Sixteen Week Plan

Department of Computer Science

Faculty of Computing & Information Technology
Hafiz Hayat Campus, University of Gujrat

Title Fundamentals of Accounting

Code MGT-205
Credit hours 3.0
Prerequisite None
Category Compulsory
The course provides students with an understanding of the basic concepts, principles, procedures and techniques
underlying the accounting process so as to equip them with a foundation for studies of other accounting courses. Various
techniques are used to study financial accounting concepts which include the use of financial statement problem sets,
Course Description
case studies and other materials. The course comprises didactic lectures, three assignments and a 'project'. Students are
given real time business examples about different financial accounting issued faced by different organizations.

At the end of the course, the students will be able to:

• Describe Accounting concepts
• Describe General Accepted Accounting Principal (GAAP)
• Explain the rules for accounting.
Aims & Objectives
• Analyze the business transactions
• Prepare the worksheet
• Interpret the financial statements
The course develops the following competencies in the students:
• The capability to evaluate basic accounting and purpose of accounting.
Learning Outcomes • A sense of ability for judge of accounting rules
• Ability to evaluate different business and business transactions.
• The skill to prepare different financial statements.
• Robert F. Meigs & walter B. Meigs "Financial Accounting: The Basic for Business Decision",14 th
Text Book
Edition,2008,McGraw-Hill.
Reference Books • Douglas, Jerry, paul, Donald "Financial Accounting, Study Guide" 7th Edition, 2010, John Wiley and Sons.
& • Richard E. Baker "Advanced Financial Accounting" 8th Edition, 2009, McGraw-Hill.
Material • Frank Wood, Alan Sangster “Frank wood's Business Accounting VolumeI" 11th edition, 2008, Pearson Education.
Assignment/Presentation (s): 10%
Quizzes: 5%
Grading Breakup and Policy
Project: 10%
Midterm Examination: 25%
Final Examination: 50%

Recommendations
for Learning
Activities
Source
Week# Lecture # TOPICS (Mention Assignments,
(Book, Chapter No)
Test, Case Study, Projects,
Lab Work or Reading
Assignments)

Introduction to Accounting
• Need and importance of accounting
• Accounting: a business language
• Book-keeping
1 1,2 • Book-keeping vs. accounting
• Branches of accounting
• Object of accounting
• Important accounting terms and concepts

Transaction and accounting equation

• What is event?
• Features
2 3,4
• Classification
• Rules for cash and credit transactions
• The accounting equation
 • Effect of business transaction upon the accounting equation
• Setting up new business

Analysis of business transaction and double entry system

• Analysis of transaction
• Double entry system
• Advantage of double entry system
• Single entry system
3 5,6 • Distinction between double and single entry system
• What is an account?
• Classification of accounts
• Rules for debiting and crediting
• Explanation of rules

Completing the Accounting Cycle

• Journal first phases of accounting cycle
• Definition
• Characteristic
• Narration
• Advantages of journal
• Simple entry & compound entry
• What is ledger
• Features
4 7,8
• Form of ledger accounts
• Posting procedure
• Balancing an account
• Normal balances
• Posting procedures
• Self-balancing form of ledger account
• Trial balance
• 5Method of preparing trial balancing
• Accounting cycle to the trial balance
 Final accounts: The completion of accounting cycle
• What are final accounts?
• What is revenue?
5 9,10
• Expenses
• Matching revenue and expenses

Accounting for Merchandising Operations

• What is merchandising?
• What is merchandising operation
• Merchandising account
• Why is Merchandising account prepared
• Valuation of closing stock
• Closing entries
• Cost of goods sold
6 11,12 • Income statement
• Balance sheet
• Classification of assets
• Classification of liabilities
• Grouping and marshaling of assets & liabilities in balance sheet
• Two system of ascertaining profit and loss
• Adjustment and their need
• Main types of adjustment

Work sheet
• What is work sheet?
7 13,14
• Method of preparing work sheet

8 15,16 Mid Term Exam

9 17,18 Inventories and Cost of Sales

 • Cost of goods sold
• What is Inventory system?
• Periodic inventory system
• Perpetual inventory system
• Difference between periodic and perpetual inventory system
• Entries of periodic and perpetual inventory system
• What is discount and allowance?
• Method of recording of perpetual inventory
• Last in first out
• First in first out
• Average costing
• Inventory shrinkage
• Adjustment of inventory shrinkage

Cash and Internal Controls

• Cash book
• Definition
• Distinction between a cash book and cash account
• Type of cash book
• Opening an account with a bank
10 19,20 • Dishonor of cheques
• Bank reconciliation statement
• Distinction between cash book and pass book
• What is meant by reconciliation?
• Methods of B.R.S
• Adjusting entries for reconciliation transaction

Accounting for Receivables

• Uncollectible accounts
11 21,22 • The allowance for doubtful accounts
• Writing off an uncollectible accounts
• Recovery of account receivable
 Plant Assets, Natural Resources and Intangibles
• Definition of depreciation
• Causes of depreciation
• Need for provision of depreciation
• Depreciation vs. fluctuation
12 23,24
• Characteristic of depreciation
• Method of charging depreciation
• Methods of depreciation accounting
• Distinction between fixed installment and reducing installment method

Liabilities for organization

• The nature of liabilities
• Account payable
13 25,26
• Notes payables
• Notes payable with interest charges

14 27,28 Quizes
Statement of Cash Flows
• Purpose of the statement
• Classification of cash flow
• Preparation of cash flow statement
15 29,30 • Cash flow from Operating activities
• Cash flow from financing activities
• Cash flow from investing activities
• Relation between the statement of cash flows and the balance sheet

16 31,32 Presentations
Final Exam