Managerial Accounting and Control MAM-560 2(1-1-2

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Managerial Accounting and Control MAM-560 2(1-1-2)

Syllabus for Mid Term: I GAAP  1 Double Entry System-Adv.[11] and Dis-Adv.[4] II Branches of Accounting  III Accounting Information System  IV Book keeping  V Journal Entry-its Advantages, 1 Compound Journal Entry 2 Subsidiary Journal Entry i Cash Book-Single, Double and Three column Cash Book a Contra Entry [] b Bill Receivable [] c Bills Payable [] ii Petty Cash Book VI Terminologies and Definitions: -[Assignment] 1 Capital  2 Assets and its types 3 Revenue  4 Expenditure  5 Stocks  6 Debentures 7 Bad Debts 8 Depreciations 9 Purchase  10 Purchase Return 11 Sales  12 Sales return 13 Sale tax 14 Goods  VII Ledger [] VIII Trail Balance [] Meaning Of Management Accounting: Management accounting deals in accounting information which is useful to a manager -Robert N. Antony Scope: Main duty of MA is to provide necessary quantitative and qualitative information for the management for planning and control. Objective / Purpose: 1. Decision making-Modernisation, Expansion, Diversification of Production. 2. Controlling performance-Cost, Budgetary. 3. Organising and Controlling-Various dept. are financed based on the information of the accounting dept. and thus helps in
co-ordination of depts.

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Planning and Forecasting 4. is also evaluated by this dept. e) It assist business managers in assessment of Income and sales tax. b) Helps to know exact financial position of the business.Managerial Accounting and Control MAM-560 2(1-1-2) &&& 4. 5. 3. and it will inform the same to management. Lack of objectivity 2. Modification of DATA 2. Accounting Information System: Input : Business Transaction And Event Processing : Accounting Princiiples and Procedures Output : Financial Statements and Report Users : Investers Lenders and managers Book keeping: “It is the art of keeping the business transactions in a systematic manner” -A. Communication 5. Ensures effective control by comparing actual with the standards. f) Helps managers in proper planning of the business. 4. Provides only DATA. Increase the efficiency in the activities of the business 2. c) Keeps the permanent record of the business transaction. It makes efficient utilisation of available resources by. Financial analysis and interpretation 3. Managerial Accounting is in its Evolutionary stage. d) It helps in easily location of errors and frauds that have taken place and the steps to prevent them in the future. 2 . but not the decisions. g) Helps in evaluation of our business with that of the other similar competitive business. increasing return on capital invested. Rosenkampff Advantages: a) It helps in knowing what are all the business expenses and gains of a business. Strategic decision making Advantages: 1. Qualitative information 6. Functions: 1. High Cost for installation and operation. Limitations: 1. Effective system of Budgeting and planning. Reporting to Management-Performance of various dept. 4. Persistent efforts required for the decisions to be implemented in the firm 3.H.

