Ranchi University, Jharkhand, General Semester 2, Financial Accounting-II Syllabus

Unit I
i. Inland Branch Accounting: Meaning, Objectives, Types of Branches, Accounting records of
Branches in the books of Head Office- debtors method, final account method & stock and debtors
method, Wholesale Branch accounting. Independent branches: concept, accounting treatment: important
adjustment entries and preparation of consolidated profit and loss account and balance sheet.
(15 Lectures)
ii. Departmental Accounting: Concept, Advantages, Difference between Branches and Departments,
Allocation of Expense and unallocated expenses, Inter departmental transactions, Valuation of unsold
stock. Accounting treatment with a) Final account method and b) Statement form method.

Unit. II
l. Consignment Accounting: Meaning, Sale and Consignment, Consignment Accounting- different
types of commission including overriding commission, Valuation of unsold stock and wastage of stock.
(5 Lectures)
ll. Joint venture Accounting: Joint Venture- Meaning, definitions, characteristics, advantages,
differences with consignment and partnership. Accounting treatment- A) when only one co-venture
maintains books of accounts, B) when all co-venture maintain books of accounts, C) when joint bank
account is maintains,

Unit. III
Depreciation: The nature of depreciation .The accounting concept of depreciation .factors in the
measurement of depreciation. Methods of computing depreciation: straight line method and diminishing
balance method; disposal of depreciable assets – change of method .Salient features of Accounting
Standard (AS): 6 (ICAI).

Unit. IV
l. Insolvency Accounting. Meaning of Insolvency, Insolvency Laws and their Rules, Comparative study
of P.T.A. and P.I.A, difference between Balance Sheet and Statement of Affairs & Profit and Loss
account and Deficiency Account, Insolvency accounting as per P.T.A and P.I.A rule including Omission
of items from records.
ll. Accounting From Incomplete records: Meaning, Advantages and Disadvantages, Difference
between Single entry system and Double entry system, Accounting including Conversion of Single entry
System into Double Entry System.