Corporate Fin Mgt NDLM.PDF

Learning Unit 1

Instructions to Faculty

Basics of Commercial Accounting and Balance Sheet

1. Objectives :

1.1. At the end of this Learning Unit the participants will be able to:

ο classify transactions on the debit and credit side

ο understand important entries in the Subsidiary Registers

ο Prepare Trial Balance

ο Prepare Trading Account

ο Prepare Profit and Loss Account

ο Prepare Balance Sheet

ο Read Balance Sheet with some crucial ratios

2. Sub Units of Learning
   
   
   1. Objectives and advantages of double entry
   
   
   2. Specimen transactions indicating classification of debit or credit
   
   
   3. Importance of Subsidiary Registers
   
   
   4. Trial balance
   
   
   5. Trading Account
   
   
   6. Profit and Loss Account
   
   
   7. Preparation of Balance Sheet and Skills to read a Balance Sheet
   
   
   
   


3. Methodology

3.1 Faculty shall start Presentation by ‘Story telling’ with reference to a

businessmen’s financial transitions Vis-à-vis accounting procedures.

3.2 The methodology followed will provide for a mix of presentations by

faculty, which will raise issues and/ or provide specific exercises for

discussion among the participants in small groups. Group discussion will

be followed by plenary presentation by the participants. After the plenary

presentations, faculty will intervene for listing out the crucial learning

points from the session/ discussion, which will then be summed by the

faculty. On an average, the initial presentation cum discussion will take

approximately one hour. The group discussion/ activity/ exercise will take

approximately two hours, which will be followed by group presentations,

plenary discussions and summing up.