UNIVERSITY OF GHANA
UNIVERSITY OF GHANA BUSINESS SCHOOL
DEPARTMENT OF ACCOUNTING
FIRST SEMESTER OF 2022 ACADEMIC YEAR
LEVEL: 200
COURSE CODE: UGBS 205
COURSE TITLE: FUNDAMENTALS OF
ACCOUNTING METHODS
COURSE CREDIT: 3
Lecture Times
Legon campus:
Group 1: Mon 7:30 – 9:30am
Group 2: Mon 1:30 – 3:30am
Group 3: Tues 7:30 – 9:30am
Group 4: Tues 9:30 – 11:30am
Group 5: Weds 3:30- 5:30am
Group 6: Thurs 7:30-9:30am
Group 7: Thurs 11:30 – 1:30am
Group 8: Fri 7:30- 9:30am
Group 9: Fri 9:30 – 11:30am
Group 10 Fri 11:30 – 1:30am
Accra campus:
Group A: Tues 4:30-6:30pm
Group B: Tues 2:30-4:30pm
Group C: Fri 4:30-6:30pm
Group D: Fri 10:00-12:00pm
Group E: Fri 12:10-2:10pm
Group F: Tues 2:30 – 4:30pm
Group G:
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Course instructors
1. Prof. Godfred M.Y. Owusu
Advisory Hours: To be scheduled in class
E-mail: gmyowusu@ug.edu.gh
2. Dr. Mrs Rita Amoah Bekoe
Advisory Hours: To be scheduled in class
E-mail: rabekoe@ug.edu.gh
3. Dr. Edward Nartey
Advisory Hours: To be scheduled in class
E-mail: ednartey@ug.edu.gh
4. Dr. Mrs Edem Sabah Welbeck
Advisory Hours: To be scheduled in class
E-mail: edem.emerald@gmail.com
5. Dr. Samuel N. Y. Simpson
Advisory Hours: To be scheduled in class
E-mail: snysimpson@ug.edu.gh
6. Dr. Emmanuel Asare
Advisory Hours: To be scheduled in class
E-mail: etasare@ug.edu.gh   
7. Dr. Mohammed Zangina Isshaq
Advisory Hours: To be scheduled in class
Email: mzmisshaq@ug.edu.gh
8. Dr. Mrs Mawuena Akosua Cudjoe
Advisory Hours: To be scheduled in class
E-mail: macudjoe@ug.edu.gh
9. Dr. Nicholas Asare
 Advisory Hours: To be scheduled in class
E-mail:  n.asare@ug.edu.gh   
                  
10. Dr. Michael E. Asamoah
Advisory Hours: To be scheduled in class
E-mail: measamoah@ug.edu.gh
Teaching Assistants: Will be introduced in class by
Lecturers.

Course Description

The Fundamentals of Accounting Methods which is the first accounting module of the course at level 200
introduces students to the concept of bookkeeping and explains the fundamental meaning of transaction. The
module teaches students the generally accepted accounting concepts and principles that are followed in
recording transactions and preparing financial statements of business organizations. Students are introduced
to the entity concept, the accounting equation and the double entry which are applied in the recording of
transactions. The accounting equation is discussed to identify the assets of the entity which are contributed
either by owner(s) capital contribution, or from external sources, known as liabilities. Then double entry
principle is discussed which leads to two entries of the same value, the debit and credit, of a transaction.
Students are taught other accounting topics which facilitate the proper recording and valuation of all
transactions of the organization. The module ends with exposing students with the technique of preparing he
final account for a sole trading organization focusing on the income statement and the statement of financial
position.

Course Purpose and Objectives

This course aims to achieve the following objectives:

 Introduce students to fundamental accounting principles, regulatory requirements, accounting standards,
and the ethics of the accounting profession
 Equip students with the technical competence for identifying, analysing, and recording transactions using
generally accepted accounting rules
 Equip students with the requisite skills for preparing basic reconciliation reports
 Equip students with the technical competence for preparing financial statements

Learning Outcomes

Upon successful completion of this course students should be able to:

 Apply the principles and concepts of financial accounting in a very elementary way
 Identify and analyse various forms of transactions
 Show the differences between assets, liabilities, capital, revenues and expenses
 Prepare the primary books of accounts

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  Differentiate between the various forms of accounts
 Differentiate between the various forms of ledgers.
 Prepare the financial statements of sole proprietorships

Course Content

Indicative Content

Session 1: Definition and purpose of accounting

Session 2: Fundamental rules for recording of financial transactions and preparation of
Financial statements
Session 3: Transaction analyses, recording, posting and balancing accounts in the ledger
Section 4: Preparing the cash book, the petty cash book
Section 5: Preparation of Control accounts
Section 6: Accounting for depreciation
Section 7: Accounting for bad and doubtful debts
Section 8: The trial balance and the preparation of financial statements

Lecture Plan

Week 1: Overview of the field of accounting

Subtopics: Meaning and purpose of accounting; branches of accounting, careers in accounting, forms of business
organisation, forms of accounting reports, users of accounting information, and ethics in the accounting
profession
Required Readings: Chapter 1 of Marfo-Yiadom, Asante & Tackie (2020)
Chapter 1 of Wood & Sangster (2018) and
The Code of Ethics for Professional Accountants

Weeks 2: Accounting concepts, principles, bases and standards

Subtopics: The requirements of laws and regulations; fundamental accounting rules; and accounting standards
Required Readings: Chapters 2 & 3 of Marfo-Yiadom, Asante & Tackie (2020)
Chapter 10 of Wood & Sangster (2018); and Sections
32 o 35 of Incorporated Private Partnership Act, 1963 (Act 152)
Part N of the Companies Act, 2019 (Act 992)

Week 3: Components, elements, recognition and measurement, and the accounting equation
Subtopics: Components of financial statements, its recognition and measurements; elements of financial statements;
and the accounting equation
Required Readings: Chapters 4 & 6 of Marfo-Yiadom, Asante & Tackie (2020)

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 The IASB’s Conceptual Framework; IAS 1: Presentation of Financial Statements; Chapters 1
and 10 of Wood & Sangster (2018)

Week 4: Recording Transactions: Journal entries

Subtopics: Sales journal; purchases journal; return inwards journal; return outwards journal; cashbook and petty
cashbook; and general journal. Accounting for Value Added Tax
Required Readings: Chapters 5, 7& 9 of Marfo-Yiadom, Asante & Tackie (2020)
Chapters 11, 13, 14, 15, 16, 17, 18, and 20 of Wood & Sangster (2018)

Week 5 & 6: Recording Transactions: Ledger entries

Subtopics: Posting from journals to the ledger; making entries in the sales ledger, purchases ledger, and the general
ledger; balancing off ledger accounts; and preparing an unadjusted trial balance; cashbook and petty
cashbook as ledgers
Required Readings: Chapter 8 of Marfo-Yiadom, Asante & Tackie (2020)
Chapters 2, 5 and 6 of Wood & Sangster (2018)
International Accounting Standards (IAS) 18: Revenue

Week 7: Control Accounts

Subtopics: Purpose of the various control accounts; Prepare Sales and Purchase Ledger controls accounts
Required Readings: Chapter 16 of Marfo-Yiadom, Asante & Tackie (2020)
Chapters 31 of Wood & Sangster (2018)

Week 8: Bank Reconciliation Statement

Subtopics: Purpose of bank reconciliations; discrepancies in the cashbook and bank statement; updating the
cashbook; and preparation of reconciliation statement
Required Readings: Chapter 11 of Marfo-Yiadom, Asante & Tackie (2020)
Chapters 30 of Wood & Sangster (2018)

Week 9: Capital and Revenue Expenditure; Accounting for depreciation on property, plant and equipment
Subtopics: Meaning and determinants of depreciation; requirements of IAS 16; Property, plant, and equipment;
methods of depreciation; computation of depreciation; ledger entries for depreciation;
Required Readings: Chapter 12 of Marfo-Yiadom, Asante & Tackie (2020)
Chapters 24, 26 and 27 of Wood & Sangster (2018)
International Accounting Standards (IAS) 16: Property, plant and equipment

Week 10: Accounting for bad and doubtful debts

Subtopics: Meaning and determinants of bad and doubtful debt; treatment of bad debt written off; treatment of
doubtful debt; maintaining the provision for bad debt account; and disclosure in the financial statements
Required Readings: Chapter 13 of Marfo-Yiadom, Asante & Tackie (2020)
Chapters 25 of Wood & Sangster (2018)

Week 11: Other end-of-period adjusting entries

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 Subtopics: Adjusting entries for inventory and cost of goods sold; adjusting entries for accrued and prepaid
expenses; and adjusting entries for accrued and unearned
Required Readings: Chapter 14 of Marfo-Yiadom, Asante & Tackie (2020)
Chapter 28 of Wood & Sangster (2018)
International Accounting Standards (IAS) 18: Revenue

Week 12: Financial statements of sole proprietorships

Subtopics: Preparation of income statement; preparation of statement of financial position; and preparation of
statement of cash flows
Required Readings: Chapter 15 of Marfo-Yiadom, Asante & Tackie (2020)
Part 2 and Chapter 39 of Wood & Sangster (2018)
International Accounting Standards (IAS) 1: Presentation of Financial Statements; and
International Accounting Standards (IAS) 7: Statement of Cash Flows

Week 13: Revision

Final examination: Based on all topics

Methods of Instructions

The course will be organized through lectures, which is the main medium of instruction. The lectures will take the
interactive approach to give room for discussions where appropriate. There will also be a tutorial session every week
which will involve a separate class for solving of problems with a teaching assistant.

Evaluation Criteria

Student performance will be evaluated as follows

1. Class participation and Term Paper 10%
2. Mid-semester examination 20%
3. Final examination 70%
Total 100%

Participation and take-home assignments

Attendance and active participation in class activities will be rewarded. Tardiness will not be entertained.
Mid-semester examination
Mode of examination to be determined.
Final examination
Mode of examination to be determined.

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Textbooks and Reading Materials

Required Textbook
 Marfo-Yiadom, E., Asante, S. & Tackie, G. (2020). Financial accounting and reporting: an introduction 2nd
edition.  Accra: Kwadwoan Publishing.
 Wood & Sangster, F and A. Sangster, Business Accounting 1, Financial Times (Ref: Wood & Sangster)

Required Readings – Laws, Accounting Standards, and Reports on Ethics

 Selected readings from the law
o Part N of the Companies Act, 2019 (Act 992)
o Sections 32 to 35 of Incorporated Private Partnership Act, 1963 (Act 152)

 Selected accounting standards

o The Conceptual Framework for Reporting – International Accounting Standards Board
o IAS 1: Presentation of Financial Statements
o IAS 7: Statement of Cash Flows
o IAS 16: Plant, Property and Equipment
o IAS 18: Revenue
 Selected readings on ethics, fraud, and scandals
o Code of Ethics for Professional Accountants – International Ethics Standards Board for Accountants

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