M09

Accounting Fundamentals, Basics of Taxation, Accounting Packages/ Application Software - Accounting
Code: 
M09
Year / Semester: 
1st Semester
Objective: 

To equip students with the Accounting Fundamental, Accounting Softwrae and Basics of Taxation.

Credits: 
4

ACCOUNTING FUNDAMENTALS

Fundamental Knowledge of Journal Entry, Ledger & Financial Statements

Classification of accounts as cash inflow & outflow concept, real, nominal & personal account wise, knowledge of golden rules of accounting, double entry system, preparation of ledger accounts & on the basis of above preparation of balance sheet and profit & loss account.

Distinction between Capital & Revenue Expenditure/ Income

Basic difference is in the periodicity i.e capital items relate to a longer span of time whereas revenue items are related to current year(shorter period) only. Proper Distinction between them ensures that: i) true & accurate position of entity is reflected by financial statements, ii) profits for a year are not underestimated due to inclusion of capital expenditure or overestimated due to inclusion of capital income.

Making Various Bills, How to make Cheques and Deposit Slip

Putting Proper Date, reference no. or bill no., signature by authorised signatory, recording details of cheque issued,certain key points to be kept in mind while making a cheque, filling of deposit slips etc.

Voucher Preparation & Feeding

To facilitate voucher preparation & feeding knowledge of various heads of income & expenditure, ledger accounts, passing of receipt, payment, journal, memorandum entries etc.

BASICS OF TAXATION

Rates of Income Tax for various Assesses

Slab rates & exemption limit for individuals ( senior citizen, woman & others), rates for companies ( Indian & foreign Company), rates for partnership firm & others, applicability of surcharge etc.

Due Dates of filling of Various Returns under Income Tax

So that an assessee can file their returns on due date to avoid interest & penalties Case Studies

ACCOUNTING PACKAGES/ APPLICATION SOFTWARE – ACCOUNTING

Preparation of financial statements, i.e Balance Sheet, Trading and Profit & Loss Account

Vertical, Horizontal, comparative & other formats of financial statements, understanding of contents of balance sheet items like capital, secured loans, fixed assets, current assets & loans & advances etc .Financial statements are the ultimate outcome of accounting process which reflect the position of any entity.

Depreciation as per Income Tax Rates & Calculation

Classification of assets into various blocks (as per income tax rates), calculation of depreciation & format of depreciation chart. While filing Income Tax Return depreciation is to be taken on basis of Income Tax Act only.

Maintenance of Stock Register

Theoretical & practical knowledge on stock register like uses, contents, requirements & method of maintaining stock register. Proper maintenance of stock register facilitates physical verification of assets and any loss of assets can be easily detected

Use of Accounting Software (Tally)

To save time, avoid redundancy of records & timely preparation of reports. Understanding of installation, controls, use, applications, considerations, cautions, updations etc of widely used softwares like tally & others. Case Studies

Suggested Readings: 
  1. Fundamental Accounting Principles with Best Buy Annual Report by John J. Wild, Ken W. Shaw, and Barbara Chiappetta.
  2. Financial Accounting Fundamentals 2009 Edition by John J. Wild
  3. The Technology Guide to Accounting Software: A Handbook for Evaluating Vendor Applications by Stewart McKie.
  4. Basic corporate taxation by Douglas A. Kahn.