Contents
Sole Trading 3 Partnership 4
4

Accounting Period Convention 16 Doctrines 16 Doctrine of Consistency 16 Doctrine
25

Analyzing 36 Summary 37 Questions 37 Quiz 38
38

Closing Stock 45 Materials 45 First in First Out 46 Last in First Out 48 Weighted
54

Replacement 60 Sinking Fund Method 61 Annuity Method 61 Endowment Policy Method 62 Intangible Accounting 63 Patents 63 Designs 63 Trade...
63

Copyrights 64 Technical KnowHow 64 Franchises 65 Fictitious Assets 66
66

Goodwill 66 Creation of Intangible Assets 67 Useful Life of Intangible Assets 67
67

Valuation 67 Multiples of ProfitTurnover Method 69 Capitalization of Expected Returns Method 69 PV of Super Profit Method 69 Treatment of Go...
72

Sources and uses of Funds 219288
219

Changes in Assets and Liabilities 220 Preparation 223 Bonus Issues 230 Sale
234

Interest Paid 236 Adjusted Flow 236 Flow Analysis 254 Internal Accruals 254
254

Costs and Cost Accounting 289320
289

Target Costing 302 Costing and Value Chain 302 Cost Sheets 302 Cost Emsti
317

Characteristics 321 Cost Sheets 322 Batch Costing 324 Stocks 325 Process
334

Characteristics 337 Transfer at CostIllustration 339 Transfer With Margin
357

Utility of Contribution 366 When Production is Constraint 367 When Material
376


Indian Experience 72 Relevant Revenue 73 Turnover 74 Agreement to Sell 74
74

Consignments 75 Sale on Approval Basis 75 Installment Credit 75 Quantum Meruit 77 Service Charges 78 Technical KnowHow Fees 79 Franchise F...
79

Royalties 80 Holding of Assets 80 Others Holding Companyfs Assets 80 Receipts of Cash 81 Profit Loss Account in Single Entry 81 Profit and Loss ...
102

Quiz 105 Exercises 106
106

Understanding Financial Statements 117156
117

Variations in Presentation 128 Gross Profit 131 Operating Profit 131 Profit Before Tax 131 Internal Cash Accruals 131 Share Capital 131 Reserves a...
132

Intangibles 132 Net Worth 132 Fixed Liabilities 133 NonCurrent Assets 133
133

Capital Employed 133 Gross Fixed Assets 133 Liquid Assets 134 Capital Investment 134 Market Price 134
134

Financial Statement Analysis 157218
157

Definition of Ratio 164 Structural Ratios 166 Debt Equity Ratio 166 Solvency Ratio 167 Proprietary Ratio 167 Debt Capitalization Ratio 167 Debt Se...
172

Gross Profitability Ratio 172 Return on Investment ROI 172 Assets Profitability 172 Du Pond Control Chart 173 Net Profitability Ratio 174 Earnings ...
183

Current Ratio 183 Quick Ratio 184 Average Collection Period 184 Comprehensive Illustration 187 Analysis 191 Lopsided Financial Structure 192 L...
192

Higher Production Loss 192 Illiquidity 192 Fall in Market Capitalization 193 Signs of Incipient Sickness 193 Role of Ratio Study 193 Balance Sheets...
193

Analyzed Solution 194 Summary 195 Questions 196 Quiz 197 Exercises 198
198

Cost Volume Profit Analysis 393422
393

BreakEven Production 394 BreakEven Capacity 398 Profit Volume Ratio
409

Standard Costing 423462
423

Cost Reduction Technique 423 Definition 424 Installing Standard Costing 424 Fixing
437

Budgetary Control 463502
463

Budgeting Process 465 Kinds of Budgets 467 Sales Budget 467 Production
482

Capital Budgeting 503536
503

Land and Building 504 Plant and Machinery 505 Preliminary Expenses 505 Pre
533

On Assets 540 On Investments 540 Experiment 541 Methods 541 Illustr
549

Intangible Assets 559 Valuation 560 Multiples of ProfitTurnover Method 561
561

Quantum Meruit 574 Service Charges 574 Technical Knowhow 575
575

Index 591594
591

Copyright

About the Book :- Decision-making is emerging as the major area of emphasis & concentration for modern day finance managers. The trends reveal the importance of financial decision making in achieving the corporate goal of maximizing wealth of shareholders. It is through the package of these decisions that the finance manager takes in the areas of raising funds and using them effectively, that corporate goals are realised as envisaged. And valid decisions are founded on the quality of information or the processed data that is generated in the financial accounting section of an organization. Supplying the requisite information in the requisite form and time to the concerned executive is the primary role of management accountants. This book would enable the aspiring management accountants, who occupy a rung slightly lower than the finance manager, to understand the nuances of converting financial data into financial information. The book is designed to disseminate knowledge on How & Why of conversion. It highlights the techniques used in the process of conversion and the qualities a management accountant should posess to be effective. Additional inputs on financial accounting such as recording of transactions, their classification into ledger accounts, summary into trial balance and the final interpretation of the results of operation have also been added. In essence, the book is a comprehensive annotation of the different aspects of financial and management accounting principles and practices. It would be of immense assistance to students learning financial and management accounting.