BBA 105 Financial Accounting and Analysis Notes cover all 4 units of the GGSIPU BBA Semester 1 accounting paper in 71 pages, with 13 solved illustrations, 14 practice problems with answers and 34 short-answer questions answered. They follow the NEP-based BBA scheme for the batch admitted in 2024-25 and later, and come as a printed book.
Written by Prateek Talwar, Founder, Unnati Educations (ACS, ICSI) · Language and teaching review by Sheetal Kirola, M.Ed., Academic Head · Checked against BBAwef2024_25_200125.pdf (BBA Scheme & Syllabus, NEP based) · Updated 13 October 2026 · Editorial policy
Scheme: NEP-based BBA scheme, w.e.f. academic session 2024-25 | Applies to: batch admitted 2024-25 onwards | Verified against: BBAwef2024_25_200125.pdf on ipu.ac.in, 13 Oct 2026
BBA 105 Financial Accounting and Analysis at a glance: GGSIPU BBA Sem 1 credits, units and exam pattern
BBA 105 is the only accounting paper of the first BBA semester. It sits with seven other GGSIPU BBA Semester 1 papers.
| Code and title | BBA 105 Financial Accounting and Analysis |
|---|---|
| Course and semester | BBA (NEP based), Semester 1 |
| Category and credits | Discipline Specific Course / Major, 4 credits, 4 lecture hours a week |
| Teaching hours | 60: 15 per unit |
| Marks | 100: 40 internal (class test 15 + activities 25) + 60 end-term |
| Applies to | Batch admitted 2024-25 onwards |
| End-term pattern | Not printed in the official BBA scheme PDF |
| Exam duration | 3 hours |
| Units | 4, numbered I to IV without titles |
| Paired lab | None |
| Pass marks | Not printed; see GGSIPU Ordinance 11 |
Note: the BBA 105 course page prints L-3 T-1, Credits-4, while the semester table lists 4 lecture hours and no tutorial. Credits are 4 either way; this page follows the scheme table.
BBA 105 Financial Accounting and Analysis Notes unit-wise: 13 solved illustrations and 14 practice problems across 4 units
These BBA 105 Financial Accounting and Analysis IPU notes run to 71 pages: a 3-page index and four units of 15 to 18 pages, each ending with an exam corner and a revision table. Notes for every other BBA paper are under GGSIPU BBA notes.
Unit headings use the titles printed in the notes. Pages 14, 27, 48 and 60 are in the sample PDF above.
BBA 105 Unit 1: Meaning and Scope of Accounting, Accounting Principles and Standards
Pages 5 to 22, 23 sections. AICPA and AAA definitions, nature, functions, book-keeping vs accounting, users, the accounting cycle, links with eight disciplines, branches and limitations; then ten concepts, four conventions, GAAP, the AS in force, and AS vs Ind AS vs IFRS. Counts: 1 illustration, 7 figures, 10 short answers, 10 long-answer questions.
| After transaction | Assets (₹) | Creditors (₹) | Capital (₹) |
|---|---|---|---|
| 1. Started with cash | 1,00,000 | Nil | 1,00,000 |
| 3. Goods on credit | 1,30,000 | 30,000 | 1,00,000 |
| 4. Cost 10,000 sold for 15,000 | 1,35,000 | 30,000 | 1,05,000 |
| 5. Rent paid 2,000 | 1,33,000 | 30,000 | 1,03,000 |
Quick look: the accounting equation after each transaction (from page 15)
- After transaction
- 1. Started with cash
- Assets (₹)
- 1,00,000
- Creditors (₹)
- Nil
- Capital (₹)
- 1,00,000
- After transaction
- 3. Goods on credit
- Assets (₹)
- 1,30,000
- Creditors (₹)
- 30,000
- Capital (₹)
- 1,00,000
- After transaction
- 4. Cost 10,000 sold for 15,000
- Assets (₹)
- 1,35,000
- Creditors (₹)
- 30,000
- Capital (₹)
- 1,05,000
- After transaction
- 5. Rent paid 2,000
- Assets (₹)
- 1,33,000
- Creditors (₹)
- 30,000
- Capital (₹)
- 1,03,000
BBA 105 Unit 2: Journal, Ledger and Trial Balance, Company Final Accounts
Pages 23 to 39, 21 sections. Golden and modern rules, an 11-entry journal for Mohan (total ₹5,39,000), compound and opening entries, ledger posting, subsidiary books, a triple column cash book and the trial balance with its blind spots. Shine Ltd's final accounts are solved in traditional form and as per Schedule III. Counts: 4 illustrations, 8 short answers, 4 practice problems, 8 long-answer questions.
