Dr. Dinesh D Harsolekar
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Dr. CA Pinky Agarwal
Accounting is the basic first semester or trimester course taught in all post graduate management programs. The subject forms the basis for different courses taught in the upcoming semesters. Accounting and finance are the core areas of managerial functions. The knowledge of this subject is not essential only to the students specializing in finance, but it is needed for all the students of MBA, PGDM, and similar programs, irrespective of their area of specialization. The students of many other programs learn accounting, but it requires a unique approach for management students.
This book entitled Accounting for Management has been written to meet the needs of postgraduate management students. The book is tailor-made to meet the requirements of the syllabi of financial accounting prescribed by various Indian universities for their MBA/MMS programs and other institutions for their PGDM and similar postgraduate management programs. The book doesn’t focus on would-be accountants. It focusses on would-be managers. Efforts have been made to include all those topics that are part of the accounting syllabus of MBA/MMS and equivalent programs. Therefore, the students and the instructors will find the approach of the book different from the other books available on the subject. The essential features of the book are as follows —
The book is exclusively written for management students.
The complete discussion in the book is based on the latest provisions and amendments of the Indian Companies Act, 2013, Indian Accounting Standards and other relevant laws.
The simplicity of the language and detailed explanatory notes have made the book a sort of self-study book. The students can learn the subject with the minimum help from their instructors.
The examples and theoretical explanations have been taken from real companies to make the book practically relevant.
The emphasis of the book is more on the practical aspect of the subject and less on theory.
At the end of every chapter a paragraph has been devoted to explain the relevance of the topic to the managers. This helps management students understand the implication of the subject in their career.
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In the initial chapters the problems and exercises are relatively simple. They become gradually complex in further chapters. This approach makes students comfortable with the subject.
A sufficient number of illustrations with detailed explanations and chapter-end problems and exercises allow students to be fully conversant with the subject.
This book is a result of the long teaching experience of the authors. The authors are highly thankful to all the students whom they have taught this subject for many years, for their active participation in the class, and for asking intriguing questions.
Such extensive work requires the support of professional colleagues as well as family members. The authors express their gratitude to all of them. Despite taking complete care to make the book a great learning tool, there is always a scope for improvement. The authors will be grateful to the instructors and students if they could send their feedback and suggestions to improve the quality of the book. The authors can be reached on their email ids given with their names.
Dr. Dinesh D. Harsolekar
CA Pinky Agarwal
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Dr.
I-9 About the Authors I-5 Preface I-7 CHAPTER 1 INTRODUCTION TO ACCOUNTING 1 2 3 14 16 16 18 19 19 20 20 21 22 22 23 23 23 24
I-10 CHAPTER 2 AN OVERVIEW OF ACCOUNTING CYCLE 27 27 28 28 29 29 30 30 31 31 CHAPTER 3 PRINCIPLES AND CONCEPTS OF ACCOUNTING 32 33 – 33 – 34 34 34 – 35 – 35 – 36 – 37 – 37 – 42 46 – 46 – 47 – 48
I-11 – 48 – 50 – 51 – 51 53 54 55 55 55 CHAPTER 4 ACCOUNTING PROCESS - THE RECORDING STAGE 58 58 59 61 62 78 81 82 83 84 86 86 87 87 91 91 92 93 93 93
I-12 95 95 95 96 CHAPTER 5 ACCOUNTING PROCESS - THE CLASSIFICATION STAGE 99 99 100 103 126 129 129 132 132 142 142 143 143 143 144 144 145 CHAPTER 6 ACCOUNTING PROCESS - THE FINANCIAL STATEMENTS 148 150 150 154 156
I-13 157 162 165 168 169 169 169 170 CHAPTER 7 FINANCIAL STATEMENTS WITH ADJUSTMENTS 172 173 184 191 226 246 251 251 251 252 252 264 CHAPTER 8 INCOME MEASUREMENT, REVENUE RECOGNITION AND CAPITAL & REVENUE ITEMS 269 270 272 273
I-14 273 274 275 275 275 CHAPTER 9 CORPORATE FINANCIAL STATEMENTS 276 283 286 308 308 309 CHAPTER 10 EQUITY & OTHER EQUITY 313 313 314 314 315 316 316 320 320 320 320 322 322 323
I-15 323 324 CHAPTER 11 DEBTS 325 325 325 326 326 326 327 328 328 329 329 329 CHAPTER 12 ACCOUNTING FOR PROPERTY, PLANT & EQUIPMENT (PPE) AND DEPRECIATION 330 331 333 334 335 344 344 350 358
I-16 360 360 361 361 363 364 364 364 CHAPTER 13 INVENTORY VALUATION AND TREATMENT 367 367 369 371 373 374 376 377 377 379 379 381 382 382 383 383
I-17 CHAPTER 14 CORPORATE FINANCIAL STATEMENTS - ADVANCED PROBLEMS AND CASES 384 386 386 387 391 391 391 392 CHAPTER 15 ANALYSIS OF FINANCIAL STATEMENTS - STATEMENT OF CASH FLOW 439 – 439 – 439 447 449 449 473 473 474 CHAPTER 16 ANALYSIS OF FINANCIAL STATEMENTS - COMPARATIVE AND COMMON SIZE STATEMENT - TREND ANALYSIS - RATIO ANALYSIS 483 483
I-18 486 488 493 493 507 508 508 509 509 CHAPTER 17 ACCOUNTING AND ETHICS 519 521 521 522
Because of accrual concept, matching concept and some decisions made at the end of the year, the figures disclosed by the trial balance are to be readjusted before preparing financial statements.
