FINANCIAL ACCOUNTING 1 (ACCT 211)

OVERVIEW

1. COURSE DESCRIPTION

This course introduces students to the context and purpose of maintaining financial records for accounts preparation. It then concentrates in depth on the double-entry system and on recording, processing, and reporting business transactions and events, including specific accounting for non-current assets. The course also covers how to identify and correct errors, including the use of reconciliations and the posting of year-end adjustments. Finally, students will use the knowledge and skills they have developed to prepare financial statements for sole traders and partnerships.

2. REASON FOR THE COURSE

To develop knowledge and understanding of the underlying principles and concepts of maintaining financial records and technical proficiency in the use of double-entry accounting techniques.

3.  STUDY HOURS


4. ROLE IN CURRICULUM


Prerequisites:
There is no prerequisite for this course.

SKILLS

  • LEARNING OUTCOMES
  • ASSESSMENT AND GRADING
  • TEACHING METHODS
  • STUDY PLAN
  • TEXTBOOKS AND REFERENCES

5. COURSE LEARNING OUTCOMES (CLO)

 On successful completion of this course, students will be able to:

Knowledge Level of
Learning		 Related PLO
Explain the context and purpose of maintaining financial records (CK1)
Explain the context and purpose of maintaining financial records for accounts preparation.		  Understand PK1
Discuss the basic accounting principles and concepts (CK2)
Discuss the key accounting principles and concepts underlying the double-entry system.		 Understand PK1
Cognitive Skills Level of
Learning		 Related PLO
Apply the double-entry system (CC1)
Record, process, and report business transactions and events using the double-entry system.		 Apply PC5
Correct accounting errors and omissions (CC2)
Identify and correct errors in financial records, including the use of reconciliations and the posting of year-end adjustments.		 Apply PC5
Prepare financial statements for sole traders and partnerships (CC3)
Prepare financial statements for sole traders and partnerships in accordance with international financial reporting standards.		 Apply PC5
Communication, Information Technology, and Numerical Skills Level of
Learning		 Related PLO
Use spreadsheets for efficient financial recording, processing and reporting (CCIT1)
Use spreadsheets to automate and streamline financial tasks, including recording, processing, and reporting financial information.		 Apply PCIT2
Interpersonal Skills and Responsibilities Level of
Learning		 Related PLO
Be a team player and maintain confidentiality (CIP1)
Work effectively as part of a team to complete accounting tasks and meet deadlines, while maintaining confidentiality of accounting information.		 Value PIP1

 

6. ASSESSMENT AND GRADING

Grades will be determined based on the following assessments and score allocations:

SKILL Assessment Skill Weighting for Grade
Participation In-class tests Midterm Project Final Project Final Exam
Explain the context and purpose of maintaining financial records (CK1) 100%         5%
Discuss the basic accounting principles and concepts (CK2) 50%   50%     10%
Apply the double-entry system (CC1)   30%   40% 30% 30%
Correct accounting errors and omissions (CC2)   30%   40% 30% 15%
Prepare financial statements (CC3)   30%   40% 30% 20%
Use spreadsheets for efficient financial recording, processing and reporting (CCIT1) 50%    50%     10%
Be a team player (CIP1)     50% 50%   10%

 

7. TEACHING METHODS

This course uses a variety of teaching methods to engage students and promote learning, including lectures, discussions, didactic questioning, case study analysis, demonstrations, written examinations, and group projects.

  Midterm Project: Financial Reporting in Practice (CK1, CIP1)
   Work Group: Group
Output Format: APA Format Report, Presentation
Language: English
Description: Students will work in groups of 3-5 to document the accounting and financial reporting process of a medium to large size business or organization. The project requires meetings, interviews and site visits to the target business or organization in Cambodia.
Final Project:  Bookkeeping Simulation (CC1,CC2, CC3, CCIT1, CIP1)
Work Group: Group
Output Format:

Accounting Records and Financial Reports in Spreadsheets
 Language: English

Description:

 

 Students will work in groups of 3-5 to record, process, and report business transactions using the double-entry system. Students will also be required to identify and correct errors in financial records, prepare financial statements for sole traders or partnerships, and utilize spreadsheets for efficient financial recording, processing, and reporting.

