Learning Goals : The meaning of Accounting. The outputs of the accounting process. The users of the financial statements.

Generally accepted Accounting Principles.

DEFINITION OF ACCOUNTING The Process of identifying, measuring and communicating economic information to permit informed judgments and decisions by users of the information.

THE ACCOUNTING PROCESS

Accounting Concept : These determine the rules that are applied to the Accounting procedures. Accounting Procedures : Recording Classification Summarization Interpretation Presentation

GENERALLY ACCEPTED ACCOUNTING PRINCIPLES

GENERALLY ACCEPTED ACCOUNTING PRINCIPLES CONVENTIONS Materiality Conservatism Consistency Full disclosure

What Is Accounting ? Definition : Accounting is the process of Recording, Summarizing, Analyzing, and Interpreting financial activities

Four Components of Accounting : Recording making written records of financial events. Summarizing combining written records into periodic reports. Analyzing - examining reports to determine financial success or failure. Interpreting using the information in reports to make judgments and decisions.

FINANCIAL STATEMENTS BALANCE SHEET : The statement of the financial position of a business at a point of time, which lists the assets, liabilities and a measure of the capital (equity) of the owners. PROFIT AND LOSS ACCOUNT : (INCOME STATEMENT) It provides the revenue earned and expenses incurred for a specific period and indicates the profits earned or loss suffered by the business during that period. CASH FLOW STATEMENT Is a summary of the cash receipts and cash payments by a business during a specified period? Standard headings are used to highlight the significant components of the cash flows into and out of a business.

USERS OF FINANCIAL STATEMENTS

MANAGEMENT ACCOUNTING Any form of accounting which enables a business to be conducted more efficiently can be regarded as Management Accounting. Management Accounting is the application of professional knowledge and skill in the preparation of accounting information in such a way as to assist management in the

formation of policies and in the planning and control of the operations of the undertaking. It is presentation of accounting information in such a way as to assist management in day to day operations and creation of policy of an undertaking. Management Accounting is the term used to describe the accounting methods, systems and techniques which, coupled with special knowledge and ability, assist management in its task of maximizing profits or minimizing losses.

Points of distinction between Management Accounting & Financial Accounting Objective Primary users of information Nature Accounting method and principles Legal obligation Time span Focus Source of data Precision.

APPLICATIONS & SOURCES

The Journal : Provides a complete record of the transactions of a business. Kept in chronological order by date. Each entry shows both the debit and credit parts of a transaction. A book of original entry.

The Two Column Journal The most basic form of journal is the general journal, a journal with two money columns. The money columns are labeled Debit and Credit. General Journal Date Account Title Credit P.R. Debit

Advantages of Using a Journal Provides a chronological (day-by-day) record of all transactions. Provides a place to explain transactions, whenever necessary. Lessens the possibility of making an error when recording a transaction because all parts of the entry appears in one place. Easier to locate any recording errors because all parts of an entry are shown together.

Kinds of Entries : Simple Entries Journal entries that contain just one debit and one credit. Compound Entries - Journal entries that contain three or more accounts

PURCHASE BOOK DateName of SuppliersL.F.Inward Inv. No.Amount Rs. SALES BOOK DateName of CustomersL.F.Outward Inv. No.Amount Rs. PURCHASE RETURNS BOOK DateName of SuppliersL.F.Debit Note No.Amount Rs. SALES RETURNS BOOK DateName of CustomersL.F.Credit Note No.Amount Rs.

ACCOUNTS May be kept by hand in a bound book or loose leaf binder, or they may be part of a computer system. A group of accounts in known as ledger. Thus, the accounts are often referred to as ledger Accounts. A ledger is a bound book, containing of many pages, one or two pages are allotted to each account. These are various forms used for ledger accounts, common types are the T form or the standard form of account.

LEDGER ACCOUNT The T Account Title of Account

Salaries A/c DateParticularsJ.F.Amt. (Rs.)DateParticularsJ.F.Amts. (Rs.) Standard form of Account DateParticularsP.R.Debit (Rs.)Credit (Cr.)Balance (Rs,)

Post from the Journal to the Ledger Ledger accounts provide a separate record of the changes in each asset, liability, and aspect of owners equity. Without ledger accounts, it would be very difficult to prepare financial statements. Post from the Journal to the Ledger Definition :Posting is the process in which the information in the journal must be transferred to the ledger accounts at regular intervals.

