Class BBA /BSAF/BSCS/BSECO/BSEM

Course Principles of Accounting

Credit hours 3.0
Class nos. 2168 and 2227
Session start date September 15, 2020
Session days Class # 2168 Monday and Wednesday 8:30 AM – 9:45 AM
Class # 2227 Monday and Wednesday 10:00 AM – 11:15
AM
Refer IBA calendar for holidays and examination dates.
Location City Campus
Instructor Ahmad Saeed
Instructor’s email e-mail: [email protected];[email protected]
Teaching Assistant (TA) To be advised (TBA)
TA’s contact TBA
Counselling Refer separate section later in this document

Course Description
This course is designed to familiarize and develop in the students a thorough understanding
of the accounting concepts, principles and procedures involved in the analysis and recording
of business transactions and the preparation of financial statements for service and trading
concerns. Accounting concepts and techniques underlying income determination and
valuation of current and long-term assets, together with their related internal control
measures and their presentation in the financial statements are emphasized.i

Course Objectives and Learning Outcomes

The objectives of this course are:

 To develop an understanding of economic activities (UNDERSTAND)

 To develop an understanding of assumptions and measurement techniques used to
convert the economic activities into accounting information which is relevant for
making economic decisions and describe the accounting rules for recording such
information. (RECORD)
 To explain the financial statements presentation and disclosure requirements for
such information. (PRESENT)
 To explain the methods of analysing such information. (ANALYZE)

The principal objective of this course is to enable the students to develop their core
Accounting Knowledge in the areas mentioned above. On completion of the course, the
students will be able to understand the basic Accounting Principles, and financial concepts.

Furthermore, the teaching methodology to be used in this course (lectures, class discussions,
 cases studies and hands on practice) will enable the students to:
 Improve their Communication Skills for they will be asked to present their oral and
written thoughts in a logical and structured manner using technology
 Hone their Critical Thinking Skills by developing their ability to understand and
critically analyze accounting theories, models, and frameworks and comprehend
how these help in Effective Decision Making
 Build an awareness about Ethical Frameworks and Responsibilities by solving
case studies involving ethical issues
 Develop a Global Mind-set as the course would cover accounting under both
GAAP and IFRS

Sessions Contents Chapter Assignment

1 Course Introduction
1. Course description
2. Course objectives

1–3 Accounting in action – Chapter 1 1 To be advised at

1. Explain what accounting is. the end of each
2. Identify the users and uses of accounting. chapter. (Two or
3. Understand why ethics is a fundamental business three exercises
concept. and/or problems)
4. Explain generally accepted accounting principles and
the cost principle.
5. Explain the monetary unit assumption and the
economic entity assumption.
6. State the accounting equation, and define assets,
liabilities, and owner’s equity.
7. Analyze the effects of business transactions on the
accounting equation.
8. Understand the four financial statements and how they
are prepared.

4–5 The Recording Process – Chapter 2 2 To be advised at

1. Explain what an account is and how it helps in the the end of each
recording process. chapter. (Two or
2. Define debits and credits and explain their use in three exercises
recording business transactions. and/or problems)
3. Identify the basic steps in the recording process.
4. Explain what a journal is and how it helps in the
recording process.
5. Explain what a ledger is and how it helps in the
recording process.
6. Explain what posting is and how it helps in the
recording process.
7. Prepare a trial balance and explain its purposes.
Sessions Contents Chapter Assignment

6 &7 Adjusting the Accounts – Chapter 3 3 To be advised at

1. Explain the time period assumption. the end of each
2. Explain the accrual basis of accounting. chapter. (Two or
3. Explain the reasons for adjusting entries. three exercises
4. Identify the major types of adjusting entries. and/or problems)
5. Prepare adjusting entries for deferrals.
6. Prepare adjusting entries for accruals.
7. Prepare adjusting entries for alternative treatment for
deferral
8. Describe the nature and purpose of an adjusted trial
balance.

8–9 Completing the Accounting Cycle – Chapter 4 4 To be advised at

1. Prepare a worksheet. the end of each
2. Explain the process of closing the books. chapter. (Two or
3. Describe the content and purpose of a post-closing trial three exercises
balance. and/or problems)
4. State the required steps in the accounting cycle.
5. Explain the approaches to preparing correcting entries.
6. Identify the sections of a classified balance sheet.
7. Explain the process for reversing entries.
10 – 11 Accounting for Merchandising Operations – Chapter 5 5 To be advised at
1. Identify the differences between service and the end of each
merchandising companies. chapter. (Two or
2. Explain the recording of purchases under a perpetual three exercises
inventory system. and/or problems)
3. Explain the recording of sales revenues under a
perpetual inventory system.
4. Explain the steps in the accounting cycle for a
merchandising company.
5. Distinguish between a multiple-step and a single-step
income statement.
6. Explain the computation and importance of gross
profit.
7. Determine cost of goods sold under a periodic system.
8. Explain recording of purchases and sales under
periodic inventory system
9. Prepare worksheet for merchandising companies

12–13 Accounting for Inventories – Chapter 6 6 To be advised at

1. Describe the steps in determining inventory quantities. the end of each
2. Explain the accounting for inventories and apply the chapter. (Two or
 inventory cost flow methods. three exercises
3. Explain the financial effects of the inventory cost flow and/or problems)
assumptions.
4. Explain the lower-of-cost-or-market basis of
accounting for inventories.
5. Indicate the effects of inventory errors on the financial
statements.
6. Compute and interpret the inventory turnover ratio.
7. Explain application of inventory cost flow methods to
perpetual inventory.
8. Explain estimation of cost of inventories.
9. Understand the requirements of International
Accounting Standard 2 – Inventories.

