ANNEXURE – 16

Nirma University

Institute of Technology

CE Department

Course Policy Template

Branch: MCA

Semester: III, Academic Year: 2017-2018, Term: ODD

Course Code & Name : 3CA1355 Managerial Economics & Financial Management

Credit Details : 4

Course Co-ordinator : Prof. Rushabh Shah

Contact No. & Email : 079-30642258, rushabh.shah@nirmauni.ac.in

Office : B-103

Visiting Hours

Course Blog

:

:

9:00 to 6:00

3CA1355rs.wordpress.com

Course Faculty : Prof. Rushabh Shah and Prof. Rajan Datt

Introduction to Course:

The course is important to students to understand the concepts of financial accounting and managerial economics which will help them to make application software.

There is no prerequisite of this course.

Course Learning Outcomes:1. describe the role of accounting in business and society

2. demonstrate the principles and procedures of computerized accounting cycle in

different types of business ownerships

3. prepare & interpret financial statements

4. forecast supply and demand using various methods

5. examine costing determinants and ratio of BOP analysis

Syllabus:

Introduction of Accounting: As an Information System, Branches of Accounting (Financial,

Cost & Management), Book-Keeping and Accounting (Recording, Classifying, Summarizing &

Interpreting), Objective and uses of Accounting, Vocabulary.

Financial Accounting: Accounting System, Accounting Principles (Rules of Debit & Credit),

Traditional Approach, Balance-Sheet Approach, Accounting Concepts and Standards,

Preparation of Journal, Ledgers and Trial Balance, Preparation of Financial Statements

(Company Account).

Interpreting Financial Statement and Inventory Valuation: Ratio analysis, Introduction to

inventory valuation, FIFO (First in first out) and LIFO (Last in first out) methods.

Cost Accounting: Financial accounting and cost accounting, Elements of Cost, Cost

Classification and Cost Sheet.

Managerial Economics: Introduction, Demand and Sales Forecast, types of demand,

Determinants of demand, Demand function, Demand elasticity and there measurement,

significance, Sales forecast and forecasting method.

Production function: Isoquants, Profit maximization, Least-cost combination of inputs.

Determinants of cost and cost concepts, Determinants of price, Different market structure and

pricing, conditions of equilibrium of a firm under different market structures.

Banks and its instrument: Barter function of money, Significance of money, Money supply

and price level, Commercial banks and their functions, Functions of a central bank, Instruments

of monetary policy. Inflation-its causes and consequences, measures to control it, National

Income concepts-Measurement of national income, National income statistics.

International Trade: Its basis, Balance of Payments.

Self-study:

International Trade: Its basis, Balance of Payments.

Laboratory details: (List of Experiments, Schedule, assessment policy)

No Laboratory for this course

Tutorial details: ( problem sheet, schedule, assessment policy)

Tutorial - 1

Hours: 1 Assessment Policy: Viva and Tutorial Evaluation

Q-1 What is accounting system? And how it is useful to an organization? Also discuss

its functions and objectives.

Q-2 Explain the accounting process in detail.

Q-3 Differentiate between the internal and external users

Tutorial - 2

Hours: 1 Assessment Policy: Viva and Tutorial Evaluation

Q-1 Differentiate between transaction and events.

Q-2 Discuss seven types of transaction model.

Q-3 Differentiate between the single entry system and double entry systems.

Tutorial - 3

Hours: 1 Assessment Policy: Viva and Tutorial Evaluation

Q-1 Differentiate between traditional approach v/s new or modern approach of

accounting.

Q-2 Classify the following accounts as either Personal A/c, Real A/C or Nominal A/C

a. Bank A/Cb. Cash A/Cc. Capital A/Cd. Loan A/Ce. Salary A/Cf. Shah A/Cg. Goodwill A/Ch. Machinery A/C

Q-3 State giving reasons the accounts you would debit or credit for each of the following transactions.

a. Cash received from Rameshb. Rent Paid in cashc. Good purchased by cashd. Salary paid by chequee. Bought furniture by Sunil on creditf. Cash paid to Rameshg. Goods sold to Rameshh. Cash paid into bank.

Tutorial - 4

Hours: 1 Assessment Policy: Viva and Tutorial Evaluation

Q-1 Differentiate between Journal and Ledger.

Q-2

Q-3

Tutorial - 5

Hours: 1 Assessment Policy: Viva and Tutorial Evaluation

Q-1 List all the adjustment entries for balance sheet and explain any six of them.

