MS-107 Accounting for Management Notes from Unnati Educations cover all 4 units of the GGSIPU MBA Semester 1 paper in one 73-page book: 31 worked illustrations with full solutions, 72 exam-style practice questions and a quick revision table at the end of every unit. They follow the MBA scheme for batches from the 2021-22 session onwards.
Written by Prateek Talwar, Founder, Unnati Educations (ACS, ICSI) · Checked against GGSIPU MBA Scheme and Syllabus 2021-22 onwards · Updated 13 October 2026 · Editorial policy
Scheme: MBA Scheme and Syllabus 2021-22 onwards | Applies to: batches from 2021-22 onwards | Verified against: the same PDF on ipu.ac.in
MS-107 Accounting for Management at a glance: GGSIPU MBA Sem 1 credits, units and exam pattern
| Code and title | MS-107 Accounting for Management ("MS 107" in the scheme table) |
|---|---|
| Course and semester | MBA, Semester 1 |
| Category and credits | Core, 3 credits, L-3 |
| Marks | 100: 25 internal + 75 end-term |
| Internal 25 marks | Class test 15 + assignments, presentation, viva-voce or class participation 10 |
| End-term pattern | 75 marks; paper-setter pattern not printed in the official PDF |
| Exam duration | 3 hours |
| Applies to | Batches from 2021-22 onwards |
| Paired lab | None (the Sem 1 lab, MS 117, is based on MS-109) |
MS-107 is one of nine papers listed under GGSIPU MBA Semester 1 papers. Unit I gets 12 of the 42 official teaching hours; the rest get 10 each.
No pass percentage is printed for MS-107; end-term minimums and re-appear rules sit in Ordinance 11 (examinations).
MS-107 Accounting for Management Notes unit-wise: 31 worked illustrations across 4 units
These MS-107 Accounting for Management IPU notes run in syllabus order; each unit ends with a quick revision table and practice questions. Notes for every other MBA paper sit under GGSIPU MBA notes.
Pages 1 to 4, 8, 33, 48 and 64 are in the sample PDF above.
MS-107 Unit 1: Financial Accounting
Pages 5 to 29, 13 sections. Ravi Traders' books run from journal to ledger and trial balance, then subsidiary books, suspense-account rectification, depreciation and final accounts with adjustments. 10 worked illustrations, 18 practice questions.
| Year ending | SLM charge | SLM closing value | WDV charge | WDV closing value |
|---|---|---|---|---|
| 31.03.2024 | 36,000 | 1,64,000 | 40,000 | 1,60,000 |
| 31.03.2025 | 36,000 | 1,28,000 | 32,000 | 1,28,000 |
| 31.03.2026 | 36,000 | 92,000 | 25,600 | 1,02,400 |
Quick look: SLM vs WDV @ 20% on a Rs. 2,00,000 machine, residual Rs. 20,000, life 5 years (from page 22)
- Year ending
- 31.03.2024
- SLM charge
- 36,000
- SLM closing value
- 1,64,000
- WDV charge
- 40,000
- WDV closing value
- 1,60,000
- Year ending
- 31.03.2025
- SLM charge
- 36,000
- SLM closing value
- 1,28,000
- WDV charge
- 32,000
- WDV closing value
- 1,28,000
- Year ending
- 31.03.2026
- SLM charge
- 36,000
- SLM closing value
- 92,000
- WDV charge
- 25,600
- WDV closing value
- 1,02,400
MS-107 Unit 2: Cost Accounting
Pages 30 to 44, 8 sections. A cost sheet for Alpha Industries, then FIFO, LIFO, EOQ, ABC analysis and stock levels, Halsey and Rowan plans, and overhead absorption. 7 worked illustrations, 18 practice questions.
Quick look: EOQ in four steps (from page 37)
- Need 20,000 units, order cost Rs. 100, price Rs. 20, carrying 20%: C = Rs. 4.
- EOQ = √(2 × 20,000 × 100 ÷ 4) = √10,00,000 = 1,000 units.
- Orders a year = 20,000 ÷ 1,000 = 20, so ordering cost = Rs. 2,000.
