Tribhuvan University
Faculty of Management
Office of the Dean
Bachelor of Business Management (BBM)
Course Description
:This course contains conceptual and theoretical foundation of business. It also c omprises the concept of partnership, accounting for consignments, joint ventures, branch, department, packages or containers, professional men, royalties, hire-purchase and installment.
Course Objective
:The objectives of the course are to provide the students with in-depth knowledge of accounting required to handle accounting works in the various business situations like consignment, branch etc. independently. The course further aims at providing knowledge required by the students for advance studies in accounting subject. Course Description This course contains conceptual and theoretical foundation of business. It also c omprises the concept of partnership, accounting for consignments, joint ventures, branch, department, packages or containers, professional men, royalties, hire-purchase and installment.
Course Contents:
Lecture hours show the approximate classroom time allocated to each unit.
Unit 1. Business Accounting
- Concept, objectives and importance of business accounting
- Partnership: Concept and objectives
- Types of partnership
- Partnership agreement
Unit 2. Accounting for Consignments
- Concept, Difference between consignment and sales
- Consignment goods sent at invoice price, Consignment expenses, Commission, Valuation of unsold stock, Loss of goods on consignment: Normal loss, Abnormal loss
- Consignment goods taken over by consignee
Unit 3. Accounting for Joint Ventures
- Concept
- Features and advantage of joint v enture
- Meth ods of accounting: Without keeping separate set of books, with keeping separate set of books
Unit 4. Accounting for Branch
- Concept and types of branch
- Dependent branch, Independent branch
- Accounting treatment of some important adjustments: Normal loss, abnormal loss, cash in transit, goods in transit
- Inter branch transactions
- Accounting records
Unit 5. Accounting for Department of Activity
- Concept, objectives and types of department
- Department tradi ng and profit and loss account
- Allocation of expenses
- Difference between branch and department
- Inter – department transfer
Unit 6. Accounting for Packages or Containers
- Concept, objectives and importance terms of conta iner
- Calculation of missing term s of container
- Accounting for t ypes of container: Returnable: with maintaining trading and reserve account
Unit 7. Accounting for Professional Men
- Concept and techniques in general
- Accounting treatment: receipt and payment account, adjustments, income and expenditure account, profit and loss account, balanced sheet, household cash statement
Unit 8. Accounting for Royalties
- Concept
- Objectives
- importance and modern terms
- Accounting treatment with and without maintaining minimum rent account
Unit 9. Accounting for Hire Purchase System
- Concept and objectives of hire purch ase system
- Calculation of inter est, cash price and installment (using analytical table)
- Accounting treatment as per actual cash price method: In the book of purchaser: Journal entries, Necessary ledger accounts, In the book of vendor: Journal entries, Necessary ledger accounts
Unit 10. Accounting for Installment System
- Concept and f eatures of installment system
- Difference between hire purchase and installment system
- Calculation of interest, cash price and insta llment (using analytical table)
- Accounting treatment with opening interest suspense account : In the book of purchaser: Journal entries , Necessary ledger a ccounts, In the book of vendor : Journal entries, Necessary ledger accounts
Suggested Readings:
Battliboi, J. R., (2017). Advanced Accounting, Standard Accountancy Publication Pvt. Ltd., Mumbai Jain, S. P. & Narang, K. L., (2014), Advanced Accounting, Corporate Accounting, Vol. 11, Kalyani Publishers, New Delhi Shukla, Grewal & Gupta, (2017). Advanced Accounting, S. Chand and Co., New Delhi