1. introduction to management accounting
TRANSCRIPT
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Introduction to
Management Accounting
Dr. S.R. KandalgaonkarSymbiosis centre for Distance Learning, Pune.
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MANAGEMENT ACCOUNTING
Financial Accounting:
Which consists of
Financial Concepts ,
Records, FinancialStatements and
Financial Policies of
Business Organizations.
Cost Accounting: Which
consists of Cost
Accounting Concepts,
Records, Stages in CostAccounting Statements,
Costing Techniques,
Tools and Policies used
for Internalmanagement of
Business Organizations.
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Term Money and Finance
MONEY: Currency Notes and Coins
Created by Government only
Universally accepted design, shape and size.Specific denominations, indivisible in nature
Supported by the Guarantee
Different for each Nation
$ , L, DM, Yen, Rs, Real, etc.
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TERM:MONEY
Features of Money :
Money means medium, facilitator
Money is Power: Money can do any thing
Money does not have inertia.
Money is short in supply
Money has alternative usability.
Money has life
Total money Supply is limited.
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TERM : FINANCE
Finance is the Art of Governing Money.
Finance is a Science of Money
Finance means Theories, Principles, rules andRegulations for the use of Money
Financial Management:
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Features of Financial Management :
Universal applicable to all
Continuous Applicable throughout , day in
and day out
Mixture of many branches of knowledge
Accountancy , Economics , Psychology,
Professional Body Financial results, Publications, Policies, etc.
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Organizational StructureBoard of Directors
VP Production VP Finance VP Marketing
Finance Controller
Accounting and Costing
Annual reporting
Internal Audit
Budgeting
Statistics
Records keeping
Treasurer
Receivables Management
Taxes and Insurance
Cost Management
Securities
Bank related activities
Real estate related
Dividend Distribution
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Fields of Finance
Business Finance
Corporation Finance
International Finance Public Finance
Private / Family Finance
Social Work Finance
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Finance function and other Functions
Production and materials
HR and Legal matters
Marketing, Advertizing R and D
Development and Expansion
FINANCE IS THE BACKBONE OF MODERN INDUSTRY
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Basics of Accounting
Is MONEY =FINANCE
Money means COINS AND NOTES put in circulation by the CentralAuthority i.e. the Government.
Different Types of Currency : $ , DM, L, Rs., Y , RO ,
Main Features of Money :
SHORT IN SUPPLY
ALTERNATE USE
BAD MONEY DRIVES AWAY GOOD MONEY OUT OF CIRCULATION !
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Stages in Financial Accounting
ACCOUNTS :
BOOK KEEPING :
ACCOUNTANCY : ADVANCED ACCOUNACY :
FINANCIAL MANAGEMENT :
MANAGEMENT ACCOUNTING :
MIS
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Rules in Financial Accounting
BASIC RULES OF ACCOUNTING
PERSONAL ACCOUNTS : DEBIT THE RECEIVER
CREDIT THE GIVER
REAL ACCOUNTS DEBIT WHAT COMES IN CREDIT WHAT GOES OUT
NOMINAL ACCOUNTS DEBIT ALL EXPENSES AND LOSSES CREDIT ALL INCOMES AND GAINS
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BASIC TERMS IN ACCOUNTING
A TRANSACTION
CAPITAL
DRAWINGS
BANK ACCOUNTS
ASSETS AND LIABILITIES
CASH BOOK , PETTY CASH BOOK
INCOME AND EXPENDITURES
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FLOW CHART IN ACCOUNTING
JOURNALS : CASH BOOK ; PURCHASE DAY BOOK :SALES DAY BOOK: PURCHASE RETURNSBOOK;SALES RETURN BOOK ; BILLS RECEIVABLESBOOK ; BILLS PAYABLE BOOK, JOURNAL PROPER.
BANK RECONCILIATION STATEMENT LEDGER POSTING , CASTING , BALANCING
TRIAL BALANCE
FINAL ACCOUNTS : MFG , TRADING ACCOUNT,PROFIT AND LOSS ACCOUNT
BALANCE SHEET and ADJUSTING ENTRIES