BIRLA INSTITUTE OF TECHNOLOGY & SCIENCE, PILANI

WORK INTEGRATED LEARNING PROGRAMMES

Digital Learning
Part A: Course Design
Course Title Financial and Management Accounting
Course No(s) MBA ZC415/ FIN ZC415
Content Author CA. Dr. Mahalakshmi Mudliar

Learning Outcomes
No At the end of the course, the student will be able to;

L01 Interpret, identify, classify elements of the financial accounting transactions and summarise it

L02 Construct classified Balance Sheet, Profit & Loss Account and Cash Flow Statements

L03 Measure, analyze, and evaluate the financial statements and business performance of a firm

L04 Understand behavior of cost and relationship between cost-volume-profits (CVP)

L05 Evaluate capital investments and recommend based on capital-budgeting decision criteria

Course Objectives
No

C01 Demystify the components and elements of the financial statements.

C02 Learn to prepare financial statements from information and interpret transactions.

C03 Explain the tools and techniques of financial statement analysis.

C04 Examine the cost behavior and use of CVP for managerial decision making.

C05 Use capital budgeting techniques to analyse and make capital budgeting decisions.

Text Book

T1 Financial Accounting – A Managerial Perspective, R. Narayanaswamy, PHI, 5th edition, 2014.

T2 Accounting Text & Cases, Robert Anthony, David Hawkins, Kenneth Merchant, 13th edition,
2013 (For select cases & Management Accounting)
T3 Fundamentals of Financial Management, Brigham & Houston, Cengage Learning

*If you are not able to find a copy of Text Book, feel free to get any one of the three reference books
mentioned below.

Reference Book(s)