| Adjustment | Trading / P&L A/c | Balance Sheet |
|---|---|---|
| Outstanding expenses | Added to the expense | Current liability |
| Prepaid expenses | Deducted from the expense | Current asset |
| Accrued income | Added to the income | Current asset |
| Income received in advance | Deducted from the income | Current liability |
Quick look: where four adjustments land (from page 34)
- Adjustment
- Outstanding expenses
- Trading / P&L A/c
- Added to the expense
- Balance Sheet
- Current liability
- Adjustment
- Prepaid expenses
- Trading / P&L A/c
- Deducted from the expense
- Balance Sheet
- Current asset
- Adjustment
- Accrued income
- Trading / P&L A/c
- Added to the income
- Balance Sheet
- Current asset
- Adjustment
- Income received in advance
- Trading / P&L A/c
- Deducted from the income
- Balance Sheet
- Current liability
BBA 105 Unit 3: Depreciation, Provisions and Reserves, Contemporary Issues in Accounting
Pages 40 to 55, 21 sections. Depreciation as per AS 10: causes, features, objectives, the four factors with Schedule II lives, two recording methods and eight providing methods, plus change of method (retrospective and current). Then HRA, Green, Inflation, CPP and CCA, and Social Responsibility Accounting with CSR (Section 135). Counts: 3 illustrations, 8 short answers, 5 practice numericals, 9 long-answer questions.
| Year | WDV (₹) | SLM (₹) |
|---|---|---|
| 2023-24 | 40,000 | 30,000 |
| 2024-25 | 32,000 | 30,000 |
| 2025-26 | 25,600 | 30,000 |
| Total | 97,600 | 90,000 |
Quick look: ₹2,00,000 machine, WDV at 20% vs SLM (from page 45)
- Year
- 2023-24
- WDV (₹)
- 40,000
- SLM (₹)
- 30,000
- Year
- 2024-25
- WDV (₹)
- 32,000
- SLM (₹)
- 30,000
- Year
- 2025-26
- WDV (₹)
- 25,600
- SLM (₹)
- 30,000
- Year
- Total
- WDV (₹)
- 97,600
- SLM (₹)
- 90,000
BBA 105 Unit 4: Shares and Share Capital, Issue and Redemption of Debentures
Pages 56 to 70, 22 sections. Company features, equity vs preference shares, five layers of share capital and entries from application to final call. Premium, discount, calls in arrears and advance, forfeiture and reissue meet in the Zenith Ltd pro-rata problem. Debentures cover types, six issue cases, redemption and DRR, then stock exchanges and SEBI. Counts: 5 illustrations, 8 short answers, 5 practice problems, 9 long-answer questions.
| Case | Debit | Credit |
|---|---|---|
| 5% discount, redeem at par | Bank 95, Discount 5 | Debentures 100 |
| Par, redeem at 10% premium | Bank 100, Loss on Issue 10 | Debentures 100, Premium on Redemption 10 |
| 5% discount, redeem at 10% premium | Bank 95, Loss on Issue 15 | Debentures 100, Premium on Redemption 10 |
Quick look: three debenture issue cases, per ₹100 debenture (from page 65)
- Case
- 5% discount, redeem at par
- Debit
- Bank 95, Discount 5
- Credit
- Debentures 100
- Case
- Par, redeem at 10% premium
- Debit
- Bank 100, Loss on Issue 10
- Credit
- Debentures 100, Premium on Redemption 10
- Case
- 5% discount, redeem at 10% premium
- Debit
- Bank 95, Loss on Issue 15
- Credit
- Debentures 100, Premium on Redemption 10
Provision vs reserve in company accounts: excerpt from page 48 of the BBA 105 notes
Excerpt from page 48 (Unit 3, Part B: Provisions and Reserves), rewritten for the web.
