Course Title: Fundamentals of Accounting

Course Instructor: Shahwali Khan, PhD

Instructor’s Profile:
Education
PhD in Accounting (Massey University, New Zealand)
PGD in Accounting (Massey University, New Zealand)
MBA in Finance (Peshawar University, Pakistan)
Diploma in Supply Chain Management (IMSciences, Pakistan)
Teaching Experience
Taught Accounting and Auditing courses at Massey University New Zealand
Taught Accounting and Finance courses at IMSciences, City University and Qurtuba
University
Research Experience
Published in international impact factor journals including:
Australian Accounting Review
Accounting and Finance
Journal of Contemporary Accounting and Finance
Training Experience
World Bank Certified Trainer
HEC Training on Capacity Building
ASP-LUMS Trainer
Business
Any lawful activity carried out for the purpose of
earning profit.
Activities
Buying and selling

Economic Activities

Business Transactions
Settled Transactions

All parties involved in the transaction are

satisfied.

Unsettled Transactions

One of the parties is satisfied and the other is

not. Leads to settlement in future.
Types of Businesses
• Goods Businesses

a) Manufacturing Businesses
b) Non-Manufacturing/Trading/Merchandising
Businesses

• Services Businesses
Forms of Businesses

• Sole Proprietorship
• Partnership
• Joint Stock Companies
 Goods & Services

Consumer Business

Revenue
Business Resources
• Natural Resources
• Human Resources
• Financial Resources

Sources for Acquiring Resources

Internal (Owners Equity)
External (Creditors/Liabilities)
Equity
• Claims against the business.

Owners Equity
$50
Business
$100
Creditors/Liabilities
$50

Sources=Resources
 Assets = Liabilities + Owner’s Equity
1 Jan: Cash + Inv + Vehicle = Payables +loans + Equity + profit
100 50 50
2 Jan: -30 + 30
70 30 50 50
5 Jan: + 50 +50
70 50 30 50 50 50
7 Jan: +45 -30 +15
Bal: 115 20 30 50 50 50 15
Accounting
Accounting is the language of business.
Or
The art of recording, classifying, summarizing and
interpreting the results of business nature transactions.

Financial Statements:
1) Balance Sheet
2) Income Statement
3) Statement of Changes in Equity
4) Cash Flow Statement
 T-Account
Cash A/C
Received/Debit Payment/Credit
1 Jan: 100 2 Jan: 30
5 Jan: 50 7 Jan: 20

Bal: 100