Khwaja Fareed University of Engineering &

Information Technology, RYK

Institute of Business Administration (IBA)
Course Outline

Principles of Accounting (MSCI-2116)

Course Introduction
The purpose of this course is to introduce you to the basics of business accounting. This
course will cover the basics of the system of financial accounting – from the basics of double-
entry bookkeeping to the construction of the financial statements for a simple small business.
This course emphasizes on understanding the basic concept of accounting. The knowledge
gained in this course can be used by students in future.
Course Contents
Introduction: Purpose And Nature Of Accounting, Various Areas Of Accounting Forms Of
Business Enterprises, Accounting Information Users, , Business Transaction And
Accounting Equation; Accounting Process: Double Entry Accounting System, Journal,
Ledger, Trial Balance; The Accounting Cycle: Measuring Business Income, Adjusting
Process, Completion Of Accounting Cycle, Financial Statements; The Control Of Cash
Transaction And Bank Reconciliation; Accounting For Receivables Accounting For
Inventory, Accounting For Depreciation Of Fixed Assets, Deprecation Methods
Mapping of CLOs and PLOs
Sr. No Course Learning Outcomes PLOs Blooms Taxonomy

CLO_1 Be able to Use debit and credit accounting to record C(1&2)(Knowledge and
PLO-5
and adjust basic business transactions Understanding)

CLO_2 Be able to Observe, analyze, synthesize, apply and PLO-4 C(2) Comprehension
evaluate business information

Be able to Use Generally Accepted Accounting

CLO_3 Principles (GAAP) to record common business
PLO-12 C(3) Application
transactions involving merchandise inventory, cash,
and accounts receivable transactions
CLO Assessment Mechanism
 Assessment tools Percentage Percentage
Percentage
contribution of contribution of tools
contribution of tools
tools related to related to CLO_3
related to CLO_1
CLO_2
Quizzes 30% 10% 0%
Assignments 0% 0% 10%
Midterm Exam 35% 40% 50%
Final Exam 35% 50% 40%
100% 100% 100%
Overall Grading Policy
Assessment Items Percentage
Quizzes 10%
Assignments 5%
Projects/Presentations 10%
Midterm Exam 25%
Final Exam 50%
Total 100%

Reference books:
FRANK WOOD BSc (Econ), FCA and ALAN SANGSTER BA, MSc, Cert TESOL,
- Frankwood: Business Accounting-I, Business Accounting-II (Latest Edition)

Administrative Instructions
. According to institute policy, 75% attendance is mandatory to appear in the
final examination.
. In any case, there will be no retake of (scheduled/surprise) quizzes.
. For queries, kindly follow the office hours in order to avoid an

LMS Usage
Students are required to visit LMS Course portal regularly for latest course information,
important notifications regarding lectures, Quizzes, homework/assignments etc.

Lecture Breakdown
Week
Topics
Activity
Week 1
The Accounting Equation and the Balance Sheet
 Introduction to accounting
 The history of accounting
 The Objectives of accounting
 What is bookkeeping?
 Users of accounting information
 The accounting equation
 Balance sheet and the effects of business transactions
 Equality of accounting equation
  Presentation of balance sheet

Week 2
Double Entry System for Assets, Liabilities
and Capital
 Nature of a transaction
 The double entry system
 The accounts for double entry
 Class Practice
 Value added tax (VAT)

Assignment 1
Week 3
The Assets of Stock
 Stock movements
 Purchase of a stock on credit
 Purchase of a stock on cash
 Sales of stock on credit
 Sales of stock on cash
 Comparison of cash and credit transactions
 Returns inwards
 Returns outwards
 Classroom Practice

Quiz 1
Week 4
The effect of Profit/Loss on Capital and Double entry for expenses and revenues
 Nature of profit or loss
 Effect of profit or loss on capital
 Profit or loss and sales
 Profit or loss and expenses
 Double Entry debit and credit for expenses and revenues
 Drawing
 Classroom Practice

Quiz 2
Week 5
Trial Balance
 Debit and credit entries balance
 Trial balance and errors
 Classroom Practice

Week 6
Balance Sheet
 Content of balance sheet
 Drawing up a balance sheet
  No double entry in balance sheet
 Balance sheet layout
 Classroom Practice

Assignment 2
Week 7&8
Accounting Concepts
 Set of financial statements for all purposes
 Objectivity and subjectivity
 Accounting standards and Financial reporting standards
 International accounting standards
 Accounting standards and Legal framework
 Underlying Accounting Concepts
 Fundamental Accounting Concepts
o Going Concern
o Consistency
o Prudence
o The accrual concept
o Separation determination
o Substance over form
 Materiality
 Assumption of the stability of currency

Week 9
Mid Term Examination

Week 10
Books of Original Entry and Ledgers
 The growth of business
 Books of original entry
 Types of books of original entry
 Types of ledgers
 Types of accounts
 The accountant as a communicator

Week 11
Banking System in Pakistan
 Debit and Credit Cards
 Internet Banking
 Clearing
 Types of bank accounts
 Cheque and Cheque Clearing
 Pay-in-slips

Assignment 3
Week 12
Cash Books
 Drawing up a cash book
 Cash paid into the bank
 The use of folio columns
 Discounts allowed and discounts received
 Discounts Columns in Cash book
 Bank overdrafts
 Bank cash books

Quiz 3
Week 13
Sales/Purchase day books and ledger
 Cash and Credit Sales
 Posting entries in sales book and ledger
 Trade discounts
 Purchase invoices
 Posting entries in purchase book and ledger
 Returns inwards day book
 Returns outwards day book

Assignment 4
Week 14
Petty Cash book and imprest system
 The imprest system
 Bank cash book

Employees Pay
 Pay
 Methods of calculating gross pay
 Income tax deductions
 National Insurance
 Pension

Week 15
Computers and Accounting
 Large and Small systems
 Benefits from computers
 Management Information System
 Use of Spreadsheets
 Use of Databases
 Data Backups
 Passwords
 Data Security and protection

Quiz 4
Week 16
Computerized Accounting Systems

 Introduction and Background CAS

 Benefits of using computerized accounting systems
 Computerized Accounting books
 Computerized stock control and modular integration
 Accounting Information Systems (AIS)
 Issues to Computerized AIS

Week 17
Final Term Examination