- Carrying cost = (1,000 ÷ 2) × 4 = Rs. 2,000, equal to ordering cost at EOQ.
MS-107 Unit 3: Performance Evaluation Techniques
Pages 45 to 57, 11 sections. Budgets for Delta Ltd. and Sigma Ltd. (flexible at 60%, 80% and 100%), then ZBB, standard costing, variances, the Balanced Scorecard and responsibility centres. 4 worked illustrations, 18 practice questions.
| Variance | Working | Result (Rs.) |
|---|---|---|
| Material price | (10 − 9.50) × 2,100 | 1,050 (F) |
| Material usage | (2,000 − 2,100) × 10 | 1,000 (A) |
| Material cost (check) | 1,050 (F) − 1,000 (A) | 50 (F) |
| Labour cost | Rate 6,400 + idle time 4,000 + efficiency 4,000 | 14,400 (A) |
Quick look: variances for 1,000 units of product Z (from page 53)
- Variance
- Material price
- Working
- (10 − 9.50) × 2,100
- Result (Rs.)
- 1,050 (F)
- Variance
- Material usage
- Working
- (2,000 − 2,100) × 10
- Result (Rs.)
- 1,000 (A)
- Variance
- Material cost (check)
- Working
- 1,050 (F) − 1,000 (A)
- Result (Rs.)
- 50 (F)
- Variance
- Labour cost
- Working
- Rate 6,400 + idle time 4,000 + efficiency 4,000
- Result (Rs.)
- 14,400 (A)
MS-107 Unit 4: Decision Making Techniques
Pages 58 to 72, 14 sections. XYZ Ltd. runs through 17 ratios and a Du Pont breakdown of its 24.38% ROE; then CVP, key factor, make or buy, EVA, ABC, target and life cycle costing. 10 worked illustrations, 18 practice questions.
Quick look: EVA for XYZ Ltd. in three steps (from page 67)
- NOPAT = EBIT 3,00,000 × (1 − 0.25) = Rs. 2,25,000.
- Capital charge = capital employed 12,00,000 × WACC 12% = Rs. 1,44,000.
- EVA = 2,25,000 − 1,44,000 = Rs. 81,000: value is being created.
MS-107 exam corner: 40 short-answer and 32 long-answer practice questions by unit
| Unit | Short-answer questions | Long-answer questions | Worked illustrations |
|---|---|---|---|
| I | 10 | 8 | 10 |
| II | 10 | 8 | 7 |
| III | 10 | 8 | 4 |
| IV | 10 | 8 | 10 |
MS-107 practice questions and worked illustrations in the notes, by unit
- Unit
- I
- Short-answer questions
- 10
- Long-answer questions
- 8
- Worked illustrations
- 10
- Unit
- II
- Short-answer questions
- 10
- Long-answer questions
- 8
- Worked illustrations
- 7
- Unit
- III
- Short-answer questions
- 10
- Long-answer questions
- 8
- Worked illustrations
- 4
- Unit
- IV
- Short-answer questions
- 10
- Long-answer questions
- 8
- Worked illustrations
- 10
The MS-107 notes list 40 short-answer and 32 long-answer practice questions across 4 units, plus 31 worked illustrations with full solutions. The questions have no model answers; four with pointers:
- Unit I: Name the errors which are not disclosed by a trial balance. Pages 17 and 18: errors of principle, compensating errors, complete omission and a wrong original-entry amount.
- Unit II: Distinguish between Halsey and Rowan premium plans. Halsey adds a bonus of 50% of time saved × rate; Rowan adds (time saved ÷ time allowed) × time taken × rate, never above time wages (page 39).
- Unit III: What is idle time variance? Why is it always adverse? Idle hours × standard rate; hours paid but not worked can only cut profit (pages 52 and 53).
- Unit IV: What is Du Pont analysis? It splits ROE into profitability, efficiency and leverage to show which driver moved it (page 62).
More practice sits in the MS-107 important questions.