Provision: meaning
A provision is an amount charged against profit, that is, debited to the Profit and Loss Account. It is kept for one of two reasons: to cover depreciation or a fall in the value of an asset, or to meet a known liability or loss whose exact amount cannot yet be worked out. Because it is a charge, a provision must be made whether the year ends in profit or in loss.
Common examples are provision for depreciation, provision for doubtful debts, provision for taxation, provision for repairs and renewals, and provision for warranty. In the Balance Sheet a provision is either deducted from the asset it relates to, or shown under provisions on the liabilities side.
Reserve: meaning
A reserve is an amount set aside out of profits. It is an appropriation of profit, not a charge against it. The aim is to strengthen the financial position of the business, to meet unknown future contingencies, or to fund expansion. A reserve can be created only when there is a profit, and it appears on the liabilities side under Reserves and Surplus as part of shareholders' funds.
| Basis | Provision | Reserve |
|---|---|---|
| Nature | A charge against profit | An appropriation of profit |
| Purpose | A known liability or a fall in asset value | Strengthen the financial position, meet unknown contingencies |
| Effect on profit | Reduces net profit (debited to P&L A/c) | Reduces divisible profit |
| Creation | Compulsory, even in a loss year | Only out of profit; generally voluntary |
| Presentation | Deducted from the asset or shown under provisions | Shown under Reserves and Surplus |
| Use for dividend | Cannot be used for dividend | Revenue reserves can be used for dividend |
| Investment outside | Never invested outside | May be invested outside (then called a reserve fund) |
Difference between provision and reserve (page 48)
- Basis
- Nature
- Provision
- A charge against profit
- Reserve
- An appropriation of profit
- Basis
- Purpose
- Provision
- A known liability or a fall in asset value
- Reserve
- Strengthen the financial position, meet unknown contingencies
- Basis
- Effect on profit
- Provision
- Reduces net profit (debited to P&L A/c)
- Reserve
- Reduces divisible profit
- Basis
- Creation
- Provision
- Compulsory, even in a loss year
- Reserve
- Only out of profit; generally voluntary
- Basis
- Presentation
- Provision
- Deducted from the asset or shown under provisions
- Reserve
- Shown under Reserves and Surplus
- Basis
- Use for dividend
- Provision
- Cannot be used for dividend
- Reserve
- Revenue reserves can be used for dividend
- Basis
- Investment outside
- Provision
- Never invested outside
- Reserve
- May be invested outside (then called a reserve fund)
A simple way to remember it: a provision looks back at a cost the year has already suffered, while a reserve looks ahead and keeps part of the profit inside the business.
How to write BBA 105 answers: journal entries, working notes and distinguish-between tables
The notes repeat five answer habits:
- Journal entries in four steps: name the two accounts, classify them, apply the rule, add a narration. Total the journal; equal totals prove every entry balances (page 26).
- Every adjustment twice: once in the Trading or P&L Account, once in the Balance Sheet (page 33).
- Tally both formats: Shine Ltd's profit before tax is ₹43,600 in the traditional P&L and in Schedule III. Different figures mean a missed adjustment (page 37).
- Distinguish-between: two-line meaning of each term, 6 to 8 points in a table, one closing line (page 9).
- Change of depreciation method: closing balance must equal cost minus new-method depreciation for all years (page 48).
Worked example (practice problem 3, page 38)
Debtors ₹80,000; bad debts ₹1,500; further bad debts ₹2,000; old provision ₹3,000; new provision 5%. First remove further bad debts (78,000), then take 5%: new provision ₹3,900. P&L charge = 1,500 + 2,000 + 3,900 minus 3,000 = ₹4,400. Net debtors = 78,000 minus 3,900 = ₹74,100.
Practise this format on GGSIPU BBA important questions after each unit.
