Bachelors’ of Business Administration
Course Outline
Course Title: Financial Accounting (with Tally) – Part 1
Credits: Area: Course Code:
Instructor(s) Email:
Dr. Aishwarya aishwarya.krishnaswamy@krea.edu.in
Krishnaswamy
easwaran.kv@krea.edu.in (Cabin 103)
K V Easwaran
Batch: Term-1
COURSE DESCRIPTION
This course is an introductory course to Financial Accounting. Accounting is the
language used to communicate business performance to various stakeholders.
It is, in effect, the report card of the business, based on which the stakeholders
make various decisions. This course will teach the basics of financial accounting,
like accounting concepts, conventions, accounting principles, and fundamental
accounting assumptions. Then it moves on to recording accounting transactions
through Journals, ledgers, and trial-balance and finally to preparing financial
statements.
OBJECTIVES OF THE COURSE
This course aims to teach students the basic concepts, principles, procedures, and
techniques underlying the accounting process. It aims to make the students
thorough in basic accounting transactions using the double-entry bookkeeping
system and understand the entire accounting cycle, from recording entries to
reporting transactions through financial statements.
It enables participants to develop an ability to understand various financial
statements, viz. Balance sheet, income statement, & cash flow statement of firms.
It also helps to analyze and interpret the data contained in these statements for
improved decision-making.
LEARNING OUTCOMES
At the end of the course, the students would be able to:
1. Appreciate the purpose of financial accounting and the concepts underlying
the preparation of financial statements.
2. Prepare Journal entries, books of original entry, ledger, trial balance, and
financial statements
3. Understand the process of preparing a firm’s financial statements.
4. Understand the reasons for accounting adjustments to be made at the end of
an accounting period and the impact of the same on the financials
5. Understanding how Accounting packages (like Tally) record ‘transactions’
and generate Trial Balance.
PRESCRIBED BOOKS
1. Double Entry Book Keeping – Financial Accounting (by) T S Grewal,
Sultan Chand
2. Accountancy for Class 11 (by) D K Goel, Avichal Publishing Company
REFERENCE BOOKS
1. Introduction to Financial Accounting by Horngren, Sundem,
Elliott, and Philbrick, Tenth Edition, Pearson
SESSION PLAN
Session Topic Theory Readings
# /
Practic
al
1 Introduction to Financial Theory Instructor
Accounting – why financial presentation
accounting is so critical? Who Chapter 1 of
are the stakeholders for whom Textbook 1
accounting is so crucial?
2 Accounting terms – Theory
explanation of financial
statements &
income/assets/liabilities/
expenses
3 Accounting Equation – Theory
Session Topic Theory Readings
# /
Practic
al
Creation of equation based on
economic transactions of the
business;
Emphasis on the core
rationale of the equation
(Assets = Liabilities + Capital)
4 Rules of Modern Accounting Theory
(income/assets/liabilities/
expenses) & Traditional
accounting (Personal, real and
Nominal accounts);
Passing journal entries for
varied types of transactions
5 Journal Entries in Journal Theory
Book
6 Practice in Journal entries Theory
7 Ledger Creation – how to post Theory
entries from books of prime
entry onto the ledger
8 Ledger Creation – how to post Theory
entries from the journal book
onto the ledger
9 Ledger Balancing – how to Theory
determine the closing balance
for one period and the
opening balance for the next
period
10 Accounting Concepts – Going Theory
Concern, Dual Aspect,
Conservatism, Consistency.
11 Accounting Concepts – Theory
Accrual, Realization,
Historical Concept, Matching.
12 Practice sessions in journal Theory
entries
13 Books of Prime or Original Theory
Entry – Cashbook
14 Journalizing using the Tally Practica
package l
15 Updating books of prime entry Practica
on Tally l
16 Creation of Ledger on Tally Practica
Session Topic Theory Readings
# /
Practic
al
l
17 Preparation of Trial Balance – Theory
Meaning and Utility of Trial
Balance; How to prepare the
TB from the ledgers; how to
interpret the different
numbers for the various
accounts in the TB
18 Limitations of Trial Balance – Theory
how to troubleshoot errors
(both obvious and hidden) in
the Trial Balance
19 Tackle errors – what errors Theory
crop up in manual and
computerized accounts?
20 Adjustments in Trial Balance – Theory
why needed and how to do it;
Closing Stock; Prepaid and
Outstanding expenses
21 Creation of Trial Balance on Practica
Tally – need to explore the l
impact of errors
22 Depreciation – meaning, Theory
reason; types of depreciation
methods
23 Accounting for depreciation Theory
using the Provision of
depreciation route
24 Accounting for depreciation Theory
using the Alternate route
(without the Provision of
depreciation).
25 Problems in the Depreciation Theory
Module – disposal of assets
26 Depreciation Module on Tally Practica
l
27 Basic financial statements Theory
28 Basic financial statements Theory
29 Preparation of accounting Practica
reports on Tally l
30 Preparation of accounting Practica
reports on Tally l
Session Topic Theory Readings
# /
Practic
al
PEDAGOGY
The course employs a mixture of classroom lectures (or discussions) and the
analysis of cases. Students must prepare thoroughly before every class and
participate actively in all discussions.
EVALUATION
Sl. Component* Weighta Duration Open or Correspondi
No ge of Closed ng Learning
. Book Outcomes
(%) Exam (OB) /
(CB)
1. Progressive 45 30 min CB 1,2, and 3
Quizzes – surprise / each
announced (7 or 8)
2 End-Term 40 2-3 hrs. CB 1,2, and 3
Examination
3. Viva voce + 15 2-3 hrs. CB 1,2, and 3
Practical
[Tally]
