8/18/2019 Ita403 Accounting-And-financial-management Th 1.00 Ac20

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Course CodeITA403  ACCOUNTING & FINANCIALMANAGEMENT 

LTPC 3 0 0 3

 Version No. 1Course Pre-requisites/ Co-requisites/ anti-requisites (if

any). Otherwise, pleaseindicate as ‘None’

None

Objectives:  The main objective of this subject is to provide basic working knowledge ofaccounting and financial management and to know how accounting andfinancial management helps the management to take decision. It providesanalysis and interpretation of financial statements of organizations andunderstand the budget and budgetary control in organizations. It helps to findout marginal cost incurred and acquire knowledge in project proposal methodusing capital budgeting.

Expected Outcome: On completion of this subject the students will be able to predict the financialstatement of public limited company and capable of preparing the variousbudgets and forecasting the future needs of the business.

Unit No. 1 Principles of Accounting 9HrsPrinciples of Double entry – Journalizing, Ledger – Posting and preparation of Trial Balance – Preparation of Trading Account, Profit and loss Account andBalance Sheet including Adjustments (Simple problems only), BankReconciliation Statement – Concepts, Conventions and Basic Accounting Assumptions.

Unit No. 2  Analysis Interpretation of Financial Statements 9Hrs

Ratio analysis – uses of ratios in interpreting the Final Accounts (Trading a/c– Profit and Loss A/c and Balance Sheet) – Final Accounts to as well as Ratios toFinal Accounts Problems. (Simple problems only).

Unit No. 3 Break–even Analysis and Marginal Costing 9HrsMeaning of variable cost and fixed cost – Cost–Volume – Profit Analysis –Calculation of Break–even point, Profit Planning, Sales planning and otherdecision – making Analysis involving Break–even Analysis.

Unit No. 4 Budget/Forecasting 9Hrs

Preparation of and Characteristics of functional Budgets – Production, Sales,Purchases, Cash and Flexible budgets, Zero Based Budgeting.

Unit No. 5 Project Appraisal 9HrsMethod of Capital investment decision making: Pay back Method, ARRMethod – Discounted Cash Flow – Methods including Net Present Value andIRR Method.

 Text Books1. Max. of 2 (one book is preferred)2. Should be within the last 5 years.References (could be many)Mode of Evaluation Continuous Assessment (Quizzes, CATs, Assignments, etc.) and

 TEERecommended by the Board of Studies on xx-xx-xxxxDate of Approval by the Academic Council Xxth Academic Council held on xx-xx-xxxx

Proceedings of the 20th Meeting of the Academic Council of VIT held on 26.3.2010

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