ACC 212: FINANCIAL ACCOUNTING II

i. Course title: ACC 212: FINANCIAL ACCOUNTING II

ii. Course aim: The course aims at deepening student understands on
Accounting principles and theories in the treatment of individual financial
statement items of partnerships, joint venture, companies and business
combinations
iii. Course expected learning outcome(s): At the end of a course, student should be
able to
• Analyze and report partnership transactions such as formation, dissolution,
partner changes, and earnings distribution
• Explain the meaning and types of company alongside with the common terms in
company accounting.
• Demonstrate an understanding of the Accounting for the Issue, forfeiture and re-issue
of shares.
• Prepare the reconstruction and reorganization statements with other business
transactions such as business combination, re-organization and reconstruction.
iv. Course status-core or elective: Core
v. Credit rating: 12 credit points
vi. Total hours spent: 120
vii. Course Content:

1. Partnership Accounting
• Nature of Partnership
• Partners Accounts and their usual adjustments
• Goodwill in partnership Accounts
• Admission and Retirement of a partner
• Dissolution of partnership
• Amalgamation of sole traders into partnerships and amalgamation of partnerships.
• Conversion into limited company

2. Accounting for the Issue, forfeiture and re-issue of shares

• Meaning and types of shares
• Accounting for the issue of shares.
• Pro-rata Issue of shares
• Shares issued for other consideration
• Underwriting share issue
• Forfeiture and re-issue of shares.
• Bonus share and Right Issue of shares

3. Redemption of Non -Equity shares

• Procedure and methods of redemption
• Reserves of a company
• Providing for Premium on redemption

4. Accounting for Debentures:

• Issue of Debentures
• Writing off discount allowed on debentures
• Providing for Premium on redemption
• Redemption of debentures by issuing new debenture, shares or with a sinking fund.

5. Accounting for re-organization and reconstruction

• Reasons
• Internal reconstruction
• External reconstruction
• Formulating a scheme of reconstruction

6. Accounting for Business Combinations- IFRS 3

• Nature of business combination
• Accounting in the records of acquirer
• Accounting in the records of acquire
• Business combination consideration
viii. Teaching and learning activities: Lectures, seminars, assignments and
independent study

ix. Assessment Methods: Test, Individual Assignment, Group Assignment and

Final examination

x. Reading list :
 Wood, F and Alan S (2005). Business accounting, Vol. I and II. London:Longman
 Advanced accounting: 2nd ed.New Delhi.
 LEWIS, R. and Pendrill, D. (2004).Advanced Financial Accounting, 7thed. Prentice
Hall.
 ACCA- Paper F7 (INT) (2014). Financial Reporting (International), Emile
Woolf International Publishing.
 Richard E. Baker [et al].(2008).Advanced financial accounting. 7th ed.New York :
McGraw-Hill
 Companies Act (2002 as amended)