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Contents

Part-I: Financial Accounting

CHAPTER–I: ACCOUNTING AND FINANCIAL MANAGEMENT — A CONCEPTUAL FRAMEWORK

1.1 Introduction 1

1.2 Need for Accounting and Role of Accountant 5

1.3 Defining Accounting 8

1.4 Accounting Information 9

1.5 Branches of Accounting 10

1.6 Difference between FA, MA and CA System 11

1.7 Accounting Information System (AIS) 12

1.8 Users of Accounting Information 14

1.9 Steps in Accounting Process 16

1.10 Limitations of Accounting 17

1.11 Accounting and Financial Management — Inter-relationship 18 1.12 Organization Structure for Accounting and Finance Activity 20 1.13 Utility of Accounting and Financial Management for IT Professionals 21

Exercises 22

CHAPTER–II: BOOK-KEEPING

2.1 Introduction 23

2.2 Types of Books of Account 23

2.3 Book-keeping Process 25

2.4 Types of Errors during Book-keeping Process 49

2.5 Data Flow Diagram (DFD) for Book-keeping Process 49

Exercises 54

CHAPTER–III: FINAL ACCOUNTS (Financial Statements)

3.1 Introduction to Final Accounts 57

3.2 Preparation of Final Accounts — An Introduction 58

3.3 Preparation of Final Accounts for Sole Proprietorship Concern 58

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3.4 Difference between Trial Balance and Balance Sheet 74 3.5 Difference between Trading Account and Manufacturing Account 75 3.6 Difference between Trading Account and Profit and Loss Account 75 3.7 Difference between Income Statement and Balance Sheet 76

3.8 Accounting Theory Framework 83

3.9 Final Accounts for Partnership Firm 92

3.10 Final Accounts for Companies 97

Exercises

Part-II: Management & Cost Accounting

CHAPTER–IV: RATIO ANALYSIS

4.1 Introduction 110

4.2 Concept of Ratios 110

4.3 Types of Ratios 110

4.4 Measurement and Interpretation of Ratios 112

4.5 Application of Ratios 120

4.6 Methodology for Ratio Analysis 121

4.7 Du-Pont Chart for Ratio Analysis 121

4.8 Advantages of Ratio Analysis 128

4.9 Limitations of Ratio Analysis 128

Exercises 129

CHAPTER–V: FUND FLOW STATEMENT (FFS)

5.1 Introduction 135

5.2 Preparation of Fund Flow Statement (FFS) 135

5.3 Difference between FFS and CFS (Cash Flow Statement) 167

5.4 Difference between FFS and Income Statement 168

5.5 Difference between FFS and Balance Sheet 168

Exercises 169

CHAPTER–VI: COST ACCOUNTING

6.1 Fundamentals of Cost 171

6.2 Cost Accounting 172

6.3 Absorption Costing and Marginal Costing 176

6.4 Inventory Management 178

Exercises 181

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Part-III: Financial Mangement

CHAPTER–VII: FINANCIAL MANAGEMENT

7.1 Defining Financial Management 188

7.2 Functions of Financial Management or Role of Finance Manager 188

7.3 Financial Management and Management Accounting 191

7.4 Objective of Financial Management 191

7.5 Scope of Financial Management 193

7.6 Basic Financial Concepts 195

7.7 Capital Budgeting Decision 201

7.8 Advantages and Disadvantages of Equity Shares,

Preference shares and Debentures 205

Exercises 217

Appendix 219

lPresent and Future value table

Referensi

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