Q-2 The following trial balance of Desai & Co. was taken on 31-12-2004. Prepare trading account, profit & loss account and balance sheet taking the following facts into consideration.(a) Allow interest on capital at 6%.(b) The Insurance premium of Rs. 120 has been paid for the half year ending 31-3-2004.(c) Depreciate building and furniture by 10%.(d) A sum of Rs. 40 due for wages has not been paid.(e) Reserve 10% of the book debts, for bad and doubtful debts and 5% discount on debtors and creditors.(f) Stock of goods on 31-12-2004 is Rs. 7,060.

Trial Balance as on 31-12-2004Particulars Dr. Cr.Capital 15000Drawings 750Stock (1-1-2004) 6920Bills receivable 1000Purchase Returns 320Sales Returns 300Bills Payable 1180Sales 8300Purchases 4500Wages 70Discount 30Salaries 200Union Bank Shares 3000Insurance 120Buildings 3000Furniture 700Sundry Debtors 6000Sundry Creditors 1300Cash in Hand 470Overdraft at bank 900

27030 27030

Q-3 Following is the trial balance of Raman as on 31st December 2004. Prepare a trading and profit & loss account and a balance sheet after taking into account the adjustments given below:

Trial balanceParticulars Dr CrCapital 30000Drawings 5000Purchases 40000

Carriage Outwards 500Purchases Returns 1000Sundry Expenses 800Bad Debts 300Sales 60000Postage 200Wages 1000Bills Payable 3000Discount Paid 500Land And Buildings 18000Plants and Machinery 7500Creditors 8500Debtors 10500Salary 1500Investments 3000Opening Stock 13200Cash 500

102500 102500Adjustments :1. Closing Stock 10,3002. Create reserve for debtors at 5%3. Depreciation on Plant & Machinery at 6%4. Salary outstanding 4005. Interest on Investment accrued 906. Wages paid in advance 50

Tutorial - 6

Hours: 1 Assessment Policy: Viva and Tutorial Evaluation

Q-1 Differentiate between financial accounting and cost accounting? Q-2 Discuss various types of costs with an example. Q-3 What do you mean by profit oriented and nonprofit oriented organization ? Q-4 Prepare a Cost Sheet and find out the Profit/Loss From the Following Data

Opening Stock of Raw Material 50000 Purchases of Raw Material 75000 Direct Wages 50000 Indirect Wages 25000 Factory General Lighting 25000 Factory Rent 43000 Postage and Telegram Expenses 18000 Salary to Office Staff 36000 Delivery Van Expenses 16000 Opening Stock of Finished Goods 25000 Closing Stock of Finished Goods 10000 Closing stock of Raw Material 7000

Sales 450000

Q-5 Prepare a Cost Sheet and find out the profit From the Following Data of Rajeshwari Ltd

Opening Stock of Raw Material

15000

Purchases of Raw Material

40000

Direct Wages 12000 Indirect Wages 23000 Factory Overheads 45000

Administrative Overheads

50000

Sells and Distribution Overheads

74000

Opening Stock of Finished Goods

12000

Closing Stock of Finished Goods

5000

Closing stock of Raw Material

4000

Sales 400000

Tutorial - 7

Hours: 1 Assessment Policy: Viva and Tutorial Evaluation

Q-1 Differentiate between financial accounting and cost accounting?

Q-2 Discuss various types of costs with an example.

Q-3 What do you mean by profit oriented and nonprofit oriented organization ?

Q-4 Prepare a Cost Sheet and find out the Profit/Loss From the Following Data

Opening Stock of Raw Material 50000

Purchases of Raw Material 75000

Direct Wages 50000

Indirect Wages 25000

Factory General Lighting 25000

Factory Rent 43000

Postage and Telegram Expenses 18000

Salary to Office Staff 36000

Delivery Van Expenses 16000

Opening Stock of Finished Goods 25000

Closing Stock of Finished Goods 10000 Closing stock of Raw Material 7000

Sales 450000

Q-5 Prepare a Cost Sheet and find out the profit From the following Data of Rajeshwari Ltd.

Opening Stock of Raw Material 15000

Purchases of Raw Material 40000

Direct Wages 12000

Indirect Wages 23000

Factory Overheads 45000

Administrative Overheads 50000 Sells and Distribution Overheads 74000

Opening Stock of Finished Goods 12000

Closing Stock of Finished Goods 5000 Closing stock of Raw Material 4000

Sales 400000

Tutorial - 8

Hours: 1 Assessment Policy: Viva and Tutorial Evaluation

Q-1 What do you mean by ratio analysis? why it is used?

