Download Introduction to Financial Accounting Notes
ATD LEVEL I
INTRODUCTION TO FINANCIAL ACCOUNTING UNIT DESCRIPTION
This paper is intended to equip the candidate with knowledge, skills and attitudes that will enable him/her to account for various basic financial transactions and prepare financial statements.
Contents
- 1 LEARNING OUTCOMES
- 2 CONTENT
- 3 Introduction to accounting
- 4 Nature and purpose of accounting
- 5 Double entry bookkeeping and books of original entry including manual and computerised systems
- 6 Accounting for assets and liabilities
- 7 Correction of accounting errors and the suspense account
- 8 Financial statements of a sole trader
- 9 Partnership accounts
- 10 Company accounts
- 11 Types of share capital – ordinary shares and preference shares
- 12 Emerging issues and trends
LEARNING OUTCOMES
A candidate who passes this paper should be able to:
- Apply accounting concepts in preparation of financial statements
- Apply the double entry aspects of accounting
- Account for assets and liabilities
- Prepare financial statements of a sole trader, partnership and company.
CONTENT
Introduction to accounting
Nature and purpose of accounting
- Objectives of accounting
- Users of accounting information and their information needs
- Qualities of useful accounting information
- Accounting concepts/principles
- Accounting standards and their importance
- The accounting equation
Double entry bookkeeping and books of original entry including manual and computerised systems
- Source documents
- Books of original entry
- The double entry system and the ledger
- The trial balance and basic financial statements
- Computerised accounting systems – Role of computers, application and accounting softwares in the accounting process, benefits and challenges of operating computerised accounting systems
Download INTRODUCTION TO FINANCIAL ACCOUNTING ATD NOTES
Accounting for assets and liabilities
- Accrued expenses and prepaid expenses
- Accounting for revenue including accrued income and prepaid income
- Accounting for account receivables, bad debts and allowance for doubtful debts
- Property plant and equipment including capital revenue and expenditure, depreciation, acquisition and disposal
- Inventory – recognition, measurement and valuation using specific cost method (FIFO and weighted average cost only)
- Accounting for cash and cash equivalents, bank reconciliation
- Accounting for accounts payable including control account
Correction of accounting errors and the suspense account
Financial statements of a sole trader
- Income statement
- Statement of financial position
Partnership accounts
- Contents of a partnership agreement
- Distinction between current and capital accounts
- Appropriation statement and partners current and capital accounts
- Statement of financial position and income statement (excluding changes in partnerships)
Company accounts
- Types of reserves – share premium, revaluation reserve, general reserves and retained profits
- Issue of shares (exclude issue by installment and forfeiture)
- Rights issues and bonus
- Income tax -Accounting treatment and presentation (exclude computation)
- Income statement
- Statement of financial position