Foundation Course

Financial Accounting & Analysis

Batch 2015 - 2017
Session 1

Introduction, Double Entry Book-Keeping (DEBK), Meaning of Transaction,

Account, Types of Accounts.

Session 2

Golden Rules and Journalizing of transaction.

Session 3

Journal and Ledger

Session 4

Ledger Posting & Trial Balance

Session 5

Final Accounts without adjustment

SYLLABUS
Course Code

Course Title

: Financial Accounting & Analysis

No of Credits

: 3

Contact Hours

: 30

Objectives:
To understand the scope and limitations of Financial Accounting and Financial Analysis. To
show how the final accounts are prepared as per GAAP and how the profit/loss and
financial position of the firm gets affected by various accounting practices relating to
depreciation, various adjustments etc. To understand how to read and interpret information
given in the final accounts of the firm. It is also intended to show the inter firm comparison.
The Financial Analysis will help the student to measure the performance in various areas
like Operating performance, Financial performance, Overall performance etc. It also
teaches, how to interpret Off balance sheet items. To understand the significance of Cash
flow /Fund Flow Statement from the view point of a Company.
Contents:
Financial Statements of a Proprietor's Business
Accounting for Depreciation
Financial Statements of Companies as per Revised Schedule VI of the
Companies Act, 2013
Introduction and the Tools & Techniques of Financial Analysis
- Comparative Statement
- Common Size Statement
- Trend Analysis
Ratio Analysis
Fund Flow Statement
Cash Flow Statement
Text Book:
1. Financial Accounting Principles &
Practices

- Prof. Jawahar Lal & Dr. Seema Srivastava,

S.Chand, 3/e, 2014.

Reference Books:
1. Financial Accounting for Management - D.D. Harsolekar, Multitech
Publishing,2nd Edition, 2010
2. Accounting for Management

- S.N.Maheshwari, Vikas
Publication, 3/e, 2012

3. Financial Accounting

- Tulsian, TMH,2008

4. Financial Analysis for Management Decision- M. Sarnagadharan, 2011, PHI

5. Financial Accounting for Management
Edition, 2013

- Paresh

Shah,

Oxford

Publication,

2nd

E-Books:
1.

Financial Accounting

Tulsian, Tata McGraw-Hill Education, eBook,

01-Aug-2006

2. A TEXTBOOK OF ACCOUNTING FOR MANAGEMENT S N Maheshwari, Sharad K

Maheshwari,VIKASPUBLISHINGHOUSEPVTLTD,EBook.(21October2010)
3. Accounting for Management

- Lal, Jawahar., Himalaya Pub. House., 2009,

eBook.

Financial Accounting & Analysis

COURSE OUTLINE
I

Overview
The course is designed to provide an understanding of the role and relevance of
accounting function in an organisation. The course will deal with issues such as
how the final accounts particularly corporate final accounts are prepared and how
various accounting practices affect the profit/loss and financial position of the firm
with particular reference to depreciation. At the same time it will familiarize the
students with how to read and interpret information given in final accounts of the
firm. In the Financial Analysis part, tools and techniques of financial analysis like
comparative statements, common size statements, trends, ratios etc. will be
covered.

II

Course Objectives
At the completion of this course, the student should be able to understand:
Financial Accounting: To show how the final accounts are prepared as per GAAP
and how the profit/loss and financial position of the firm gets affected by various
accounting practices relating to depreciation, various adjustments etc.
Financial Analysis: The objective is how to read and interpret information given in
final accounts of the firm. It is also intended to show the inter firm comparison. The
Financial Analysis will help the student to measure the performance in various
areas like Operating performance, Financial performance, Overall performance etc.
It also teaches how to interpret off balance sheet items.

III

Course Format and Discussions

The course is based on experiential learning through case discussion, group
dynamics and action team learning in the class sessions supplemented with
readings. Classes will follow a lecture format (given at Section B) in conjunction with
the assigned readings from the prescribed books and practice assignments. The
students are expected to solve the numerical problems from the text book. The
students are expected to read the chapters related to each session and participate

in the discussion. Entire pedagogy is envisaged to be learner- centric. Entire class

will be divided into 10 groups. Each group will be responsible to handle at least one
module and present it to the class as indicated in the session plan. Each group will
give the copy of the presentation to all the groups to see that the presentation
becomes interactive. The assignment will be submitted to the faculty in a structured
format before the end of the term
There may be surprise quiz / Test. All students should read the relevant chapters
and reading materials (R) followed by the case (C); reference book and additional
readings will help to understand the concept better.
IV

Assignments / Quiz / Current Issues, debate and class participation

Each group is supposed to come prepared with the project and group assignments
as well as the topic for the session as mentioned in the session plan. There are
some other parameters of internal assessment also.
Class participation has been given a weightage of 10 marks and will be
assessed by cold calling i.e. by calling any group to lead the discussion on
the given session. This has been done with a view to ensure that each group
comes prepared with the session of the day.

