Accounting Fundamentals

ACCOUNTING - I

Course Code: UIB 205 Credit Units: 04

Course Objective:

The purpose of the Financial Accounting course is to furnish students with a general understanding of
the financial decision making process globally. The course principally concentrates to develop a high
level understanding of the tactical and strategic significance of the financial Accounting function in the
Multinational organizations. The aim is not to turn participants into practicing accountants; the
philosophy is rather to provide critical appreciation of the significance of financial concepts in the
development of projects and operations. The unit will enhance the ability to extract relevant
information from accounting data for the purpose of decision-making and the analysis of Financial Data.

Learning Outcomes:

At the end of this course the students should be able to:

 Demonstrate an understanding of the double entry accounting system and basic accounting
concepts
 Prepare all major financial statements
 Develop a skill to analyse the financial statements

Course Contents:

Module I: Introduction to Accounting

Meaning, nature, functions and usefulness, basic accounting terminology, Types of accounting,
accounting equation, generally accepted accounting principles, concepts and conventions.

Recording of transactions - voucher system, accounting process, journal, ledger, subsidiary books and
trial balance.

Module II: Preparation of profit and loss account and Balance sheet

Meaning, usefulness and elements of Financial Statements, recognition of assets, liabilities, income and
expenses, preparation of trading account, preparation of profit and loss a/c and Balance Sheet,
adjustment in preparation of financial statements with respect to closing stock, outstanding expenses,
prepaid expenses, accrued income, income received in advance, depreciation and bad debts.
Module III: Rectification of errors

Types of errors, errors affecting trial balance, errors not affecting trial balance,

Accounting for bills of exchange transactions:

Definition, features, parties, specimen and distinction

Reconciliation of bank accounts:

Meaning, need and preparation, corrected cash balance

Module IV: Accounting for depreciation

Meaning and need for charging depreciation, significance and methods-straight line method, written
down value method. Inventory valuation methods and choice of methods, methods of recording
depreciation-charging to asset account, creating provision for depreciation/accumulated depreciation
account, treatment of disposal of assets. Accounting for non-profit making organizations:

Meaning of Not-for-Profit Organisation, distinction between a profit seeking and not-for-profit

organization, preparation of receipt and payment a/c and income and expenditure a/c

Learning Methods:

Series of lectures and tutorials of one hour duration will impart information and will be complemented
by interactive tutor-led and student–led discussion. Students are also required to work on various
problems as part of class and home assignments to gain thorough knowledge of various statistical
techniques used for business decision making.

Examination Scheme:

Components PI CI CTI EEI

Weightage (%) 10 10 10 70
Text & References:

Text:

 M.Y Khan & PK Jain 2005- Financial Management Text & Problems -Tata Mc Graw -Hill Publishing
company, Third edition

References:

 Tulsin, P.C. – Fianancial Accounting - Pearson Education 2006 Edition

 Van Horne J C- 2003 Fundamentals of financial Management -Pearson Education 3rd ‘Edition
 Grewal T.S. 2004 - Introduction to Accounting-S. Chand & C., New Delhi 2nd ‘Edition
 Shukla & Grewal 2004 -Advanced accountancy- S. Chand & C., New Delhi 3rd ‘Edition
 Gupta R.L. & Radhaswami M. 2004 - Advanced Accountancy Volume (1) S. Chand & Co. New 5th
Edition
 Aggarwal B.D. 2003- Financial Accounting Volume (1)-Pitamber Publishing Co. New Delhi 2nd Revised
Edition
Cost & Management Accounting

ACCOUNTING – II

Course Code: UIB 305 Credit Units: 04

Course Objective:

The purpose of the Financial Accounting-2 course is to furnish students with a general understanding of
the financial decision making process. The course principally concentrates to develop a high level
understanding of the tactical and strategic significance of the financial Accounting function in the
Multinational organizations. The aim is not to turn participants into practicing accountants; the
philosophy is rather to provide critical appreciation of the significance of financial concepts in the
development of projects and operations. The unit will enhance the ability to Analyse and understand the
various other types of accounting.

