Page 85 - REC :: MBA CURRICULUM AND SYLLABUS :: R2019

Subject Code Subject Name (Theory course) Category L T P C
BA19P52 Finance And Accounting For Small Business NFE 3 0 0 3

Objectives:Enables student to:
 Understand the nuances of accounting
 Understand the techniques involved in measuring the financial performance of small businesses
 Understand the sources of finance available for small business

UNIT-I Basics of Accounting: Recording business transactions of a small business- Keeping accounting 9
records-Accounting cycle- accounting concepts and conventions.

UNIT-II Preparation of Basic accounting records: Book Keeping – Single entry System- pros and cons- 9
Double entry book keeping- Pros and cons- preparing journal- ledger and trial balance of a small
business.

UNIT-III Preparation Of Annual Accounts : Preparing income statement and balance sheet. Preparing 9
balance sheets with adjustments.

UNIT-IV Measuring Financial Performance Of Small Businesses: Trend analysis- comparative 9
accounting statements- Calculation of gross margin- Application of ratios in measuring
performance.

UNIT-V Finance for Small Business: Different sources of finance- short-term finance- long-term finance- 9
Bank loan, hire purchase, asset leasing, venture capital – sources of debt financing- Bank Loans –
Trade credit- cash credit – Various types of Bank Loans- Government schemes –MUDRA – Role
of Development financial Institutions.

Total Contact Hours : 45

Course Outcomes:After completing the course, the Learners should be able to:
 Possess good knowledge in the basics of accounting.
 Understands the procedure involved in the preparing the basic accounting records
 Prepare annual accounts of small business.
 Understand the significance of measuring financial performance.
 Understands the various sources of finance available for small businesses
Text Book(s)
1 1. R.Narayanaswamy, Financial Accounting – A managerial perspective, PHI Learning, New Delhi, 2011.

Reference Books(s) / Web links:
1 Ashish K. Battacharya, Introduction to Financial Statement Analysis, Elsevier, 2009
2. Steven M.Bragg and E.James Burton, “ Accounting and Finance for Your Small Business”, 2006, Second
2
Edition, John Wiley and Sons

85