Punjab College of Commerce

Course Code: Program: M.com Credit Hours: 3

Course Title: Financial Accounting First Semester Total Sessions: 32

Course Description: This course has been designed as first accounting course for those students of business administration who need understanding of accounting information as an essential element of management information system. It aims at introducing fundamentals of accounting principles, accounting standards, terminology and important management uses of the data, so that students can interpret and evaluate financial statements. The business environment is changing fast, shift towards computers, and importance of global business activity demands an in-depth and precise understanding of accounting standards and procedures to help the future managers to cope with any challenges realising the importance of technology in the emerging business environment, an introduction to computer based accounting system has been conceived in the course. Financial accounting and reporting serves the needs of the government, shareholders, capital markets and banks, and this course will enable the participants to learn accounting principles about book keeping preparation of financial statements and certain classified accounting methods. Learning Objectives: After studying this course the students should be able:

a. To understand the basic principles of accounting including journalising, posting to ledger

and preparation of financial statements.

b. To learn the fundamental of accounting in a manner that will enable them to understand
advance course in related subjects.

c. To apply at least at the elementary level the accounting principles and procedures in
analysing day to day business activities.

d. To provide basic knowledge and develop skills in knowing the nature and scope of
computerised accounting. Recommended Text Book: Principles of Financial Accounting (Latest Edition) By: Larson Wild and Chiappetta Supplementary Text Books: Introduction to Financial Accounting By: Charles T. Horngren Course Contents: What is accounting? Nature and purpose of accounting, users of accounting, types of accounting, Types of businesses, what is balance sheet and elements of balance sheet, Measuring income to assess performance, income statement and elements of income statement, accrual and matching concepts, other basic concepts/ fundamental accounting assumptions, