CITY UNIVERSITY OF PASAY

(Pamantasan ng Lungsod ng Pasay)

College of Business Administration
Bachelor of Science in Business Administration
Accounting Fundamentals
Accounting 1 & 2
Course Outline
Course Description:
This course describes the significance of accounting and describe basic elements for service
entity accounting. This is an introductory course in accounting intended for beginning accounting students
however this can be an introduction to the study of three groups of students who stand the threshold of
preparation for a career in accounting. Students of business administration who need thorough
understanding of accounting as an important element of the total business information system and
students from a variety of other disciplines who will find the ability to use and interpret accounting
information a valuable accomplishment. It involves the study of the accounting cycle for a single
proprietorship business of both service and merchandising concerns. Emphasis is placed on understanding
the reasons underlying the basis accounting and bookkeeping methodology.

Course Outline
I. Midterm
1. Introduction to Accounting
i. The Word of Accounting
a) Definition of Accounting
b) Evolution of Accounting
c) Branches of Accounting
d) Accountancy in the Philippines
e) Accounting Standards in the Philippines
ii. Accounting Principles and Reporting Standards
a) Fundamental Concepts
b) Basic Principles
c) Conceptual Framework of Financial Reporting
d) Qualitative Characteristics of Useful Financial Information
e) Underlying Assumption
f) Elements of Financial Statements
g) Recognition of the Elements of Financial Statements
h) Measurement of the Elements of Financial Statements
i) Concept of Capital and Capitan Maintenance
2. Accounting for Service Business (Recoding Transactions)
i. Accounting Equation and the Double-Entry System
a) Accounting Events and Transactions
b) Accounting Information System
c) Elements of Financial Statements
d) Typical Account Titles Used
e) The Accounting Equation
f) The Account
g) Debits and Credits - Double Entry System
h) Normal Balance of Accounts
i) Distinction Between Revenues and Receipts
j) Effect of Transactions
ii. Recording Business Transactions
a) Accounting Cycle: Sequential Steps and Aims
b) The Ledger
c) Chart of Accounts
d) Locating Errors
3. Accounting for Service Business (Adjusting the Accounts)
i. Adjusting the Accounts
a) Accrual Basis
b) Periodic Concept
c) Revenue and Expense Recognition Principles
d) The Need for Adjustments
e) Adjustments for Deferrals
f) Adjustment for Accruals
g) Accruals for Uncollectible Accounts
 h) Analysis Using T-Accounts
i) Summary of Adjusting Entries
ii. Worksheet, Financial Statements and Completion of the Accounting Cycle
a) The Worksheet
b) Preparing the Worksheet
c) Essence of Financial Statements
d) Complete Set of Financial Statements
e) Preparing the Financial Statements
f) Relationship Among the Financial Statements
g) Closing Entries are Journalized and Posted
h) Preparation of Post-Closing Trial Balance
i) Reversing Entries
II. Finals
1. Accounting for a Merchandising Business (Merchandising Operations)
i. Operating Cycle of a Merchandising Business
ii. Source Documents
iii. Steps in a Purchase Transaction
iv. Inventory Systems – Periodic and Perpetual Inventory System
v. Cost of Sales
vi. Operating Expenses
2. Accounting for a Merchandising Business (Completing the Cycle for a Merchandising
Business)
i. Need for a Physical Count
ii. Merchandise Inventory at the End of the Period
iii. Preparing the Worksheet
iv. Preparing the Financial Statements
v. Adjusting and Closing Entries
vi. Post-Closing Trial Balance
3. Accounting for a Merchandising Business (Special Journal)
i. Control Accounts and Subsidiary Ledgers
ii. Sales Journals
iii. Cash Receipts Journal
iv. Purchases Journal
v. Cash Disbursements Journal
vi. General Journal
vii. Flexibility of Special – Purpose Journals
viii. Combination Journal

Textbook:
Fundamentals of Accounting by Win Lu Ballada (latest edition)
Reference:
➢ 21st Century Accounting Process: Basic Concepts and Procedures by Zenaida Vera-Cruz
Manuel
➢ Fundamental Accounting Principles by Wild, Shaw & Chiappeta, 20th edition
➢ Accounting by Horgen, Harrison & Oliver, 9th edition

Prof. ERICH C. ACABADO, CPA, REB

Mobile No. 0932 397 4040 (SUN/SMART) / 0992 307 9113 (DITO)
e-mail: acabado.erich@cup.edu.ph