MG25401 Financial and Cost Accounting – Semester IV – CSBS – R-2025

Subject Code & Name: MG25401 – Financial and Cost Accounting

Regulation: R-2025

Semester: IV (Fourth Semester)

Branch: B.Tech. Computer Science and Business Systems (CSBS)

Credits / L-T-P: 3 Credits | L-T-P: 3-0-0

Course Objectives

• This course aims to provide a foundational understanding of accounting concepts and standards, explain how business profits are calculated and recognized, explore methods for recording depreciation, clarify procedures for determining profit under the single entry system, and develop practical skills in applying marginal and overhead costing techniques.

Full Unit-wise Syllabus

Unit I – Theoretical Framework of Accounting

Introduction – Meaning, Scope, Objectives, Importance and Functions of Accounting; Terminologies used in Accounting; Users of Accounting Information; Accounting Process; Cash basis and Accrual basis of Accounting; Branches of Accounting, Principles of Accounting, Concepts and Conventions; Accounting Standards – Indian Accounting Standards (Ind AS) – Meaning and Definition, Need and Objectives; Accounting Equations, Problems on Accounting Equations.

Activities: Classifying accounting practices for business requirements.

Unit II – Books of Accounts

Double Entry System of Bookkeeping – Journal – Ledger posting – Trial Balance – Final Accounts – Preparation of Trading Account – Profit and Loss Account – Balance Sheet – Adjustments – closing stock, depreciation, bad debts and provision for bad debts, outstanding and prepaid expenses, advance and accrued income.

Activities: From double-entry bookkeeping to balance sheet preparation.

Unit III – Expenditure

Income and Expenditure Account & Receipts and Payments Account – Nature – Preparation of Receipt and Payment Account and Income and Expenditure Account.

Activities: Preparing the income and expenditure statement with real time data.

Unit IV – Cost

Meaning, Concept and Classification. Elements of Cost, Nature & Importance, Material Costing. Methods of Valuation of Material issue. Concept and material control and its techniques. Labour Costing, Methods of Wages payments. Unit Costing, Preparation of Cost Sheet and Statement of Cost (Including calculation of tender price), Overhead costing (Including calculation of machine hour rate). Marginal Costing – Profit – Volume Ratio, Break – Even Point, Margin of Safety, Application of Break-even Analysis.

Activities: Choice of costing methods for business needs.

Unit V – Audit & Recent Cost Concepts

Cost Audit – Meaning, Importance and Techniques of Cost Audit, Cost Audit Programme. Recent Cost Concepts: Activity Based Costing (ABC) for profit reporting and stock valuation, Transfer pricing – Determination of Inter-Departmental or Inter-Company Transfer Price, Treatment of special expenses in costs such as – Research and Development expenses, Preliminary expenses, Costs of obsolescence.

Activities: Evaluating credit worthiness of the organisation based on financial statements.

Course Outcomes (COs)

• CO1: Remember the concept of rectification of errors and Bank reconciliation statements.
• CO2: Apply accounting principles in preparing comprehensive accounts for sole proprietorships.
• CO3: Analyze different methods used for providing depreciation.
• CO4: Evaluate various approaches to profit calculation.
• CO5: Demonstrate an understanding of cost auditing practices and recent trends in cost accounting.

Assessment Pattern (Quick Note)

• Weightage: Continuous Assessment 40% | End Semester Examinations 60%
• Internal methodology: Written Test I & II (60%); Assignment, Presentation, Case Study, Quiz, Simulation, Online Certification, Seminar, Mini project (40%)

Source: Official Anna University – B.Tech. Computer Science and Business Systems R-2025 Syllabus
Last Updated: October 2026