FinancialandManagementAccounting MB0025 Contents

Unit1 FinancialAccountingAnIntroduction Unit2 AccountingConcepts,Principles,BasesandPolicies Unit3 DoubleEntryAccounting Unit4 PrimaryBooks Unit5 SecondaryBooks Unit6 TrialBalance Unit7 FinalAccounts Unit8 IntroductiontoManagementAccounting Unit9 FinancialStatementAnalysis
Edition:Fall2008

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Contents
Unit10 FundsFlowAnalysis Unit11 CashFlowAnalysis Unit12 UnderstandingCost Unit13 MarginalCostingandBreakEvenAnalysis Unit14 BudgetaryControl Unit15 StandardCosting 300 281 264 243 229 184

Edition:Fall2008

BKIDB0668

Dr.K.Jayakumar ViceChancellor SikkimManipalUniversityofHealth,Medical,andTechnologicalstudies Prof.NandagopalV.B. DirectorandDean SikkimManipalUniversityofHealth,Medical,andTechnologicalstudies.

BoardofStudies
Dr.T.V.NarasimhaRao Professor,ManipalUniversalLearning Ms.VimalaParthasarathy Asst.Professor,SikkimManipalUniversityof Health,MedicalandTechnologicalstudies. Ms.SadhanaDash SenorManagerHR MicrosoftIndiacorporation(Pvt)limited Mr.PankajKhanna Director,HR,FidelityMutualFund Prof.K.V.Varambally Director,ManipalInstituteofManagement,Manipal Mr.ShankarJagannathan FormerGroupTreasurer WiproTechnologiesLimited,Bangalore Mr.AbrahamMathews ChiefFinancialOfficer InfosysBPO,Bangalore

ContentPreparationTeam
1. Dr.Y.Rajaram AdjunctFaculty,ManipalUniversalLearning

PeerReviewBy
Dr.NageshMalavalli Principal&ProfessorofFinance&Accounting M.P.BirlaInstituteofManagement,Bangalore

2. Mr.S.N.DoraiRaj RetdPrincipal&Professorofcommerce, SeshadripuramCollege,Bangalore. Edition:Fall2008 Thisbookisadistanceeducationmodulecomprisingofcollectionoflearningmaterialforourstudents. All rights reserved. No part of this work may bereproduced in anyform by anymeans without permission in writingfromSikkimManipalUniversityofHealth,MedicalandTechnologicalSciences,Gangtok,Sikkim. PrintedandPublishedonbehalfofSikkimManipalUniversityofHealth,MedicalandTechnologicalSciences, Gangtok,SikkimbyMr.RajkumarMascreen,GM,ManipalUniversalLearningPvt.Ltd.,Manipal 576104. PrintedatManipalPressLimited,Manipal.

INTRODUCTION

Accounting is a systematic effect of collecting. Classifying and analyzing financial information for effective use in decision making activities. There are two facts of accounting namely Financial AccountingandManagementAccounting.Whilefinancialaccountingisconcernedwithrecordingand preparation of financial statements, management accounting focuses on using the information for planning,decisionmakingandcontrollingthefinancialactivitiesofbusinessenterprise.Inviewofthe fastchangingscenarioworldover,MBAstudentsshouldacquaintthemselveswithrudimentsofthe subject.Thisbookcontains15Units.

Unit1:

FinancialAccountingAnIntroduction
Presents an overview of meaning, purpose and evolution of accounting and introduces basicterminology.

Unit2:

AccountingConcepts,Principles,BasesandPolicies
Brieflydescribestheaccountingconceptsandassumptioninfinancialaccounting.

Unit3:

DoubleEntryAccounting
DealswithbasicaccountingprinciplesofDoubleentrysystem.

Unit4:

PrimaryBooks
ContainsdetailsofprimarybooksGeneraljournalandsubsidiarybooks.

Unit5:

SecondaryBooks
Coverstheprocessofpostingfromprimarybookstoledger,whichiscalledsecondary book.

Unit6:

TrialBalance
Dealswiththeprocessofpreparingtrialbalance,errorsandrectification.

Unit7: FinalAccounts
DescribesthePreparationoffinalaccountsTradingA/c,P&LA/candBalancesheet.

Unit8:

IntroductiontoManagementAccounting
PresentsthemeaningandscopeofManagementAccounting.

Unit9:

FinancialStatementAnalysis
Dealswithratioanalysisasapartofanalysisoffinancialstatements.

Unit10: FundsFlowAnalysis
Focusesonfundflowanalysis.

Unit11: CashFlowAnalysis
Givesabriefsketchofcashanalysis.

Unit12: UnderstandingCost
Throwslightonmeaningandroleofcostaccounting.

Unit13: MarginalCostingandBreakEvenAnalysis
Introducesthetoolofmarginalcostinganditsusage.

Unit14: BudgetaryControl
Providesaninsightofbudgetsasameansofcontrol.

Unit15: StandardCosting
Introducesthetechniqueofstandardcostingasaneffectivecontrollingsystem.