Course Code: MBA 501A

Course Category Professional Core Course- Full Credit

Course Title Accounting For Business Management
Teaching Scheme and Credits Lectures Case Assessment Credits
Weekly load hrs. 3 1 1 3
Course Description: This course introduces the basic concepts and principles of accounting for
preparing the financial statements such as income statement (financial performance) and balance sheet
(financial position). The course focuses on detailed understanding of accounting information system,
accounting concepts, accounting principles, accounting cycle, recording of transactions, and financial
statement concepts.

Pre-requisites: NA
Course Objectives:
1. Knowledge
i. To understand Systematic procedure of recording business transactions.
ii. To Comprehend and analysis of financial statements of company.
2. Skills
i. Preparation and presentation of information for management Planning, control and decision-
making.
ii. Interpretation of accounting reports.
3. Attitude
i. Demonstrates ability to comprehend Accounting and Costing concepts to managerial decision
making

Course Outcomes:

1. This course will enable the students to combine practice and theoretical knowledge of financial
and management accounting.
2. The students of this course will be active learners and develop awareness of emerging trends in
financial and management accounting,
3. The course will provide decision making skills to the students in the financial analysis context,
4. The students of this course will have the ability to identify and analyze financial and
management accounting problems and opportunities in real life situations.
Course Contents:

Unit 1 - Accounting Information System (9 Sessions)

1.1. Meaning, Objectives, Scope and Limitations of Accounting, Users of Accounting information,
Cash and Accrual systems of Accounting
1.2. Accounting Terminologies, GAAP & Accounting Cycle
1.3. Transaction analysis using Accounting equation

Unit 2 - Overview of Corporate Financial Statements (8 Sessions)

2.1. Objectives and Characteristics of Financial statements.
2.2. Introduction to Corporate Financial Statements (Revised Sch. III of Companies Act, 2013)

Unit 3 - Cost Concepts, Cost Classification & Cost Sheet (8 Sessions)

3.1. Meaning of Cost, Costing and Cost accountancy, Classification of costs and its use in decision
making.
3.2. Preparation of Product Cost Sheet

Unit 4 - Marginal Costing & CVP Analysis (10 Sessions)

4.1. Concepts of Marginal Costing,
4.2. CVP Analysis and Break-Even Analysis

Unit 5 - Budgetary Control (10 Sessions)

5.1. Meaning and Objectives of budget and Budgetary control,
5.2. Types of Budget – Preparation of Sales, Production, Flexible and Cash Budget
Numerical will be covered on the following topics:
1. Transaction Analysis
2. Cost Sheet
3. Marginal Costing & CVP Analysis
4. Preparation of Budgets

Learning Resources:
Text Book:
Ravi M. Kishore, Cost & Management Accounting, Taxmann Publications Pvt. Ltd.; 6th Edition, 2019.

References:
1. R.P. Rustagi – Management Accounting, Taxmann Publications Pvt. Ltd.; 2nd Edition edition,
2016.
2. M.N. Arora- Cost Accounting: Principles & Practice, Vikas Publication, 12th Edition, 2012.

Supplementary Reading
1. Introduction to Accounting --http://ncert.nic.in/textbook/pdf/keac101.pdf
2. Financial Accounting Basics--
https://www.tutorialspoint.com/accounting_basics/accounting_basics_tutorial.pdf
3. Accounting Glossary
https://wps.pearsoned.co.uk/wps/media/objects/3507/3591169/glossary/glossary_fa.html
4. https://corporatefinanceinstitute.com/resources/ebooks/principles-accounting-book-pdf/
5. https://www.wallstreetmojo.com/cost-accounting/
6. https://resource.cdn.icai.org/55730clcgc45064a.pdf
7. https://www.mastersindia.co/gst/financial-statements-meaning-nature-and-objectives/

Pedagogy:
1. Use of Multimedia (power point presentation, audio, visuals)
2. Case Studies, Games, Group Activities, Role Play.
3. Guest Lectures
Assessment Scheme:
It is divided into two parts, Internal and External Evaluation

A. Internal Evaluation: This has Class Continuous Assessment (CCA) having four components
for 50 marks.
Class Continuous Assessment (CCA)
Component Description Weight
(May Change)