TRIAL BALANCE Definition :A trial balance is a listing of the accounts in the ledger and their balances as of a certain date. A trial balance is prepared periodically to test the equality of the debits and credits in the ledger accounts. The trial balance is not a financial statement or report.

Errors not Revealed by the Trial Balance Failure to record an entire transaction. Failure to post an entire journal entry. Posting the wrong amount to the Dr. and Cr. Sides of the correct accounts. Posting the Dr.or Cr. Part of an entry to the correct side of the wrong account. Journalizing the same transaction twice. Posting the same journal entry twice.

Trading Account for the year ended . Dr. Cr. ParticularsRs.ParticularsRs.To opening stock To Purchases Less Return outwards To Freight To Carriage Inward To Wages To Octroi Duty To Custom Duty To Fuel, Power To Gas and Water To Factory Rent and Taxes To Royalty To Gross Profit transferred To Profit & Loss A/c.--------

-----By Sales Less Return Inward By Closing Stock By Gross loss transferred To Profit & Loss A/c.---------

Profit and Loss Account for the year ended ... ParticularsRs.ParticularsRs.To Gross loss transfer from Trading A/c. To Office Salaries To Office Rent To Office Rate and Taxes To Insurance To Printing and Stationery To Postage To Repairs To Audit Fees To Carriage outward To Advertisement To Bad debts To R.D.D. To Depreciation on Assets To Traveling Expenses To Interest on Capital To Discount To Net ProfitBy Gross Profit transferred from Trading A/c. By Discount Received By Interest Received

By Commission Received By Rent Received By Sundry Income By Interest on Drawings Total :Total :

INCOME STATEMENT Vertical Form Sales revenue -Other Income -Less :Cost of Goods sold -Gross Profit Less : Operating Expenses -Selling & Distribution expenses -General and administrative expenses Depreciation -Operating profits Less : Interest expenses Net profit before taxes Less : Taxes Net Profit after taxes Less : preferred stock dividends. -------

Earnings available for common stockholders

Key relationships : The key relationship in the profit and loss account of a merchandising concern are summarized below : Net sales = Gross salesSales returns and allowances Net purchase=Gross purchasesPurchase returns and allowances Purchase discounts Net cost of purchases = Net purchases + Freight In Cost of goods sold = Beginning inventory + Net cost of purchases Ending inventory Gross profit = Net sales Cost of goods sold Operating expenses = Selling expenses + Administrative expenses Profit before income tax (or operating profit)

= Gross profit Operating expenses Net profit = Profit before income tax Income tax

HORIZONTAL FORM OF BALANCE SHEET Sch. Current Previous Source of Funds No. year year Sch. Current Previous Application of Funds No. year yearShareholders funds : Capital Reserves and surplus Loan funds : Secured loans Unsecured loans TotalFixed assets: Gross : block Less : Depreciation Net block Capital work in progress Investments Current assets, loans and advances : Inventories Sundry debtors Cash and bank bal.

Other current assets Loan and advances Less : Liabilities Provisions Net current assets 4) a) Misc. expenditure To the extent not written adjusted b) Profit and loss account Total :

of Or

VERTICAL FORM OF BALANCE SHEET Name of the company . .. Balance Sheet as at S. No.ParticularsSchedule No.current yearprevious year12345Source of Funds Shareholders funds : Capital Reserves and surplus Loan funds : Secured loans Unsecured loans Total Application of funds Fixed assets : Gross : block Less : Depreciation Net block Capital work in progress

Investments Current assets, loans and advances : Inventories Sundry debtors Cash and bank balances Other current assets Loans and advances Less : Current liabilities and provisions : Liabilities Provisions Net current assets Miscellaneous expenditure to the extent not written off or adjusted Profit and loss account Total

Important Adjustments of Final Account : 1) Closing Stock : Closing Stock means item of stock given in adjustment. Effect of closing stock should be given as under. Its double effect should be as follows : a) First Effect = Balance Sheet - Asset Side b) Second Effect =Trading Account Credit Side 2) Interest on Capital : Interest on capital should be calculated by applying given % (rate) to opening balance of capital a) First Effect - Add in amount of capital in balance sheet b) Second Effect - Profit and Loss Account Debit side 3) Interest on Drawings :

a) First Effect - Add in amount of drawing (ultimately both drawings and interest on drawing both should be deducted from capital) b) Second Effect - Credit side (it should be shown on credit side of Profit and Loss Account.

