COURSE TITLE : INTERMEDIATE ACCOUNTING
COURSE CODE : BBA32103
COURSE CREDITS : CONTACT HOURS 60, CREDIT UNITS 4
COURSE LEVEL : YEAR 2, SEMESTER I
Course Description
This course gives the participants further understanding of the accounting
language. It is intended to explain thoroughly, to students, the financial
accounting principles and concepts used to prepare books of account and
extracting final accounts for different business organisations including those
of a: partnership, joint venture, company and its branch(es). It starts by
reviewing the fundamental concepts underpinning the science of accounting
so as to prepare the student to cope with the rigorous work ahead. The
course also provides the students with a clear understanding of accounting
information system(AIS) expected to be followed in an organisation
(regardless of size and legal status) and be able to interpret the information
such a system generates.
Course objectives
1. to expose students to the various accounting principles and practices.
2. to enable students to prepare and understand the final accounts of
partnerships and companies.
3. to explain the principles of preparing accounts of a joint venture
4. to examine the procedures involved in the preparation of proper
accounts for such business organizations which do not maintain proper
accounting records.
5. to interpret accounting information
Expected Learning Outcomes
On completion of this course, a student will be able to
1. understand accounting theory
2. be able to prepare accounts for different forms of organisations
3. prepare proper accounting records for a business with scanty records.
4. prepare final accounts of different organizations (such as partnership,
joint- ventures, and companies)
5. compare and contrast accounts of a partnership and joint venture
business
6. compare and contrast accounts of a partnership and a company
7. interpret accounting information given in financial statements
8. understand the contribution of proper accounting records to the
growth, survival and profitability of an organisation
COURSE CONTENT
1. Control accounts: 6hrs
- Meaning and purpose
- Contra entries in control accounts and the source of information for
control accounts
Preparation of:
- Sales ledger control account
- Purchases ledger control account
1. Incomplete Records 9hrs
Meaning
Reasons for existence of incomplete records and their disadvantages
Preparation of a statement of affairs
Deriving missing figures
- Use of margins and mark-ups
- Reconstruction of accounts
- Use of statements
- Statement of affairs
Preparation of financial statements from incomplete records
-
3. Accounting for Clubs and Non-profit making organization
accounts 9hrs
Meaning of Clubs and Non-profit making organisation
Objectives/ purpose of non-profit making organisations.
Non-profit making organisations versus profit making organisations
Subscriptions account- types and preparation
Receipts and payments account:
Nature and purpose of statement of profit or loss of a non-trading
organization
Sources of income.
Receipts and payments account versus statement of profit or loss of a
non-trading organization
Determination and incorporation of profits or losses from special
activities in the financial statements
Accumulated fund
Preparation of:
-Statement of profit or loss and other comprehensive income and
-Statement of financial position of a non-trading organisation.
Financial statements of a trading entity versus those of a non-trading
organisation.
4. Accounting for Change and dissolution of partnership 9hrs
accounting for goodwill in partnership accounts
Sources of goodwill in partnership business
Types of goodwill
Circumstances that lead to the ascertainment of goodwill
Accounting treatment of goodwill in the books of partnership
- Premium method;
- Revaluation method;
- Memorandum method and
- Preparation of a statement of financial position
Accounting for Revaluation of assets and liabilities in admission and
retirement of a partner
Dissolution of partnership
- Circumstances that may lead to dissolution
- Accounting entries to record the dissolution
- Recording dissolution entries of a partnership in ledger accounts
following the rule in Garner Vs Murray
5. Company accounts 6hrs
Introduction
Formation of a company
Legal requirements
Composition of the share capital and non-current liabilities of a limited
company
Authorised and issued (fully paid) capital; nominal and market value of
shares; and ‘bonus issue’ and ‘rights issue’ of shares
Advantages and disadvantages of increasing share capital by a bonus
Preparation of Financial statements for internal use with adjustments;
-Inventory
-Provision for bad debts
-Provision for depreciation (Straight-line and Reducing balance
method)
6. Manufacturing Accounts 6hrs
Introduction
Manufacturing Account
- Identification of manufacturing costs (direct and indirect)
- Classification of costs; direct production costs and factory
overheads, fixed and variable costs, prime costs and total factory
costs
- Categories of inventory
- Purpose of preparing a manufacturing account; preparation of a
manufacturing account
- Account for factory costs with and without manufacturing profit
Statement of profit or loss and other comprehensive income (SPLC),
and
statement of financial position
- Link between the manufacturing account and SPLC
- Classification and apportioning expenses
- Determination of unrealized profits
- Manufacturing profit versus trading profit; inventory of
manufacturing concerns versus trading entities
Preparation of a statement of profit or loss and other comprehensive
income, and a statement of financial position
7. Joint venture and Consignments 6hrs
Joint ventures
06hrs
Introduction – definition and features
Similarities between partnership and joint ventures
Differences between partnership and joint ventures
Entries in the joint venture accounts of each venture
General illustrations
Consignments
Definition of key terms
Main features of consignment
Differences between consignment and a sale
Consignor’s and consignee’s books
Illustrations
8.Departmental Accounting 3hrs
Objectives of Departmental Accounting
Advantages of Departmental Accounting
Allocation of Department Expenses
Inter-Department Transfer
Inter-Department Transfer Price
Methods of Departmental Account
-Separate Set of Books for each department
-Accounting in Columnar Books form
Mode of Delivery
i) Lectures
ii) Class discussion
iii) End of lesson exercises
iv) Case study and analysis
Mode of Assessment
a) Coursework constitutes 30% broken down as:
i) Individual Essay 20%
ii) Class Test 10%
b) Final examination constitutes 70%
References
1. BPP Learning Media, ACCA, F3 BPP Study Text (2020).
2. Wood Frank & Alan Sangster (2011), Business Accounting, Prentice Hall,
Great Britain, 12th Edition.
3. Elizabeth A. Gordon, (2019) Intermediate Accounting - 2nd edition,
Pearson.
4. Wood Frank, Dinah Kamasanyu, Peter Magati & Basil Bakama, (2011)
Principles of Accounts For East Africa, Pearson, 2 nd Edition.
5. Donald E. Kieso, Jerry J. Weygandt & Terry D. Warfield, Intermediate
Accounting (2016), 16th Edition, John Wiley & Sons, Inc.
6. J. David Spiceland, Mark W. Nelson & Wayne M. Thomas, Intermediate
Accounting (2018) - 9th Edition, McGraw-Hill Publishing Company.
7. Wahab M. A. (2003) A Straight Approach to Accounting (2003) third
Edition Vol. I T & E Publishers.
