Financial Accounting: Course Outline

Chapter 01. Accounting and its role    

• Development of accounting
• Accounting Theory and Conceptual framework
• Accounting Defined
• Why study Accounting
• Financial statements
• Major fields of Accounting
• Accounting as a Career
• Question for Class Discussions 

Chapter 02.Basic Accounting Concepts

• The Entity Concept
• The Reliability (or Objectivity) principle
• The cost Principle
• The Going-Concern Assumptions
• The Stable Currency Assumptions
• Ethics-the-Most Fundamental Principle of Accounting       

Chapter 03. The recording process  

• The Recognition Issue
• The Valuation Issue
• The Classification Issue
• The Recording Process
• Analysis of Transaction
• The Journal
• The Ledger
• Balancing the Accounts
• Trial Balance
• Limitations of Trial Balance
• Chart of Accounts    

Chapter 04. The year and adjustments and financial statements

• Recording Revenue and Expenses
• Accounting Period
• Need for Adjusting Entries
• Adjusting Entries Illustrated
• Preparation of Financial Statements

Chapter 05.  Accounting for trading organization

• The Purchase Function
• Accounting for Purchase
• Accounting for Stock and Cost of Goods Sold
• Periodic System
• Closing Entries
• Perpetual System
• The Accounting for Sales
• Worksheet
• Preparation of financial Statements
• Departmental Accounts

Chapter 06.  Accounting Systems

• Developing a System
• Special Journal
• Subsidiary Journal
• Special Journal and Posting Process
• Posting from the Cash Book
• General Journal     

Chapter 07.  Cash and temporary investment

• Nature and Composition of Cash
• Cash Management and Control
• Maintaining Bank Account
• Steps in Preparing the Bank Reconciliation
• Over the counter receipts
• Short term investments                     

Chapter 08.  Accounting for debtors and stock

• Accounting Treatment of Bad Debts
• Direct write-Off Method
• Aging Schedule
• Percentage of Sales Method
• Recoveries of Bad debts
• Stock
• Measurement of Stock Quantity
• Measurement of Stock Cost
• Perpetual Stock System
• Periodic Stock System
• First in First out
• Last in First out

Chapter 09. Accounting for property, plant and equipment

• Property, Plant and Equipment
• Lum-sum Purchase
• Subsequent Expenditure
• Depreciation
• Units-of-Output Method
• Reducing-Balance Methods
• Sum-of-the-years-digits Method
• Revaluation
• Review of Useful life
• Intangible Assets and Amortization
• Wasting Assets and Depletion
• Demonstration Problem

Chapter 10. Accounting for companies

• The Company
• Types of Company
• Formation of a Public Limited Co,
• Classes of Shares
• Ordinary Shares
• Preference Shares
• Issuance of Shares
• Market Value of Shares
• Share Capital and Share Premium
• No Par Value Share

Chapter 11. Company final Accounts

• Published Annual Report
• The contents of the Published Accounts
• Dividends
• Reserve
• Dividend payment process
• Profit and Loss Appropriation Account

Chapter 11. Company final Accounts

• Alteration of Capital
• Bonus Shares
• Right Issue
• Stock Splits
• Treasury Stock

Chapter 12. Cash Flow Statement

• The Concept
• The Advantages
• Accounting Profit and Cash Flows
• Preparation of statement of cash Flows
• Operating Activities
• Investing Activities
• Financing Activities

Chapter 13. Manufacturing Account

• Manufacturing and value chain
• Manufacturing costs-direct costs
• Manufacturing costs-indirect costs
• Manufacturing costs-variable costs
• Fixed costs
• Manufacturing cost flow
• Cost of goods sold
• Manufacturing accounting
• Manufacturing profit