4) Goods distributed as free sample : a) First Effect - Trading Credit Side b) Second Effect - Profit and Loss Account Debit Side 5) Goods lost by fire : a) First Effect - Trading Account : Credit Side b) Second Effect- Profit and Loss Account : Debit Side 6) Goods lost by Fire and Insurance Company Admitted a claim for it :

Example Goods costing Rs.1000 lost by fire and Insurance company admitted claim of Rs.700 a) Trading Account : Credit : Rs.1000 b) Profit & Loss Account: Debit Side Rs.300 (100-700) (Partly effect on Profit & Loss A/c.) c) Balance Sheet : Assets side Rs. 700 (Partly effect on Balance Sheet) 7) R.D.D. (Reserve for Doubtful Debt) If R.D.D. is given only in trial balance then only single effect should be given and i.e. Profit and Loss Account credit side. If R.D.D. is given in adjustments then apply percentage of R.D.D. on amount of Debtors (after deducting amount of bad debt from debtors if bad debts are given in adjustment) and following effect should be given a) First Effect - Profit and Loss Debit Side b) Second Effect - Deduct from Debtors in

Balance Sheet. R.D.D. is also called as Reserve for Bad Debts or provision for Bad and Doubtful Debts. 8) Bad Debts : If bad debts are given in trial balance then Profit and Loss Account Debit side only single effect should be given. If bad debts are given in adjustment then. a) First Effect - Profit and Loss Debit Account (add in bad debts) b) Second Effect-Deduct from Sundry Debtors in Balance Sheet. If Bad debt and R.D.D. both are coming together in same problem then give first effect of Bad Debt and then of R.D.D. as shown above. 9) Outstanding Expenses :

If Outstanding expenses are given in trial balance then Balance Sheet, Liability side only single effect. If outstanding expense are given in adjustment then a) First Effect - Add in original expenses in Profit and Loss Account b) Second Effect- Balance SheetLiability Side 10) Prepaid Expenses : If prepaid expense are given in trial balance then only single effect and i.e. Balance Sheet assets side. When prepaid expenses are given in adjustments then : a) First Effect - Deduct from original expenses in Profit and Loss Account. b) Second Effect - Balance Sheet Assets side. 11) Trade Expenses and General Expenses : When only trade expense are given then Profit and Los Account debit.

When only general expenses are given then Profit and Loss Account Debit. When both are given in same problem them. Trade Expenses - Trading Account Debit General Expenses- Profit and Loss Account Debit 12) Depreciation : Calculate amount of depreciation by applying given percentage to the amount of assets and then. a) First Effect - Deduct the same amount from value of assets and b) Second Effect profit and Loss account debit side (Transfer the same amount)

Why Evaluate Financial Statements? Internal uses Performance evaluation compensation and comparison between divisions Planning for the future guide in estimating future cash flows External uses Creditors Suppliers Customers Stockholders

Ratio Analysis : Ratio analysis is a technique used in financial statement analysis (and in other analyses). It combines values from the financial statements to create single numbers that: Have easily interpretable economic significance. Facilitate comparisons.

Ratio Analysis : Ratios also allow for better comparison through time or between companies As we look at each ratio, ask yourself what the ratio is trying to measure and why is that information important Ratios are used both internally and externally

Categories of Financial Ratios : Short-term solvency or liquidity ratios Long-term solvency or financial leverage ratios

Asset management or turnover ratios Profitability ratios Market value ratios

CLASSIFICATION OF RATIOSS. No.RATIO & FORMULACOMPOSITIONREMARKS / SIGNIFICANCEILIQUIDITY GROUP1. Current Ratio = Current Assets (C.A.) = -------------------------------Current Liabilities (C.L.)Stock Debtors Cash / Bank B/R Prepaid Expenses + marketable securities. Creditors B/P Outstanding expenses Bank OD proposed dividend Income Tax Payable.Also known as working capital / solvency ratio. 2:1 is often referred to as Standard Ratio. It indicates ability of the business to honour its current obligations. It gives short term liquidity position / efficiency with which working capital is used.

2.Liquid/Quick/Acid Test = Liquid Assets (L.A.) = -----------------------------Liquid Liabilities (L.L.)C.A. except inventories & prepaid expenses. C.L. less Bank O/D1:1 Assets which can be converted into cash without any reduction in value almost immediately. Ratio says whether firm is able to meet its short term debts out of short term assets.IIPROFTABILITY GROUP1.Gross Profit Ratio = Gross Profit (G.P.) = -------------------------- x 100 Net salesSales - * cost of goods sold.

