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.