For - Innovative UGC NET (Financial Accounting) Syllabus . FINANCIAL & MANAGEMENT ACCOUNTING ....

download For - Innovative UGC NET (Financial Accounting) Syllabus . FINANCIAL & MANAGEMENT ACCOUNTING . Financial

of 21

  • date post

  • Category


  • view

  • download


Embed Size (px)

Transcript of For - Innovative UGC NET (Financial Accounting) Syllabus . FINANCIAL & MANAGEMENT ACCOUNTING ....

  • UGC NET (Financial Accounting)


    By: Dheeraj Kumar Singh

    Ph. No: 9717168088 Address: 71, Main Road G.T.B. Nagar

    (Near Bank of Baroda) Delhi 100009

    Financial & Management Accounting By – Dheeraj Kr. Singh 1

  • UGC NET (Financial Accounting)

    © All Rights Reserved with Author No part of this book may be Xeroxed or reproduced in any other form without the written permission of the author Every effort has been made to avoid errors or mistakes in this book. Inspite of this some errors might have crept in. It is noted that author will not be responsible for any damage or loss.

    Financial & Management Accounting By – Dheeraj Kr. Singh 2

  • UGC NET (Financial Accounting)



    Financial & Corporate Accounting:

     Basic Accounting concepts, Capital and Revenue, Financial Statements.

     Partnership Accounts: Admission, Retirement, Death, Dissolution and Cash Distribution.

     Advance Company Accounts: Issue, forfeiture, Purchase of Business, Liquidation, Valuation of shares, Amalgamation, Absorption and Reconstruction, Holding Company Accounts.

    Cost & Management Accounting:  Ratio Analysis, Funds Flow Analysis, Cash Flow Analysis , Marginal Costing and Break-

    Even analysis, Standard costing, Budgetary control, Costing for decision- making.

     Responsibility accounting

    Test Schedule

    1st Test 1 to 4 Chapter 50 Questions 2nd Test 5 to 8 Chapter 50 Questions 3rd Test 1 to 10 Chapter 100 Questions 4th Test 11 to 14 Chapter 50 Questions 5th Test 15 to 16 Chapter 30 Questions 6th Test 17 to 22 Chapter 40 Question 7th Test 1 to 22 Chapter 100 Questions

    Financial & Management Accounting By – Dheeraj Kr. Singh 3

  • UGC NET (Financial Accounting)


    S. NO. Chapter Page No.

    No. of M.C.Q.

    General M.C.Q.

    Previous Year


    Previous Year

    N.E.T. Total

    1 Accounting Terminology 5 - 14 19 7 1 27

    2 Rules of Double Entry Book–Keeping 15 - 21 37 4 3 44

    3 Classification of Accounts 22 - 27 13 5 1 19

    4 Accounting Process Journal 28 - 39 37 4 1 42

    5 Ledger 40 - 46 47 – – 47

    6 Trial Balance 47 - 56 35 2 – 37

    7 Subsidiary Books 57 - 63 17 1 1 19

    8 Cash Book 64 - 70 30 1 – 31

    9 Rectification of Errors 71 - 83 7 2 – 9 10 Meaning and Scope of Accounting 92 - 96 26 8 – 34

    11 Accounting Concepts, Principles and Conventions 97 - 107 33 17 8 58

    12 Accounting Standard -Concepts, objectives, Benefits 108 - 113 14 4 1 19

    13 Accounting Policies 114 - 116 11 2 – 13

    14 Capital and Revenue Expenditure and Receipts 117 - 124 38 2 6 46

    15 Depreciation Accounting 125 - 139 21 7 2 30

    16 Inventory Valuation 140 - 151 27 9 1 37

    17 Final Accounts 152 - 173 56 15 3 74

    18 Introduction to Partnership Accounts 174 - 191 43 1 1 45

    19 Treatment of Goodwill 192 - 199 10 1 – 11

    20 Admission of New Partner 200 - 213 25 2 4 31

    21 Retirement and Death of a Partner 214 - 227 23 – 3 26

    22 Dissolution of Partnership Firm 228 - 246 18 2 2 22


    Financial & Management Accounting By – Dheeraj Kr. Singh 4

  • UGC NET (Financial Accounting)

    There is certain basic accounting terms which are daily used in the business world. Before starting the study of accounting it is essential to understand these terms as these terms have their specific meaning in Accounting. These basic terms are called “Accounting Terminology”.

