Preface

We are delighted to place Financial Accounting in the hands of our readers. This book is mainly intended to meet the requirements of undergraduate (B.Com.) courses in universities across India. At the same time, every effort has been made to fulfill the needs of students appearing for professional courses such as CS, ICWA, CA and MBA. Topics are selected in such a way so as to cover the syllabii of various universities offering B.Com. and B.Com. (Hons) courses.

The book is structured around financial accounting principles comprising the following chapters: Accounting as an Information System, Financial Accounting Principles, Accounting Standards, Accounting Process Starting from Journal to the Preparation of Final Accounts, Capital and Revenue Expenditures, Revenue Recognition, Accounting from Incomplete Records, Measurement of Business Income, Accounting for Depreciation, Inventories, Hire–purchase, Branches (Inland), Dissolution of Partnership, Analysis of Financial Statements, Ratio Analysis and Cash Flow Statement, which are all presented in a logical sequence thereby enriching the content of the book.

Each chapter begins with Learning Objectives in which the contents of the chapter are divided into objectives, and the entire text is based on these objectives.

The theoretical aspects of accounting principles are explained in a lucid manner. They are discussed pointwise in very simple language to enable students comprehend concepts with ease.

Each accounting principle is explained by way of an illustration. For each principle, a separate model sum is provided, and it is solved in a step-by-step manner. Even minute details are worked out in the form of Basic Calculations or Notes. Concepts that help in tackling problems are explained under Important Note. There are nearly 500 such illustrations in this book. The authors hope that the student community would benefit from these illustrations.

Important technical terms are explained precisely at the end of each chapter as Key Terms. The main points of each chapter are highlighted at the end as the Summary for students to recapitulate at a glance.

A question bank at the end of each chapter comprises the following: (A) Objective-type Questions— True or False Questions, Multiple-choice Questions and Fill in the Blanks; (B) Short Answer-type Questions; (C) Essay-type Questions; and (D) Exercises.

A maximum number of questions have been framed under each category of objective-type questions. This will ensure that the readers develop a broad understanding of the theoretical part of the text. In addition to objective-type questions, short answer-type, multiple-choice questions and essay-type questions have been included. Nearly 500 problems from various university question papers and reputed premier institutes such CS, ICWA and CA have been selected and included at the end of each chapter. Solutions to them have also been provided.

We hope that this book will be of immense use to all our readers, especially to students.

Feedback

For further improvement of this book, suggestions are always welcome, and the readers are free to contact the authors at [email protected].