NEED FOR ADJUSTMENTS
7
172
SOME COMMON ADJUSTMENTS
1.
173 -
Outstanding Expenses -
2. Prepaid Expenses -
174 `` ` ` ` ` ` ` ``
3. Accrued Income -
175 ` ` `` ` ` ` `` `
4. Unaccrued/Pre-received Income -
176 -
177 -
5. Bad Debts -
178
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6. Provision for Bad and Doubtful Debts -
179 ` ` ` iii ` ` ` ` ` ` `
7. Provision for Discount on Debtors - -
8. Reserve for Discount on Creditors -
180
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` ` `
181 ` ` i ii -
9. Depreciation - -
182 i ii iii ` ` ` ` ` ` ` ` ` `
PROFIT & LOSS A/C (Dr. SIDE)
BALANCE SHEET (ASSET SIDE)
Note – provision for depreciation.
183 ` ` `
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i
IMPORTANT POINTS TO NOTE AT THIS STAGE
184 ii
1. 2. a b c 3. 4.
1
5. Illustration
The following additional information is available
185 Account Head Dr Cr. ` `
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186 ` 7. ` Solution IN THE BOOKS OF KARIA & CO. LTD. JOURNAL J.V. No. Date Particulars L.F. ` Dr. Cr.
TRADING AND PROFIT & LOSS ACCOUNT OF KARIA & CO. LTD.
187 J.V. No. Date Particulars L.F. ` Dr. Cr.
Particulars
Particulars `
`
KARIA & CO. LTD.
BALANCE SHEET AS AT 31ST MARCH 20X2
Equity and Liabilities
Equity
Non-current assets
188
` Particulars `
Particulars
`
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Assets
189 Equity and Liabilities ` Assets ` ` Current Assets Non-Current liabilities Current liabilities Notes ` ` ` ` ` ` `
190 ` ` ` -
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Illustrations 2 Dr. Cr.
ADDITIONAL INFORMATION
LEDGER BAD DEBTS ACCOUNT
PROVISION FOR BAD & DOUBTFUL DEBTS ACCOUNT
191
Solution JOURNAL J.V. No. Date Particulars L.F. ` Dr. Cr.
Date Particulars J.F.
Date Particulars J.F. `
`
Date Particulars J.F.
Date Particulars J.F. `
`
Notes
PROFIT & LOSS ACCOUNT (DEBIT SIDE)
Illustration 3
BALANCE SHEET (ASSETS SIDE)
TRIAL BALANCE
Adjustments
192
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Dr. Cr.
ACCOUNTING for Management
AUTHOR : DINESH D HARSOLEKAR , PINKY AGARWAL
PUBLISHER : TAXMANN
DATE OF PUBLICATION : DECEMBER 2022
EDITION : 2022
ISBN NO : 9789356224049
NO. OF PAGES : 540
BINDING TYPE : PAPERBACK
DESCRIPTION
Rs. 795 USD 41
The objective of this book is to meet the needs of postgraduate management students. It is tailor-made to meet the requirements of the syllabi of financial accounting prescribed by the following:
• Various Indian universities for their MBA/MMS programs
• Other institutions for their PGDM program
• Similar postgraduate management program
This book mainly focuses on 'would-be managers' and not 'would-be accountants'
The Present Publication is the Latest Edition, authored by Dr. Dinesh D Harsolekar & CA (Dr.) Pinky Agarwal, with the following noteworthy features:
• [Amended & Updated] The discussions in the book are based on the latest provisions and amend ments of the Companies Act 2013, Indian Accounting Standards and other relevant laws
• [Self-study Book in Simple Language and Explanatory Notes] which helps the students to learn the subject with minimum help from their instructors
• [Examples & Theoretical Explanation from Real Companies] are included in this book to make it practically relevant
• [Emphasis on Practical Aspects] of the subject matter and less on theory
• [Paragraph at the end of Chapter for Implications] has been provided in this book
• [Graded Problems & Exercises] with varying levels of difficulty to the student comfortable with the subject
• [Illustrations, Detailed Examples, etc.] are included to allow students to be fully conversant with the subject
• [Student-Oriented Book] This book has been developed keeping in mind the following factors:
• Interaction of the author/teacher with their students in the classroom
• Shaped by the author/teacher's experience of teaching the subject matter at different levels for more than three decades
• Reactions and responses of students have also been incorporated at different places in the book
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