Q-2 What are the advantages of ratio analysis?

Q-3 Following fina;ncial statements are available from the books of the ramesh Ltd.

Profit and Loss A/C for the year ended on 31st March

Dr. Cr.

Particulars Rs. Particulars Rs.

To Opening stock 80000 By Sales 800000

To Purchases 460000 By Closing Stock 100000

To Purchase Expense 10000

To Gross Profit c/f (?) 350000

900000 900000

To Administration Expenses 110000 By Gross Profit b/f 350000

To Sales & Distribution Expenses

21000 By Non Operating Income

5000

Depreciation 22000 By Profit on sale of shares

15000

To Loss of sale of fixed assets

8000

To Interest 9000

To Taxes 80000

To Net Profit c/f to balance sheet

120000

370000 370000

Balance sheet on 31st March

Liabilities Rs. Assets Rs.

Equity capital

(Each of Rs. 10)

200000 Fixed Assets (at Cost) 400000

Less : Depreciation 70000

Reserve: Net fixed assets 330000

Opening Balance 200000 Investments 60000

+ P & L A/c b/f 120000 320000

15% Debentures 60000 Stock 100000

Current Liabilities 120000 Debtors 150000

Cash & bank 50000

Misc. Expenditure 10000

700000 700000

Calculate the following ratios:

1) Current ratio 2) Quick ratio

3) Gross profit ratio 4) Net profit ratio

5) Rate of Return of Investment (ROI) 6) Inventory turnover

7) Average age of Debtor 8) Debt Equity ratio

9) Interest Coverage ratio

Q-4 Following details relate to the Manar Ltd. (figures are in Rs. Lakhs)

Profit and Loss A/C for the year ended on 31st March

Dr. Cr.

Particulars Rs. Particulars Rs.To opening stock 12 By Sales 120To Purchases 50 By Closing Stock 10To Gross Profit c/f (?) 68

130 130To Administration and sales expenses

20 By Gross Profit b/f 68

To sales and distribution expenses 7To Depreciation 10 By Miscellaneous incomes 7To interest 2To taxes 16To Net Profit c/f to balance sheet 20

75 75

Balance sheet on 31st March

Liabilities Rs. Assets Rs.Equity capital(Each of Rs. 10)

40 Fixed Assets (at Cost) 87Less : Depreciation 40

Reserve 25 Net fixed assets 4715% debentures 15 Investment 15Current liabilities 20 Current assets:

Stock 10Debtors 13Cash & bank 12Miscellaneous Expenditure

35

3100 100

Calculate the following ratios:

1) Current ratio 2) Debtors turnover ratio

3) Gross profit ratio 4) Rate of return on investments (ROI)

5) Debt equity ratio 6) Debt ratio

7) Quick ratio 8) Earnings Per Share

Tutorial - 9

Hours: 1 Assessment Policy: Viva and Tutorial Evaluation

Q-1 What do you mean by managerial economics?

Q-2 What is the role is of demand determinates? Also discuss different types of demand?

Q-3 Explain different types of demand forecasting methods.

Q-4 Discuss demand elasticity in details.

Q-5 Explain Production function and determinates of production.

Q-6 Give an advantages and disadvantages of different market structure.

Q-7 How the determinates of price are useful for deciding price level?

Tutorial - 10

Hours: 1 Assessment Policy: Viva and Tutorial Evaluation

Q-1 Explain the functions of commercial banks.

Q-2 What are Inflation Causes, Consequences and Remedies? Give an example of its.

Q-3 What is money and monetary policy? And give its common instruments brief.

Q-4 Discuss national income concepts, methods and its statistics in detail

References:1. D.R. Patel, Accounting & Financial Management, Atul Prakashan.

2. Ashok Sehgal, Deepak Sehgal, Financial Accounting, Taxman’s Allied Service (p) Ltd.

3. S.N. Maheshwary, Financial Accounting SultanChand & Co.

4. Ravi M Kishore , Cost & Management Accounting, Taxman’s Allied Service (p) Ltd.

5. S.N. Maheshwary, Cost & Management Accounting, SultanChand & Co.

6. Mote and Gupta, Managerial Economics, TMH

7. Dominick Salvatore, Managerial Economics, TMH

8. Prasanna Chandra, Financial Management, TMH

Component wise Continuous Evaluation & Semester End Examination weightage:

Subject Continuous Evaluation LPW

Course Code

Course name

Course Co-ordinator

L T P C Innovative Assignments

Sessi-onal Test

Class test

No.of Practical

WT Term End viva-WT

Type (*)

No

WT

WT No. WT

3CA135 Managerial Prof. 3 1 - 4 TT 10 0.3 0.4 1 0.3 N/A N/ N/A

5 Economics and Financial Management

Rushabh Shah

A

Course Code

Course Name

Teaching Scheme Examination Scheme

L T P C Hours Component WeightageSEE SEE CE LPW

3CA1355

Managerial Economics & Financial Management

3 1 - 4 3 0.4 0.6 -

Lesson Plan

Lecture No.