* Opening stock + purchases closing stock.Indicates gross margin of profit available on Rs.100 sales. It gives efficiency with which goods are produced / purchased. Higher ratio is desirable.2.Net Profit Ratio = Net Profit after taxes = --------------------------- x 100 Net SalesNP : Profit after all types of expenses & taxes. Sales ReturnsIt gives the net margin i.e. portion of sales available to owners after considering all types of expenses. High preferred. 3.Operating Ratio = Mfr. Cost of goods sold + Operating Expenses = ----------------------------- x 100

Net SalesOffice & Administrative Expenses Selling & distribution Expenses are Operating Expenses. Non Operating Expenses = Interest on long term loans dividends. Financial expenses.It is general measure of operating efficiency. Low ratio is desirable. It gives % of Net Sales absorbed by operating cost hence rise in ratio indicates a decline in efficiency.

4.Expenses to Sales Ratio Total Expenses under particular group / Individual Expenses. = ----------------------------- x100 SalesGroups of expenses may be manufacturing administrative, selling & distribution expenses The ratio indicates expenses incurred under each group w.r. to Rs.100 sales. Useful for forecasting & budgeting. Useful for comparison of deviation in N.P. & analyzing the causes thereof. IIITURNOVER GROUPa.Activity / Efficiency Ratio 1.Fixed Assets T/O Ratio = Sales / Cost of Sales = ----------------------------Fixed AssetsConcerned with measuring efficiency in assets management.

Higher the ratio, increase in efficiency. I.e. maximum sales can be achieved with minimum investment in fixed assets. 2.Debtors T/O Ratio = Net Credit Sales = -------------------------Closing debtors Daily / Monthly Sales = Sales = ---------------360/12 Average collection period or Debtors velocity = Closing debtors = ------------------------------Daily / monthly salesIn published A/cs. It is not possible to find out figure of credit sales (Net sales can be taken.

It gives period after which amount is collected from debtors

It gives credit period enjoyed by customer. Helps to find out whether there is over investment in debtors. Creditors Velocity = Creditors

-----------------------------Cost of Sales -------------------12/360Stock velocity = Closing stock = -------------------Cost of Sales ------------------12/3603.Current Assets T/O Ratio = Net Sales ----------------------Current AssetsHigh ratio is desirable i.e. C.A. are turned over more no of times in the form of sales. 4.Working Capital T/O Ratio Net Sale

= -----------------------Working CapitalWorking Capital = Current Assets Current Liabilities High effective use of working capital Employed.5.Stock T/O. Ratio = Cost of goods sold = -------------------------------Average Inventory Held Net sales = ------------------------Closing inventory Open Stock + Closing Stock ---------------------------2Higher ratio is desirable

6.Capital T/O Ratio = Sales = -----------------------Cap. EmployedCap employed = F.A. + Invt. + W.C. Or Eq. + pref. Sh. Cap + Reserves + long term loans (-) Fictitious assets if any.IVSOLVENCY GROUP1.Debt. Equity Ratio = Long-term debt. = ------------------------Shareholders funds.Shareholders funds = Share Capital + Reserves / Surplus Debentures, long term loans from fin Inst, Other long-term finances. Very Low : borrowing Capacity of the orgn is being underutilized. Long term financial Prospects of Co. are Judged. Ratio indicates dependence on outside finance. Redeemable Pref. Sh. To be redeemed

in 12 Yrs / less as part of debt. -- High debt equity ratio Cr Stake is more than that of owners. If very high invt in orgn is risky one. Borrow from outside is best way to increase earnings available to shareholders, low expectation, tax rebate. 2Proprietary Ratio = Total Assets / Fixed Assets = --------------------------------Proprietors FundsProprietors funds Share Capital +

Reserve surplusIt indicates extent to which owners funds are utilized in diff. Kinds of assets. -- If Proprietors Funds exceed the value of fixed asset a part of net working capital is supplied by the Shareholder & if less than Fixed Assets creditors obligations have been used to finance part of F.A.3.Fixed Assets / Capital EmployedSh. Capt. + Res. + long term loans. Principle of F.M.Not only F.A. but also a part of C.A./W.C. must be financed through long-term funds. If ratio is high major portion is invested in F.A. 4.Interest coverage ratio = Profit before interest & / taxes On long term loans = -------------------------------Interest chargesFixed Interest on long-term loans & debenture. The ratio indicates how many times the profit covers the

fixed interest. It measures margin of safety for the lenders Higher the coverage more security to lenders. 5.Debt. Service Coverage Ratio= (D.S.C.R.) N.P. after Taxes+Dep.+ Interest on term loan = --------------------------------Terms loan installment + Int. on Term loans. IMP ratio calculated by bankers & Financial Institutions. As it ascertains the capability of the organization to repay dues from the cash accruals of business

