Bcom 222 financial accounting course outline

UNIVERSITY OF ELDORET
SCHOOL OF BUSINESS AND MANAGEMENT SCIENCES
DEPARTMENT OF BUSINESS MANAGEMENT
BACHELOR OF COMMERCE
COURSE OUTLINE
Academic Year:__________ 2019/2020 ________Sem:______2_______Starting:__Jan 2020__
Course Code:______ BCOM 222______Course Title:____ Financial Accounting__________
Lecturer’s Name: __Dr. Peninah Tanui Melly_________Mobile No.:__0723 356 121________
Purpose of the Course
To develop the candidates’ competence and independence in the analysis and preparation of
specialized financial statements of various types of institutions, entities and operations.
Expected learning outcomes
By the end of the course, the learners should be able to;1. Prepare partnership accounts and converting a partnership into a limited company
2. Develop a hire purchase and installment system accounts
3. Prepare branch and departmental accounts
4. Construct insurance claim schedule on stock loss and consequential losses
5. Prepare accounts for redemption of shares, debentures and share capital reduction
6. Preparation of published accounts
7. Define bills of exchange and construct the accounts
Course Content
Week 1: Partnership accounts
✓ Definition of partnership
✓ Partnership capital and current accounts
✓ Partnership final accounts
Week 2: Partnership accounts (Cont…)
✓ Amalgamation of partnership firms
✓ Dissolution of partnership firms
✓ Conversion of partnership into a limited company
Week 3: Departmental accounts
✓ Basis of allocation of common expenditure among different departments
✓ Accounts relating to interdepartmental transfers
Week 4; Branch accounts
✓ Definition of the term ‘branch’
✓ Classification of branches
✓ Dependent branches
• Characteristics
• Methods of charging goods to branches at cost
• Methods of charging goods to branches at selling price
• Methods of charging goods to branches at wholesale price
Week 5; Branch accounts (Cont…)
✓ Independent branches accounting entries
✓ Foreign branches
• Types of foreign branches
• Techniques for currency translation
Week 6: CAT 1
Week 7: Hire purchase and installment accounts
✓ Definition of hire purchase
✓ Nature of hire purchase agreement
✓ Special features of hire purchase agreement
✓ Accounting arrangement of hire purchase transactions
Week 8: Hire purchase and installment accounts (Cont…)
✓ Ascertainment of total cash price
✓ Ascertainment of interest
✓ Repossession
✓ Installment payment system
✓ Hire purchase vs installment payment system
Week 9; Insurance claims
✓ Introduction to insurance claim concept
✓ Insurance claim for loss of stock
✓ Insurance claim for loss of profit or consequential loss
Week 10; Accounting for redemption of shares and debentures
✓
✓
✓
✓
Shares definition and classification
Debentures definition and classification
Redemption of shares accounting treatment
Redemption of debentures accounting treatment
✓ Share capital reduction
Week 11; Preparation of published accounts
✓ Preparation of the income statement
✓ Preparation of the statement of financial position
Week 12; Bills of exchange
✓ Definition of ‘bills of exchange’
✓ Parties to bills of exchange
✓ Important terms in bills of exchange
✓ Essentials of bills of exchange
✓ Acceptance of bills
✓ Classification of bills of exchange
✓ Promissory notes vs bills of exchange
✓ Advantages of bills of exchange
✓ Accounting treatments
Week 12; C.A.T 2
Week 13: Final Semester Examination
Mode of delivery
Lectures, group discussion, assignments and independent studies
Course assessment
Continuous assessment test (CAT) = 30%, Final semester examination = 70%, Total = 100%
Peer review
Observation by head of department and fellow lecturers and evaluation forms completed by
students
Course Text Books:
1. Narang,K.L & Jain, S.P. (2009). Advanced accountancy: Principles of accounting
Volume 1. Kalyani Publishers: New Delhi.
2. Narang,K.L & Jain, S.P. (2002). Advanced accounting Volume 1 and II. Kalyani
Publishers: New Delhi.
3. Maheshwar, S.N. & Maheshwar, S.K (2009). Advanced accountancy II (10th edition).
Vikas Publishing House
References for further reading:
4. Shukla, M.C., Grewal, & Gupta, S.C.. Advanced accounts volume II.(Latest edition). s.
Chand & Co.
5. Kimunda, D.W.. A textbook of financial accounting (Latest edition)
6. Nzomo, N.D. . Basic accounting. University of Nairobi Press (Latest edition).
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