Accounting concepts from business entity to realisation in financial accounting: excerpt from page 8 of the MS-107 notes
Excerpt from page 8
Concepts are the basic assumptions on which accounting is built. Conventions are customs that guide how statements are prepared. Principles are the rules that come out of both, and standards are the written, official versions of those principles issued by a standard-setting body.
Business entity concept
The business is treated as separate from its owner. Money the owner brings in is capital, a liability of the business towards the owner, and cash or goods taken out for personal use are drawings. If the owner pays a child's school fee from business cash, it is debited to Drawings, not to an expense account.
Money measurement concept
Only transactions that can be expressed in money are recorded. "50 chairs" goes into the books at its money value, while a strike threat or the quality of a manager is not recorded at all.
Going concern concept
The business is assumed to continue for a long time with no plan to close. That is why fixed assets are shown at cost less depreciation rather than at sale value, and prepaid expenses appear as assets.
Accounting period concept
The indefinite life of a business is cut into short periods, usually one year (1 April to 31 March in India), so profit can be measured and statements prepared regularly for tax, dividend and decision purposes.
Cost concept
Assets are recorded at the price actually paid, including the cost of bringing them into use. Land bought for Rs. 20 lakh stays at Rs. 20 lakh even if its market value rises to Rs. 35 lakh, which keeps records objective and verifiable.
Dual aspect concept
Every transaction has two equal effects, one debit and one credit, giving the accounting equation: Assets = Liabilities + Capital. Ram starts with cash of Rs. 1,00,000, so assets of 1,00,000 equal capital of 1,00,000. He then buys furniture on credit for Rs. 20,000: assets of 1,20,000 now equal liabilities of 20,000 plus capital of 1,00,000.
Realisation concept
Revenue is recognised when it is earned, normally when goods are delivered or services rendered and the buyer becomes legally liable to pay, not when the order arrives or the cash is collected.
Do the MS-107 notes cover the full GGSIPU syllabus?
Yes. Every official MS-107 topic has its own section in the notes; our unit check against the GGSIPU MBA scheme found no gap.
| Official unit | Official topics | Where in the notes | Status |
|---|---|---|---|
| Unit I: Financial Accounting | Scope and Nature of Accounting, Accounting concepts, Principles & Standards, Accounting Cycle, Journalisation, Subsidiary Books, Ledger Posting, Trial Balance, Rectification of Errors, Capital and Revenue Expenditure & Income, Fixed Assets and Depreciation Accounting, Final Accounts: Manufacturing Account, Trading Account, Profit and Loss Account, Balance Sheet (with adjustments) | S. 1-11, pp. 5-27 | Covered |
| Unit II: Cost Accounting | Objectives, Classification of Cost, Cost Sheet, Material Cost Accounting, Perpetual Inventory Control, Inventory Valuation, EOQ, ABC Analysis, Reorder, Maximum and Minimum Level, Labour Costing, Overhead Cost Allocations, Over and Under Absorption | S. 1-6, pp. 30-42 | Covered |
| Unit III: Performance Evaluation Techniques | Budgeting and Budgetary Control, Performance Budgeting, Classification of Budget, Fixed and Flexible Budgets, Zero Based Budgeting, Standard Costing and Variance Analysis, Balanced Scorecard, Responsibility Accounting | S. 1-9, pp. 45-56 | Covered |
| Unit IV: Decision Making Techniques | Financial Statement Analysis, Ratio Analysis, Common Size Statements, Du Pont Analysis, Marginal Costing in Decision Making, Cost Volume Profit Analysis, Profit Planning, Management Accounting for Decision Making and Control, EVA, Activity Based Costing, Target Costing, Life Cycle Costing, Uniform Costing | S. 1-12, pp. 58-70 | Covered |
Official MS-107 syllabus mapped to the notes (section and page)
- Official unit
- Unit I: Financial Accounting
- Official topics
