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Syllabus: CICTA 103
SYLLABUS CICTA 103 - FINANCIAL ACCOUNTING 1 - INTERMEDIATE 1
12.0 FINANCIAL ACCOUNTING I INTERMEDIATE I SYLLABUS


12.1 Course Objective:

The core aim of the course is to help students appreciate the nature and purpose of accounting and the principles of accounting.

12.2 Course Description:

This course is structured to assist students understand the essence and the principles of Financial Accounting. The key principles of financial accounting are explored, including identification of source documents: primary books of accounting and the ledgers for the preparation of accounts are included in the highlights.

12.3 SYNOPSIS

12.3.1 Nature and Functions of Accounting
* Definition and Meaning of Accounting.


* Functions of Accounting.

* Objectives of Accounting.

* Accounting Terms / Definitions.

* The Concept of Booking -Historical Antecedents

* The Distinction between Book-Keeping and Accounting.

* The Importance of Book-Keeping.

* Characteristics of Useful Accounting Information System/Information Quality Metrics.

* The Different Functions of Financial Accounting, Cost Accounting, Management, Tax Accounting and Public Sector/Governmental Accounting.


12.3.2 The Accounting Equation
* Nature of Accounting Equation.


* Usefulness of the Accounting Equation to Non-finance practicing managers.


12.3.3 The Principles of Double Entry Book-Keeping System and the Concept of Trial Balance

* Definition and meaning of Double Entry Book-Keeping.


* The meaning and Types of Ledgers.


* The meaning and uses of the Trial Balance.


12.3.4 The Accounting Concepts, Conventions and Policies

* Accounting concepts and conventions. E.g. the Going Concern Concept, the Prudence Concept, the Materiality Concept, the Business Entity Concept, the Accrual Concept etc.



12.3.5 The Day Books
* Meaning of Day Books.


* Source Documents for Day Books.

* The Day Books / Subsidiary Books / Prime Books.

* The Ledgers - Purchases, Sales, Returns Outwards, Returns Inwards, Cash Book, including the Imprest System and the Petty Cash Book.

* The Meaning and Functions of the Journal or General Journal.

* The Nature and Types of Cash Book.

* The Imprest System and Petty Cash Book.

* Introductory Control Accounts for Credit Purchases and Credit Sales.


12.3.6 Introduction to Final Accounts of Sole Trader
* The sole proprietor and their contribution to economy.


* Comparison of the sole trader to other business units e.g. partnership, Joint Stock Companies, Co-operative Societies and the Public Corporations.
* The Trading Account.

* The Profit and Loss Account.

* The final accounts of service organizations.

* Introductory to final accounts for manufacturing concerns.


12.3.7 Depreciation of Non-Current Assets (Fixed Assets)
* Capital and Revenue Expenditure.


* The Nature and Meaning of Depreciation and computations

* Depletion.

* Amortisation and Appreciation.

* Impairment of non-current assets.

* Accounting Treating of Depreciation in Accounts.


12.3.8 Bad Debts, Provision for Bad Debts, Provision for Discounts.
* Nature of Bad debts.


* Nature and Meaning of Provisions and Reserves.

* Provision for Bad and Doubtful Debts.

* Bad Debts Recovered and Tax Implications.

* Provision for Discount on Debtors on Creditors

* Accounting Entries and Treatment of Provisions and the tax effect on profitability.


12.3.9 Adjustments and Final Accounts
* Accruals / Outstanding Bills / Amount Due / Amount Owing


* Nature of Prepaid Expenses / Advance payments.

* Meaning of Revenue and other adjustments.

* Expense and Revenue Accounts covering more than one accounting year.

* Tax Implications of Prepayments and accruals.

* The Effects of Prepayments and Accruals on the Income Statement and the Balance Sheet.


12.3.10 Bank Reconciliation Statement
* The concept of the customer and the Bank.


* The meaning of Bank Reconciliation Statement and illustrations


12.3.11 Control Accounts / Self Balancing Ledgers
* The meaning and Nature of Credit Transactions.


* The meaning of Control Accounts / Total Accounts.

* Advantages of the Control Accounts.

* Weakness in the Use of Control Accounts.

* The Sales Ledger Control Account / Total Debtors Account.

* The Purchases Ledger Control / Total Creditors Account.


12.3.12 Introduction to Suspense Accounts
* Introduction of Errors and the Suspense Account.


* Errors that do not affect the agreement of Trial Balance.

* Errors that affect the agreement of the Trial Balance.
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