BBA 105 exam corner: 34 short-answer questions, 36 long-answer questions and 14 practice problems by unit
| Unit | Short answers | Long-answer | Practice | Illustrations |
|---|---|---|---|---|
| 1. Principles and standards | 10 | 10 | Nil | 1 |
| 2. Journal to final accounts | 8 | 8 | 4 | 4 |
| 3. Depreciation, contemporary issues | 8 | 9 | 5 | 3 |
| 4. Shares and debentures | 8 | 9 | 5 | 5 |
BBA 105 exam corner counts by unit
- Unit
- 1. Principles and standards
- Short answers
- 10
- Long-answer
- 10
- Practice
- Nil
- Illustrations
- 1
- Unit
- 2. Journal to final accounts
- Short answers
- 8
- Long-answer
- 8
- Practice
- 4
- Illustrations
- 4
- Unit
- 3. Depreciation, contemporary issues
- Short answers
- 8
- Long-answer
- 9
- Practice
- 5
- Illustrations
- 3
- Unit
- 4. Shares and debentures
- Short answers
- 8
- Long-answer
- 9
- Practice
- 5
- Illustrations
- 5
The BBA 105 notes answer 34 short-answer questions across 4 units, list 36 long-answer questions with answer pointers, and work 13 illustrations plus 14 practice problems with answers.
- Unit 1: Name the three fundamental accounting assumptions as per AS 1. Going concern, consistency and accrual; if one is not followed, disclose it.
- Unit 2: What is a contra entry? A cash-and-bank transaction, such as cash deposited into bank; marked "C" and not posted to the ledger.
- Unit 3: Why is depreciation a non-cash expense? No cash leaves when it is charged; the cash left when the asset was bought.
- Unit 4: What is the maximum discount on reissue of forfeited shares? The amount forfeited on those shares; any balance goes to Capital Reserve.
More practice sits in the BBA 105 important questions.
BBA 105 and the GGSIPU BBA Sem 1 papers it connects to
BBA 105 has no paired lab; check its official topics against the GGSIPU BBA syllabus.
The GGSIPU BBA Sem 1 Financial Accounting and Analysis notes lean on other first-semester papers:
- BBA 103 Business Mathematics: the WDV rate formula, sum of years' digits and annuity method in Unit 3 (pages 45 to 46).
- BBA 107 Business Economics: opportunity cost vs historical cost in Unit 1 (page 11) and inflation accounting in Unit 3 (pages 51 to 53).
- BBA 113 IT Applications in Business and BBA 115 IT Applications in Business Lab: Tally Prime, SAP and ERP in Unit 1 (pages 8 and 11).
- BBA 101 Management Process & Organizational Behaviour: management accounting (page 12) and Human Resource Accounting (page 50).
- BBA 109 Entrepreneurial Mindset and BBA 111 Life Skills & Personality Development: NUES papers, evaluated internally, no direct overlap.
Who writes and checks the BBA 105 Financial Accounting notes?
- Prateek Talwar, author. Founder, Unnati Educations; Associate Company Secretary (ACS), ICSI, since 15 May 2019; B.Com, University of Delhi (School of Open Learning), 2012. Profile
- Sheetal Kirola, Academic Head, M.Ed., 7 years; language and teaching review only.
Mapped to the NEP-based BBA scheme from 2024-25. The 2026-27 edition uses Schedule III (Division I) formats, revised AS 10, the 2019 DRR rule and SEBI's T+3 listing. Updated 13 October 2026 under our editorial policy.
The same team prepares GGSIPU important questions for every course.
Do the BBA 105 notes cover the full GGSIPU syllabus?
Yes for every topic in Units I to IV. One course outcome, CO7 (comprehensive financial analysis of companies), has no dedicated chapter.
