BISHOP HEBER COLLEGE, TIRUCHIRAPPALLI -17

DEANERY OF ACADEMICS

BBA

Course Handout

Course Code : U16MS303 Credits: 4

Course Title : MANAGEMENT ACCOUNTING I

1. Course objective:

At the end of the course the students should be able :

1. To understand the basics of accounting, its nature, objectives and utility of accounting
in industry and business and various accounting concepts.
2. To ascertain the profit/loss of the business by preparing Trading, Profit & Loss and
Balance.
3. To understand the meaning, objectives and scope of management accounting.
4. To describe the analysis and interpretation of financial statement through ratio
analysis
5. To understand the concepts of Sources and uses of Funds in business.

2. Course Outcomes:

CO1: To explain the elements, uses, and limitations of financial accounting.

CO2: To apply the rules of double entry system to pass journal entries for transaction and to
post them in ledger accounts and in the preparation of subsidiary books.

CO3: To illustrate the objectives of preparing Trial Balance and to check the accuracy of
records.

CO4: To Illustrate the meaning of final accounts and the purpose they serve.

CO5: To make use of final account statement and analyze the profit & loss of the firm.

CO6: To explain about the meaning, objectives and scope of management accounting.

CO7: To classify various accounting ratios and make use of it in financial decision

CO8: To construct the fund flow statement and examine cash inflow and outflow in a
business

3. Text Books:

T1: Pillai & Bagavathi, Principles of Management Accountancy, 3rd edition, S. Chand
Publishing, 2012
 T2: R L Gupta, Financial Accounting.2009

T3: Dr.R.Ramachandran and Dr.R.Srinivasan, Management Accounting,2010

4. Reference Books:

R1: R.K. Sharma and Shoshi K. Kupta , Management accounting – Principles and practice –.
13th Revised edition, Kalyani Publishers, 2014

R2: N. Vinayakan, I. B. Shiha, Management accounting – Tools and Technique –– Himalaya

publishing House.2012

R3: S.K.R. Paul,Management accounting –, New Central Book Gency, 2004

R4: A study material is prepared based on the text books and reference books. The Study
material and objective type questions will be given to the students.

6. Course Plan:

Blooms Taxonomic levels of

Transaction
Chap/Sec
Unit Subtopics Learning Outcomes
(Books) R U Ap An E C

K1 K2 K3 K4 K5 K6

UNIT I
INTRODUCTION TO FINANCIAL ACCOUNTING
1.1.0 Accounting
1.1.1 Definition of R4 X  Define Accounting
accounting
1.1.2 Nature of R4 X  Recall the nature of accounting
accounting
Objectives
and utility of  List the objectives and utility
1.1.3 accounting in R4 X of accounting in industrial and
industrial and business enterprise
business
enterprise
1.2.0 Books of Accounts

Accounting
1.2.1 concepts R4 X  List the various Accounting
concepts
Theory of  Recall the theory of double
1.2.2 double entry R4 X
entry
1.2.3 Book keeping R4 X  What is book-keeping?

 Explain journal
1.2.4 Journal R4 X X  Apply golden rules to frame
the Journal

 Explain the usage of Ledger

1.2.5 Ledger R4 X X
 Apply Ledger

 Explain the usage of

Subsidiary Subsidiary books and its type
1.2.6 books R4 X X
 Make use of different type of
subsidiary books

 Summarize the purpose of trial

balance
1.2.7 Trial balance R4 X X
 Utilize Trial Balance to check
arithmetical accuracy

UNIT-II
FINAL ACCOUNTS
2.1.0 Statement of Accounts
 Recall the meaning of final
accounts and purpose they
Trading serve
2.1.1 account R4 X X X  Illustrate the usage of Trading
account and with adjustment.
 Solve Trading account and
with adjustment.

 Illustrate the usage of Profit &

Profit and Loss a/c and with adjustment.
2.1.2 loss account R4 X X
 Solve Profit & Loss a/c and
with adjustment.

Balance sheet  Illustrate the usage of Balance

sheet and with adjustment.
2.1.3 (with simple R4 X X
adjustments)  Solve Balance sheet and with
adjustment.

UNIT-III
INTRODUCTION TO MANAGEMENT ACCOUNTING
3.1.0 Management Accounting
  Recall the meaning of
3.1.1 Meaning R4 X
Management Accounting

 List out the objectives of

3.1.2 Objectives R4 X
Management Accounting

Scope of  Recall the Scope of

3.1.3 management R4 X
management accounting
accounting
Difference
between  Compare management
3.1.4 management R4 X accounting and financial
accounting accounting
and financial
accounting
Difference
between  Compare management
3.1.5 management R4 X accounting and cost
accounting accounting
and cost
accounting
Uses and
limitation of  What are the uses and
3.1.6 management R4 X limitation of Management
accounting accounting

UNIT-IV
RATIO ANALYSIS

4.1.0 Analysis and interpretation of financial statement thought accounting ratios

 Recall liquidity ratio and its
type
Liquidity  Illustrate the usage of liquidity
4.1.1
Ratio R4 X X X X ratio
 Apply the formula to solve
problems
 Analyze the results.
  Recall Solvency ratio and its
type
 Illustrate the usage of solvency
4.1.2 Solvency R4 X X X X ratio
 Apply the formula to solve
problems
 Analyze the results.

 Recall Profitability ratio and

its type
 Illustrate the usage of
4.1.3 Profitability R4 X X X X Profitability ratio
 Apply the formula to solve
problems
 Analyze the results.

Significance
of various  List out the Significance of
4.1.4 ratios and R4 X various ratios and their
their computation
computation

Uses and  List out the Uses and

4.1.5
limitations of R4 X
limitations of ratios
ratios
UNIT-V
FUND FLOW ANALYSIS
5.1.0 Fund flow analysis
Concept of
5.1.1 funds R4 X  Recall the concepts of funds

Sources and  List out the sources and uses of

5.1.2 uses of funds R4 X
funds

Concepts of
5.1.3 flow R4 X  Recall the concepts of flow

 Show the sources and

5.1.4 Fund flow R4 X
statements applications of fund.
 Management
5.1.5 use of fund R4 X  How Management use of fund
analysis analysis

Construction
of fund flow  Illustrate Fund flow statement
5.1.6 statements R4 X X
 Solve fund flow statement.
(Simple
Problems)

6. Evaluation Scheme:

EC Evaluation component Duration Weightage Date & Time Remarks

No (%)

1 Internal Test-1 (30 %) 2 hr 25 Closed

Book
will be announced
2 Internal Test-II (30 %) 2 hr Closed
Book

3 Seminar & Assignments - Open Book

(20 %)

5. Attendance (20 %) - On-line

Entry

6. End Semester Exam 3 hr 75 Closed

Book

7. Chamber consultation Hours: Will be announced by the individual instructors.

8. Notices: All notices regarding the course will be displayed on the Department Notice
Boards.

9. Make-up Policy: Retest will be given only for first internal test for genuine reason.

No re-test for second internal tests.

Name of the Course coordinator: S.Manju Bharathi

Signature with date :