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Acc Module Outline

This document outlines a module for Financial Accounting for Business 1 A at Midlands State University's Faculty of Commerce, Department of Accounting. The module is intended to develop students' skills and understanding of double-entry bookkeeping and how it is used to produce financial information for business. Continuous assessment, including in-class tests, will contribute 30% to the overall grade, while the sessional exam will contribute 70%. By the end of the module, students should understand accounting concepts and be able to perform accounting tasks like preparing final accounts, calculating depreciation, and handling bad debts. The module topics include introduction to accounting, source documents, subsidiary books, the ledger, trial balances, and preparation of final sole trader accounts.

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15 views

Acc Module Outline

This document outlines a module for Financial Accounting for Business 1 A at Midlands State University's Faculty of Commerce, Department of Accounting. The module is intended to develop students' skills and understanding of double-entry bookkeeping and how it is used to produce financial information for business. Continuous assessment, including in-class tests, will contribute 30% to the overall grade, while the sessional exam will contribute 70%. By the end of the module, students should understand accounting concepts and be able to perform accounting tasks like preparing final accounts, calculating depreciation, and handling bad debts. The module topics include introduction to accounting, source documents, subsidiary books, the ledger, trial balances, and preparation of final sole trader accounts.

Uploaded by

mcskelta8
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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MIDLANDS STATE UNIVERSITY

P. BAG 9055 Tel: 227411


Gweru Fax: 260442
Zimbabwe
FACULTY OF COMMERCE
DEPARTMENT OF ACCOUNTING

MODULE OUTLINE

MODULE TITLE: FINANCIAL ACCOUNTING FOR BUSINESS 1 A (ACC 135)

1. PREAMBLE
This is the first module of a series of four financial accounting for business modules presented by
the Department of Accounting to non-accounting students. The module is intended to develop the
learner’s awareness, skills and understanding of the principles of double entry book-keeping and
how these principles are applied to produce the financial information required in business.

2. MODULE ASSESSMENT
Continuous assessment (course work) will contribute 30% to the overall assessment while the
sessional examination will contribute 70% to the overall assessment. Continuous assessment will
be by way of in-class tests.

3. PURPOSE OF THE MODULE


This module aims at providing a thorough knowledge which at the end should enable the student
to:
 Gain knowledge and understanding of the aims and activities of business;
 Acquire practical skills in understanding the accounting techniques and procedure
appropriate in business organisations and the implications thereof;
 Develop an understanding of the principles and purposes of accounting in providing an
information system for monitoring progress and decision making;
 Acquire a broad understanding of accounting concepts, conventions and terminologies as
applied in the preparation of accounts.
4. MODULE OBJECTIVES
By the end of the module the students should be able to:
 State the types of business organisations and their differences;
 Show the differences between bookkeeping and accounting;
 State the importance of accounting in commerce and industry;
 Identify the users of financial information;
 Describe the accounting cycle;
 Define the various accounting terms;
 Identify source documents for particular transactions;
 Explain the purpose of source documents;
 State the significance of each source document;
 Interpret the information on the source document;
 Name the subsidiary books;
 Explain purpose of each subsidiary book;
 Correct errors by journal entry and make closing transfers;
 Explain forms of ledger accounts;
 Post entries from subsidiary books to the relevant ledger accounts showing correct
narrations;
 Balance ledger accounts;
 Define capital and revenue expenditure;
 Define a trial balance;
 Explain the purpose of preparing a trial balance; outline the uses and limitations of a trial
balance;
 Extract a trial balance;
 State the types of errors that are not revealed by a trial balance;
 Explain the reasons for preparing the statement of profit or loss and other comprehensive
income;
 Explain the difference between gross profit and profit for the period, profit and loss;
 prepare the statement of profit or loss and other comprehensive income of sole traders;
 state the basis of inventory valuation;
 draft ledger accounts that show payments and receipts in advance and in arrears, stock of
consumables and transfers to final accounts;
 define depreciation;
 state the causes of depreciation;
 calculate depreciation using straight line method and reducing balance method;
 draw up the depreciation expense account and the accumulated depreciation account and
asset account;
 show depreciation in the statement of profit or loss and other comprehensive income;
 draw up the disposal account of a non-current asset and show profit/loss in the statement
of profit or loss and other comprehensive income;
 explain the meaning of bad debts and bad debts recovered;
 prepare journal entries and ledger accounts to record bad debts written off and bad debts
recovered;
 state the reasons of maintaining a provision of bad debts;
 prepare adjusting entries in the general journal and ledger to record the creation of, and
adjustment to, a provision for bad debts;
 Make closing entries to the statement of profit or loss and other comprehensive income for
all adjusted figures.
5. MODULE OUTLINE
5.1. Introduction to Accounting
 Types of business organisations;
 Importance of accounting;
 Definition of terms.
5.2. Source documents used in Accounting
 Documentary records and their significance;
 Invoice;
 Credit note;
 Debit note;
 Cheque;
 Voucher;
 Receipt;
 Bank statement;
 Statement of accounts.
5.3. The Subsidiary books
 Cash receipts and cash payments journal, purchases journal and purchases returns
journal, sales journal and sales returns journal, the general journal;
 Use of subsidiary books;
 Correction of errors and closing transfers by journal entry.
5.4. The ledger
 Forms of ledger;
 Posting to the ledger;
 Use of folio columns;
 Balancing;
 Classification of ledger accounts;
 Capital and revenue items.
5.5. Trial balance
 Trial balance, its extraction, uses, limitations and use of the suspense account;
 Errors and their corrections.
5.6. Final accounts of Sole Traders
 Trading account;
 Statement of profit or loss and other comprehensive income;
 The nature of profit or loss and its ascertainment for a specific period;
 Valuation of inventory;
 Treatments of amounts in advance and of amounts due but not yet paid and stocks /
inventories of consumables;
 Causes of depreciation;
 Provision for depreciation: straight line, diminishing balance and revaluation;
 Disposal of non-current assets;
 Provision for bad debts and doubtful debts.
6.0. RECOMMENDE READING LIST
1. Faul et al (1994) Accounting – An Introduction
2. Flynn D et al (2000) Fundamental Accounting: Juta & Co. Ltd
3. Tulsian P.C. Financial Accounting. Tata McGraw-Hill Publishing Co. Ltd
4. Wood F and Sangster A. (2001) A-Level Accounting Prentice Hall
5. Dyson J.R. (1997) Accounting for Non-Accounting Students, Pitman Publishing

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