Course Code: MCA311
Course Title: Financial Management and Accounting (4 Credits)
Unit 1 Financial Accounting – An 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 Structure: Accounting Concepts, Principles, Policies and Standards, Types of accounting concepts, Accounting Principles, Accounting Policies, Accounting Standards.
Unit 3 Double Entry Accounting: 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: Secondary books, Purchases Book/Purchases Day book, Sales Book or Sales Day book, Bills receivable book-
Bills payable book, Cash book, Posting to Ledger accounts- Posting to Ledger
Unit 5 Trial Balance: 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: 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
Unit 7 Introduction to Management Accounting: 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 9 Funds Flow Analysis: 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: 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: 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: 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: 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: 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: 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.