14 Accounting Information System – Chapter 7 7 To be advised at

1. Identify the basic concepts of an accounting the end of each
information system. chapter. (Two or
2. Describe the nature and purpose of a subsidiary ledger. three exercises
3. Explain how companies use special journals in and/or problems)
journalizing.
4. Indicate how companies post a multi-column journal.

15 – 17 Fraud, Internal Control and Cash – Chapter 8 8 To be advised at

1. Define internal control. the end of each
2. Identify the principles of internal control. chapter. (Two or
3. Explain the applications of internal control principles three exercises
to cash receipts. and/or problems)
4. Explain the applications of internal control principles
to cash disbursements.
5. Describe the operation of a petty cash fund.
6. Indicate the control features of a bank account.
7. Prepare bank reconciliation.
8. Explain the reporting of cash.

18 – 21 Accounting for Receivables – Chapter 9 9 To be advised at

1. Identify the different types of receivables. the end of each
2. Explain how companies recognize accounts receivable. chapter. (Two or
3. Distinguish between the methods and bases companies three exercises
use to value accounts receivable. and/or problems)
4. Describe the entries to record the disposition of
accounts receivable.
5. Compute the maturity date of and interest on notes
receivable.
6. Explain how companies recognize notes receivable.
7. Describe how companies’ value notes receivable.
8. Describe the entries to record the disposition of notes
 receivable.
9. Explain the statement presentation and analysis of
receivables.

22 -23 Plant Assets, Natural Resources, and Intangible Assets – 10 To be advised at

Chapter 10 the end of each
1. Describe how the cost principle applies to plant assets. chapter. (Two or
2. Explain the concept of depreciation. three exercises
3. Compute periodic depreciation using different and/or problems)
methods.
4. Describe the procedure for revising periodic
depreciation.
5. Distinguish between revenue and capital expenditures,
and explain the entries for each.
6. Explain how to account for the disposal of a plant
asset.
7. Compute periodic depletion of natural resources.
8. Explain the basic issues related to accounting for
intangible assets.
9. Indicate how plant assets, natural resources, and
intangible assets are reported.
10. Understand the requirements of International
Accounting Standard 16 – Property, Plant and
Equipment.

24 - 25 Current liabilities and Payroll – Chapter 11

1. Describe the different kinds of current liabilities.
2. Explain what are contingent liabilities and how are they
disclosed in the financial statements.
3. Explain the process for determining and accounting for
payroll.
4. Explain additional fringe benefits and how they are
accounted for.
5. Explain how current liabilities are presented in the
financial statements and analysed.
26 -28 Revision
FINAL EXAMINATION

Text book and course reading material etc.

Main text book:
 Accounting Principles 12th edition Weygandt, Kieso and Kimmel (Kieso)
 Not all sections in a chapter will be covered; only relevant portions will be dealt
with.
 Additional slides/handouts/information if any will also be shared in-class, as
appropriate.
 The emphasis of the course is on understanding the concepts and applying them
 to business transactions - not on learning by rote.
 Slides/Reading Material will be uploaded on LMS.
 The course outline given above is indicative only. This may change depending
on guest lectures, in-class activities, videos, new cases, role plays, simulations,
field trips, etc.
 Students are expected to read the chapter and additional material (if any
provided) before coming to the class and ask relevant questions.

Link to students companion web site for practicing self-study quizzes

11Th Edition
http://bcs.wiley.com/he-bcs/Books?
action=index&bcsId=8114&itemId=1118323661
10Th Edition

http://bcs.wiley.com/he-bcs/Books?action=index&itemId=0470646462&bcsId=6406

Assignments
Assignments must be handwritten and should be handed over to the instructor on the due
date.
Term Report must be uploaded through Turnitn on Learning Management System (LMS).
Reports that are not processed through Turnitn will not be evaluated.

Grading Plan
Assessment Marks
Quiz (n-1 basis) 15%
Assignments and Class Participation 25%
Term report 20%
Final examination 40%

Counselling
Meet the instructor
Students may see the faculty any time in case of any problem or issue that needs attention.
Social Media
Class group will be created on .
TA’s Office Hours
TBA
Tutorials
TBA
 Comments and/or Suggestions

Comments and/or Suggestions on the course content and teaching methodology are most
welcome.

Technology Requirements

 Please bring your book and relevant hand outs, pen and paper and a simple calculator.
 Relevant course material shall be uploaded on LMS and students must bring their
copies to the class.

Academic Conduct, Attendance, Plagiarism, and Withdrawal

 The relationship between the instructor and the students and among the students is that
of mutual respect. Proper conduct and behaviour is expected in the class
 Maximum of 5 absences are allowed during the semester
 Mobile Phones must be switched off or turned to silent mode (not to vibrate mode)
during the class. This rule must be strictly followed
 No side conversations are allowed in class. It will be marked as negative class
participation. If you have any question, please raise your hand
 Punctuality is essential. If the student is late he or she will be marked absent
 Students must avoid leaving the class during the session, however, if need be students
may ask for permission and leave the class for a maximum of 10 minutes. Failure to
return to class during this time will result in being marked absent
 The instructor will not grant permission to leave the class for any meetings or
preparation for events within the campus. Please ensure that all such commitments are
scheduled before or after the class
 At IBA academic honesty is mandatory. Absolutely no plagiarism/ cheating in any
examination, quiz, assignment, report, and/or presentation by any student is tolerated.
Each case is decided on its own merit in accordance with notified plagiarism policies
 All classrooms are cell phone free zones. Permission to attend to emergencies is to be
obtained from the instructor. Sports / music playing and /or other activities on campus
during class timings, especially near class rooms are not allowed
 A student may withdraw from a course in accordance with IBA’s policy
i
http://bba.iba.edu.pk/BBA_Crs_details.php