| Unit | Official topics | In the notes | Status |
|---|---|---|---|
| I | Meaning, scope, nature, functions; book keeping; other disciplines; branches; limitations; principles, concepts, conventions; GAAP; ICAI standards; IAS, IFRS, AS, Ind AS | Unit 1, sections 1 to 20, pages 6 to 20 | Covered |
| II | Journal, compound and opening entries; ledger, cash book, sales and purchase book, trial balance; final accounts with adjustments; Balance Sheet as per Schedule III | Unit 2, sections 1 to 17, pages 24 to 37 | Covered |
| III | Depreciation: concept, causes, features, objectives, amount, recording, methods, policy, change of method (current and retrospective); HRA, Green, Inflation, Price Level, Social Responsibility Accounting | Unit 3, sections 1 to 17, pages 41 to 53 | Covered |
| IV | Joint stock company, shares, share capital; subscription, calls, premium, discount, forfeiture, surrender, rights, bonus; debentures and redemption | Unit 4, sections 1 to 16, pages 57 to 66 | Covered |
| CO6, CO7 | Stock exchanges and SEBI; financial analysis of companies | CO6: Unit 4, pages 66 to 67 | Partly covered: no CO7 chapter |
BBA 105 official units mapped to the notes
- Unit
- I
- Official topics
- Meaning, scope, nature, functions; book keeping; other disciplines; branches; limitations; principles, concepts, conventions; GAAP; ICAI standards; IAS, IFRS, AS, Ind AS
- In the notes
- Unit 1, sections 1 to 20, pages 6 to 20
- Status
- Covered
- Unit
- II
- Official topics
- Journal, compound and opening entries; ledger, cash book, sales and purchase book, trial balance; final accounts with adjustments; Balance Sheet as per Schedule III
- In the notes
- Unit 2, sections 1 to 17, pages 24 to 37
- Status
- Covered
- Unit
- III
- Official topics
- Depreciation: concept, causes, features, objectives, amount, recording, methods, policy, change of method (current and retrospective); HRA, Green, Inflation, Price Level, Social Responsibility Accounting
- In the notes
- Unit 3, sections 1 to 17, pages 41 to 53
- Status
- Covered
- Unit
- IV
- Official topics
- Joint stock company, shares, share capital; subscription, calls, premium, discount, forfeiture, surrender, rights, bonus; debentures and redemption
- In the notes
- Unit 4, sections 1 to 16, pages 57 to 66
- Status
- Covered
- Unit
- CO6, CO7
- Official topics
- Stock exchanges and SEBI; financial analysis of companies
- In the notes
- CO6: Unit 4, pages 66 to 67
- Status
- Partly covered: no CO7 chapter
Official source: BBA Scheme & Syllabus (NEP based), w.e.f. 2024-25.
Every course in GGSIPU notes is mapped to its official PDF this way.
BBA 105 Financial Accounting notes FAQs
How do I get the full BBA 105 notes?
Tap "Get Full Notes" to message us on WhatsApp at 9899436384. The full BBA 105 notes come only as a printed book of 71 pages covering all 4 units; they are not available as a PDF. Our team confirms the edition and delivery details in the chat, and you can check the 8-page sample PDF before you order.
How many marks do I need to pass BBA 105?
BBA 105 is marked out of 100: 40 internal and 60 end-term. The internal 40 is a class test of 15 plus 25 for assignments, presentations, viva or class participation. The BBA scheme PDF does not print a pass percentage, so check end-term minimums and re-appear rules in GGSIPU Ordinance 11 on ipu.ac.in before the exam.
Which BBA 105 unit has the most numericals?
Unit 4 has the most: 5 illustrations, including the Zenith Ltd pro-rata, forfeiture and reissue problem, plus 5 practice problems on shares and debentures. Unit 2 follows with 4 illustrations and 4 practice problems, led by the Shine Ltd company final accounts. Unit 1 is mostly theory, with a single accounting-equation illustration on page 15.
Do the BBA 105 notes follow Schedule III and current accounting standards?
Yes. Unit 2 uses the Schedule III (Division I) vertical format with notes to accounts and solves Shine Ltd in both formats. Unit 3 follows revised AS 10, and keeps the old AS 6 retrospective method because exam questions still ask it. Unit 1 lists the AS in force and the Ind AS phase dates.
Are these BBA 105 notes for the 2024-25 NEP batch?
Yes. They are mapped to the NEP-based BBA scheme in force from academic session 2024-25, where BBA 105 is a Semester 1 Discipline Specific Course worth 4 credits. If you were admitted under an older scheme or are a re-appear candidate, compare your own syllabus first, because unit contents and paper codes can differ between the two schemes.
Does BBA 105 have a lab or practical exam?
No. BBA 105 is a theory paper with no paired lab and no practical marks; all 100 marks come from the 40-mark internal assessment and the 60-mark end-term exam. The only Semester 1 lab is BBA 115, IT Applications in Business Lab, a separate one-credit Skill Enhancement Course with its own lab record and evaluation.
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