    1. Business: - regular occupation, profession or trade. Any occupation or activity in which people regularly engage with a view to earn profit is called business. It is very important that only those activities are called businesses which are done on “Regular basis”. Occasional activities are not cover under business.

    2. Owner: – The person who makes the investments and bears all the risks (loss) and rewards (profits) connected with the business is called the owner. In Case of Sole Proprietorship Proprietor is the owner; in case of partnership partners are the owner; in case of company shareholder are the owner of the business. If Mr. X invests money in the business Mr. X is the owner of the business.

    3. Capital / Additional Capital / Fresh Capital / Further Capital: – The term Capital is used for the “Business point of View”. It means the amount which proprietor has invested in the business is called capital. Proprietor has right to refund his capital from the business at any time. Capital introduced by proprietor may be in cash or in kind (in form of Furniture, Goods, Building, Plant and Machinery etc.)

    Capital is the Internal Liability of the business. It is the liabilities towards Proprietor. Capital is also known as Owner’s Equity or Net Worth.

    For Example: - If Ram Started Business with Cash Rs.50,000 and Furniture worth Rs.30,000 then Total Capital of Firm becomes Rs.80,000 (50,000 + 30,000)

    Example of Separate Business Concept

    After the investment Transactions are recorded in Business at “Business Point of view” and not from “proprietor point of view”

    Business Firm

    Business Firm

    Capital (Liability of


    Cash or Other type of Assets

    Chapter 1

    Accounting Terminology

    Financial & Management Accounting By – Dheeraj Kr. Singh 5

  • UGC NET (Financial Accounting)

    4. Internal Liability: -These represent proprietor’s equity, i.e. all those amount which are entitled

    to the proprietor, e.g., Capital, Reserves, Undistributed Profits, etc.

    5. Drawings: – It is amount of money or the value of goods, which the proprietor takes (withdraw) for his domestic or personal use. If goods are taken by proprietor then it is valued at purchase cost. Drawings reduce the capital of the proprietor.

    6. Purchases: - Purchase means purchase of those goods which purpose is to resale either directly in ordinary course of business or used in producing finished goods, which are also to be sold. Purchase does not include purchase of fixed assets or stationery which purpose is not to resale in ordinary course of business.

    Purchase can be made in two ways: -

    (i) Cash Purchase: - In this type of purchase goods are purchased on cash basis. It means goods

    are comes in business and cash is immediately paid or goes out from business (ii) Credit Purchase: – In this type of Purchase goods are comes in business but cash is not paid

    immediately. Cash will be paid in future. In case of Credit purchase Creditors will arise.

    7. Purchases Return / Return Outward: - Goods purchased may be returned to the supplier or creditor due to any reason such as “not as per specification” or “defectives” it is known as purchase return or return outward. It has been assume that this facility is only provided when goods are purchase on credit basis.

    8. Sales: -Sales means sale of those goods in which firm deals or sale of those goods which was

    purchase for the purpose of resale. Sales do not include sales of old Fixed Assets and Scrap

    Sales can be done in two ways: – (i) Cash Sales: – In this type of sale goods are goes from the business and cash is immediately

    comes. (ii) Credit Sales: – In this type of sale goods are goes from the business but cash is not come

    immediately. Cash will be received in future. In Case of Credit sale Debtors will arise.

    In case of non-corporate entity (like sole proprietorship and partnership) if any expense of proprietor or partner is paid out of business cash it is treated as drawings. Such as: Income Tax paid, Life Insurance Premium Paid, Tuition Fees Paid for children etc. If any Assets is purchases out of business cash and it is not used in business but used by proprietor or partner for his personal or domestic use it is also treated as drawings.

    Shop or


    Cash Sales

    Credit sales

    Cash Purchase

    Credit Purchase

    Remaining Purchase

    Revenue Cost

    Current Assets

    Current Liabilities

    Debtors Creditors Sales Return Purchase Return

    Bills Receivable Bills Payable

    Financial & Management Accounting By – Dheeraj Kr. Singh