1. Case Study For three-credit courses, five case studies shall be conducted (10 for
20
Solution each case. (5*10=50) Final 50 marks will be converted to 20
2. Assignment There will be one assignment conducted for each course. 10

There will be Two surprise test conducted for each course (20 for
3. Surprise test 10
each test. (2*20=40) Final 40 marks will be converted to 10
4. Class
Minimum 1 time in a term. 10
Participation
Total :Class Continuous Assessment (CCA) 50
B. External evaluation:
WPU-Term-End One for each trimester.
Examination
50

Total: Internal Evaluation + External Evaluation 100

Unit Unit Name Sessi Topic Description Readings

Name on
UNIT- 1-2 1.1. Meaning, Objectives, Financial Accounting Basics--
I Scope and Limitations https://www.tutorialspoint.com/account
of Accounting, ing_basics/accounting_basics_tutorial.p
Users of Accounting df
information,
Cash and Accrual
systems of
Accounting Accounting
Information 3-4 1.2. Accounting Accounting Glossary
System Terminologies, GAAP https://wps.pearsoned.co.uk/wps/media/
& Accounting Cycle objects/3507/3591169/glossary/glossar
y_fa.html
5-7 1.4. Revision -Transaction Financial Accounting Basics--
analysis using https://www.tutorialspoint.com/account
Accounting equation ing_basics/accounting_basics_tutorial.p
df
8-9 Case Study 1s- Satyam ICFAI
Computers Ltd – Business
Accounting Fraud
UNIT- Overview of 10-11 2.1. Objectives and https://www.mastersindia.co/gst/financi
 II Corporate Characteristics of al-statements-meaning-nature-and-
Financial Financial statements. objectives/
Statements
12 2.2. Introduction to https://resource.cdn.icai.org/55730clcgc
Corporate Financial 45064a.pdf
Statements (Revised
Sch. III of Companies
Act, 2013)

13 Case Study -2- Individual company annual report

Annual report analysis
of Reliance Pvt. Ltd.
14-15 2.2. P& L a/c https://resource.cdn.icai.org/55730clcgc
45064a.pdf
16-17 2.2. Balance sheet https://resource.cdn.icai.org/55730clcgc
45064a.pdf
UNIT- 18-19 3.1. Meaning of Cost, Ravi M. Kishore (2019), Page 1-3
III Costing and Cost
accountancy
Cost 20-21 3.1. Classification of Ravi M. Kishore (2019), Page 28-34
Concepts, costs and its use in
Cost decision making.
Classificatio 22 3.2. Case Study 3- ICFAI
n & Cost Costing in Pepe
Sheet Denim
23- 3.2. Preparation of Product Ravi M. Kishore (2019), Page 292-293
24-25 Cost Sheet

UNIT- 26-27 3.3. Concepts of Marginal Ravi M. Kishore (2019), Page 484-488
IV Costing
28-30 3.4. CVP Analysis and Ravi M. Kishore (2019), Page 540-544
Break-Even Analysis-
Formulas
31-32 4.3. Numerical - Ravi M. Kishore (2019), Page 493-539
Marginal Calculation of
Costing & Contribution, P/V
CVP ratio, Break-Even
Analysis Point
33-34 4.4. Numerical - Ravi M. Kishore (2019), Page 548-577
Calculation of Fixed
Cost, MOS, Desired
Sales
35 Case Study – 4- ICFAI
Putex Corporation:
Corporate Planning
Process
UNIT- 36 5.1. Meaning and Ravi M. Kishore (2019), Page 578-579
V Budgetary Objectives of budget
Control and Budgetary control
 37 5.1. Types of Budget – Ravi M. Kishore (2019), Page 582-589
Preparation of Sales,
Production, Flexible
and Cash Budget
38 5.1. Numerical on Cash Ravi M. Kishore (2019), Page 599-630
Budget
39-41 5.2 Numerical on Cash
Budget
42-43 5.2. Numerical on Flexible
Budget
44 5.2. Numerical on Flexible
Budget
45 Case Study 5- Fountain ICFAI
Pens Limited

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