Tomas Del Rosario College

Capitol Drive, San Jose, Balanga City, Bataan

Telefax No.: (047)791-6152; Tel. Nos.: (047) 237-3511, 237-0841

BACHELOR OF SCIENCE IN ACCOUNTANCY

(Course Syllabus)

Course: Actg. 1

Course Title: Fundamentals of Accounting, Part I

Course Credit: Six (6) units

Prerequisite: None

Course Description
This course provides an introduction to accounting, within the context of business and business
decisions. Students obtain basic understanding of the principles and concepts of accounting as well as
their applicability and relevance in the national context and learn how to use various types of accounting
information found in financial statements and annual reports. Emphasis is placed on understanding the
reasons underlying basic accounting concepts and providing students with an adequate background on
the recording, classification, and summarization functions of accounting to enable them to appreciate the
varied uses of accounting data.

Course Outline:

1. Introduction to accounting
1.1 Definition, purpose, nature, functions, scope and objectives of accounting
1.2 Different branches of accounting (financial, managerial, etc)
1.3 The classical notion of stewardship
1.4 Users of accounting information (internal vs. external users)
1.5 Double entry bookkeeping
1.6 History of accounting:
1.6.1 The Florentine vs. the Venetian approach to reporting
1.6.2 Savory and the Napoleonic Commercial Code
1.6.3 The industrial revolution and the share-issuing company
1.6.4 The arrival of income taxation and the conflict with financial accounting
1.6.5 Schmalenbach and the charts of accounts
1.6.6 The rise of the group of companies and the need for consolidated accounts
1.6.7 Internationalization of markets and reporting
1.7 Accounting variations among countries
1.7.1 Why practices differ from one country to another even though the same set
of basic principles is followed
1.7.2 The linkage of tax laws and accounting principles requirements for
enterprises in certain countries
 1.7.3 Differences in the degree of development of the capital markets in
countries and their effect on the development and use of generally
accepted international principles of accounting
1.8 Basic professional values and ethics
1.8.1 Reputation
1.8.2 Integrity and due care
1.8.3 Competence
1.8.4 Objectivity
1.8.5 Client relations and confidentiality
1.8.6 Reporting breaches of conduct
1.8.7 Unlawful activities
1.8.8 Fees and remuneration
1.8.9 Publicity and advertising
1.8.10 Disciplinary procedures
1.9 Forms of business organization and their activities (e.g., financing, investing and
operating)
1.10 Accounting concepts and principles
1.11 The basic financial statements of business organizations
1.12 Relationships among the financial statements
1.13 Definition, classification and examples of assets, liabilities, capital or owners’ equity,
income, and expenses
1.14 The accounting profession: career opportunities
1.15 Specialized accounting fields (public accounting, private accounting, government
accounting, accounting education)
2. Introduction to accounting information system
2.1 Features of an effective information system
2.2 Overview of an accounting information system
2.3 The three stages of data processing: A comparison of computerized and manual
accounting system
3. Analyzing and summarizing business transactions
3.1 Definition of business transactions and source documents
3.2 Summary of business activities (financing, investing, operating)
3.3 The accounting equation
3.4 Analyzing and accounting for business transactions
3.5 Presentation of results of routine transactions by preparing the Basic Income statement,
Owners’ equity statement, Balance sheet, and Statement of cash flows)
3.6 Relationship among the financial statements
4. Recording transactions of a service company (sole proprietorship)
4.1 Double-entry accounting and accounting systems: Florentine vs. Venetian approach to
reporting, Savory and Napoleonic Commercial Code, and Schmalenback
4.2 The account and T-account
4.3 Rules of debit and credit
 4.4 Chart of accounts and normal balances of an account
4.5 Recording in two-column journal (initial investment by owner, changes in assets,
liabilities and capital, changes in income and expenses, with-drawals of owner)
4.6 Posting to the ledger
4.7 Preparing the trial balance
5. Measuring business income
5.1 Accrual-basis accounting vs. Cash-basis accounting
5.2 Accounting period
5.3 Revenue principle
5.4 Matching principle
5.5 Time-period concept
5.6 Overview of the adjusting process
5.7 Adjustments for prepayments (deferrals), accruals, uncollectible accounts receivable,
depreciation of property, plant and equipment
5.8 Preparation of the adjusted trial balance and financial statements
5.9 Use of accounting information for decision making
6. Completing the accounting cycle
6.1 Overview of the accounting cycle
6.2 Preparing an accounting worksheet
6.3 Using the worksheet
6.4 Preparing financial statements from the worksheet [income statement, owner’s equity
statement, balance sheet, cash flow statement (simple cash receipts & disbursements
statement)]
6.5 Journalizing and posting adjusting entries
6.6 Journalizing and posting closing entries
6.7 Preparing the post-closing trial balance
6.8 Preparing the reversing entries
7. Recording merchandising business transactions
7.1 Merchandising operations (Nature and operating cycle of a merchandising business,
business documents)
7.2 Recording merchandising business transactions in a two-column general journal (sales
revenue, sales returns and allowances, sales discounts, purchases of merchandise,
purchases returns and allowances, purchase discounts, transportation costs)
7.3 Inventory systems (perpetual and periodic inventory procedures)
7.4 Determination of merchandise inventory, costs of good sold and gross margin
7.5 Worksheet preparation
7.6 Adjusting and closing process for a merchandising business
7.7 Financial statements of a merchandising business
7.8 Use of accounting information in decision making
8. Recording transactions in special journals
8.1 Nature and use of control accounts and subsidiary ledgers
 8.2 Types of special journals (sales journal, purchases journal, cash receipts journal, cash
disbursements journal)
8.3 Recording of financing, investing and operating transactions in the special journals and
general journal
9 Manufacturing operations
9.1 Nature of manufacturing business
9.2 Transactions related to the manufacturing process
9.3 Elements of manufacturing costs
9.4 Preparation of financial statements of a manufacturing enterprise (balance sheet, income
statement, statement of cost of goods manufactured and sold)

Suggested References
 Cabrera, E.B., Ledesma, E.F. and Lupisan, MC. Y. (2007). Fundamentals of Accounting Volum
1. Latest Edition. Manila: GIC Enterprises & Co. Inc.
 Valencia, E. (2002). Basic Accounting w/ Practice Set. Mandaluyong City: Millenium books,
Inc., Shaw Blvd.
 Weygant, Jeny J., D.E. Kieso and P.D. Kimmel. (2005). Accounting Principles, 7th Ed. John
Wiley and Sons, Inc.

Practice Set:
 Frias, M.A. (2003). Practice Set – Introductory Accounting (Service), Manila GIC Enterprises.
 Addatu, Raul C. (2001). Fundamentals of Accounting Part I. Manila: Redman Printing.