STUDENT HAND BOOK
BS ACCOUNTING & FINANCE
DEPARTMENT OF COMMERCE & ACCOUNTING
NATIONAL UNIVERSITY OF MODERN LANGUAGES (NUML)
SECTOR H-9 ISLAMABAD
Course Title: Principles of Accounting
Course Code: FIN 112
Credit Hours: 3+0
Course Instructor: Muhammad Irfan Khadim
Mode of Contact"
You can contact your course instructor in the following ways:
Email:
ikhadim@numl.edu.pk
Meeting:
By appointment via e-mail
PREREQUISITES: None
Textbook:
“FINANCIAL & MANAGERIAL ACCOUNTING (The Basis for Business Decisions’ - 15th edition (Chapter 1_5)
Authors: Robert F. Meigs Walter B Meigs Jan R. Williams Susan F. Haka Mark S. Bettner Joseph V. Carcello
Reference Material: Fundamentals of Accounting by Libby & Libby (8th Edition)
Course Description: Fundamentals of Accounting is a course that covers the fundamentals of accounting with the newcomer in mind. Accounting is more than just
memorizing terms and procedures. This course assumes students have no prior knowledge about accounting or finance, and delivers lessons and examples to build
accounting skills. Specifically, this class addresses accounting terminology, revenue, expenses, net income, the accounting equation, debits, credits, and balancing the
accounting formula, the accounting structure, the accounting cycle, journals, ledgers, the trial balance and more. It also guides students to learn how to read financial
statements properly, and how to grab meaningful information from the balance sheet, income statements and cash flow statements.
Course Objectives:
The objective of this course is as under:
1. To provide an introductory knowledge of accounting to first-Semester students.
2. While a general overview of accounting principles relating to the preparation of financial and managerial reports will be presented, the primary focus is to illuminate
how accounting information is utilized by a variety of stakeholders in planning, controlling and investing decisions.
3. After completing this course, students will have a solid understanding of accounting in today's world.
4. They will understand how and why financial transactions are documented, they will know what cash flow is and how to improve it, and they will know what profit is,
how it's interpreted and what influences its growth
Course Learning Outcomes: Upon completion of this course, students will be able to:
1. Identify why accounting is a necessary skill.
2. Summarize the history of accounting.
3. Identify and describe assets, liabilities and owners' equity.
4. Recognize and compare the major financial reports.
5. Describe and create a company's Income Statement.
6. Compare and contrast a company's revenue, expenses, income, and retained earnings.
7. Solve worksheet problems involving income statements, revenue, expenses, and net income.
8. Identify the key elements of a Balance Sheet.
9. Balance the accounting equation and properly chart debits and credits.
10. Describe the key elements of bookkeeping.
11. Avoid the pitfalls of bad bookkeeping habits.
12. Describe the accounting cycle.
ASSESSMENT INSTRUMENT WITH WEIGHTS:
SNR
ITEMS
1
Mid Term Exam
2
End Term Exam
3
Internal Evaluation Breakdown
Quiz(s)
Assignements(s)
Class Participation
Présentations
Case Discussion
Lab Work/Practical Project
MARKS
30
50
5
5
5
5
Any Other
Total
20
GRAND TOTAL
20
100
COURSE CONTENTS:
Lecture
Scheduled Topic
Learning
Activity
Assessment
Activity
PLOi
CLO
Thinking
Level
PLO 1
CLO
1
Knowledge
PLO 1
CLO
3
Knowledge
PLO 1
CLO
3
Comprehension
01 Introduction to Accounting.
■
■
■
■
■
Accounting Information.
Types of Accounting Information.
Role of Accounting Information in making
Lecture
decisions.
Importance of Accounting Information for internal
and external users.
Accounting Systems.
02 Introduction to Accounting.
■ Basic Terms. Business and its types.
■ Types of Accounts (Assets, Liabilities
■ Capital, Expense and Revenue.
■ Types of Accounts.
■ Accounting Cycle.
■ Accounting Period, Fiscal Year
■ Credit, Debit,
03 Accounting cycle ( Basics)
Lecture
■ How to balance the fundamental accounting equation;
■ Debits and Credits;
Lecture
■ Double Entry Accounting; Diagrams and Charts; Real
World Example;
Quiz # 1
04 Accounting cycle ( Basics)
■ Cash and credit transaction.
■ Effect of Transactions on Accounting
Equation.
■ Source Documents
■ General Journal. Journalizing the events of
increase in capital, increase and decrease in
Assets and Liabilities.
Lecture
Q&A
PLO 1
CLO
9
Knowledge
PLO 1
CLO
10
Comprehension
PLO 1
CLO
10
Comprehension
PLO 1
CLO
12
Comprehension
PLO 1
CLO
10
Comprehension
PLO 2
CLO
4
Comprehension
PLO 4
CLO
Comprehension
05 Accounting cycle ( Journal)
Lecture
■ General Journal. Accrual Basis Accounting
06 Accounting cycle ( Journal)
Lecture & Case
■ Applying Matching and Realization principle in let
Recognizing expenses and Revenue.