R1 P. C. Tulsian, Financial Accounting, Tata McGraw Hill, latest edition

R2 Financial Accounting: A Managerial Emphasis, Ashok Banerjee, Excel Books; 3rd Revised
edition, 2009
Study Modules and Learning Outcomes:
Module Module Title Objectives
No
1 Introduction to To understand importance of
Accounting financial and management
accounting in business as a source
of value creation
2 Generally To understand underlying principles What is the philosophy behind record
Accepted of financial accounting keeping? Are there any guiding principles
Accounting for transaction recording?
Principles
(GAAP)
3 Journal To learn the process of recording
business transactions in first book of transaction? Are there any rules? Is there
entry called ‘Journal’
4 Ledger To learn to classify transactions
recorded in Journal using ‘ledger
posting’ process
5 Trial balance To learn to prepare ‘trial balance
statement’ (using records from
ledger) to get a summarize state of
business transactions
6 Final Accounts To learn the process of preparation
of ‘Profit and Loss Account’ and
‘Balance Sheet’ using summary of
accounts provided by trial balance
8 Cash flows To learn the process of preparation
statement of ‘Cash Flow Statement’ using data
supplied by ‘Income Statement’ and
‘Balance Sheet’
7 Financial To learn to examine financial health
statement Analysis of business by converting data
exhibited in ‘Income Statement’ and
‘Balance Sheet’ into useful
information
9 Cost-volume- To learn to determine optimal scale
profit analysis of business operations for different
profit levels conditional to cost
structure of a firm
10 Capital Budgeting To learn the techniques
investment decision making
Learning outcome (You should be able
to answer these questions after the
module)
Is accounting mere a historic record of
transactions or can it create value for
business?
How do they record every small business
a scientific method for recording
transactions?
The transactions can differ in type and
nature. How do they account for that?
It must be difficult to go through
thousands of transaction records. Can one
just have a summary of transactions like a
bird’s eye view?
What is the result of all transactions that
took place during a year - profit or loss?
How much does the business own and
how much does it owe?
Are you saying profit earned does not
equal cash earned? How are these two
different? Does that mean there
transactions that do not involve cash?
How efficiently is business being run? Is
the financial position of business healthy
or critical? Is it headed for insolvency?
What areas need immediate attention?
What is the minimum scale of business
that needs to be achieved before it starts
making profit? What scale needs to be
achieved to earn a target profit level?
of Which investment projects should the
business invest in given the limited
resources?
Content Structure
1. Introduction to Accounting
1.1. Why study accounting?
1.1.1. How valuable is the knowledge of financial accounting?
1.1.2. Types of business and information requirement
1.1.3. Financial accounting as an information system for stakeholders in business
1.2. What is accounting?
1.2.1. Definition of Accounting and accounting cycle
1.2.2. Introduction to Annual Accounting Statements
2. Generally Accepted Accounting Principles (GAAP)
2.1. Balance Sheet Principles
2.1.1. Money Measurement Concept
2.1.2. Business Entity Concept
2.1.3. Going Concern Concept
2.1.4. Cost Concept
2.1.5. Dual Aspect Concept
2.2. Income Statement concepts
2.2.1. Accounting Period Concept
2.2.2. Conservatism Concept
2.2.3. Realization Concept
2.2.4. Matching Concept
2.2.5. Consistency Concept
2.2.6. Materiality Concept
2.3. Accounting Equation
3. Journal
3.1. What is journal?
3.1.1. Meaning and format of Journal
3.1.2. Nature of business transactions
3.2. Rules of debit and credit
3.2.1. What is debit and credit
3.2.2. Rules of debit and credit for types of accounts using accounting equation
3.2.3. Double entry system
3.2.4. Practice questions – recording transactions in Journal
4. Ledger Posting
4.1. Meaning and format of account – T accounts
4.2. How to post journal entries into ledger?
4.2.1. Posting Journal entries into Ledgers
4.2.2. Balancing of accounts and rules
5. Trial Balance
5.1. Format of trial balance
5.2. Preparation of trial balance
5.3. Errors in preparation of trial balance
6. Final Accounts
6.1. Preparation of final accounts
6.1.1. Components of final accounts
6.1.2. Format and preparation of Income Statement & Balance Sheet
6.2. Adjustments for Transactions after closing of accounts
6.2.1. Outstanding or accrued expenses
6.2.2. Prepaid Expenses
6.2.3. Fixed asset purchase/sale, Depreciation and profit/loss on sale of fixed assets
6.2.4. Bad debts, provision for bad and doubtful debts
6.2.5. Income received in advance
6.2.6. Provision of taxation, dividends
7. Cash flow statement
7.1. Introduction to Cash flow statement
7.1.1. Need for cash flow statement
 7.1.2. Types of cash flows
7.1.3. Format of Cash flow statement
7.2. Calculation of cash from operating activities
7.2.1. Why accounting profit is not cash profit
7.2.2. How to calculate operating cash profit from accounting profit
7.2.3. Format - Calculation of cash from operating activities
7.2.4. Example problem -calculating cash flows from operating activities
7.3. Calculation of cash from investing activities
7.3.1. Format - Calculation of cash from investing activities & Example problem
7.4. Calculation of cash from financing activities
7.4.1. Format - Calculation of cash from financing activities & Example
7.5. Practice problems
7.5.1. Preparing CFS without additional information
7.5.2. Preparing CFS with additional information
8. Ratio Analysis
8.1. Introduction to Ratio Analysis
8.1.1. Introduction to financial ratio analysis
8.1.2. Meaning and classification of ratios
8.2. Liquidity ratios
8.2.1. About liquidity ratios
8.2.2. Current ratio
8.2.3. Liquid ratio
8.2.4. Absolute liquid ratio
8.3. Solvency ratios
8.3.1. About solvency ratios
8.3.2. Debt-equity ratio
8.3.3. Proprietary ratio
8.3.4. Gearing ratio
8.3.5. Interest coverage ratio
8.4. Profitability ratios
8.4.1. Gross profit ratio, Operating ratio, operating profit ratio, net profit ratio, Calculation
of above ratios
8.4.2. ROI, ROCE, EPS, DPR, DYR, PER
8.5. Turnover ratios
8.5.1. Introduction to turnover ratios
8.5.2. STR
8.5.3. DTR and ACP
8.5.4. CTR and APP
8.5.5. Working capital turnover ratio
8.5.6. Fixed asset turnover ratio
8.6. Practice problems
8.6.1. Calculation of the above ratios
8.6.2. Comparison with industry average
9. Cost volume profit analysis
9.1. Introduction to Cost Volume Profit Analysis
9.1.1. Need for CVP analysis
9.1.2. Algebra of CVP analysis
9.1.3. Graphical representation
9.1.4. Practice questions
10. Capital Budgeting
10.1. Introduction to time value of money
10.2. Determining cash flow for capital budgeting decisions
10.3. Investment decision rules
10.3.1. NPV rule
10.3.2. IRR rule
10.3.3. Pay-back period rule
10.4. Practice questions
Experiential Learning Components (ELC):