8. STUDY PLAN

The course targets the 50 lessons in the study plan below. Each lesson is 1.5 class hours each; there are a total of 75 class hours. The study plan below describes the learning outcome for each lesson, described in terms of what the student should be able to do at the end of the lesson. Readings should be done by students as preparation before the start of each class.  Implementation of this study plan may vary somewhat depending on the progress and needs of students.

  Lesson Learning Outcomes Teaching (T), and Assessment (A) Methods
1

Accounting principles, concepts and characteristics 1

  1. Explain the basic principles and concepts of accounting (CK1)
  2. Discuss the characteristics of useful financial information (CK1)

Lecture (T)
Discussion (T)
Kahoot Quiz (A)

Reading: Chapter 1
2

Accounting principles, concepts and characteristics 1

  1. Explain who the users of financial information are and their information needs (CK1)
  2. Explain the importance of maintaining financial records for internal and external use (CK1)
  3. Explain the regulatory framework and the purpose of International Accounting Standards and International Financial Reporting Standards (CK1)

Lecture (T)
Discussion (T)
Kahoot Quiz (A)

Reading: Chapter 1
3

The elements of financial statements

  1. Explain and apply the accounting equation (CK2)
  2. Define the elements of the financial statements (CK2)
  3. Explain the components of a set of financial statements (CK2)

Lecture (T)
Discussion (T)
Learning Activity on Google Sheets (A)

Reading: Chapter 2
4

Overview of the accounting process

  1. Explain how financial data is initially recorded in the accounting system (CK2)
  2. Identify reasons for closing off general ledger accounts and producing a trial balance (CK2)
  3. Explain the process of preparing a set of financial statements from a trial balance (CK2)

Lecture (T)
Discussion (T)
Kahoot Quiz (A)

Reading: Chapter 2
5

Preparation of journal entries

  1. Prepare journal entries to record transactions in an appropriate format (CC1, CCIT1)

Lecture (T)
Discussion (T)
Learning Activity on Google Sheets (A)

Reading: Chapter 2
6

Preparation of general ledger accounts 1

  1. Explain the purpose and use of general ledger accounts (CK2)
  2. Post journal entries into the appropriate general ledger account (CC1, CCIT1)

Lecture (T)
Discussion (T)
Learning Activity on Google Sheets (A)

Reading: Chapter 2
7

Preparation of general ledger accounts 2

  1. Illustrate the period end procedures on the general ledger accounts, bringing forward and carrying forward balances as appropriate (CC1, CCIT1)

Lecture (T)
Discussion (T)
Learning Activity on Google Sheets (A)

Reading: Chapter 2
8

Sales and purchases

  1. Record sales and purchases transactions and returns (CC1, CCIT1)

Lecture (T)
Discussion (T)
Learning Activity on Google Sheets (A)

Reading: Chapter 3
9

Cash and bank

  1. Record bank and petty cash transactions (CC1, CCIT1)

Lecture (T)
Discussion (T)
Learning Activity on Google Sheets (A)

Reading: Chapter 3
10

Trade and settlement discounts

  1. Account for trade and early settlement discounts (CC1, CCIT1)

Lecture (T)
Discussion (T)
Learning Activity on Google Sheets (A)

Reading: Chapter 3
11

Sales tax

  1. Describe the nature and purpose of sales tax (CK2)
  2. Account for sales tax (CC1, CCIT1)

Lecture (T)
Discussion (T)
Learning Activity on Google Sheets (A)

Reading: Chapter 3
12

Inventories 1

  1. Define inventory and explain its significance in financial reporting.(CK2)
  2. Describe the different types of inventory (CK2)
  3. Explain the different inventory valuation methods and the factors that influence the choice of method (CK2)

Lecture (T)
Discussion (T)
Kahoot Quiz (A

Reading: Chapter 4

 
13

Inventories 2

  1. Calculate the value of ending inventory and cost of goods sold using each method of inventory valuation.(CC1)

Lecture (T)
Discussion (T)
Learning Activity on Google Sheets (A)

