Institute of Computer Science and Information Technology (ICS/IT)

Faculty of Management Sciences and CS/IT (FMCS)

The University of Agriculture Peshawar

Program: BS (IT)-2nd Semester

Course Name: Financial Accounting
Course Code: MG-401
Session 2021-2025
Course Hours: 03
Total Weeks: 16
Total Hours: 48

Course Objectives       

The primary aim of Financial Accounting is to provide students with an introduction to the process and
function of financial reporting. Whilst a large proportion of the course is aimed at understanding accounting
as a process, taking a preparers‟ perspective, we will also seek to develop an understanding of the
importance of the role of accounting in today’s society.

This course provides an introduction to the field of accounting and the development and use of accounting
information in the business world. It is intended for everyone, not just those students who may pursue
careers in accounting. There is more diversity today in the contents of introductory accounting course than at
any time in the recent past. This course of accounting is also structured to emphases accounting techniques
and procedures and the interpretation and use of accounting information.

Course Content 

Week-1
Definition of Accounting
-Development of accounting
-Accounting Theory and Conceptual framework
-Accounting Defined
-Why study Accounting
-Financial statements
-Major Fields of Accounting
Week-2
Accounting Equation (Assets= Liabilities + Capital)
-Equation Explained--------------Assets = Liabilities + Owners’ Equity
-Assets and Its types (Tangible and Intangible)
-Liabilities its types and Practical Examples
-Capital and its forms with regard to different forms of Businesses (Sole Proprietorship, -Partnership
& Corporation)

Week-3
Forms of business Enterprises
-Sole proprietorship Business------Owner Equity
-Partnership Business ------Owners’ Equity
-Corporations ----------Stockholders or shareholders’ Equity

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Week-4
Transaction Analysis for Accounting Equation
-Classification of Accounting Transactions (Cash and Credit Transaction)
-Numerical on Accounting Equation
-Accounting Equation and the Balance Sheet format
-Determining the Missing Figures through Balance sheet Equation

Week-5
Generally Accepted Accounting Principles (GAAP)
-What are the different Accounting Principles/Conventions/Concepts?
-Stable Currency Assumption
-Economic Entity Assumption
-Time period Assumption
-Historical cost principle
-Revenue Recognition Principle
-Matching Principle
-Going Concern Principle etc.
Week-6
Rules for recording business Transactions
- Rules of Debit and Credit for Journalizing Business Transactions
-Cash Basis VS Accrual Basis of Accounting
-Double Entry VS Single Entry System
-Transaction Analysis on the scale of 5 basic questions

Week-7
Accounting Cycle the starting point
-What is Journal? Definitions, Uses and preparation of Journal
-Sections of Journal/Columns of Journal
-Rules for Recording
-Numerical on Journal

Week-8 & 9
Posting to Ledger & Preparing Unadjusted Trial Balance
-Ledger Defined and Explained
-What is posting in Ledger?
-Ledger Accounts (How Ledgers are prepared)
-Use of ledger Accounts
- Debit and Credit Entries in Ledger for Balancing
-Ledger Format
-Simple “T” Account Ledger Format
-Running Balance Format
-Uses and limitation of Trail Balance
-Preparation of Trail Balance the End Point for Balances

Week-10
Adjusting Entries Explained
-Adjusting process and Procedure
-Types of Adjusting Entries
-How Adjusting Entries are recorded
-Preparing an Adjusted Trial Balance

Fall semester 2021

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Week-11
Measuring Business income
-Completion of Accounting Cycle
-Financial Statement
-Income Statement, statement of owner equity
-Realization principles and matching Principles
-Balance Sheet
Week-12
Closing Entries & Post-Closing Trial Balance
-Closing Entries Explained
-When Closing Entries are recorded in Books of Accounts
-Why Closing Entries are necessary for the business
-Types of Closing Entries
-After Closing Entries
-Post Closing Trial Balance

Week-13
Accounting Cycle problems and Solutions
-Practice of exercise and Problems
-Practical hands-on Numerical

Week-14
Accounting for Trading Business
-Accounting for Purchase and Sale
-Inventory Management.
-Perpetual inventory system and
-periodic inventory system
Week-15
-Plant Assets and Depreciation
-Straight Line Method
-Double Declining Balance Method
-MACRS
Week-16
-Computerized Accounting Softwares
-Overview of Major Accounting softwares
-Peachtree, Quick Books (Introduction)
-MIS, AIS, BIS, E-Commerce (A brief Overview)

Total Marks: 100

TEXT/REFERENCE BOOKS

1. Williams, Haka, Bettner: Financial & Managerial Accounting, Latest Edition, Prentice Hall

2. Professor Muhammad Ammanullah Khan: Financial Accounting, Latest Edition

3. Frank Wood‟s: Business Accounting 1, Eleventh Edition

4. Meigs and Meigs, Accounting for Business Decision, 9th Edition/Latest Edition 

5. Peachtree Accounting Software based. (A Comprehensive Computerized Accounting)

Fall semester 2021