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Objectives

The basic purpose of this course is to develop an insight of postulates, principles an techniques of accounting and utilisation of financial and accounting information for planning decision-making and control.

Course Contents:

• Accounting As An Information System

  • Concept – Users – Assumption – GAAP – Accounting Equation

• Recording Business Transactions

  • Accounts – Classification – The Double Entry System – Recording Transaction – Trial Balance

• Measuring Business Income

  • Income Measurement – Adjustment Process – Preparation of Financial Statements with Adjustments – Accounting Cycle

• Accounting Postulates, Concepts, Principles and Standards

  • Postulates – Concepts & Principles – Defining the Term Accounting Standard – Benefits of Accounting Standards – Standard Setting in India – Scope of Accounting Standards – List of Accounting Standards

• Accounting For Merchandising Transactions

  • Income Measurement – Revenue from Sales – Cost of Goods Sold – Operating Expenses – Classified Financial Statements

• Financial Statement Analysis

  • Objectives – Standards of Comparison – Sources of Information – Quality of Earnings – Techniques of Financial Statements Analysis

• Statement Of Cash Flows

  • Concepts – Uses – Limitations

  • Preparation of Cash Flow Statement as Per AS- 3

• Marginal Costing and Cost Volume Profit Analysis

  • Meaning of Marginal Cost and Marginal Costing – Distinction between Absorption and Marginal Costing – CVP analysis and Break Even Analysis – Margin of Safety – Key Factors – Managerial Application of Marginal Costing – Advantages & Limitations

Suggested Readings

1. Narayan Swamy, Financial Accounting, Prentice Hall of India, New Delhi, 2002

2. Bhattacharya Aashish, Financial Accounting, Prentice Hall of India, New Delhi, 2002

3. Williams, Haka, Bettner & Meigs, Financial & Managerial Accounting, Tata McGraw Hill Publishing Co., New Delhi, 2004.

4. Ghosh T.P., Financial Accounting for Managers, Taxmann Publication, New Delhi, 2003.

5. Jawaharlal, Accounting for Managers, Himalaya Publishing House, Mumbai, 2003.

6. Horngreen, Foster & Datar, Financial Accounting, Prenice Hall of India, New Delhi, 2001.

7. Bhattacharya S K and Dearden J. Accounting for Management Text and Cases. New Delhi, Vikas, 1996.

8. Financial and Management Accounting, Sultan Chand & Sons, New Delhi, 2002.

9. Subhash Sharma & M.Panduranga, Financial Accounting for Management – Text and Cases, Macmillan India Ltd., New Delhi.