AIM OF THE COURSE
The aim of this course is to ensure that students understand the role, function and basic principles of financial accounting and master the rules of double entry bookkeeping. They also develop the ability to prepare, analyze financial statements in accordance with International Financial Reporting Standards (IFRS). While performing bank reconciliations, and upholding ethical and professional standards.
By the end of this course, learners should be able to:
• Explain the concepts, nature, scope, and importance of financial accounting and its role in business decision-making by various stakeholders.
• Apply the accounting equation, accounting principles, and the double-entry system to record, classify, and summarize business transactions.
• Prepare books of original entry, ledger accounts, trial balances, accounting adjustments, and bank reconciliation statements accurately.
• Prepare financial statements in accordance with applicable accounting principles and International Financial Reporting Standards (IFRS).
• Analyze and interpret financial statements using basic financial ratios to evaluate an organization's financial performance and position.
• Demonstrate ethical and professional standards in the preparation, presentation, and communication of financial information.
CONTENT
Chapter I: General introduction accounting
- Meaning, scope and purpose
- Financial accountability methods
- Book keeping and accounting
- Users/interested parties in accounting information
- Characteristics or qualities of accounting information
- Basis of accounting
- Branches/disciplines in accounting
- Accounting regulatory framework (accounting rules);-Accounting base, Accounting policy, and principles
- Professional ethics for accountant
Chapter II: Accounting equation
· Assets = Liabilities + Owner’s Equity
Chapter III: Double entry system and preparation of books of account
· The double entry book keeping system
· Accounting cycle/ or process
· Preparation of books of account
-Journals
-The Cash Book
-Ledgers
· The trial balance
Chapter IV: End of year adjustments and Preparation of financial statements
· End of adjustments
· Income statement
· Balance sheet, Etc
Chapter V: Analysis and interpretation of financial statements
• Profitability ratios,
• Liquidity ratios, etc
Chapter VI: Bank reconciliation
· Explain why the bank statement balance and the cashbook balance may not balance with bank statement
· Importance
· Reasons for discrepancy between cash book and bank statement balances
· Methods of bank reconciliation
Further readings
• Omunuk, J. B. (1999). Fundamental accounting for business (4th ed.). Kampala: Makerere University Business School.
• Frank, W. (2008). Business Accounting basics (9th ed.). New York: Springer
Mr MUDAKEMWA Augustin, MBA-Finance&Accounting
Assistant Lecturer at University of Kigali
School of Business Management and Economics
Tel: 0785818622
Email: amudakemwa@uok.ac.rw
Website: www.uok.ac.rw
- Teacher: AUGUSTIN MUDAKEMWA