BACHELOR OF COMMERCE
Course Outline and Delivery Plan
BCM 1204: Accounting in Business II
(Effective: Nov - Mar 2022)
Instructor: Judah Ng’ang’a
Email: jwaweru@strathmore.edu
Staffroom: STMB, 4th Floor
Course Content
Partnership accounts: review – contents of a partnership agreement, partners current and capital accounts, basic final accounts
– income statement and statement of financial position; partnership realignments (excluding dissolution, amalgamation and
conversion), retirement of a partner, changes in profit sharing ratios, other changes in the partnership agreement; Company
accounts: capital structure of a company (ordinary shares, preference shares, loan stocks), types of reserves – share premium,
retained profit, other reserves, income statement and statement of financial position (incorporating adjustments); ratio
analysis; not – for – profit organizations: receipts and payment accounts, income and expenditure accounts; statement of
financial position; manufacturing accounts: classification of manufacturing costs, apportionment of costs between
manufacturing account and statement of financial performance, preparation of final accounts for manufacturing entities.
Statement of basic cash flows. Presentation of basic financial reports for publication.
Aim: To equip students with relevant accounting skills to prepare financial statements for partnerships, limited
companies and non- profit organizations and prepare basic financial analysis.
Intended Learning Outcomes:
By the end of the course, the learner should be able to:
 Prepare partnership accounts while adjusting for any changes in the partnership business;
 Prepare company financial statements;
 Prepare manufacturing accounts and final accounts for manufacturing entities;
 Prepare financial statements from incomplete records;
 Prepare financial statements for not-for-profit entities;
 Perform basic financial statement analysis.
Contact Hours: 45
Prerequisite: Accounting in Business I
Topic
1-2
1. Final Accounts for
Limited Liability
company
3-4
2.
Manufacturing Accounts
Intended Learning outcomes
• Appreciate the distinction between
limited and unlimited companies
• Understand the management structure
of limited companies
• Learn how company profits are taxed
• Understand how net profit is shared
• Draw basic final accounts for limited
companies.
•
•
•
•
Basic understanding of processes in a
generic manufacturing business.
Appreciate cost classification as well
as cost allocation
Draw manufacturing accounts
Draw the extended income statement
Activities
Pre-Class Activities
- Review adjusted
financial statement
notes.
Class Activities
- Class discussions
- Work out
illustrations
Post Class Activities
- Individual
Assignment
Pre-Class Activities
- Read chapter
notes
Class Activities
- Class discussions
- Work out
illustrations
Post Class Activities
- Individual
Homework
5-6
3.
Changes in Partnership
•
•
•
7-8
4.
Incomplete Records
•
•
•
8-9
5.
Accounting for Nonprofit Entities
•
•
•
•
10-11
6.
Statement of CashflowsIAS 7
•
•
•
•
12
7.
Financial Statement
Analysis
•
•
•
•
•
•
Identify changes in partnerships with
accounting implications
Appreciate the concept of goodwill
Prepare financial statements following
changes in partnerships.
Explain the causes of incomplete
records
Outline the steps to constructing
accounts from incomplete records.
Draw financial statements from
incomplete records.
Pre-Class Activities
- Read on introduction
to partnership
accounts
Class Activities
- Class discussions
- Work out
illustrations
Post Class Activities
- Individual
Homework
Pre-Class Activities
- Read chapter notes
Class Activities
- Class discussions
- Work out
illustrations
Post Class Activities
- Individual
Assignment
Appreciate the distinction between
profit and non-profit organizations.
Identify principles for NPOs
Identify sources of revenue for NPOs
Construct financial statements of
NPOs.
Pre-Class Activities
- Read chapter
notes
Class Activities
- Class discussions
- Work out
illustrations
Post Class Activities
- Individual
Homework
Differentiate between cashflows and
business profits.
Appreciate classification of various
cashflows.
Understand the two approaches to
preparation of SCF
Draw a statement of cashflows for a
single entity.
Pre-Class Activities
- Read chapter
notes
Class Activities
- Class discussions
- Work out
illustrations
Define and discuss the objective of
analysing financial statements
Appreciate the purpose of ratio
analysis
Understand the various accounting
ratios and their categorizations.
Compute and interpret ratios.
Identify the limitation of ration
analysis
Analyze financial statements using
key financial
Course Delivery Methodology
A combination of online & physical lectures, discussions, written assignments, library research.
Lectures will be used to introduce material on the formal aspects of the module.
Instructional Material/Equipment
E-books, Excel (familiarize yourself with basic use of Excel).
Pre-Class Activities
- Read chapter
notes
Class Activities
- Class discussions
- Work out
illustrations
Post Class Activities
- Group Assignment-:
Ratio analysis of at
least 2 public
companies, 5years.
Notes will be provided on e- learning for all topics. It must be noted that handouts are not sufficient by their very nature and
the student will be required to generously supplement handout material.
Academic Assessment
Type
Weighting (%)
Examination
60
Coursework
40
10
CAT 1 (Supervised CAT)
10
CAT 2 (Supervised CAT)
10
Individual Assignment
Group Assignment
10
40
Total
100 %
Course Materials
Textbooks for the Course
Title
Business Accounting 1
(Core-text)
Fundamentals of Accounting
Author
Wood, F. and Sangster, A.
Wang’ombe, D. K.
An Introduction to
Accountancy
Maheshwar, S. N.
Journals
Title
Journal of Accounting in Emerging Economies
Publisher
Emerald
Insight
Publisher
Pearson Education Limited
(2018)
Focus Publication Ltd. (2nd
Edition) (2018)
Vikas Publishing. (2018)
ISBN
9781292208626
9966-01-087-4
0-7069-8926-0
ISSN
2042-1168
Internet Sources
www.ifrs.org
www.ifac.org
https://www.ifrsbox.com/ (Blog)
Policies
Classes
1.
2.
3.
4.
Punctuality is fundamental.
You must attend at least 2/3 of the classes for you to sit the end of semester exam.
It’s your personal responsibility to update your attendance online for all the classes.
Active participation in class discussions is encouraged and will be rewarded with bonus marks.
Appointments
Please make these by email whenever possible, though we could set up appointments after lectures.
Any urgent complaints: WhatsApp Chat (Strictly No Calling) 0731 375787