- Scope and Nature of Accounting, Accounting concepts, Principles & Standards, Accounting Cycle, Journalisation, Subsidiary Books, Ledger Posting, Trial Balance, Rectification of Errors, Capital and Revenue Expenditure & Income, Fixed Assets and Depreciation Accounting, Final Accounts: Manufacturing Account, Trading Account, Profit and Loss Account, Balance Sheet (with adjustments)
- Where in the notes
- S. 1-11, pp. 5-27
- Status
- Covered
- Official unit
- Unit II: Cost Accounting
- Official topics
- Objectives, Classification of Cost, Cost Sheet, Material Cost Accounting, Perpetual Inventory Control, Inventory Valuation, EOQ, ABC Analysis, Reorder, Maximum and Minimum Level, Labour Costing, Overhead Cost Allocations, Over and Under Absorption
- Where in the notes
- S. 1-6, pp. 30-42
- Status
- Covered
- Official unit
- Unit III: Performance Evaluation Techniques
- Official topics
- Budgeting and Budgetary Control, Performance Budgeting, Classification of Budget, Fixed and Flexible Budgets, Zero Based Budgeting, Standard Costing and Variance Analysis, Balanced Scorecard, Responsibility Accounting
- Where in the notes
- S. 1-9, pp. 45-56
- Status
- Covered
- Official unit
- Unit IV: Decision Making Techniques
- Official topics
- Financial Statement Analysis, Ratio Analysis, Common Size Statements, Du Pont Analysis, Marginal Costing in Decision Making, Cost Volume Profit Analysis, Profit Planning, Management Accounting for Decision Making and Control, EVA, Activity Based Costing, Target Costing, Life Cycle Costing, Uniform Costing
- Where in the notes
- S. 1-12, pp. 58-70
- Status
- Covered
Official source: GGSIPU MBA Scheme and Syllabus 2021-22 onwards (ipu.ac.in, scanned PDF).
Every course in GGSIPU notes is mapped to its official PDF the same way.
Who writes and checks the MS-107 Accounting notes?
- Prateek Talwar, author of the MS-107 notes: Founder, Unnati Educations; Associate Company Secretary (ACS), ICSI, membership no. 58704, since 15 May 2019; B.Com, University of Delhi (School of Open Learning), 2012. Author profile.
The 2026-27 edition follows the MBA scheme for batches from 2021-22 onwards. It covers the 4 units in 73 pages with AS and Ind AS references (AS 10 for depreciation). Last updated 13 October 2026; see our editorial policy.
The same team prepares GGSIPU important questions for every course.
MS-107 and the GGSIPU MBA Sem 1 papers it connects to
The GGSIPU MBA syllabus pairs no practical paper with MS-107. These links are our study notes, not an official list.
- MS 105 Managerial Economics: its short-run and long-run cost theory underlies the fixed and variable split in MS-107 CVP analysis.
- MS 103 Quantitative Techniques: its linear programming sits beside the MS-107 key-factor product mix.
- MS-115 Legal Aspects of Business: MS-107 Unit I cites Section 133 of the Companies Act, 2013, which MS-115 covers.
The other Sem 1 papers are MS 109 Information Technology Management, MS 101 Management Process and Organisational Behaviour, MS 111 Marketing Management and MS 113 Communication in Organizations. Students using these GGSIPU MBA Sem 1 Accounting for Management notes meet MS 104 Financial Management next, in Semester 2.
How to write MS-107 answers: journal entries, cost sheets, variance workings and theory answers
MS-107 mixes numericals with theory, and the notes give a habit for each. For journal entries, the exam tip on page 11 is DEAD-CLIC: debit increases in Expenses, Assets and Drawings; credit increases in Liabilities, Income and Capital. Write a narration under every entry, and remember that trade discount is never recorded, only cash discount.
In final accounts, every adjustment appears twice. Outstanding salary of Rs. 6,000 is added to salaries in the P&L Account and shown again as a liability. If the Balance Sheet does not tally, the notes say the first suspect is an adjustment shown in only one place (page 27). On depreciation theory, cite AS 10, because AS 6 has been withdrawn (page 10).
For variances, mark every result (F) or (A); the notes warn that a variance without a sign gets no marks. Then show that the sub-variances add up to the total, as in MPV + MUV = MCV (page 53). For EOQ, check that ordering cost equals carrying cost before moving on (page 37). In rectification questions, add a working note saying which errors are one-sided and pass through the Suspense Account, as the notes do on page 18.
