HUM-501 Principles of Accounting & Financial Management

Introduction to Financial Management

• Objectives of Financial Management- Profits maximization - asset maximization.
• Capital Expenditure & Management - different techniques of project appraisal and evaluation - Pay back period, average Rate of Return - Present value/ Discounted Rate of Return.
• Flow method- Net present value method, Internal Rate of return.
• Working Capital Management-Concept of working Capital-Necessity of Working Capital-Consideration of Working Capital-its management.
• Sources of Finance-Internal & external, owner's capital & borrowed capital, economics of leasing hire purchase financing.
• Types of Capitalization-over capitalization and under capitalization-causes and evils thereof.
• Capital structures and capital gearing - cost of capital.
• Tools of financial management and control - financial planning, capital revenue budgeting, case flow analysis, profit- risk analysis, break-even analysis, marginal costing, credit policy.

Introduction to Accounting Practices - inter relationship with bookkeeping and accountancy as an information - basic concept and convention.

• Concept of double entry theory - Types of account, golden rules regarding debit and credit.
• Preparation of CashBook - single column, double columns and triple columns branching thereof, journals and Ledger account.
• Preaparation of trial Balance - provision for depreciation under different methods - writing off bad debt, creation of provision for bad and doubtful debt - creation of revenue reserve and provisions - treatment of taxation - provision for divident etc.
• Preparation of final account and balance sheet - preparation of manufacturing account-profit and loss account- profit and loss appropriation account - balance sheet - marshaling of assets and liabilities.
• Financial statement analysis - reporting of published & statements - analysis of financial statement - modern trend - techniques of rates analysis - communication of information.

TEXTBOOKS

1. Readings in accounting & finance By R.K.Mishra

2. Money banking & finance By M.L.Seth

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