1. This course will feature experiential learning components in the form of projects /
assignments. ELC is designed to enable the participants to learn by doing. This will also form
part of the Evaluation Components for the course.
2. Please note that experiential learning components are integrated into the following modules:
Topic Experiential Learning Component
Module
1&2 Introduction / GAAP Choose the business case (BC)
3 Journal Journalise transactions for BC
4 Ledger Post to ledger accounts
5 Trail Balance Summarize the balances
Prepare P& L and Balance Sheet for the
6 Final Accounts
BC
3. The learning will also be reinforced using case studies/ class exercises.
4. For Module 7, 8, 9 and 10 problems will be provided as assignments.
5. Both part 2 and 3 will be group activity.
6. ELC will require timely submission for it to be considered for evaluation.

Part B: Contact Session Plan

Academic Term First Semester 2017-2018
Course Title Financial and Management Accounting
Course No MBA ZC415/ FIN ZC415
Content Developer CA. Dr. Mahalakshmi Mudliar

Glossary of Terms:
1. Contact Hour (CH) stands for a hour long live session with students conducted either in a physical
classroom or enabled through technology. In this model of instruction, instructor led sessions will be
for 22 CH.
a. Pre CH = Self Learning done prior to a given contact hour
b. During CH = Content to be discussed during the contact hour by the course instructor
c. Post CH = Self Learning done post the contact hour
2. RL stands for Recorded Lecture or Recorded Lesson. It is presented to the student through an online
portal. A given RL unfolds as a sequences of video segments interleaved with exercises
3. CS stands for case study
4. QZ – Quiz component will be aggregated into 10% of the total evaluation component.
5. HW stands for Home Work and could be a selection of problems or CS from the text.

Contact Hour 1
Time Type Sequence Content Reference

Pre CH QZ Pre-course quiz (will not be evaluated)

During CH1 Introduction to the course Chapter 1 -T1

CH Forms of business and accounting
implications
Elements of accounting

Post CH HW1 CS: Read the case “Ribbons and Chapter 1 – T2

Bows” uploaded in Taxila
Note: HW/QZ to be assigned at the end of contact hour
Contact Hour 2
Time Type Sequence Content Reference

Pre CH CS 1.1.1; 1.1.2; 1.1.3 Come prepared to discuss the case

RL “Ribbons and Bows Inc.” in the class

During CH2 Discuss the case “Ribbons and Bows Chapter 1 – T2

CH Inc.”