Worked example: profit on cost vs profit on sales (page 34)
Alpha Industries has a cost of sales of Rs. 5,00,000. At 20% on cost, profit is Rs. 1,00,000 and sales Rs. 6,00,000. At 20% on sales, profit is 20/80, or 25% of cost: Rs. 1,25,000, and sales become Rs. 6,25,000. Read which base the question gives before you add the profit line.
Long theory answers score better with the notes' comparison tables (fixed vs flexible budget, absorption vs marginal costing) turned into a short table plus two lines of explanation. Practise this format on GGSIPU MBA important questions.
MS-107 Accounting notes FAQs
How do I get the full MS-107 notes?
Message Unnati Educations on WhatsApp at 9899436384 using the "Get Full Notes" button on this page. The full MS-107 notes are sold as a printed book only; there is no PDF edition. The book has all 4 units in 73 pages, 31 worked illustrations and 72 practice questions. The sample PDF above shows the layout.
What are the passing marks for MS-107 Accounting for Management?
MS-107 is marked out of 100: 25 internal marks (class test 15, assignments and other work 10) and 75 end-term marks. The GGSIPU MBA scheme PDF for 2021-22 onwards does not print a pass percentage for this paper, so we do not quote one. End-term minimums and re-appear rules are set by the university's Ordinance 11; check it on ipu.ac.in.
Which MS-107 unit has the most worked illustrations?
Units I and IV of MS-107 have 10 worked illustrations each. Unit I runs from Ravi Traders' journal to final accounts with adjustments; Unit IV covers ratios, Du Pont, CVP, key factor, make or buy, EVA and life cycle costing. Unit II has 7 and Unit III has 4, though Unit III includes the full variance set for product Z.
Do the MS-107 notes follow the current GGSIPU MBA scheme?
Yes. The MS-107 notes follow the GGSIPU MBA Scheme and Syllabus 2021-22 onwards, where MS-107 is a core paper with 3 credits and four units: Financial Accounting, Cost Accounting, Performance Evaluation Techniques and Decision Making Techniques. If your institute issues a newer syllabus, compare the four unit titles, which the notes use word for word.
Is MS-107 a theory paper or a numerical paper?
MS-107 is a core theory paper with no lab, but most units are numerical. Unit I needs journal entries, ledgers, trial balance and final accounts; Unit II needs cost sheets, inventory pricing and EOQ; Unit III needs flexible budgets and variances; Unit IV needs ratios and marginal costing. Theory on concepts, budgets and the Balanced Scorecard sits alongside, so practise both.
Are the MS-107 practice questions answered in the notes?
The 72 MS-107 practice questions, 40 short-answer and 32 long-answer, are printed without model answers. Each follows its unit's order, so the answer comes from the sections and tables just before it. The 31 worked illustrations, by contrast, are fully solved with step-by-step workings, from the cost sheet of Alpha Industries to the EVA of XYZ Ltd.
Get the full MS-107 Accounting for Management Notes on WhatsApp
MS-107 notes book: pages and worked illustrations per unit
- Unit
- I
- Pages
- 5 to 29 (25)
- Worked illustrations
- 10
- Practice questions
- 18
- Unit
- II
- Pages
- 30 to 44 (15)
- Worked illustrations
- 7
- Practice questions
- 18
- Unit
- III
- Pages
- 45 to 57 (13)
- Worked illustrations
- 4
- Practice questions
- 18
- Unit
- IV
- Pages
- 58 to 72 (15)
- Worked illustrations
- 10
- Practice questions
- 18
73 pages including cover and index. The book is printed Accounting for Management notes in English, sold in book form only (no PDF edition). Orders on WhatsApp.
Order the full MS-107 notes book on WhatsApp (4 units, 73 pages)
Unnati Educations is an independent education provider based in Vikaspuri, Delhi. We are not affiliated with, authorised by, or endorsed by Guru Gobind Singh Indraprastha University (GGSIPU). 'GGSIPU' and 'IPU' are used only to describe the syllabus our notes follow. For official information, visit ipu.ac.in.
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