Learning Outcomes:

At the end of this course the students should be able to:

 Prepare all major financial statements

 Develop a skill to analyse the financial statements
 Understand the basic concepts of company accounts

Course Contents:

Module I: Financial Statement Analysis

Vertical Analysis

Horizontal Analysis

Ratio Analysis

Module II
Funds Flow Statement, Preparation Importance and Significance

Cash Flow Statement, Preparation Importance and Significance

Valuation of Goodwill, Methods of Calculation in Partnership accounts

Module III: Company accounts

Journalizing and recording of accounting transaction for shares and debentures

Preparation of final accounts of a company

Learning Methods:

Series of lectures and tutorials of one hour duration will impart information and will be complemented
by interactive tutor-led and student–led discussion. Students are also required to work on various
problems as part of class and home assignments to gain thorough knowledge of various statistical
techniques used for business decision making.

Examination Scheme:

Components PI CI CTI EEI

Weightage (%) 10 10 10 70

Text & References:

Text:

 Khan & Jain P K 2003 Financial Management Text & Problems Tata Mc Graw -Hill Publishing
company, Third edition.

References:

 Van Horne J C 2003- Fundamentals of financial Management (Pearson Education,)

 Grewal T.S. Edition 2004- Advance Accounting- S. Chand & C., New Delhi
 Shukla & Grewal Edition 2004 -Advanced accountancy, S. Chand & C., New Delhi
 R.L. Gupta & M. Radhaswami Edition 2004- Advanced Accountancy Volume (11), S. Chand & Co. New
Delhi
 Tulsian P C2004 edition-Financial Accounting- Tata Mc Graw -Hill Publishing company

Accounting for Manager

MANAGERIAL ACCOUNTING

Course Code: UIB 602 Credit Units: 04

Course Objective:
The purpose of the Managerial Accounting course is to furnish students with a general understanding of
the Management decision. The course principally concentrates to develop a high level understanding of
the tactical and strategic significance of the Management Accounting functions. The aim is to provide
critical appreciation of the significance of Managerial concepts in the development of organizations. The
unit will enhance the ability to Analyse and understand the various other types of Costing and
Managerial accounting techniques.

Learning Outcomes:
After successful completion of the course the student will be able to:

 Comprehend various management accounting concepts

 Understand use of accounting techniques like Variance Analysis, Inventory Management and
Budgeting

Course Contents:

Module I

Importance of Management accounting

The scope of inter-relationship between financial, cost and management accounting

Basic principles and concepts of Management accounting

Module II
Introduction to cost and management accounting

Cost sheet, Material Cost, Process Costing, Marginal costing and Cost Volume – Profit Relationship

Module III: Methods of Inventory Control

Economic order quantity,

Reorder level, ect LIFO, FIFO Systems and Activity based Costing

Module IV

Standard Costing, Material Labour and Overheads

Variance analysis and Budgeting techniques

ABC analysis

Learning Methods:
Tutorials, Interactive sessions, Case studies, Management games, Extensive research projects, Seminars,
Weekend experience in companies - the course is covered by adopting a combination of lecture
methods, class presentation by groups of students, self study sessions. Each student is required to do
the back ground reading from the specified chapters of the prescribed book before coming to class.
Cases are also to be analyzed, discussed in groups (teams) outside the class as preparatory work.

Examination Scheme:

Components PI CI CTI EEI

Weightage (%) 10 10 10 70

Text & References:

Text:

 Duncan Williamson- 2003-Cost and Management Accounting, Prentice Hall of India

References:

 Jain S P & Narang KL -1995- Cost Accounting Kalyani Publishers

 Van Horne J C- 2003- Fundamentals of financial Management, Pearson Education
 My Khan & Pk Jain- Third edition -Financial Management Text & Problems -Tata Mc Graw -Hill
Publishing company
 Grewal T.S. - Edition 2004- Advance Accounting- S. Chand & C., New Delhi
 Shukla & Grewal - Edition 2004-Advanced accountancy, S. Chand & C., New Delhi.
 V K Saxena - Edition 2004- Advanced Cost Accounting Volume (1), S. Chand & Co. New Delhi
 Jain S P -1995- Cost Accounting: Principles and Practice, Kalyani Publishers
 Prasad N K -Cost Management and Accounting, Book Syndicate Pvt Ltd 1994
 Williamson Duncan-Cost and Management Accounting, Prentice Hall of India1999
 Sikdar P K -Advanced Cost & Management Accounting, Viva Publications 1999
 Mittal Maheshwari - Cost Accounting Theory & Problems Mahavir Publication 1997