Reading: Chapter 4
14

Inventories 3

  1. Analyze the impact of different inventory valuation methods on cost of goods sold, net profit, and net assets (CC1, CCIT1)
  1. Report closing inventory in the financial statements (CC3)

Lecture (T)
Discussion (T)
Kahoot Quiz (A

Reading: Chapter 5
15

Noncurrent assets

  1. Define noncurrent assets (CK2)
  2. Explain the difference between current and noncurrent assets (CK2)
  3. Explain the difference between capital expenditure and revenue expenditure (CK2)
  4. Explain the impact of misclassification of capital expenditure as revenue expenditure and vice versa on the statement of profit or loss and the statement of financial position (CK2)

Lecture (T)
Discussion (T)
Kahoot Quiz (A

Reading: Chapter 5
16

Acquisition of noncurrent assets

  1. Account for the acquisition of noncurrent assets (CC1, CCIT1)

Lecture (T)
Discussion (T)
Learning Activity on Google Sheets (A)

Reading: Chapter 5
17

Depreciation of non-current assets 1

  1. Define depreciation and explain its purpose (CK2)
  2. Calculate the depreciation charge using the straight line method (CC1, CCIT1)
  3. Illustrate how the depreciation expense and accumulated depreciation are recorded in general ledger accounts (CC1)

Lecture (T)
Discussion (T)
Learning Activity on Google Sheets (A)

Reading: Chapter 6
18

Depreciation of non-current assets 2

  1. Calculate the depreciation charge using the reducing balance method (CC1, CCIT1)
  2. Account for changes in depreciation method, estimated useful life, and residual value (CC1)

Lecture (T)
Discussion (T)
Learning Activity on Google Sheets (A)

Reading: Chapter 6
19

Disposal of non-current assets

  1. Calculate gains or losses on disposal of non-current assets, including part exchange transactions and scrapping of assets (CC1)
  2. Prepare journal entries to record the disposal of non-current assets (including part exchange) (CC1)
 Lecture (T) Discussion (T) Learning Activity on Google Sheets (A) Reading: Chapter 6
20

Noncurrent asset register

  1. Explain the purpose and function of a noncurrent asset register (CK1)
  2. Identify and resolve any discrepancies between the noncurrent asset register and the accounting records for non-current assets (CK1)
  3. Report non-current assets and depreciation in the financial statements (CC3)

Lecture (T)
Discussion (T)
Kahoot Quiz (A)

Reading: Chapter 5
21

Accrued expenses (accruals)

  1. Define accruals (CK2)
  2. Calculate the adjustments needed for accruals when preparing financial statements (CC1, CCIT1)
  3. Illustrate the process of adjusting for accruals when preparing financial statements (CC1)
  4. Prepare journal entries and update the general ledger accounts for the creation and reversal of accruals (CC1, CCIT1)
  5. Identify the impact of accruals on profit, net assets, and capital (CC1)
  6. Report accruals in the financial statements (CC3)

Lecture (T)
Discussion (T)
Learning Activity on Google Sheets (A)

Reading: Chapter 7
22

Prepaid expenses (prepayments)

  1. Define prepayments (CK2)
  2. Calculate the adjustments needed for prepayments when preparing financial statements (CC1, CCIT1)
  3. Illustrate the process of adjusting for prepayments when preparing financial statements (CC1)
  4. Prepare journal entries and update the general ledger accounts for the creation and reversal of prepayments (CC1, CCIT1)
  5. Identify the impact of prepayments on profit, net assets, and capital (CC1)
  6. Report prepayments in the financial statements (CC3)

Lecture (T)
Discussion (T)
Learning Activity on Google Sheets (A)

Reading: Chapter 7
23

Accrued income and unearned income

  1. Define accrued income and unearned income (CK2)
  2. Calculate the adjustments needed for accrued income and unearned income when preparing financial statements (CC1, CCIT1)
  3. Illustrate the process of adjusting for accrued income and unearned income when preparing financial statements (CC1)
  4. Prepare journal entries and update the general ledger accounts for the creation and reversal of accrued income and unearned income (CC1, CCIT1)
  5. Identify the impact of accrued income and unearned income on profit, net assets, and capital (CC1)
  6. Report accrued income and unearned income in the financial statements (CC3)

