Utkal University, Odisha, General Semester 1, Financial Accounting Syllabus

Unit 1. (a) Theoretical Framework
i. Accounting as the language of business and an information system, the users of financial
accounting information and their needs. Qualitative characteristics of accounting information.
Functions, advantages and limitations of accounting. Branches of accounting. Bases of
accounting; cash basis and accrual basis.
ii. The nature of financial accounting principles – Basic concepts and conventions: entity, money
measurement, going concern, cost, realization, accruals, periodicity, consistency, prudence
(conservatism), materiality and full disclosures and Accounting Equation.
(b)Accounting Process
From recording of business transactions to the preparation of trial balance including
adjustments: journal, sub-division of journal, ledger accounts, trial balance

Unit 2. Business Income
i. Measurement of business income-Net income: the accounting period, the continuity
doctrine and matching concept. Objectives of measurement and revenue recognition.
ii. Depreciation Accounting: The accounting concept of depreciation. Factors in the
measurement of depreciation. Methods of computing depreciation: straight line method and

iii. Inventory Accounting: Meaning. Significance of inventory valuation. Inventory Record
Systems: periodic and perpetual. Methods: FIFO, LIFO and Weighted Average. Salient
features of Accounting Standard 2 (AS- 2 ) issued by ICAI

Unit 3. Final Accounts
Capital and revenue expenditures and receipts: general introduction only. Preparation of
financial statements of Sole Trade and Partnership Business with adjustments

Unit 4. Hire Purchase and Installment Systems and Accounting for Branch & Department
i. Concepts of operating and financial lease (theory only)
ii. Departmental Accounting and Branch Accounting including foreign branch
(Theory and Problem)

Unit 5. Accounting for Partnership Firm
Accounting of Admission of partner, Retirement and Death of partner and Dissolution of the
Partnership Firm Including Insolvency of partners