Financial And Management Accounting Syllabus

Course Code: MB0041

Course Title: Financial and Management Accounting  (4 Credits)

 

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Course Contents

 

Unit 1- Financial Accounting – An Introduction: Introduction , Meaning of Accountancy, book-keeping and Accounting , Accounting Process, Objectives for accounting , Differences between book-keeping and accounting Users of accounting information , Limitations of Accounting , Basic terminologies

 

Unit 2- Accounting Concepts, Principles, Bases and Policies: Introduction , Accounting Concepts, Principles, Policies and Standards, Types of accounting concepts - Business Separate entity concept - Going concern concept - Money measurement concept - Periodicity concept - Accrual concept, Accounting Principles - Principle of Income recognition - Principle of expense - Principle of matching cost and revenue - Principle of Historical costs - Principle of full disclosure - Double aspect principle - Modifying Principle - Principle of materiality - Principle of consistency - Principle of conservatism or prudence, Accounting Policies - Changes in Accounting Policies - Disclosure in case of changes in Accounting Policies,  Accounting Standards - Scope and functions of Accounting Standards Board -   International Financial Reporting System

 

Unit 3- Double Entry Accounting: Introduction , Meaning of double entry accounting, Classification of accounts under Traditional approach, Classification of accounts under Accounting Equation approach, Comparison of traditional approach with Modern approach equal approach, Accounting Trail , Transactions and events , Meaning and roles of debit and credit , Accounting equation

 

Unit 4- Secondary Books: Introduction , Secondary books , Purchases Book/Purchases Day book - Cash discount, Trade discount - Difference between cash discount and trade discount, Sales Book or Sales Day book -    Purchase Returns Book - Sales Returns Book, Bills receivable book - Bills payable book - Cash book , Posting to Ledger accounts  Posting to Ledger

 

Unit 5-Trial Balance: Introduction , Meaning , Objectives of preparing a trial balance , Methods of preparing a trial balance, Preparation of Trial balance, Adjusting Entries , Errors and their rectification, Errors disclosed by Trial Balance , Errors not disclosed by Trial Balance , Steps to locate the errors

  

Unit 6- Final Accounts: Introduction , Adjustments before preparing final accounts , Depreciation , Bad Debts and accounting treatment of bad debts , Provision for doubtful debts , Reserves for Discount on Debtors , Reserve for Discount on Creditors , Closing Stock, Trading Account , Profit and Loss Account,  Balance Sheet

 

Unit 7- Introduction to Management Accounting: Introduction, Meaning of Management accounting ,The Role of Management Accounting , Management Accounting Framework , Functions of Management Accounting ,Tools of Management Accounting ,The Balanced Scorecard , Cost Management System , Value Added Concept , Merits of Management Accounting , Demerits of Management Accounting , Distinction between Management Accounting and Financial Accounting

 

Unit 8- Financial Statement Analysis: Introduction ,  Meaning of Ratio , Steps in Ratio Analysis ,Classification of Ratios , Du Pont Chart , Solved Problems , Advantages of Ratio Analysis , Limitation of Ratio analysis

 

Unit 9-Funds Flow Analysis: Introduction, Meaning of Funds Flow Statement, Ascertainment of flow of funds, Technique of preparing funds flow statement, Schedule of Changes in Working Capital, Adjusted Profit and Loss account, Funds Flow Statement

 

Unit 10- Cash Flow Analysis: Introduction, Meaning of Cash Flow Statement , Purpose of Cash Flow Statement , Preparation of Cash Flow Statement , Format of Cash Flow Statement (AS3: Revised Method) , Cash Flow from Operating Activities , Cash Flow Statement under Direct Method , Different between Cash Flow Analysis and Fund Flow Analysis, Uses of Cash Flow Statement

 

Unit 11-Understanding Cost:  Introduction, Meaning of Cost, Objective of Costing, Methods of Costing, Technique of Costing, Classification of Cost, Elements of Cost, Statement of Cost Sheet, Solved Problems

 

Unit 12- Marginal Costing and Break Even Analysis: Introduction , Concept of Marginal Costing , Characteristics of Marginal Costing , Difference between Absorption Costing and Marginal Costing , Marginal Cost,      Contribution ,  Cost Volume Profit (CVP) Analysis , Break Even Chart , Break Even Point, Profit Volume ratio or MCSR , Target profit , Margin of Safety , Application of Marginal cost , Limitations of Marginal cost , Solved Problems

 

Unit 13- Decisions Involving Alternative Choices: Introduction, Decision Making, Types of Costs, Types of Choices Decisions, Make or Buy Decisions, Addition / Discontinuance of a Product line, Sell or Process Further, Operate or Shut down, Exploring New Markets, Maintaining a desired level of profit

 

Unit 14- Budgetary Control: Introduction , Meaning of a Budget , Budgetary control , Objectives of budgetary control , Merits of budgetary control,  Essential features of Budgetary Control , Steps in budgetary Control , Types of Budgets , Cast Budget , Flexible Budget , Limitation of Budget Control

 

Unit 15- Standard Costing: Introduction , Definition of Standard Costing, Meaning, Difference between Standard cost and Budgetary Control, Establishment of standards, Variance analysis, Material cost variance, Material price variance, Material usage variance , Material Mix variance, Material Yield variance, Direct labor variance, Labor Efficiency Variance, Labor Rate variance, Labor mix variance, Labor Yield Variance

 

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