CHRP 04 Introduction to Financial Accounting
Learners will be equipped with knowledge on various aspects of financial accounting to enhance their business knowledge skills. The course covers introduction to accounting, accounting concepts and principles including various forms of financial reporting.
General objective
To enable the learners to acquire knowledge on various aspects of financial accounting to enhance their business knowledge.
Learning outcomes
At the end of this course unit, the learner will be able to:
- Enter business transaction using the double entry system of booking
- Extract the trial balance and prepare financial statements
- Analyze and interpret financial data for purpose of decision making
- Apply the principles of accounting in making financial decisions
Introduction to Accounting
- Nature and purpose of accounting
- Objectives of accounting
- Users of accounting information
- Characteristics of useful accounting information
- Accounting equation
Accounting concepts and principles
- Concept of partnership agreement
- Partnership current and capital accounts
- Basic financial statements
- Going concern
- Accruals
- Consistency
- Prudence
- Business entity
- Duality
- Monetary measurements
- Substance over form
- Realization
Double entry bookkeeping
- Source documents
- Receipts
- Internal cheque requisitions
- Petty cash vouchers
- Payroll
- Recording transaction using double entry bookkeeping
Financial Accounts of a Sole Trader
- Statements of financial performance (income statement)
- Statement of financial position (balance sheets)
Adjustments
- Accrued and prepaid income and expenses
- Bad and doubtful receivables
- Depreciation and disposal of property; plant and equipment
- Bank reconciliation statements
- Control accounts
- Correction of errors and suspense accounts
- Valuation of the inventory
- Capital and revenue expenditure
Partnership Accounts
- Introduction to partnerships
- Partnership agreements
- Appropriation of profit
- Partner accounts
- Financial statements of a partnership
Company Accounts
- Capital structure of a company
- Types of reserves
- Basic financial statements(income statement and balance sheet)