Financial accounting summary with well elaborated examples for exams.

Course outline

Introduction to accounting:
• Definition of terms used in accounting
• Users of accounting information
• Information needs
• Qualities of good accounting information
• Nature of accounting equation
• Effects of business transactions
The ledger and the trial balance
• Definition of a ledger and an account
• Importance of a ledger

, Relationship between a ledger and an account
Classifications of ledgers
Nature of double- entry system
Definition of a trial balance
Importance of a trial balance
Balancing off of accounts
Definition of a trial balance
Importance of a trial balance
Types of errors and their correction
Types of errors that do not affect the agreement of a trial balance
Types of errors that do not affect the agreement of a trial balance
Types of errors that affect the agreement of a trial balance
Functions of suspense account
Corrections of errors using a

Meaning of source documents
Types of source documents
Uses of source documents
Relationship between source documents and books of account

Definition of books of original entry
Classifications of books of original entries
Preparation of books of original entry
Posting transactions from the books of original entry to the ledger




Source documents




• Books of original entry

,The cashbook
• Definition of cashbook
• Types of cashbook Types of discounts
• Recording transactions in a cashbook
Petty cashbook
• Definition of petty cashbook
• Imprest system
• Purpose of petty cash
• Preparation of petty cashbook
Bank reconciliation statements
• Definition of bank reconciliation statements
• Purpose of preparing bank reconciliation statements
• Causes of the differences between bank statements and the cashbook balance
• Steps/procedure in preparing bank reconciliation statement
Control accounts
• Definition of control accounts
• Uses of control accounts
• Preparation of control account
Accounting concepts, conventions and bases
• Definition of accounting concepts, conventions and bases
• Types of accounting concepts, conventions and bases Capital and revenue
expenditure

, Definition of capital and revenue expenditure
Double entry system for revenue and capital expenditure
Classification of expenditure


Purpose of final accounts adjustment
Procedure of making adjustments in final accounts



Reasons for providing for depreciation
Methods for providing for depreciation
Double entry for depreciation.
Accounting for disposal of fixed assets
The fixed asset movement schedule
Final Accounts for sole-proprietorship
Definition of final accounts
Types of final accounts
Preparation of final accounts
Non-Profit Making Organizations
Definition of Non-profit making Organization
Differences between Receipts and payment accounts
Relationship between Income and Expenditure accounts
Preparation of final accounts of Non-profit making Organizations
Emerging Trends and Issues in Financial Accounting




Adjustments to final accounts
• Meaning of final accounts


Accounting for fixed assets
• Definition of depreciation
• Causes of depreciation

, • Emerging trends and issues in financial accounting
• Challenges posed by emerging trends and issues in financial accounting
• Coping with the challenges posed by emerging trends and issues in financial accounting to
managing emerging financial issues




TABLE OF CONTENTS

INTRODUTION TO ACCOUNTING ........................................................................................................................
6

TYPES OF ERRORS AND THEIR CORRECTION

SORCE DOCUMENTS

BOOKS OF ORIGINAL ENTRY

THE CASH BOOK