Financial Accounting (MNG-2210)

University of Sargodha

Department of CS & IT

Indroduction:

COURSE OUTLINE

Program: BSSE (Regular / Self) 5th semester

Course Title: Financial Accounting

Course Code: MNG-2210

Course Structure: Lecture: 3/ Labs: 0

Credit Hours: 3

Prerequisites: None

Instructor: Ch. Ghulam Rasul

Email: [email protected]

DESCRIPTION & OBJECTIVES

Course Objectives:

This course intends to introduce students with knowledge of Financial Accounting required to help them to understand the process of financial management and to develop modern accounting information systems. It will also help to enhance their ability to solve business and financial matters.

Text Box: This course intends to introduce students with knowledge of Financial Accounting required to help them to understand the process of financial management and to develop modern accounting information systems. It will also help to enhance their ability to solve business and financial matters.

Learn Outcomes:

The learning outcomes will be to provide understanding of:

Basic accounting concept and techniques and their applications in various business and financial problems.
Equip them with accounting skills and knowledge that can be applied for financial decision making.
Financial analysis of various financial statements at work place.

Text Box: The learning outcomes will be to provide understanding of:
1) Basic accounting concept and techniques and their applications in various business and financial problems.
2) Equip them with accounting skills and knowledge that can be applied for financial decision making.
3) Financial analysis of various financial statements at work place.

Text Books and Readings:

Financial and management accounting by Jan Williams, Sue Haka, Mark Bettner and Joseph Carcello, McGraw-Hill/Irwin; 16th Edition (2011).

Fundamental Accounting Principles with Connect plus by John Wild, Ken Shaw, and Barbara Chiappetta, McGraw-Hill/Irwin; 20th Edition(December 27, 2010).

Accounting Principles by jack L. Smith, Robert M. Keith and William L. Stephens, McGraw-Hill Companies, 3rd Edition(1993).Financial Accounting by M. Asghar Paracha Edition 18th (2018).

Accounting by Sohail Afzal and M. Arif Ch.

Course Contents:

Introduction to Accounting: Nature, Purpose and Scope of Accounting, Objectives of Accounting, Users of Accounting Information and their Respective Needs, Qualities of Useful Accounting Information, Accounting Principles: Going Concern, Accruals, Consistency, Prudence, Business Entity, Duality, Money Measurements, Substance Over Form, Realization.

Book Keeping: The Accounting Cycle, Double Entity Book-keeping and Books of Original Entry, The Ledger, Cash Book and the Trial Balance.

Basic Financial Statements: Structures of Financial Statements for a sole Trader, Statement of Financial Position (The Balance Sheet) for a sole Trader.

Adjustments to Financial Statements: Carriage In and Carriage Out, Bad Debts, Bad and Doubtful Receivables, Bad Debts Recovered, Drawings, Discount Received and Allowed, Accrued and Prepaid Incomes and Expenses and Depreciation and Disposal of Property, Plant and Equipment.

The Cash Book: Two Column Cashbook, Analytical Cashbook and the Petty Cashbook.

Expected Learning Outcomes: Purpose of Bank Reconciliation, Causes of Difference Between Cash and Bank Balances, Bank Reconciliation Process, Bank Overdrafts, and Dishonoured Cheques.

Property, Plant and Equipment (PPE): Classification of Long-Term Assets, Accounting for PPE, Revenue and Capital Expenditure, Relevant Cost of PPE, Method, Relevant Cost of PPE, Methods of Estimating Depreciation, Revaluation Method, Revaluation of PPE, Exchange of Assets, Disposal of Assets, Schedules of PPE and Presentation and Disclosure of PPE in the Financial Statements.

Control Accounts: Uses of Control Accounts, Sales and Purchases Ledger Control Accounts.

Accounting Errors: Types of Accounting Errors, Errors Not Affecting the Trial Balance and Errors Affecting the Trial Balance.

Adjusted Trial Balance, Closing entries and post-closing Trial Balance.

Accounting for Partnerships: Introduction of Partnership Agreements, Appropriation of Profit.

Detailed Lesson Plan for Lectures:

Week:	Topic to be Discussed	Date/Timing
1	Introduction to Accounting, Accounting Principles/Concepts and Conventions, Branches of accounting.	As per timetable
2	Book-keeping, Double Entry Book-keeping, Monetary/Non-Monetary Events and Transactions, Cash & Credit Transactions, Accounting Equation, Effects of Business transaction on Accounting Equation.
3	Analysis/Classification of Business Transactions, Single Entry & Double Entry System, Accounts and types of Accounts, Debit & Credit rules for Assets, Liabilities, Expenses /Revenue etc.
4	Journal and rules for journalizing, Simple Entry & Compound Entry, Capital & Drawing Account.
5	Ledger, Balancing of Ledger Accounts, Trails Balance. Direct/Indirect Expenses and Revenue.
6	Methods of preparing Trail Balance, Advantages of Trail Balance, Accounting Cycle to Trail Balance,
7	The Cash Book, Single & Two Column Cash Books, And their preparation.
8	Three Column Cash Book, The Petty Cash Book.
9	Bank Reconciliation, Purpose and Causes of differences b/w Cash & Bank Balances, Preparation of Reconciliation Statements Accounts.
10	Depreciation, Definition & Causes of Depreciation, Types of Depreciation
11	Basic Financial Statements (Final Accounts), Trading Account, Profit & Loss account.
12	Statements of Financial position (Balance Sheet), Structure of Balance Sheet for a Sole Trader.
13	Accounting Errors & Accounting Adjustments to Financial Statements, Accrued & Prepaid Income and Expenses, Bad Debts & Provision.
14	Classification of Short term and Long Term Assets and Liabilities, Revenue & Capital, Capital & Revenue Expenditures, Profit/Loss under Capital and Revenue.
15	Accounting for Partnership, Introduction Partnerships, Agreements and Deed. Appropriation of Profit.
16	Revision/Presentation & Completion left over topics of course