Financial accounting - IITMandi

By Prof. Puran Singh | IIT Mandi

Learners enrolled: 3978

This course is intended for first time students of financial accounting at undergraduate or graduate level or those who have been exposed to financials terms but haven’t had a chance to learn in a structured manner. Through well-curated content that progressively builds on conceptual learning, the course will enable a student to read and analyze financial statements of a business. The focus is to train the student on principles of accounting that drive preparation and presentation of financial statements. At the end of this course, a student will be able to understand how financial data is generated and how it can be converted into useful strategic information for stakeholders in a business.

INTENDED AUDIENCE : Any Interested Learners

PREREQUISITES : None

INDUSTRIES SUPPORT : None

Summary

Course Status :	Completed
Course Type :	Elective
Language for course content :	English
Duration :	12 weeks
Category :	Management Studies Minor in Management
Credit Points :	3
Level :	Undergraduate/Postgraduate
Start Date :	24 Jan 2022
End Date :	15 Apr 2022
Enrollment Ends :	07 Feb 2022
Exam Date :	24 Apr 2022 IST

Note: This exam date is subject to change based on seat availability. You can check final exam date on your hall ticket.

Page Visits

Course layout

Week 1: A primer on business organizations and need for accounting:

Lecture No:1.1 Introduction to Financial Accounting

1.1.1Definition of accounting

1.1.2Course contents

1.1.3Preparation of financial statements: Accounting cycle

1.1.4Decision making using financial statements

1.1.5Accounting: An art or a science?

1.1.6Environment of financial reporting

Lecture No:1.2 Company form of business

1.2.1What is a company?

1.2.2Types of companies

1.2.3Private company vs Public company

1.2.4Visuals test to identify public companies

Lecture No:1.3 Accounting as an information system

1.3.1Business and information requirement

1.3.2Stakeholders of a business

1.3.3Information: Tip of accounting ice-berg

Lecture No:1.4 Key accounting terms: Assets, Liabilities, Income, Expenses

1.4.1Four key terms in accounting

1.4.2Sources of funds

1.4.3Use of funds

1.4.4The sources vs The uses

1.4.5Types of Assets

1.4.6Types of Liabilities

1.4.7 Types of Incomes

1.4.8Types of Expenses

Lecture No:1.5 Tutorial: Key accounting terms: Assets, Liabilities, Income, Expenses

1.5.1Identifying the category and sub category of various accounting terms

Week 2: Accounting equation, GAAP Principle and Fundamentals of double entry system:

Lecture No:1.6 Accounting equation

1.6.1What is the accounting equation?

1.6.2Working of accounting equation

1.6.3Example: accounting equation

1.6.4Summary: accounting equation

Lecture No:1.7 Walkthrough of Balance Sheet I

Lecture No:1.8 Walkthrough of Balance Sheet II

Lecture No:1.9 Walkthrough of Balance Sheet III

Lecture No:1.10 Walkthrough of Income Statement

Lecture No:1.11 Generally Accepted Accounting Principles I

1.11.1 Business Entity Concept

1.11.2 Money Measurement Concept

1.11.3 Going Concern Concept

1.11.4 Accounting Period Concept

1.11.5 Cost Concept

Lecture No:1.12 Generally Accepted Accounting Principles II

1.12.1 Conservatism Concept

1.12.2 Accrual Concept

1.12.3 Matching Concept

1.12.4 Full Disclosure Concept

1.12.5 Materiality

Lecture No:2.0. Recap and way forward

Lecture No:2.1 Types of accounts

2.1.1What is an account?

2.1.2What are types of accounts?

Lecture No:2.2 Tutorial - Types of accounts

Week 3: Fundamentals of double entry system and Accounting Cycle: Journal Entries I:

Lecture No:2.3 Debit and Credit

2.3.1Claims of business

2.3.2What is debit and credit

2.3.3Misconception about debit and credit

Lecture No:2.4 Tutorial - Debit and Credit

Lecture No:2.5 Rules of debit and credit

2.5.1Rules of Debit and Credit

2.5.2Identifying receiver and giver

2.5.3Identifying what comes in and goes out

2.5.4Identifying incomes and expenses

Lecture No:2.6 Entering transactions in Journal

2.6.1Format of journal

2.6.2Journalizing the transactions

2.6.3Output of journalising

Week 4: Accounting Cycle: Journal entries II:

