Acct 221 Principles of Accounting 1 Outline

VALLEY VIEW UNIVERSITY
SCHOOL OF BUSINESS
DEPARTMENT OF ACCOUNTING
COURSE OUTLINE
FIRST SEMESTER, 2016/2017
ACCT 221 PRINCIPLES OF ACCOUNTING I
Lecturer: Hannah Fosuaa Amo, MPhil, CA, GH
E-mail: [email protected]
Meeting Period: Mondays & Wednesday s 7:00-9:00am
Lecture: 4 hours a week
Tutorials: 1 hour a week
Private study: 7 hours a week
Course Description
This course introduces students to accounting principles and the framework for financial
reporting. It acquaints students with the nature and functions of accounting, the accounting
equation and the effects of business transactions on the accounting equation. It also deals with
principles of double entry, the accounting cycle, books of accounts and the preparation of final
accounts of sole proprietorship. It exposes students to ethical principles in accounting.
Course Objectives
At the end of this course, the student should be able to:
1. Explain accounting concepts and conventions;

2. Explain the importance of financial records to the operations of business organizations;
3. Apply ethical principles to their studies in accounting;
4. Identify, record, classify, and summarize business transactions;
5. Apply accounting principles in the preparation of final accounts of sole proprietorship;
6. Explain the purpose of suspense accounts;
7. Prepare a revised financial statement after correction of errors.
CLASS REQUIREMENTS:
1. Regularity and punctuality in class attendance

2. Unannounced quizzes
3. Active and meaningful class participation
4. Observance of all rules and regulations on classroom conduct as spelt out in the
Business Department’s Handbook
5. ALL DEADLINES MUST BE RESPECTED
6. There will be no make-ups for any quizzes/tests, exercises, etc.
EVALUATION: A student’s final grade will be evaluated on the following bases:
 Continuous assessment (attendance, quizzes/tests,

assignments, group work) - 20%
 Mid-Semester Examination - 20%
 End-of-Semester Examination - 60%
Total 100%
GRADING: A: 80 – 100 C+: 56 – 60
A-: 75 – 79 C: 50 – 55
B+: 70 – 74 C-: 45 – 49
B: 65 – 69 D: 40 – 44
B-: 61 – 64 F: 0 – 39
Topics to be Covered
1. The Nature and Functions of Accounting (Context and Purpose)

 The scope and purpose of Financial Statement for External Reporting as distinct from
Cost and Management Accounting
 Users of Financial Statements and their Information needs
 The main elements of Financial Reports
 The regulatory framework (legislation and regulation, reasons and limitations
 Ethics and Accounting
2. The Accounting Equation and the Statement of Financial Position

 Forms of Business Organizations
 The Basic Accounting Concepts
 The Accounting Equation
 The Statement of Financial Position
 Business transactions and their effects on the Statement of Financial Position
3. Principles of Double Entry Book-keeping

 The accounting cycle
 Source documents
 Types of Account
 The Double Entry Principles
 Rules for Recording Transactions
 Normal Accounts balances
4. The Books of Prime Entry

 Purchases Journal
 Sales Journal
 Returns Journals
 The General Journal: Nature and Uses
 Postings
5. Internal Control, the Cash Book and the Imprest System

 Internal Control: Meaning, Purpose, Principles and Limitations
 The Double-Column Cash Book
 The Triple-Column Cash Book
 The Petty Cash Book
 The Bank Reconciliation Statement
6. Depreciation and Property, Plant and Equipment

 The nature of depreciation
 Methods/bases of depreciation
 Accounting for depreciation
 IAS 16 – Property, Plant and Equipment
7. Trial Balance and Correction of Errors

 Balancing of Accounts
 The Trial Balance and Errors
 Errors not affecting the agreement of the Trial Balance
 Suspense accounts
8. Financial Statements: An Introduction

 Income Statement
 Statement of Financial Position
 IAS 1 – Presentation of Financial Statements
 IAS 2 - Inventories
9. Year-End Adjustments and Final Accounts of Sole Proprietorship
 Why Adjustments
 Some Common Types of Adjustments
 Ending Inventory
 Prepayments
 Accrued Liabilities
 Bad Debts
 Accrued Income
 IAS 10 – Events after the Reporting Period
 Preparation of the Worksheet
 Final Accounts of Sole Proprietorship
RECOMMENDED TEXT BOOKS
No. Title Author(s)

1 Business Accounting Vol 1&2 Sangster and Wood, F.
2 Principles of Financial Accounting Cullespie, I, Lewis, R and
Hamilton, K.
3 Foundation Accounting Millichamp
4 Markgina's Comprehensive Notes of Accounting Principles Amponsah, E.B
5 A student's Guide to International Financial Reporting Finch, C
Standards
6 An Introduction to Financial Accounting Thomas, A.

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VALLEY VIEW UNIVERSITY

At the end of this course, the student should be able to:

1. Explain accounting concepts and conventions;

1. Regularity and punctuality in class attendance

EVALUATION: A student’s final grade will be evaluated on the following bases:

 Continuous assessment (attendance, quizzes/tests,

1. The Nature and Functions of Accounting (Context and Purpose)

2. The Accounting Equation and the Statement of Financial Position

3. Principles of Double Entry Book-keeping

4. The Books of Prime Entry

5. Internal Control, the Cash Book and the Imprest System

6. Depreciation and Property, Plant and Equipment

7. Trial Balance and Correction of Errors

8. Financial Statements: An Introduction

9. Year-End Adjustments and Final Accounts of Sole Proprietorship

RECOMMENDED TEXT BOOKS

No. Title Author(s)

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