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BACTNG2 (6 units)
Fundamentals of Accounting Part 2 (Partnership and Corporation Accounting)
Course Description
This is a continuation of the first course in accounting. It deals with transactions,
financial statements, and problems peculiar to the operations of partnerships and
corporations as distinguished from sole proprietorships. Topics include: basic concepts
of partnership; partnership formation and operations including accounting for the
admission of partners, changes in capital, and profit/loss sharing ratios; partnership
dissolution and liquidation; the conversion of an unincorporated enterprise into a
corporation; accounting for incorporated enterprises, including corporate organizations,
paid-in capital, accumulated earnings/loss, dividends and treasury shares. It will also
cover the preparation of financial statements for internal and external purposes,
accounting information systems manual and computerized special journals;
understanding the different financial statements; and analysis of accounting
information and decision making.
Prerequisites
For Accountancy students: BACTNG1, ENGLIS1, PHILOS1, MATHEM1. The grade
requirement for BACTNG1 is 85 and 80 for the other prerequisites.
For BSBA students: ENGLIS2, MATHEM1, and PHILOS1.
Course Coverage
Learning Contents/ Topics
Course Syllabus
VMO
Seat Plan
Leveling of Expectations
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7. Share Capital
a. Legal capital
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b. Share premium
c. Types of shares
i. Ordinary
ii. Preference
d. Accounting for issuance of share capital
i. Under memorandum entry method
ii. Under journal entry method
e. Share subscription
f. Subscription results
g. Accounting for treasury shares
h. Incorporation of sole proprietorships and/or partnerships
i. Donated capital
8. Retained Earnings
a. Introduction
b. Definition of dividends
c. Important dates in dividend transactions
d. Kinds of dividends
e. Accounting for dividends
i. With only one type of shares
ii. With two or more types of shares
f. Book value per share
g. Share splits
i. Share split
ii. Reverse share split
h. Retained earnings appropriations
i. Prior period errors
j. Statement of Retained Earnings
k. Statement of Changes in Shareholders Equity
l. Earnings per share
9. Share Capital Transactions Subsequent to Original Issuance
a. Retirement
b. Conversion of preference shares to ordinary shares
c. Recapitalization
Grading System
Cut-off grade is 70%. The highest possible grade is ninety nine (99); the lowest
passing grade is seventy five (75); and the lowest failing grade is 65. However, a grade
of 70 will be reflected in the final grade for all failing grades. For Accountancy students,
the cut-off grade is 85. Minimum raw score is four hundred (400) points for very
grading period.
The distribution of total raw score will be as follows:
First Grading
Class Standing= 70%; Exam= 30%
Midterms
Class Standing= 60%; Exam= 40%
o [(Tentative Midterm Grade x 2) + First Grading Grade]/3 = Midterm
Grade
Finals
Class Standing= 50%; Exam= 50%
o [(Tentative Final Grade x 2) + Midterm Grade]/3 = Final Grade
Textbook
Valencia, Edwin; Roxas, Gregorio; and Asuncion, Darrell Joe (2010). Partnership and
Corporation Accounting. Baguio City: Valencia Educational Supply.
References
Page 3 of 4
Ballada, Win Lu and Ballada, Susan (2010). Partnership and Corporation Accounting.
Manila: Dome Dane Publishers and Made Easy Bookstore.
Robles, Nenita and Empleo, Patricia (2010). Intermediate Accounting Part 3. Mutual
Books Inc.
Baysa, Gloria and Lupisan, Ma. Concepcion (2008). Advanced Accounting Part 1.
Mandaluyong City: Millenium Books, Inc.
www.sec.gov.ph
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