Proceedings of the 20th Meeting of the Academic Council of VIT held on 26.3.

2010

Course CodeITA403
Version No.
Course Pre-requisites/ Corequisites/ anti-requisites (if
any). Otherwise, please
indicate as None
Objectives:

Expected Outcome:

ACCOUNTING & FINANCIAL

MANAGEMENT

LTPC

3 0

1
None

The main objective of this subject is to provide basic working knowledge of

accounting and financial management and to know how accounting and
financial management helps the management to take decision. It provides
analysis and interpretation of financial statements of organizations and
understand the budget and budgetary control in organizations. It helps to find
out marginal cost incurred and acquire knowledge in project proposal method
using capital budgeting.
On completion of this subject the students will be able to predict the financial
statement of public limited company and capable of preparing the various
budgets and forecasting the future needs of the business.

Unit No. 1

Principles of Accounting
9Hrs
Principles of Double entry Journalizing, Ledger Posting and preparation of
Trial Balance Preparation of Trading Account, Profit and loss Account and
Balance Sheet including Adjustments (Simple problems only), Bank
Reconciliation 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 to
Final Accounts Problems. (Simple problems only).
Unit No. 3

Unit No. 4

Breakeven Analysis and Marginal Costing

9Hrs
Meaning of variable cost and fixed cost CostVolume Profit Analysis
Calculation of Breakeven point, Profit Planning, Sales planning and other
decision making Analysis involving Breakeven Analysis.
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
9Hrs
Method of Capital investment decision making: Pay back Method, ARR
Method Discounted Cash Flow Methods including Net Present Value and
IRR Method.

Text Books
1. Max. of 2 (one book is preferred)
2. Should be within the last 5 years.
References (could be many)
Mode of Evaluation
Recommended by the Board of Studies on
Date of Approval by the Academic Council

Continuous Assessment (Quizzes, CATs, Assignments, etc.) and

TEE
xx-xx-xxxx
Xxth Academic Council held on xx-xx-xxxx

1010