BBA

Course Title: Financial Accounting-I
Code No: MGT 114
Area of Study: Core
Credit: 3

Course Objective: The objective of this course is to enable students to record and report business transaction
with a clear understanding of basic financial statements. The course also teaches the use of financial statements
from different stakeholder’s decision perspectives.
Course Contents:
Unit I: Introduction to Financial Accounting LH: 4
Accounting as an Information system and Language of Business, Users of accounting information, Functions
and Limitations of Financial Accounting, Accounting equation, Analysis of Transactions, Accounting cycle and
Accounting methods (Cash basis and Accrual basis)
Unit II: Basic Accounting Concepts and Conventions LH: 4
Basic Accounting concepts: business equity concept, money measurement concept, dual aspect (Accounting
equation concepts), Going concern concept, Accounting periods concept, Historical cost concepts, realization
concept, Accrual concept, and Matching concept
Basic Accounting Conventions: Conservatism (Prudence), Full Disclosure, Consistency and Materiality
General Accepted Accounting principles (GAAP) and Financial Reporting environment
Unit III: Preparation of Financial Statement LH: 12
Journalizing, Posting in Ledger (‘T’ Accounts and self balancing ledgers), Preparation of unadjusted trial
balance, adjusting entries and Post adjusted Trial balance, Concepts of Capital and Revenue Items, Closing
entries, Financial Statements- The Income statement (P/L account), The statement of retained earnings, the
Balance sheet, use of worksheet to complete accounting cycle

PURBANCHAL UNIVERSITY, Faculty of Management
Bachelor of Business Administration
2012

20

Unit IV: Accounting for Cash LH: 3
Cash Book and Bank statement, balance reconciliation statement
Unit V: Accounting for Fixed Assets and Depreciation LH: 4
Accounting of Plant, property and equipments, Depreciation methods- SLM and Written down value method,
Disposal of fixed assets
Unit VI: Cash and Funds flow statement LH: 14
Preparation of the statement of cash flow (direct and indirect method), preparation of the statement of funds
flow (working capital basis)
Unit VII: Corporate report and analysis LH: 7
Concept of corporate annual reports; analysis of corporate common size statements; ratio analysis- liquidity,
solvency, efficiency (turnover), and profitability; uses of ratios for different stakeholders’ point of view
References:
Porter, Gary A. and Norton, Curtis L., Financial Accounting: The Impact on Decision Makers, Harcourt
College Publishers, Orlando
Narayanswamy, R., Financial Accounting: A Managerial perspective, 10 edition, PHI (P) Ltd., New Delhi
Madhav Raj Koirala, L P Bhanu Sharma, Narendra Sharma, Chiranjibi Acharya, Chinta M. Gautam, Financial
Accounting, 2nd edition, Buddha Academic Publishers and Distributors P Ltd, Kathmandu
Y R Koirala, R P Acharya, D Bhandari, M Karmacharya, B B Sharma, Introduction to Financial Accounting,
2012, Asmita Books Publishers & Distributors, Nepal