Course Title: Financial Accounting
Pre-requisite: None
Credit Hours: 3
Semester: Fall, 2020
Module Leader / Facilitator: Adil Ali
Email: adil.ali@qu.edu.pk
Course Description
Accounting plays a vital role as an information system for monitoring, problem solving and
decision making. However, first step is to generate and present information in a manner that
is useful. In recognition of this, Fundamentals of Financial Accounting is designed to give
students an understanding of basic Accounting principles along with recording of business
transactions in such a manner that is followed by companies globally. It will help students in
knowing how financial statements are prepared and how profitability is calculated using
Income Statement and how financial position of company is evaluated using Balance Sheet.
It will also help them in learning different Depreciation Methods used for calculating
depreciation and how cash flow statements are prepared.
LEARNING OUTCOMES
At the end of this course students will be able to have understanding of:
Accounting cycle.
Business Transactions.
Debits and Credits and their role in double entry system.
Financial Statements.
Merchandising Companies
Inventory Costing System
Depreciation Methods
Corporations
Cash Flow Statements
Mode of Delivery
This course will be delivered through 32 lecturers of 1.5 hour lecture each.
Class Behaviour/Attitude / Class Participation
You will be expected to be present for all class sessions and to arrive on time. Your
participation grade will reflect your comments made during case discussions. You will be
evaluated on your performance for each class. In-class contributions are all-important
because you will be learning from one another. Our discussion should not always arrive at
some consensus. To the contrary, comments that identify the pros and cons of alternative
decisions, and generate a healthy debate are strongly encouraged and rewarded. While we
anticipate vigorous in-class discussion, we demand that arguments always occur at a
professional level. No personal attacks or insults will be tolerated. In this spirit, we ask that
class members speak only when called upon. Finally, address your comments to the entire
class, not just to the instructor.
Course Evaluation
Class Participation 10 %
Assignment / Quizzed 20 %
Mid Term Examination 30 %
Final Examination 40 %
Weekly Lecture Plan
Accounting and its role
Development of accounting
Accounting Theory and Conceptual framework
Accounting Defined
Week 01 & 2 Why study Accounting
Financial statements
Major fields of Accounting
Accounting as a Career
Basic Accounting Concepts
The Entity Concept
The Reliability (or Objectivity) principle
The cost Principle
Week 02 & 03
The Going-Concern Assumptions
The Stable Currency Assumptions
Ethics-the-Most Fundamental Principle of Accounting
Qualitative characteristics of Financial statements
Week 04 & 05 The recording processes
The Recognition Issue
The Valuation Issue
The Classification Issue
The Recording Process
Analysis of Transaction
The Journal
The Ledger
Balancing the Accounts
Preparation of Financial Statements
Preparing Trial Balance
Week 06 & 07
Locating and correcting errors in recording process
Preparing Profit and Loss Account and Balance Sheet
The adjusting and closing entries
Need for Adjusting Entries
Recording adjusting entries
Preparing adjusted trial balance
Week 08 & 09
Recording closing entries
Preparing post-closing trial balance
Preparing work-sheet
Preparation of Financial Statemen
Accounting for trading organization
The Purchase Function
Accounting for Purchases and Sales
Return and allowances
Week 10 & 11 Periodic System 43
Perpetual System
Worksheet
Preparation of financial Statements
Departmental Accounts
Accounting Systems
Developing a System
Subsidiary Journals
Week 12 & 13 Subsidiary ledgers
Cash Book
Petty cash book
Control Accounts
Cash and temporary investment
Nature and Composition of Cash
Cash Management and Control
Week 14 & 15
Maintaining Bank Account
Bank Reconciliation
Short term investments
Recommended Books / Resource Materials
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
Attendance Requirement: 75% attendance is mandatory to sit in examinations.