Lecture (T)
Discussion (T)
Learning Activity on Google Sheets (A)

Reading: Chapter 7
24

Trade and other receivables

  1. Define and explain the nature of trade and other receivables (CK2)
  2. Account for contras between trade receivables and trade payables (CC1)
  3. Calculate the balance of trade receivables (CC1, CCIT1)

Lecture (T)
Discussion (T)
Learning Activity on Google Sheets (A)

Reading: Chapter 8
25

Irrecoverable debts and allowance for receivables 1

  1. Define and distinguish between irrecoverable debts and the receivables allowance (CK2)
  2. Explain the need to make a receivables allowance (CK2)
  3. Account for the write-off of irrecoverable debts and recovery of accounts previously written off (CC1, CCIT1)

Lecture (T)
Discussion (T)
Learning Activity on Google Sheets (A)

Reading: Chapter 8
26

Irrecoverable debts and allowance for receivables 2

  1. Calculate the receivables allowance (CC1)
  2. Record the creation and movement of the allowance for receivables in the accounting system (CC1, CCIT1)
  3. Report the total receivables expense and the required allowance for receivables in the financial statements (CC3)

Lecture (T)
Discussion (T)
Learning Activity on Google Sheets (A)

Reading: Chapter 8
27

Trade and other payables

  1. Define and explain the nature of trade and other payables (CK2)
  2. Calculate the balance of trade payables (CC1)
  3. Distinguish between current liabilities and noncurrent liabilities (CC3, CCIT1)

Lecture (T)
Discussion (T)
Learning Activity on Google Sheets (A)

Reading: Chapter 9
28

Provisions

  1. Define and explain the nature of provisions (CK2)
  2. Account for the movement of provisions (CC1)
  3. Report provisions in the financial statements (CC3)

Lecture (T)
Discussion (T)
Kahoot Quiz (A)

Reading: Chapter 9
29

Capital and finance costs

  1. Distinguish between capital from business owners and loans from third parties (CC3)
  2. Demonstrate the impact of changes in capital on the financial statements
  3. Prepare the capital general ledger account for an unincorporated business (CC3)

Lecture (T)
Discussion (T)
Kahoot Quiz (A)

Reading: Chapter 9
30

Bank reconciliation 1

  1. Explain the nature and purpose of a bank reconciliation (CK1)
  2. Identify timing differences and errors in the bank statement (CC2)
  3. Prepare a bank reconciliation statements (CC2, CCIT1)

Lecture (T)
Discussion (T)
Learning Activity on Google Sheets (A)

Reading: Chapter 10
31

Bank reconciliation 2

  1. Identify errors and omissions in the cash at bank ledger account (CC2)
  2. Make correcting entries in the cash at bank ledger account (CC2, CCIT1)
  3. Report the cash at bank balance in the financial statements (CC2)

Lecture (T)
Discussion (T)
Learning Activity on Google Sheets (A)

Reading: Chapter 10
32

Petty cash

  1. Record petty cash transactions and post entries from petty cash records into the general ledger (CC1, CCIT1)
  2. Report the petty cash balance in the financial statements (CC3)

Lecture (T)
Discussion (T)
Learning Activity on Google Sheets (A)

Reading: Chapter 10
33

Supplier statement reconciliation

  1. Prepare a reconciliation between the supplier statement balance and the memorandum-only payable ledger account for that supplier (CC2, CCIT1)
  2. Identify errors and omissions in the trade payable account and the general ledger and make correcting entries in the general ledger (CC2)

Lecture (T)
Discussion (T)
Learning Activity on Google Sheets (A)

Reading: Chapter 10
34

Initial trial balance

  1. Explain the purpose of the initial trial balance(CK1)
  2. Identify the limitations of the trial balance (CK1)
  3. Extract the ledger balances to form a trial balance (CC1, CCIT1)

Lecture (T)
Discussion (T)
Learning Activity on Google Sheets (A)

Reading: Chapter 11
35

Correction of errors 1

  1. Identify the different types of errors that will be detected by a trial balance and those that will not (CC2)
  2. Explain the underlying reasons why some errors are detected by a trial balance and others are not (CC2)

Lecture (T)
Discussion (T)
Kahoot Quiz (A)

