FINANCIAL

ACCOUNTING

Dr. S. K. Singh
M. Com., Ph. D.
Retd. University Professor,
Head and Dean and Financial Advisor
B. N. Mandal University, Madhepura
(Recipient of Rashtriya Gaurav Award,
Asian Admirable Achiever, Also included
in Asia/Pacific Who’s Who (2012))
Author & Publisher
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 Preface
I am happy to place before the readers book on Financial Accounting which is a growing,

dynamic and stimulating field of study. To be effective, individuals and professionals in all areas of

business, especially those in finance and accounting, must have sufficient understanding of financial

accounting and principles underlying financial statements and other accounting information

produced in this subject. The subject matter of financial accounting can be made more useful and

understandable by a book that provides comprehensive and up-to-date coverage of the subject with

clear and readable discussion that helps the learning process of students and readers. With this end

in view the book covers all the more comprehensively the course content requirements of the

students appearing for B. Com. Part I Examination as per the new syllabus.

Distinctive features of the book :

q Tailor-made approach, lucid style and detailed discussion wherever necessary.

q Serial of chapters has been arranged according to syllabus.

q Illustrations and Practical Problems have been arranged in the order of simple to difficult

so that students may solve the problems easily. Practical problems have been arranged

in the order of Illustrations.

q Illustrations and Practical problems have also been taken from examination question

papers of the different universities and graded in the interest of the students.

q Standard Questions have been classified into Theoretical Questions : Long Answer

Type, Short Answer Questions and Practical Questions, Recent University Questions,

too have been incorporated at appropriate places.

I am sure the above features would enable readers of financial accounting to understand the

subject without any difficulty.

 (ii)
Acknowledgements :

I express my thanks to the individuals and teachers who provided constructive comments and

useful suggestions in the development of the manuscript.

I am grateful to my wife Sudha Singh and our children for their matchless

co-operation and support during the preparation of this book. I am also thankful to the publisher

mainly Shri Rajeev Bansal and Megha Bansal, the young and energetic entrepreneurs for their vision

and passion and for bringing the book in time inspite of several constraints.

It has been my endeavour to present an error free book. However, if there are errors in

printing, I personally express my regret and apologise.

The students and teachers should feel free in sending their criticisms and valuable

suggestions for improving the book which will be incorporated and gratefully acknowledged in the

next edition.

—S. K. Singh
 Syllabus
Paper I : Financial Accounting

1. Basic Accounting Concept, Principles and Conventions, An Outline of Books of

Original Record; Preparation, Analysis and Interpretation of Financial
Statements.

2. Consignment and Joint Venture Account.

3. Partnership-Dissolution, Amalgamation of Firms and Sale of Business to

Company.

4. Issue and Forfeiture of Shares.

5. Royalty (Mines only), Hire-Purchase and Instalment System of Accounts.

6. Indian Accounting System—Its Distinctive Features, Merits and Demerits,

Various Basic and Recording Therein.
 Contents
Chapter Page No.

1. Accounting Principles : Concepts and

Conventions ..................................................................................... 1—16

2. An Outline of Books of Original Record .......................................... 17—27

3. Preparation and Presentation of Financial Statements .................... 28—50

4. Analysis and Interpretation of Financial Statements ....................... 51—75

5. Consignment Accounts .................................................................. 76—123

6. Joint Venture Accounts ............................................................... 124—156

7. Dissolution of a Partnership Firm–1 ............................................ 157—200

8. Dissolution of a Partnership Firm–2

(Insolvency of Partners) .................................................................. 201—240

9. Dissolution of a Partnership Firm–3 (Gradual

Realisation of Assets and Piecemeal Distribution ) .............................. 241—255

10. Amalgamation of Partnership Firms ............................................ 256—271

11. Sale of Partnership Firm/Conversion into Company ...................... 272—298

12. Issue, Forfeiture and Reissue of Shares ........................................299—383

13. Royalty Accounts ........................................................................ 384—465

14. Hire Purchase System ................................................................. 466—546

15. Instalment Payment System ....................................................... 547—588

16. Indian Accounting System............................................................ 589—616

Examination Paper
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