07 Accounting cycle (Ledger)
■ General Journal and its relationship to ledger.
■ Posting (Process of transferring information Lecture
from the journal to the individual accounts in
the Ledger.
■ Types of Ledgers.
08 Accounting cycle (Trial Balance)
■ Trial Balance, Its Uses and Limitations.
■ Errors in trial balance, suspense account
Lecture
Assignment 1
09 Accounting cycle (Financial Statements)
■ Financial Statements. Nature and general Lecture
purpose of Financial Statements. Relevant
Accounting Principles
Lecture
10 Accounting cycle (Financial Statements)
Quiz # 2
11
12
13
14
■ Purpose of the Income Statement; Multi-Step
Income Statement; What are
■ Retained Earnings, Revenue, Expenses, Net
Income, Income Tax
Accounting cycle (Financial Statements)
■ Statement of Retained Earnings and Classified
Balance Sheet.
Lecture
■ Relation of Income statement, Statement of
Owners Equity and Balance Sheet.
Accounting cycle (Financial Statements)
■ Incomplete Income statement and balance
Lecture & Case
sheet
let
■ Rectifying errors in income statement and
balance sheet
Accounting cycle (Financial Statements)
■ Rectifying errors in income statement and
Lecture
balance sheet
■ Accounting principles and conventions
Accounting cycle
Practice from journal to Balance Sheet. Accounting Cycle.Lecture
5
Assignment 2
Quiz 3
15 Accounting cycle (Adjusting Entries)
■ Need for adjusting entries,
■ Types of Adjusting Entries.
■ The concept of Depreciation.
Lecture
■ Accumulated Depreciation. Book Value.
Contra Asset Account. Depreciate able Assets.
Useful Life.
16 Accounting cycle (Adjusting Entries)
■
■
Converting Assets to Expenses;
Prepaid Expenses, Accrued Expenses
Lecture
Q&A
PLO 4
CLO
8
Comprehension
PLO 4
CLO
8
Comprehension
PLO 4
CLO
8
Comprehension
PLO 2
CLO
8
Comprehension
PLO 2
CLO
6
Knowledge
PLO 2
CLO
6
Comprehension
17 Accounting cycle (Adjusting Entries)
■ Converting liabilities to Revenue.
■ Accruing uncollected revenue.
18 Accounting cycle (Adjusted Trial Balance)
■ Purpose of Adjusted Trial Balance.
■ Effects of Adjusting Entries on Financial
Statements
19 Accounting cycle (Supplemental Topic)
■ Preparing a Work Sheet and its uses.
Lecture
Lecture
Assignment 3
Quiz 4
Lecture
PLO 2
CLO
6
Comprehension
PLO 2
CLO
7,8
Comprehension
PLO 2
CLO
7
Comprehension
20 Accounting cycle (Closing Entries)
 Closing Temporary Accounts.
Lecture
Q&A
PLO 2
CLO
12
Comprehension
Lecture
Quiz 5
PLO 2
CLO
12
Comprehension
PLO 1
CLO
1
knowledge
21 Accounting cycle (After Closing Trail balance)
■ Prepare after closing trail balance
22 Accounting for Merchandising Concerns
■
■
Introduction to Merchandising Concerns.
Operating cycle of Merchandising Companies
Lecture
23 Accounting for Merchandising Concerns
Lecture
Q&A
PLO 1
CLO
10
Comprehension
Lecture
Q&A
PLO 2
CLO
10
Comprehension
PLO 1
CLO
10
Comprehension
■ Journal Entries in Periodic & Perpetual Systems
24 Accounting for Merchandising Concerns’
■
■
Credit terms, Cash discounts,
Returns of Unsatisfactory ,Merchandising Exercise
25 Accounting for Merchandising Concerns
■ Special cases in Merchandising Companies Net
Lecture & Case
let
method.
26 Accounting for Merchandising Concerns
■ Special cases in Merchandising Companies Net
method.
27 Accounting for Merchandising Concerns
■ Practice Questions and cases
28 Cases Discussions/ Projects/ Presentation
29 Cases Discussions/ Projects/ Presentation
30 Cases Discussions/ Projects/ Presentation
31 Cases Discussions/ Projects/ Presentation
Lecture
Assignment 4
PLO 1
CLO
10
Comprehension
Lecture
Quiz 6
PLO 2
CLO
10
Comprehension
Presentations
Q&A
PLO 3
CLO
1-12
Application
Presentations
Q&A
PLO 3
Presentations
Q&A
PLO 3
Presentations
Q&A
PLO 3
32 Revision
Lecture


Q & A for orally ask questions from previous lecture.
Case let: a small case discuss in the book.
PLO 3
CLO
1-12
CLO
1-12
CLO
1-12
CLO
1-12
Application
Application ion
Application
Comprehension