Assessment
Class based

VI

Case/assignment/research paper-report and presentation

15 Marks

Class Tests

15 Marks

Project, Viva

10 Marks

Written Examination

60 Marks

Presentation Dynamics
The objective of this project is to provide the students with an opportunity to apply
several concepts and techniques of Financial Management covered in the course to
an ongoing company.
While discussing case/ presentation or any project the quality of individual
participation will be assessed mainly on the basis of extent of understanding of the
subject matter and its applications, communication and analytical skills and capacity
to satisfy and manage the participant's responses, the contents of the project report
and presentation. As mentioned earlier, to make the discussions interactive, each
group will share their readings with the other groups as well with the faculty.
In case a group project is given, guidelines as how to prepare the project report
should be given either as a part of course outlines or separately.

VIII

Session- wise Details: Study Plan and Class Plan (T= Topic; ST= Sub Topic, ,
R= Reading Material, NM= Numericals)
Session

Topics & Sub-Topics

Reading Material

Session 1

T:

R1: Financial
Accounting, Prof
Jawahar Lal & Dr

Principles & Concepts of

Accounting

Session 2 to 5

ST: Accounting Systems

Seema Srivastava

ST: Principles & Concepts

Chapter 2

ST: Accounting Standards - AS1, AS3 &

AS6

R2: PPT

T:

R1: Financial
Accounting, Prof
Jawahar Lal & Dr
Seema Srivastava

Financial Statement of a Sole

Proprietorship Entity

ST: Trading & Profit & Loss A/c without

adjustment

Chapter 9

ST: Trading & Profit & Loss A/c with

adjustments of Closing Stock,
Depreciation, Prepaid & O/s
Expenses, Income received in
Advance, Income Receivable

R2: Numericals

ST: Final Accounts with further

adjustments Reserve for
Doubtful Debts, further bad debts,
Goods in transit, goods distributed
as free sample & Discount on
Debtors.
Session 6 to 7

T:

Accounting for Depreciation

ST: Only
using
Depreciation A/c

Provision

ST: NM

R1: Financial
for Accounting, Prof
Jawahar Lal & Dr
Seema Srivastava
Chapter 10
R2: PPT

Session 8,9

Session10,11

T: Financial Statements of Joint

Stock Co. as per Revised Schedule
VI Of Companies Act, 2013
ST: Provision for Taxation

R1: Financial
Accounting, Prof
Jawahar Lal & Dr
Seema Srivastava

ST: Proposed Dividend

Chapter 14

ST: Transfer to Reserves

R2: PPT

T:

ST: Common Size Statements

R1: Financial
Accounting, Prof
Jawahar Lal & Dr
Seema
Srivastava

ST: Comparative Statements

Chapter 19

ST: Trend Analysis

R2: PPT

Financial Analysis

ST: Introduction, Tools & Techniques

& Limitations of Financial Analysis

ST: Numericals
Session 12

Test.

Session 13 to
16

T:

Ratio Analysis

ST: Introduction, Types (Liquidity,

Solvency, Activity, Profitability &

R1: Financial
Accounting, Prof
Jawahar Lal & Dr

Valuation) & Limitations

Session 17, 18,

19

ST: Standards of Comparison

Chapter 19

ST: Practical Applications &

Interpretations

R2: PPT

T:

R1: Financial
Accounting, Prof
Jawahar Lal & Dr
Seema Srivastava

Fund Flow Statement

ST: Need, Importance & Limitations

ST: Preparation of Fund Flow
Statement
ST: Numerical

Session 20,21

Seema Srivastava

T:

Cash Flow Statement

ST: Need, Importance & Limitations

ST: Preparation of Cash Flow
Statement
ST: Numerical

Chapter 17
R2: PPT
R1: Financial
Accounting, Prof
Jawahar Lal & Dr
Seema Srivastava
Chapter 18
R2: PPT