SCHOOL OF BUSINESS AND ECONOMICS
DEPARTMENT OF AGRICULTURAL ECONOMICS AND RESOURCE MANAGEMENT
ARE 126: FINANCIAL ACCOUNTING Lecturer: Wilfrey V. Siahi
Email: firstname.lastname@example.org Mobile; 0710555028
1. Introduction to Financial Accounting.
1.1 Meaning of Accounting, Book Keeping, Financial Accounting and Management Accounting.
1.2 Objectives of Financial Reporting; Users of Financial Reports and their information needs.
1.3 Limitations of Financial Accounting Reports.
2. Forms of Business Organizations
2.1 Sole proprietorship
3. Accounting Equation
3.1 Basis of the Equation
3.2 Business Transactions
4. Basic Book Keeping Equation
4.1 Books of Original entry
4.2 Ledger: Posting transactions and extracting trial balance.
4.3 Role of Trial Balance
5. Basic Final Accounts
5.1 Profit and Loss accounts
5.2 Balance Sheet
6. Accounting for Depreciation
6.1 Definition of Depreciation
6.2 Reasons for providing for Depreciation.
6.3 Causes of Depreciation
6.4 Methods of Accounting for Depreciation.
6.5 Methods of Charging depreciation concept and evaluation.
6.6 Disposal of Noncurrent Assets.
7. Year End Adjustments
7.1 Need for year-end Adjustments
7.2 Adjustment of; Provisions, Accruals, provision for bad debts and Prepayments.
7.3 Accounting treatment of final accounts.
8. Cash Book
8.1 Meaning and Purpose
8.2 One Column, Two Column and Three Column Cash Book
8.3 Imperest System of Cash book
i) Meaning, advantages and preparation.
ii) Petty Cash Book and Imperest system.
9. Partnership Accounts
9.1 Partnership agreements.
9.2 Rules of Partnership Act Cap 29
9.3 Final Accounts of Partnership
i) Current accounts
ii) Capital Accounts
iii) Appropriation ‘Accounts
iv) Profit and Loss Accounts
v) Profit and loss accounts, appropriation accounts and balance sheet.
10. Company Accounts
10.1 Definition of company
10.2 Disclosures in accounts
10.3 Final accounts formats.
10.4 Profit and loss accounts, appropriation accounts and balance sheet
11. Farm Accounts
11.1 Methods of Farm Accounts
11.2 Advantages of Farm Accounts
11.3 Final Accounts of farming enterprise
11.4 Provision of IAS 41 – Agriculture
12. Ratio Analysis
12.1 Activity Ratios
12.2 Profitability ratios
12.3 Solvency Ratios.
12.4 Uses and limitations of Ratio Analysis
13. Cash flow statements
13.1 Meaning of cash flow statement
13.2 Difference between profit and cash
13.3 Provision of IAS7 – Cash Flow statement
i) Direct Method
ii) Indirect Method
2. Discussions and presentations
1) Farea A. J. (1980). Practical Bookkeeping and Accounts, 17th ed. London: University Tutorial press.
2) Knapp Mc (1996). Financial Accounting: A focus on decision making. Minneapolis/Saint Paul: West Publishing Co.
3) Meigs, W. B. and Meigs, R. B. (1996). Accounting: the Basis for Business Decisions, (10th edition). London: McGraw-Hill.
4) Wood, F. (1996). Business Accounting I, (7th edition). London: Pitman.
5) Short, D.G. (1993). Fundamentals of Accounting, (7th edition). Boston: Irwin.
- Lecturer: Wilfrey Siahi