A TEXTBOOK OF

ACCOUNTING FOR
MA NAGEMENT
 rd
3 Edition

A T E X T B OO K OF

ACCOUNTING FOR
MANAGEMENT
Dr S N MAHESHWARI
DIRECTOR GENERAL
DELHI INSTITUTE OF ADVANCED STUDIES, DELHI-110085
Formerly, Principal, Hindu College, Delhi University
Professor & Dean, Fa culty of Commerce and Business Management, Goa University

Dr SUNEEL K MAHESHWARI
PROFESSOR
DIVISION OF ACCOUNTANCY & LEGAL ENVIRONMENT
MARSHALL UNIVERSITY, USA

CA SHARAD K MAHESHWARI
SENIOR GENERAL MANAGER
DALMIA CEMENT (BHARAT) LTD
NEW DELHI - 110001
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 PREFACE TO THE
THIRD EDITION
We are extremely pleased to place before the esteemed readers the Third revised and
enlarged edition of our book A Textbook of Accounting for Management for MBA
Programme of different Indian universities and similar courses. The increasing heart-
warming response given to each new edition of the book is really a matter of great
satisfaction and privilege for us.
The new edition – besides containing the PLUS features of the second edition, i.e.,
simplicity of style, lucid presentation, exhaustive illustrative text, plenty of exercises
and problems, etc. – has certain additional welcome features as mentioned below:
• The book now covers all the more comprehensively the course content
requirements of the students preparing for MBA and MCom examinations of
different Indian universities and those conducted by professional institutions,
viz., Institute of Chartered Accountants of India, Institute of Company Secretaries
of India and Institute of Cost Accountants of India. It will be equally useful for
BBA and BCom students and those interested in the advanced study of the
subject.
• The text matter has been updated and upgraded in several chapters, while
some new chapters have also been added in the book. Some of the welcome
features of the new edition are as under:
The latest position regarding IFRSs and their convergence in India in the
form of Ind AS has been incorporated in Chapter 2 (Section I) of the book.
Two new chapters, namely Human Resource Accounting and Innovative
Concepts have been added as chapters 4 and 5, respectively in Section II of
the book.
A new Section V on Case Problems containing 17 cases in all, with detailed
answers has been incorporated in the book. The case problems have been
appropriately revised, carefully selected and gone through by us as per the
feedback received from four academicians, Prof A V Chirputkar of Symbiosis
Institute of Telecom Management, Pune; Prof Visvanath Balasubramaniam
of SRM University, Chennai; Prof Pramod Kumar of Dayalbagh Educational
Institute, Agra; and Prof Amit Kumar Mishra of Galgotias University, Greater
Noida, UP. The authors express their grateful thanks to them for their
cooperation and value addition.
• The subject index given at the end of the book has been appropriately revised
and updated.
• The book continues to follow a user-friendly and examination-oriented approach.
• Bound to prove a refreshing guide for business executives.
 We are confident that with all these changes, additions, adaptations and updating,
the readers will find the revised and enlarged edition of the book all the more useful
and rewarding for them.
Constructive and helpful suggestions for improvement in the book will be gratefully
acknowledged.

A-2/156, Paschim Vihar,

New Delhi – 110 063 Authors
 PREFACE TO THE
FIRST EDITION
Accounting is one of the important tools for modern managers, providing quantitative
information, primarily of financial nature, necessary for making vital economic decisions.
It is a growing and developing subject and, as such, accounting concepts, procedures
and techniques are also constantly being reviewed and revised. A clear exposition of
these concepts, procedures and techniques is a must for every business executive. The
universities and professional institutions which prepare young men and women for
careers in business and industry have, therefore, a solemn duty to perform. Their
courses must be constantly updated so that they meet the growing and dynamic
demands of business and industry.
Keeping the above objective in mind, most of the universities all over the country
have incorporated a paper in ‘Accounting for Management’ in the course curriculum
of their MBA programmes. This book has been primarily written keeping in view the
requirements of the students preparing for these programmes. The book has several
distinctive features. These include the following:
• Comprehensively meets the course requirements of the students appearing in
MBA Examinations of different universities.
• The subject matter has been divided into convenient chapters, unit-wise, as
required by the course curriculum.
• Is written in simple and straight style.
• Gives a lucid explanation of the basic concepts of accounting with plenty of
illustrative material.
• Does not presuppose the basic knowledge of accountancy and hence makes
learning of accounting a painless exercise.
• Incorporates at the end of each chapter:
• Objective type questions with short answers to enable the students to test
their understanding.
• Essay type questions for review, discussion and practice.
• Practical problems with short answers for practice to develop a sense of
confidence amongst readers.
• Provides Learning Objectives at the beginning of each chapter to tell the
students what they will learn after studying the chapter.
• Defines Key Terms at the end of each chapter for recapitulation and better grasp
over the subject.
• Bound to prove a refreshing guide for business executives.
 We are confident that with all these PLUS features readers will find the book
extremely useful and rewarding for them.
Constructive and helpful suggestions for improvements in the book will be gratefully
acknowledged.

A-2/156, Paschim Vihar, Authors

New Delhi-110 063
 CONTENTS

Preface to the Third Edition v

Preface to the First Edition vii

Section – I: ACCOUNTING FUNDAMENTALS

1. MEANING AND SCOPE OF ACCOUNTING 1.1–1.17

Need for Accounting; Development of Accounting; Definition and
Functions of Accounting; Book-Keeping and Accounting; Is Accounting
a ‘Science’ or an ‘Art’?; End Users of Accounting Information; Accounting
and other Disciplines; Role of Accountants; Branches of Accounting;
Objectives of Accounting; Outsourcing of Accounting Function;
Accounting as an Information System; Key Terms; Test Questions

2. ACCOUNTING PRINCIPLES 1.18–

1.18–1.59
Meaning of Accounting Principles; Accounting Standards and
International Accounting Standards Committee/Board; Accounting
Principles and the Institute of Chartered Accountants of India; IFRS—
Convergence in India; Systems of Book-Keeping; Systems of Accounting;
Key Terms; Test Questions; Practical Problems

3. BASIC ACCOUNTING TERMS 1.60–1.67

Accounting Terms; Key Terms; Test Questions

4. JOURNALIZING TRANSACTIONS 1.68–

1.68–1.88
Journal; Rules of Debit and Credit; Compound Journal Entry; Opening
Entry; Key Terms; Test Questions; Practical Problems

5. LEDGER POSTING AND TRIAL BALANCE 1.89–

1.89–1.109
Ledger; Posting; Relationship Between Journal and Ledger; Rules
Regarding Posting; Trial Balance; Voucher System; Key Terms; Test
Questions; Practical Problems
 A TEXTBOOK OF ACCOUNTING FOR
MANAGEMENT - 3RD EDN

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OFF

Publisher : Vikas Publishing
Author : S N
Maheshwari,Sharad K
ISBN : 9789325956193
Maheshwari & Suneel K
Maheshwari

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