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BACTNG2 Syllabus
BACTNG2 Syllabus
BACTNG2 (6 units)
Fundamentals of Accounting Part 2 (Partnership and Corporation Accounting)
Course Description
This is a continuation of the first course in accounting. It deals with transactions, financial
statements, and problems peculiar to the operations of partnerships and corporations as
distinguished from sole proprietorships. Topics include: basic concepts of partnership; partnership
formation and operations including accounting for the admission of partners, changes in capital, and
profit/loss sharing ratios; partnership dissolution and liquidation; the conversion of an
unincorporated enterprise into a corporation; accounting for incorporated enterprises, including
corporate organizations, paid-in capital, accumulated earnings/loss, dividends and treasury shares.
It will also cover the preparation of financial statements for internal and external purposes,
accounting information systems manual and computerized special journals; understanding the
different financial statements; and analysis of accounting information and decision making.
Prerequisites
For Accountancy students: BACTNG1, ENGLIS1, PHILOS1, MATHEM1. The grade
requirement for BACTNG1 is 85 and 80 for the other prerequisites.
Course Coverage
Course Syllabus
VMO
Seat Plan
Leveling of Expectations
1. Partnership- Basic Concepts and Considerations
a. Overview
b. Definition
c. Characteristics
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d. Partnerships distinguished from corporations
e. Advantages and disadvantages from sole proprietorships and corporations
f. Kinds of Partnerships
g. Kinds of Partners
h. Articles of Partnership
i. Other legal concerns in partnership
3. Partnership Operations
a. Profit and loss ratio
b. Divisions of profits and losses
i. Equally
ii. Based on contributions
iii. By allowing salaries, interest on capital, and bonus to partners
c. Special profit allocations methods
d. Preparation of the Statement of Changes in Equity
4. Partnership Dissolution
a. Definition
b. Causes
c. Accounting for the admission of new partner in an existing partnership
i. Through purchase
ii. Through investment
d. Withdrawal or retirement of a partner
e. Death or incapacity of a partner
5. Partnership Liquidation
a. Definition
b. Causes
c. Rules and accounting for the settling of accounts after dissolution
i. Under lump sum liquidation
ii. Under installment liquidation
7. Share Capital
a. Legal capital
b. Share premium
c. Types of shares
i. Ordinary
ii. Preference
d. Accounting for issuance of share capital
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i. Under memorandum entry method
ii. Under journal entry method
e. Share subscription
f. Subscription results
g. Accounting for treasury shares
h. Incorporation of sole proprietorships and/or partnerships
i. Donated capital
8. Retained Earnings
a. Introduction
b. Definition of dividends
c. Important dates in dividend transactions
d. Kinds of dividends
e. Accounting for dividends
i. With only one type of shares
ii. With two or more types of shares
f. Book value per share
g. Share splits
i. Share split
ii. Reverse share split
h. Retained earnings appropriations
i. Prior period errors
j. Statement of Retained Earnings
k. Statement of Changes in Shareholders Equity
l. Earnings per share
Grading System
Cut-off grade is 70%. The highest possible grade is ninety nine (99); the lowest passing
grade is seventy five (75); and the lowest failing grade is 65. However, a grade of 70 will be
reflected in the final grade for all failing grades. For Accountancy students, the cut-off grade is 85.
Minimum raw score is four hundred (400) points for very grading period.
Textbook
Valencia, Edwin; Roxas, Gregorio; and Asuncion, Darrell Joe (2010). Partnership and Corporation
Accounting. Baguio City: Valencia Educational Supply.
References
Ballada, Win Lu and Ballada, Susan (2010). Partnership and Corporation Accounting. Manila:
Dome Dane Publishers and Made Easy Bookstore.
Robles, Nenita and Empleo, Patricia (2010). Intermediate Accounting Part 3. Mutual Books Inc.
Baysa, Gloria and Lupisan, Ma. Concepcion (2008). Advanced Accounting Part 1. Mandaluyong
City: Millenium Books, Inc.
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www.sec.gov.ph
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