focuses on the preparation of financial statements, such as the Trading and Profit & Loss Account, and the Balance Sheet, along with practical numerical problems. Unit 3 deals with the accounts of non-profit organizations, guiding students through the preparation of Receipts and Payment Accounts, Income and Expenditure Accounts, and Balance Sheets. Unit 4 explains the gradual realization and piecemeal distribution of cash on the dissolution of a partnership firm, including methods like the maximum loss method and the highest relative capital method. Unit 5 explores the conversion of a partnership firm into a limited company, detailing the meaning, need for conversion, calculation of purchase consideration, and closing entries. Finally, Unit 6 delves into joint venture accounting, distinguishing between joint ventures and partnerships, and outlining the accounting procedures for joint venture transactions when separate books are maintained.