Topic Mapped CLO

1-8 Introduction of Accounting:

Information System

Branches of Accounting

Book-Keeping and Accounting

Objective and uses of Accounting

Vocabulary

Accounting System

1,2

9-13 Financial Accounting:

Accounting Principles (Rules of Debit & Credit)

Traditional Approach, Balance-Sheet Approach

2,3

14-25 Financial Accounting: Accounting Concepts and Standards

Preparation of Journal, Ledgers and Trial Balance

Preparation of Financial Statements

2,3

26-28 Inventory Valuation: 2,3

Introduction to inventory valuation,

FIFO (First in first out)

LIFO (Last in first out) methods

29-33 Interpreting Financial Statement and Inventory

Valuation:

Introduction

Use of Ratio analysis.

Functional Classification with an example

3

34-38 Cost Accounting:

Financial accounting and cost accounting

Elements of Cost, Cost Classification

Cost Sheet

2,3

39-42 Managerial Economics:

Introduction, Demand and Sales Forecast, types of

demand, Determinants of demand

Demand function, Demand elasticity and there

measurement, significance

Sales forecast and forecasting method

4

43-45 Production function:

Isoquants, Profit maximization, Least-cost

combination of inputs, Determinants of cost and

cost concepts

Determinants of price, Different market structure

and pricing, conditions of equilibrium of a firm

under different market structures.

5

46-48 Banks and its instrument:

Barter function of money, Significance of money,

Money supply and price level

Commercial banks and their functions, Functions of

a central bank, Instruments of monetary policy.

Inflation-its causes and consequences, measures to

control it, National Income concepts-Measurement

of national income, National income statistics.

5

International Trade: Its basis, Balance of Payments.

Tutorial Plan

Tutorial No

Topic Mapped CLO

1 Introduction to Accounting 1,22 Financial Accounting 2,33 Financial Accounting 2,34 Financial Accounting 2,35 Financial Accounting 2,36 Inventory Evaluation 2,37 Cost Accounting 2,38 Interpreting Financial Statement 39 Managerial Economics 4

10 Production Function and Banks and its Instrument 5

Course Assessment Schemes

(Course without Laboratory & Tutorial components)

Assessment scheme

CE SEE

Component weightage

0.6 0.4

Class Test30%

Sessional Exam40%

Term Paper/Innovative Assignment

30%

(Course with Laboratory component)

Assessment scheme

CE LPW SEE

Component weightage

0.4 0.2 0.4

Class Test30%

Sessional Exam40%

Term Paper/Innovative Assignment

30%

Continuous Evaluation

75%

Viva Voce25%

(Course with Laboratory & Tutorial components)

Assessment CE LPW SEE

schemeComponent weightage

0.4 0.2 0.4

Class Test30%

Sessional Exam40%

Tutorial Evaluation

30%

Continuous

Evaluation75%

Viva Voce25%

(Course with Tutorial component)

Assessment scheme

CE SEE

Component weightage

0.6 0.4

Class Test30%

Sessional Exam40%

Tutorial Evaluation30%

Teaching-learning methodology:

Lectures: Use of Black board, PPT, Discussion, Case Studies etc.

Tutorial: Innovative ways of Numerical solving, derivations, Problem Solving,

Application of Mathematical Models to real Systems etc.

Active learning techniques

Muddiest Points

Poll on Blog for CLO Outcome

Types of Special/Innovative Assignments, Term Papers, mini Projects etc.

Not Applicable

Course Material:

Course Policy : On Course Website and Blog

PPTs, Notes, other Material : On Course Website and Blog

Web-links, Blogs, Video Lectures, Journals : On Course Website and/or Blog

Advanced topics : On Course Website and Blog

Industries/Organizations : On Course Website and Blog

Course Outcome Attainment: Use of formal evaluation components of continuous evaluation, tutorials, semester end

examination Informal feedback during course conduction