Department of Software Engineering

Faculty of Science and Information Technology

Semester: Spring 2016
Name of the course

: Principles of Accounting

Course Code

Faculty:

Course Description:
This course is an introduction to the basic concepts and standards underlying financial
accounting systems. Several important concepts will be studied in detail, including:
Measuring and Recording Business Transactions, Business Income and Adjusting Entries,
Completion of the Accounting Cycle, Managerial Accounting and its applications, Cost
classifications, Cost Volume Profit analysis and decision making. .
Course objectives:
This introductory course will provide the students with basic understanding of the principles
and concepts of accounting as well as their applicability and relevance in the business sector.
On completion of this course the students will be able to:
a. Outline the role and principles of financial accounting and reporting.
b. Record, handle and summarize accounting data.
c. Gather basic understanding on Managerial Accounting and its application in the real
world.
Evaluation
Performance of the students will be evaluated as per the following order:
Class attendance
Class tests/ Quiz
Assignment
Presentation & Participation
Midterm
Final Examination

7%
15%
5%
8%
25%
40%

Lecture Schedule:

Topic(s)
Lecture 01

Definition of Accounting; Users of Accounting Data; Brief History of

Accounting; Generally Accepted Accounting Principles;

Lecture 02

Assumptions of Accounting; Double Entry Book-keeping; Basic Accounting

Equation. Transaction Analysis using accounting equation.

Lecture 03

Illustrations of Tabular analysis and Prepare Financial Statements.

Lecture 04

Solving different problems and exercises of Tabular analysis and Prepare

Financial Statements

Lecture 05

1st Quiz

Lecture 06

Definition of Account. Understanding Debits and Credits; Debit credit

procedures, Summary of Debit credit rules, Steps in the Recording Process,
Journal, advantages of Journal, Journalizing rules; Example of Journal.

Lecture 07

The Ledger; Preparation of Ledger from Journal, Illustration of Preparing

ledgers, The Trial Balance-Limitations of a Trial Balance; Locating Errors.

Lecture 08

Illustrations of Recoding process, Prepare Journal entry, preparing ledgers

and Trial Balances.

Lecture 09

Solving different problems and exercises of Recording process

Lecture 10

2nd Quiz

Lecture 11

Timing issues, The time period assumption, Accrual vs. Cash Basis
Accounting; Recognizing Revenues and Expenses; The Basics of Adjusting
Entries.

Lecture 12

Types of Adjusting Entries- Adjusting Entries for Deferral; Adjusting

Entries for Accruals. Illustration and solving problems of Adjusting
Journals, Posting adjusting Journals and Prepare Adjusted Trial Balance.

Lecture 13

Solving different problems and exercises of Adjusting Entries

Mid Term Examination

Lecture 14

Work sheet, steps in preparing a Work sheet; Exercises of Preparing

Worksheet

Lecture 15

Preparing financial statements- Income Statement, Owners Equity

Statement and Balance Sheet; Preparing adjusting entries from a work sheet;

Lecture 16

Closing the Books of Accounts, Preparing Closing entries; posting Closing

Entries; Preparing a post-closing trial balance.

Lecture 17

Solving Problem and Exercises of Preparing Worksheet, Financial

Statements, closing entries and post-closing trial balance.

Lecture 18

Assumptions- Monetary Unit assumption economic Entity assumption;

Time Period assumption going concern assumption; Principles: Revenue
recognition Matching principles; Full disclosure principle; Cost Principle;
Constraints of Accounting- Materiality, Conservatism, Cost Benefit
relationship and Industry practices;

Lecture 19

3rd Quiz

Lecture 20

Lecture 21

Merchandising operation, Service vs. Merchandising company, Flow of cost

of merchandise; Perpetual and Periodic system, Recording purchase related
transaction of Merchandise, purchase return, purchase discount, freight
costs. Recording Sales of Merchandise, Sales revenue; sales return and
allowance; sales discounts.
Financial statement presentation, Determine Cost of goods sold; Prepare
income Statement, Completing the Accounting Cycle using a Work Sheet,
Preparing Financial Statement adjusting entries and closing entries
Preparing the Post Closing Trial Balance, Forms of income statement
multiple steps Income Statement Single Step Income Statement.

Lecture 22

Problem and exercises of Merchandising operation.

Lecture 23

Plant assets; Determine the cost of plant asset, Depreciation methods,

disposal of plant assets, Natural Resources, Accounting for Intangible
assets.

Lecture 24

Review

Final Examination
Text Book Recommended
1. Accounting Principles (Latest Edition) - J.J. Weygandt, D.E. Kieso and Paul D.
Kimmel