Post CH HW2 TBA

Post CH QZ1 TBA

Note: HW/QZ to be assigned at the end of contact hour

Contact Hour 3
Time Type Sequence Content Reference

Pre CH RL 2.1.1; 2.1.2; 2.1.3 Taxila Course Page > Lecture3

2.2.1; 2.2.2; 2.2.3; 2.2.4; 2.2.5; 2.2.6

During CH3 Basic concepts in accounting: asset, Chapter 2 & 3- T1/T2

CH liabilities, income and expenses.
Exercise on concepts and conventions

Post CH HW3 TBA

Note: HW/QZ to be assigned at the end of contact hour

Contact Hour 4
Time Type Sequence Content Reference

Pre CH RL 3.1.1; 3.1.2; Taxila Course Page > Lecture4

3.2
3.3.1; 3.3.2

During CH4 Format of Balance Sheet and Profit & Chapter 2 & 3 – T1 / T2
CH Loss Account.
Case Study of Financial statement of a
limited company

Post CH HW4 TBA

Post CH QZ2 TBA

Note: HW/QZ to be assigned at the end of contact hour

Contact Hour 5
Time Type Sequence Content Reference

Pre CH RL None None

During CH5 Introduction to Accounting cycle, Chapter 4/Chapter 2 & 3-T2/T1

CH Accounting equation and Analysis of
transactions

Post CH HW5 TBA

Note: HW/QZ to be assigned at the end of contact hour
Contact Hour 6
Time Type Sequence Content Reference

Pre CH RL None None

During CH6 Identify elements and analyse Chapter 3 – T1

CH transactions to determine accounting
implications

Post CH HW6 TBA

Post CH QZ3 TBA

Note: HW/QZ to be assigned at the end of contact hour

Contact Hour 7
Time Type Sequence Content Reference

Pre CH None None None

During CH7 Journalize transactions Chapter 3 – T1

CH

Post CH HW7 TBA

Note: HW/QZ to be assigned at the end of contact hour

Contact Hour 8
Time Type Sequence Content Reference

Pre CH RL Taxila Course Page > Lecture 8

During CH8 Posting to Ledger & Preparation of Chapter 5 – T1

CH Trial Balance

Post CH HW8 TBA

Post CH QZ4 TBA

Note: HW/QZ to be assigned at the end of contact hour

Contact Hour 9
Time Type Sequence Content Reference

Pre CH RL None None

During CH9 Exercise on preparation of final Chapter 5 – T1

CH accounts without adjustments

Post CH HW9 TBA

Note: HW/QZ to be assigned at the end of contact hour
Contact Hour 10
Time Type Sequence Content Reference

Pre CH RL None None

During CH10 Treatment for adjustments Chapter 5 – T1

CH

Post CH HW10 TBA

Post CH QZ5 TBA

Note: HW/QZ to be assigned at the end of contact hour

Contact Hour 11
Time Type Sequence Content Reference

Pre CH RL Taxila Course Page > Lecture14

During CH Exercise on preparation of final accounts Chapter 11 – T1

CH with adjustments

Post CH HW14 TBA

Note: HW/QZ to be assigned at the end of contact hour

Contact Hour 12
Review session before mid term

Contact Hour 13
Time Type Sequence Content Reference

Pre CH None None

During CH15 Conceptual understanding and Chapter 12 – T1

CH framework of cash flow statements

Post CH HW15 TBA

Note: HW/QZ to be assigned at the end of contact hour

Contact Hour 14
Time Type Sequence Content Reference

Pre CH RL None

During CH16 Components of cash flow statements Chapter 12 – T1

CH

Post CH HW16 TBA

Post CH QZ6 TBA

Note: HW/QZ to be assigned at the end of contact hour
Contact Hour 15
Time Type Sequence Content Reference

