JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY HYDERABAD

22BBA201: FINANCIAL ACCOUNTING

BBA (Data Analytics) II Semester (R22)

Course Objectives:

To emphasize the theoretical foundation of Financial Accounting and its applications in business.
To understand the importance of Double Entry Book System and Accounting Process.
To develop the skills needed to analyze financial statements and its interpretation for better decision making.
To understand the significance of Inventory and its role in financial accounting.
To provide an understanding to analyse financial statements through Ratios.

Course Outcomes

Students will be able to

Know the basic terminologies in financial accounting and learn accounting standards issued by ICAI.
Gain knowledge about the Accounting Cycle to prepare and interpret financial statements from financial transactions.
Analyze the reasons for keeping inventories to aid in financial decision making.
Able to learn the inventory valuation methods in business.
Interpret financial statements through ratios analysis.

UNIT - I: Introduction to Accounting

Importance, Objectives and Principles, Accounting Concepts and conventions, and The Generally Accepted Accounting Principles (GAAP), Accounting Standards Issued by ICAI- International Financial Reporting Standards (IFRS), Basic terminology in accounting.

UNIT - II: The Accounting System

Double entry system–recording business transactions–Classification of accounts–Accounting cycle, Books of Original Record; Journal, ledger, Trial Balance, Rectification of Errors (Problem Solving).

UNIT - III: The Accounting Process

Capital and Revenue expenses, Final Accounts; Trading-Purpose, structure and Format, Profit and Loss account-Purpose, structure and Format and Balance sheet -Purpose, structure and Format without adjustments and with adjustments (Problem Solving).

UNIT - IV: Inventory Valuation and Depreciation

Introduction, Reasons for Keeping Inventories, objectives of inventory accounting, Methods of inventory valuation- Sales Price Method, Market Price Method and cost Price Methods Depreciation, Methods of depreciation and valuation -Straight Line Method, Diminishing Balance Method, Sum of years’ Digits Methods, Production Units Methods (Problem Solving).

UNIT - V: Financial Analysis

Introduction to financial statements Analysis, Horizontal Analysis and Vertical Analysis of Company, Financial Statements, Liquidity, leverage, solvency and profitability ratios – Du Pont Chart.