VOVERALL PROFITABILITYReturn on Cap. Employed = N.P. = ------------------------ x 100 Cap. Employed Net Profit before Interest on loans tax, dividend. 2.Return on Shareholders Funds = Divisible Profit (NPAI & T) ---------------------------------x100 Shareholders Funds Eq. + Pref. Share Cap. + Reserve Fictitious Assets VIMISC. GROUP1.Capital gearing Ratio = Long-term debts. + Pref. Share Capital (Fixed income bearing securities) = ---------------------------------

Equity Shareholders fundsThe ratio indicates chances of trading on equity with / funds of predetermined cost higher the ratio higher is the risk involved. 2.Earning Per Share (E.P.S.) = NPAT Pref Divd. = ----------------------------Number of Equity SharesDivisible profit per Equity Share.3.Price Earning Ratio = Market Price per share = ----------------------------------Earnings per equity shareIt indicates the market price as number of times of earnings. 4.Dividend Payout Ratio= Dividend per equity share

= ---------------------------------EPS (Earning per Eq. Share) Divisible Profit EPS= -------------------Total Number of Equity ShareThe ratio indicates what proportion of earnings per share has been used for paying dividend.

GLOSSARY 1. Accounting : The set of rules and methods by which financial and economic date are collected and transformed into useful reports for decision making. Def. : It is an art of recording, classifying and summarizing in a significant manner and in terms of money transactions and events of financial nature and interpreting results thereof. 2. Account : (a) A recording device used for sorting accounting information into similar groups. (b) It is systematic and summarized record of all the transactions at one place, pertaining to a person, one property or one head of expenses or gains. 3. Accounting Concepts : Necessary assumptions or conditions upon which accounting is based. 4. Asset :

(a) A thing of value owned by an economic enterprise. (b) The property owned by a person or a traders total possessions as building, cash, goods etc. 5. Accounts Receivable : Amounts due to the firm from people to whom goods have been sold. 6. Accounts Payable : Amounts payable by the firm to persons from whom goods have been purchase 1. Book Keeping It is a systematic method of recording the financial transactions in the books of accounts. 2. Books of Accounts : Main books of accounts are journal and Ledger. 3. Bad Debts : Un-collectable receivables i.e. debts which can not be recovered.

4. Bill of Exchange : A general term for a note demanding payment. 5. Bills Payable : A bill showing that a firm owes money to those, whose names are mentioned in the bill. 6. Bill Receivable : A bill showing that money is due to the firm from the persons whose names are mentioned in the bill. 7. Brought Down (Bold) Or Brought Forward (B/B) : Term used to present opening balance of account i.e. to open the account for the current year by posting the closing balance of previous year. 8. Balance Sheet : The statement that summarizes the assets liabilities and owners equity of a business unit as on a specific date. 9. Profit & Loss Account : It is an account containing all revenue and expenses items for a

given period, to find out net profit or net loss of the business. 1. Credit Symbol used for sources of funds is credit. 2. Creditor The person to whom money is due. The person to whom business owes certain amounts. 3. Capital Investment made by the proprietor in business. Money or moneys worth brought into business by proprietor. 4. Carriage Inwards : Expenses incurred for transporting direct material purchased by the firm. 5. Carriage Outward : Transportation charges paid for the goods sold. 6. Carried down/Carried forward(C/d or C/b) Term used to balance an account.