Pre CH RL 8.1.1; 8.1.2; 8.1.3

During CH17 Preparation of cash flow statements Chapter 12 – T1

CH

Post CH HW17 TBA

Note: HW/QZ to be assigned at the end of contact hour

Contact Hour 16
Time Type Sequence Content Reference

Pre CH RL 7.1.1; 7.1.2; Taxila Course Page > Lecture12

7.2.1; 7.2.2; 7.2.3; 7.2.4;
7.3.1; 7.3.2; 7.3.3; 7.3.4; 7.3.5

During CH12 Calculation of ratios from financial Chapter 11 – T1

CH statements

Post CH HW12 TBA

Post CH QZ7 TBA

Note: HW/QZ to be assigned at the end of contact hour

Contact Hour 17
Time Type Sequence Content Reference

Pre CH RL 7.4.1; 7.4.2 Taxila Course Page > Lecture13

7.5.1; 7.5.2; 7.5.3; 7.5.4; 7.5.5; 7.5.6

During CH13 Ratio analysis & interpretation Chapter 11 – T1

CH

Post CH HW13 TBA

Note: HW/QZ to be assigned at the end of contact hour

Contact Hour 18
Time Type Sequence Content Reference

Pre CH RL 9.1.1 Taxila Course Page > Lecture18

During CH18 Cost behavior Chapter 16 – T2

CH

Post CH HW18 TBA

Post CH QZ8 TBA

Note: HW/QZ to be assigned at the end of contact hour
 Contact Hour 19
Time Type Sequence Content Reference

Pre CH RL None

During CH CVP Analysis Chapter 16- T2

CH

Post CH HW19 TBA

Post CH QZ9 TBA

Note: HW/QZ to be assigned at the end of contact hour

Contact Hour 20
Time Type Sequence Content Reference

Pre CH RL None

During CH20 Capital budgeting techniques Chapter 11 – T3

CH

Post CH HW20 TBA

Post CH QZ10 TBA

Note: HW/QZ to be assigned at the end of contact hour

Contact Hour 21
Time Type Sequence Content Reference

Pre CH RL 10.1; 10.2; 10.3; 10.4

During CH21 Exercise on capital budgeting Chapter 11 – T3

CH

Post CH HW21 TBA

Note: HW/QZ to be assigned at the end of contact hour

Contact Hour 22
Review Session before end term

Evaluation Scheme:
Legend: EC = Evaluation Component; AN = After Noon Session; FN = Fore Noon Session
No Name Type Duration Weight Day, Date, Session, Time
EC-1 Quiz- Weekly Online - 10% To be announced
EL-1 Experiential 15% To be announced
Learning
EC-2 Mid-Semester Test Closed 2 hours 30% 24/09/2017 (FN) 10 AM – 12 Noon
Book
EC-3 Comprehensive Open 3 hours 45% 05/11/2017 (FN) 9 AM – 12 Noon
Exam Book

Syllabus for Mid-Semester Test (Closed Book): Session Nos 1 to 11.

Syllabus for Comprehensive Exam (Open Book): All topics (Session Nos. 1 to 22)

Important links and information:

Elearn portal: https://elearn.bits-pilani.ac.in

Students are expected to visit the Elearn portal on a regular basis and stay up to date with the latest
announcements and deadlines.

Contact sessions: Students should attend the online lectures as per the schedule provided on the Elearn
portal.

Evaluation Guidelines:
1. EC-1 consists of Quizzes. Students will attempt them through the course pages on the Elearn portal.
Announcements will be made on the portal, in a timely manner.
2. EL-1 is the experiential leaning component for which a project will be assigned to you. You will
have presentation/ submission towards the end of the course. Dates will be announced on the portal.
3. For Closed Book tests: No books or reference material of any kind will be permitted.
4. For Open Book exams: Use of books and any printed / written reference material (filed or bound) is
permitted. However, loose sheets of paper will not be allowed. Use of calculators is permitted in all
exams. Laptops/Mobiles of any kind are not allowed. Exchange of any material is not allowed.
5. If a student is unable to appear for the Regular Test/Exam due to genuine exigencies, the student
should follow the procedure to apply for the Make-Up Test/Exam which will be made available on
the Elearn portal. The Make-Up Test/Exam will be conducted only at selected exam centres on the
dates to be announced later.
It shall be the responsibility of the individual student to be regular in maintaining the self study schedule as
given in the course handout, attend the online lectures, and take all the prescribed evaluation components
such as Assignment/Quiz, Mid-Semester Test and Comprehensive Exam according to the evaluation scheme
provided in the handout.