Reading: Chapter 11
36

Correction of errors 2

  1. Prepare journal entries to correct errors in the accounting records (CC2, CCIT1)

Lecture (T)
Discussion (T)
Learning Activity on Google Sheets (A)

Reading: Chapter 11
37

Suspense accounts

  1. Explain the purpose of a suspense account (CC2)
  2. Record entries in a suspense account (CC, CCIT1))
  3. Make entries to clear a suspense account (CC2, CCIT1)

Lecture (T)
Discussion (T)
Learning Activity on Google Sheets (A)

Reading: Chapter 11
38

Accounting for year-end adjustments

  1. Record post-trial balance adjustments relating to accruals and prepayments, inventory, receivables, and non-current assets (CC2, CCIT1)
  2. Prepare an adjusted trial balance (CC2, CCIT1)

Lecture (T)
Discussion (T)
Learning Activity on Google Sheets (A)

Reading: Chapter 12
39

Sole trader financial statements 1

  1. Close off general ledger accounts for preparation of financial statements (CC3, CCIT1)

Lecture (T)
Discussion (T)
Learning Activity on Google Sheets (A)

Reading: Chapter 13
40

Sole trader financial statements 2

  1. Prepare the financial statements for a sole trader (CC3, CCIT1)

Lecture (T)
Discussion (T)
Learning Activity on Google Sheets (A)

Reading: Chapter 13
41

Closing entries and post-closing trial balance

  1. Close income, expense, and drawings accounts to retained earnings account (CC1, CCIT1)
  2. Prepare a post-closing trial balance (CC1, CCIT1)

Lecture (T)
Discussion (T)
Learning Activity on Google Sheets (A)

Reading: Chapter 13
42

Partnership financial statements

  1. Define a partnership and explain the purpose and the main content of a partnership agreement (CK1)
  2. Account for appropriations of profit (CC3, CCIT1)

Lecture (T)
Discussion (T)
Learning Activity on Google Sheets (A)

Reading: Chapter 14
43

Partnership financial statements

  1. Explain the difference between partners’ capital and current accounts (CC3)
  2. Prepare the statement of profit or loss, appropriation account, and statement of financial position for a partnership (CC3)

Lecture (T)
Discussion (T)
Learning Activity on Google Sheets (A)

Reading: Chapter 14
44

Partnership financial statements

  1. Explain the process of admitting a new partner to a partnership (CC1)
  2. Account for the admission of a new partner, including the treatment of goodwill arising (CC1, CCIT1)

Lecture (T)
Discussion (T)
Learning Activity on Google Sheets (A)

Reading: Chapter 14
45

Incomplete records 1

  1. Describe the circumstances which lead to incomplete records (CC2)
  2. Calculate the net assets and profit or loss for a sole trader who has incomplete records (CC2, CCIT1)
  3. Prepare and complete general ledger accounts to derive missing figures (CC2, CCIT1)

Lecture (T)
Discussion (T)
Learning Activity on Google Sheets (A)

Reading: Chapter 15
46

Incomplete records 2

  1. Calculate missing figures using margin or mark-up percentages (CC2, CCIT1)
  2. Construct final accounts for a sole trader who has incomplete records (CC2, CCIT1)

Lecture (T)
Discussion (T)
Learning Activity on Google Sheets (A)

Reading: Chapter 15
47 Review and preparation for final exam (All CLOs) Lecture
48 Review and preparation for final exam (All CLOs) Lecture
49 Review and preparation for final exam (All CLOs) Lecture
50 Review and preparation for final exam (All CLOs) Lecture
Total Hours

9. TEXTBOOKS AND REFERENCES

Textbooks

  1. Kaplan Publishing (2022). Study Text FA2 Maintaining Financial Records Kaplan Publishing UK.
  2. Kaplan Publishing (2022). Exam Kit FA2 Maintaining Financial Records. Kaplan Publishing UK.

References

  1. BPP Learning Media (2022). Interactive Text FA2 Maintaining Financial Records. BPP Learning Media Ltd.
  2. BPP Learning Media (2022). Practice & Revision Kit FA2 Maintaining Financial Records. BPP Learning Media Ltd.

Education Resources