Lecture No:2.7 Tutorial: Journal entries

Lecture No:2.8 Key trends in journalizing

2.8.1Assets Purchased/Sold

2.8.2Liabilities Raised/ Paid back

2.8.3Expenses paid or due and Incomes received or accrued

Lecture No:2.9 Journalizing complex transactions

Lecture No:2.10 Practice Problem I

Lecture No:2.11 Practice Problem II

Lecture No:2.12 Practice Problem III

Lecture No:2.13 Summary: Journal entries

Week 5: Accounting cycle: Ledger Posting:

Lecture No:3.0. Recap and way forward

Lecture No:3.1 Introduction to Ledger

Lecture No:3.2 Process of Ledger posting

Lecture No:3.3 Balancing the accounts

Lecture No:3.4 Debit and Credit Balances

Lecture No:3.5 Tutorial - Identifying balances

Lecture No:3.6 Practice Problem I

Lecture No:3.7 Practice Problem II

Lecture No:3.8 Practice Problem III

Week 6: Accounting cycle: Trial Balance and Final Accounts:

Lecture No:4.0. Recap and way forward

Lecture No:4.1 Introduction to Trial Balance

4.1.1Introduction to Trial Balance

4.1.2Why Trial Balance?

4.1.3Format of Trial Balance

Lecture No:4.2 Preparation of Trial Balance

Lecture No:4.3 Practice Problem I

Lecture No:4.4 Practice Problem II

Lecture No:4.5 Errors in Trial Balance

Lecture No:5.0 Recap and way forward

Lecture No:5.1 Introduction to Final Accounts

5.1.1What are Final Accounts

5.1.2Format of Final Accounts

5.1.3Format of Balance Sheet

Lecture No:5.2 Tutorial - Identifying direct and indirect expenses

Lecture No:5.3 Tutorial - Mapping operating and non operating items to direct and indirect items

5.3.1Tutorial - Mapping Expenses and Incomes

5.3.2Visual Mapping of Expenses and Incomes

Lecture No:5.4 Preparation of Final Accounts

5.4.1Profit and Loss account

5.4.2Balance Sheet

Lecture No:5.5 Tutorial - Preparation of Final Accounts

Lecture No:5.6 Tutorial - Preparation of Trading Account

Lecture No:5.7 Tutorial - Preparation of P&L Account

Lecture No:5.8 Tutorial - Preparation of Balance Sheet

Lecture No:5.9 Practice Problem

Week 7: Output of Accounting cycle: Final Accounts II:

Lecture No:5.10 Adjustments in Final Accounts

Lecture No:5.11 Transactions to be adjusted in Final Accounts

Lecture No:5.12 Tutorial - Adjustments in Final Accounts

Lecture No:5.13 Tutorial -Calculating Cost of Goods Sold

Lecture No:5.14 Tutorial -Outstanding Expenses

Lecture No:5.15 Tutorial - Prepaid Expenses

Lecture No:5.16 Validating the learning - Balance Sheet

Lecture No:5.17 Validating the learning - Income Statement

Week 8: Analysis of Financial Statements:

Lecture No:6.0 Recap and way forward

Lecture No:6.1 Introduction to Financial Statement Analysis

6.1.1Overview

6.1.2Types of Ratios

Lecture No:6.2 Liquidity Ratios

6.2.1Need for Liquidity ratios

6.2.2Types of Liquidity ratios

Lecture No:6.3 Tutorial - Liquidity Ratios

Lecture No:6.4 Solvency Ratios

6.4.1Need for Solvency ratios

6.4.2Types of Solvency ratios

Lecture No:6.5 Tutorial - Solvency Ratios

Lecture No:6.6 Profitability Ratios

6.6.1Need for Profitability ratios

6.6.2Types of Profitability ratios

Lecture No:6.7 Tutorial - Profitability Ratios

Lecture No:6.8 Efficiency Ratios

6.8.1Need for Efficiency ratios

6.8.2Types of Efficiency ratios

Lecture No:6.9 Tutorial - Efficiency Ratios

Week 9: Analysis of Financial Statements II:

Lecture No:6.10 Validating the learning - Walkthrough of RIL's Annual Report

Lecture No:6.11 Online Resources for Financial Analysis

Lecture No:6.12: Practice Problem: Liquidity Position

Lecture No:6.13 Practice Problem – Solvency Position

Lecture No:6.14 Practice Problem - Profitability Position I

Lecture No:6.15 Practice Problem - Profitability Position II

Lecture No:6.16 Practice Problem – Interpretation of Ratios

Week 10: Cash Flow Statement:

Lecture No:7.0 Recap and way forward

Lecture No:7.1 Types of Cash Flows

7.1.1Inflows and Outflows

7.1.2Types of cash flows

Lecture No:7.2 Tutorial - Types of cash flows

Lecture No:7.3 Walkthrough of Cash Flow Statement of RIL

Lecture No:7.4 Profit and Loss Appropriation Account

Lecture No:7.5 Cash flows from Operating Activities

Lecture No:7.6 Tutorial - Changes in working capital

Lecture No:7.7 Tutorial - Cash flows from Operating Activities

Lecture No:7.8 Tutorial - Cash flows from Operating Activities

Week 11: Cash Flow Statement II:

Lecture No:7.9: Cash flows from Investing Activities

Lecture No:7.10: Tutorial - Cash flows from Investing Activities

Lecture No:7.11 Cash flows from Financing Activities

Lecture No:7.12 Tutorial - Cash flows from Financing Activities

Lecture No:7.13 Preparing Cash Flow Statement

Lecture No:7.14 Identifying hidden information

7.14.1 Provision of tax

7.14.2 Purchase or sale of fixed assets

7.14.3 Provision of dividend

Lecture No:7.15 Practice Problem

Week 12: CVP Analysis & Inventory Control

Lecture No:8.1 Need of Break Even Analysis

8.1.1 Need of Break Even Analysis

8.1.2 Application of BEA

8.1.3 Cost Volume Profit Analysis

Lecture No:8.2 Understanding the nature of costs

Lecture No:8.3 Contribution Margin

8.3.1 Contribution

8.3.2 Contribution per Unit

8.3.3 Contribution Margin

Lecture No:8.4 Tutorial - Contribution

Lecture No:8.5 Break Even Point

8.5.1 Break Even Point/ Level, Sales and Capacity

8.5.2 Break Even point Calculator

Lecture No: 8.6 Tutorial - Break Even Point

Lecture No: 8.7 Tutorial - Break Even Point

Lecture No: 8.8 Visualizing the Break Even Point

Lecture No: 8.9 Tutorial - Break Even Analysis

Lecture No: 8.10 Case - Break Even Analysis

Lecture No:9.1 Theoretical foundation for economic order quantity

Lecture No:9.2 Tutorial

Lecture No:9.3 ABC analysis

Lecture No:9.4 Tutorial

Lecture No:9.5 Stock accounting: LIFO, FIFO

Lecture No:9.6 Tutorial

Books and references

1. R. Narayanaswamy, Financial Accounting – A Managerial Perspective, PHI, latest edition

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

Instructor bio

Prof. Puran Singh

IIT Mandi

Dr. Puran Singh is Associate Professor of Finance at Indian Institute of Technology, Mandi in Himachal Pradesh. He has over a decade of experience working with financial statements in varied capacities that range from an analyst to an instructor. He has years of experience in teaching courses on Financial and Accounting to undergraduate, graduate and executive levels. He holds a PhD in Finance from University Business School, Panjab University, Chandigarh. He has worked with organizations that include Indian School of Business, BITS-Pilani and IIT Mandi Catalyst.

Course certificate

The course is free to enroll and learn from. But if you want a certificate, you have to register and write the proctored exam conducted by us in person at any of the designated exam centres.
The exam is optional for a fee of Rs 1000/- (Rupees one thousand only).
Date and Time of Exams: 24 April 2022 Morning session 9am to 12 noon; Afternoon Session 2pm to 5pm.
Registration url: Announcements will be made when the registration form is open for registrations.
The online registration form has to be filled and the certification exam fee needs to be paid. More details will be made available when the exam registration form is published. If there are any changes, it will be mentioned then.
Please check the form for more details on the cities where the exams will be held, the conditions you agree to when you fill the form etc.

CRITERIA TO GET A CERTIFICATE

Average assignment score = 25% of average of best 8 assignments out of the total 12 assignments given in the course.
Exam score = 75% of the proctored certification exam score out of 100

Final score = Average assignment score + Exam score

YOU WILL BE ELIGIBLE FOR A CERTIFICATE ONLY IF AVERAGE ASSIGNMENT SCORE >=10/25 AND EXAM SCORE >= 30/75. If one of the 2 criteria is not met, you will not get the certificate even if the Final score >= 40/100.

Certificate will have your name, photograph and the score in the final exam with the breakup.It will have the logos of NPTEL and IIT Madras .It will be e-verifiable at nptel.ac.in/noc.

Only the e-certificate will be made available. Hard copies will not be dispatched.

Once again, thanks for your interest in our online courses and certification. Happy learning.

- NPTEL team

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