Bills Payable.Loans taken normally for more than 1 year. 12) Profit: Excess of revenue over expenses during a financial year of accounting. Eg: Theft of goods. Machinery. 6) Sales:-Sales are total revenues from goods or services sold or provided to customers. 5) Capital:. Eg: Cash payment for goods purchasedCash memo[Bill]. Eg: Debentures (Bond) ii. 14) Loss: Excess of expenses over revenue in a accounting year. Eg: Appreciation in the value of an asset. Debtors (Accounts receivable). Managerial Accounting Basic Terms in Accounting: 1) Entity: Entity is a thing that has definite existence. interest. Loan overdraft. 7) Sales return: 8) Sale tax: 9) Revenues(Income. Short-Term Liabilities: .Managerial Accounting and Control MAM-560 2(1-1-2) &&& Branches of Accounting: 1. Stock (Inventory). called sales revenue 10) Expenses: Cost incurred by the business in the process of earning revenue. Financial Accounting 2. service or property received is called expenditure.e buying and selling. ii. Stationary: 3 . Cash Discount: This is offered by the credit giver to the credit taker. royalties.…. Current Assets: Assets hold on a short term basic is known as Current Assets Eg: Bills Receivable (Notes Receivable). dividends. Furniture. i. Certain terms used in Business Transaction are: a Cash Transaction b Credit Transaction c Barter Transaction 3) Assets:. Eg: Land. Payment to a creditor. Cost Accounting 3. ii.An event which has some specific value b/w 2/more entities. Eg: Furniture: For A Furniture dealer-it’s a Good-But for others it is asset. i.] Certain % of List price is deducted at the time of selling. 13) Gain: Profit that are generated by an enterprise from an event or transaction which are incidental in nature. Receipt of money. i. Eg for Business Entity. i.Assets are some economic resources of an enterprise which has some monitory value. when the credit taker pays back the amount on a stipulated period of time or earlier. 11) Expenditure: Spending money or incurring a liability for some benefit. rent received):. Winning a court case. Credit purchaseInvoice PaymentsReciepts 17) Goods: It refers to a product that the business is dealing with i.Amount invested by the owners of a company. 16) Voucher: The documentary evidence in support of a transaction is known as voucher. Trade Discount: [ ManufWhole Seller / Whole Seller Retailers. Sales may be cash sales or credit sales.These are the amounts of the business earned by selling its products or providing services to customers. commission. ii. Long-Term Liabilities: . 15) Discount: is deduction in the price of the goods sold. Fixed Assets: Fixed assets persists for a longer duration of time.Loans taken normally for a period which has to be paid back within 1 year. Eg: Purchase of good. 4) Liabilities: These are the debts that an enterprise has to pay in some future point of time.Super Bazar 2) Transaction:. Eg: Creditors.

closing stock comprises raw materials.Full & Fair disclouser A/c Conventions. Money Mesurment-Only Monitary transactions entry A/c Concepts. 22) Creditor: Creditors are persons and/or other entities who have to be paid by an enterprise an amount for providing the enterprise goods and services on credit. the stock on hand is the amount of goods which are lying unsold as at the end of an accounting period is called closing stock (ending inventory). Note: Sundry Detor. 21) Debtor: Are persons who owe an enterprise for buying goods and services on Credit. spares and other items in a business. 23) Debentures: 24) Bad Debts: 25) Depreciations: Accounting Principles: Separate Entity-Owner and Business will have saparate assets Going Concern-Long term business. In a trading concern. Cash Purchase ii. it is shown on assets side.Managerial Accounting and Control MAM-560 2(1-1-2) &&& For a Stationary shop keeper. for use or sale.Importance to Material.Real profits r enterd Full Disclosure. It is called Stock in hand. Similarly.Assumptions and Conditions Cost-Only Purchasing cost entry.[Income=RevenueExpenditure] Conservatism. Credit Purchase 20) Stock: Stock (inventory) is a measure of something on hand-goods.Should Remain Unchanged from 1 period 2 another Materiality. i. Ignore Insignificant 4 . & Cr. 19) Purchase: Purchases are total amount of goods procured by a business on credit and on cash. In a manufacturing company. Will not shut down. it’s a Good-But for others it’s an Expense (Not Purchase*) 18) Drawing: Withdrawal of money and/or goods by the owner from the business for personal use. No Depreciation calculation A/C Principle=GAAP Dule-Aspect-Dr. 4 Every transactions Accounting Period-Financial Period ver Profit/Loss 4 d firm Periodic Matching of Cost and Revenue. semi-finished goods and finished goods on hand on the closing date.On Closing date .Custums and traditions Consistency. opening stock (beginning inventory) is the amount of stock at the beginning of the accounting period.

Ledger:. It has different accounts and transactions relating to that accounts are recorded.Ledger is the principle accounting book of the accounting system.Managerial Accounting and Control MAM-560 2(1-1-2) &&& Journal[Book Of Original Entry]: Journal Record all daily transactions in the order of they occur. 5 .

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