CERTIFICATE IN ACCOUNTANCY (CA)

PART B: DETAILED COURSE CONTENT 23.0 YEAR ONE SEMESTER ONE 23.1 PRINCIPLES OF ACCOUNTS Course code CA1101 Credit units 05 Contact hours 75 COURSE DESCRIPTION This course introduces students to the theoretical and legal frame work of accounting, recording of business transactions, source documents and accountability, journalizing of transactions, posting to ledgers, extraction of the trial balance and preparation of simple final accounts. LEARNING OUTCOMES The learner should be able to collect, organize and summarize business transactions and prepare books of accounts. OBJECTIVES OF THE COURSE By the end of this course the learner should be able to: Demonstrate the ability to record accounting information in relevant books of account Differentiate between book keeping and financial accounting Appreciate fundamental accounting principles and concepts Prepare simple sole trader’s financial statements and reports PRINCIPLES OF ACCOUNTS COURSE CONTENT CHAPTER ONE 1.0 Introduction 1.1 Definition of accounting and book keeping 1.2 Objectives of accounting 1.3 Accounting Terminologies and Abbreviations 1.4 Users of accounting information 1.5 Accounting concepts, bases, policies and standards 1.6 The fundamental Accounting Equation 1.7 Accounting cycle CHAPTER TWO 2.0 a. Source documents 2.1 Definition 2.2 Terminologies used, nature, formats 2.3 Examples of source documents CHAPTER THREE 3.0 Books of original entry 3.1 Definition 3.2 Terminologies used and the books of original entry 3.2.1 Cash book 3.2.2 Cash payment register 3.2.3 Sales returns 3.2.4 Sales day book 3.2.5 Purchases day book 3.2.6 Principle/general journal 3.2.7 Petty cash book and Imprest system CHAPTER FOUR 4.0 The ledger 4.1 Definition 4.2 Types and formats 4.3 Functions 4.4 An account 4.4.1 Definition and types of accounts 4.5 The double entry system 4.5.1 Definition, rules, and uses 4.6 Ledger posting from the books of original entry 4.7 Balancing of ledger accounts 4.8 Closing of ledger accounts 4.9 Trial Balance 4.10 Errors that affect the agreement of the trial balance 4.11 Errors that do not affect the agreement of the trial balance CHAPTER FIVE 5.0 Simple Final Accounts of Sole Traders- Without End of Year Adjustments 5.1 Definition 5.2 Trading Account 5.3 Profit and Loss Account 5.4 Balance Sheet CHAPTER SIX 6.0 Bank reconciliation Statements 6.1 Definition, purpose, Terminologies used 6.2 Bank statement 6.3 Cash book 6.4 Causes of the difference between bank statement and cash book balances 6.5 Adjustment of the cash book 6.6 Bank reconciliation statement 6.7 Steps in bank reconciliation 6.8 Methods of bank reconciliation CHAPTER SEVEN 7.0 Book keeping errors 7.1 Definition 7.2 Errors affecting the agreement of the trial balance and their correction 7.3 Errors not affecting the agreement of the trial balance and their correction 7.4 Suspense account MODE OF DELIVERY The mode of delivery will include: lecture, hands-on, demonstration, group discussions and presentation. ASSESSMENT OF THE COURSE This course unit will be assessed out of 100 marks as follows; Course work by continuous assessment 30% Final examination 70% Total 100% The marks will be converted into Grade points. There will be the final examination in the last two weeks of the semester. REFERENCES 1. Callam A. A. and Ryderm (1997) A foundation in business Accounting Macmillan London 2. Frank wood (1999) Business Accounting 6th Edition Pitman 3. Jennings A. J. (1996) Financial Accounting D.P. Publications 4. Leon I.H. & Earl R. Wilson (1992) Accounting for Government