1. Debit : Symbol used for the applications of funds is debit. 2. Debtors : Persons who owe the business certain amounts. 3. Drawings : Money or moneys worth withdrawn from the business by the proprietor for his personal use. 4. Depreciation : The accounting process adopted for the gradual conversion of asset costs into expenses. 5. Discount : A reduction in price offered by the seller. 6. Discount on debtors (Cash discount) Rebate offered to customers to induce them to pay the dues immediately or within a stipulated time period. 1. Entity It is a way or method of recording a transaction in the books of accounts. 2. Financial Statement Presentation of financial data derived from accounting records

i.e. balance sheet, income statement, funds statement. Goods : Articles or things in which a trader trades, Items in which business deals in. Insolvency : The inability of the firm to meet its debt obligations. Journal : Book of original entry. All daily transactions are recorded in this book in the chronological order. Ledger : Main book of accounts containing all the different accounts of persons, assets, incomes & expenditures. Ledger : Main book of accounts containing all the different accounts of persons, assets, incomes & expenditures. Liability : Amounts payable / dues payable by a person or business obligation of business on a creditors claim against the assets of the business.

Transaction : Any business activity or monetary events. An exchange of goods / services i.e. transfer of money or moneys worth is transaction. Trial Balance : It is a statement in which debit and credit balances of all the accounts of leader are listed to test the arithmetical accuracy of books of accounts.

PGDBA I Slides for Management Accounting Learning Goals Explain basically it is a service activity. Definition of Accounting Quantitative & non-information. Accounting Process Accounting Concepts GAAP Concepts Conventions What is accounting Four Components of Accounting Financial Statements

Users of the financial statements Management accounting Def. Distinction between Management Accounting & Financial Accounting. Type of Accounts Rules of Debit / Credit Sources and application (((((( Key Concepts and Skills Know how to standardize financial statements for comparison purposes Know how to compute and interpret important financial ratios

Know the determinants of a firms profitability and growth Understand the problems and pitfalls in financial statement analysis

Standardized Financial Statements Common-Size Balance Sheets Compute all accounts as a percent of total assets Common-Size Income Statements Compute all line items as a percent of sales Standardized statements make it easier to compare financial information, particularly as the company grows They are also useful for comparing companies of different sizes, particularly within the same industry

Determinants of Growth :

Profit margin operating efficiency Total asset turnover asset use efficiency Financial leverage choice of optimal debt ratio Dividend policy choice of how much to pay to shareholders versus reinvesting in the firm

Benchmarking Ratios are not very helpful by themselves; they need to be compared to something Time-Trend Analysis Used to see how the firms performance is changing through time Internal and external uses Peer Group Analysis Compare to similar companies or within industries SIC and NAICS codes

Limitations (Cont.) Different operating and accounting practices can distort comparisons. Sometimes, it is hard to tell if a ratio is good or bad. It is often difficult to tell whether company is, on balance, in a strong or weak position: Multiple discriminant analysis Financial flexibility index

Du Point analysis summarizes and highlights a business financial condition. It is based on the fact that ROE can be expressed as the product of three ratios:

Total margin (expense control) Total asset turnover (asset utilization) Equity multiplier (debt utilization)

Two performance measures are being used frequently today that focus on managerial performance: Market Value Added (MVA) focuses on managements aggregate contribution to shareholder wealth at a single point in time. Economic Value Added (EVA) focuses on current managerial performance on a annual basis. Limitations of Financial Performance Analysis? Comparison with industry averages is difficult if the business operates many different divisions. Average performance not necessarily good performance. Seasonal factors can distort ratios.

Inflation effects can distort financial statement data.

MANAGEMENT ACCOUNTING Course Objectives The objective of this first level course in Financial Accounting, is to develop the new generation of managers and accountants who are required to combine accounting with analysis. The focus is on the Why of accounting, rather than on the how of Book-Keeping. The aim is that the students should understand and remember the concepts principles and mechanics of Accounting . Learning Objectives Having completed this course, the students should be able to Define accounting and explain its vole in making economic and business decision. Identify the major users of accounting information.

Distinguish between financial and management Accounting. To introduce the elements of financial accounting. To provide a conceptual framework for analyzing and recording business transactions and show how these transactions affect the financial statements of a business entity. To prepare financial statements. To undertake analysis of financial statements. To accomplish these objectives, we will study in depth the accounting cycle, the accounting equation financial statements and financial analysis tools as ratio analysis. Text Book Accounting and Finance for Managers. - Nitin Balwani Reference Books 1. Introduction to Financial Accounting - Homgren, Sundem 2. Management Accounting - Mahesh Kulkarn 3. Financial Accounting for Managers

4. 5. 6. 7. -

S.N. Maheshwari Double Entry Book-keeping J.R. Batlibai Accounting for Management S.K.Bhattacharya & John dearden Introduction to Management Accounting Hongren Sundem Stratton. Accounting for Managers Chakravarthi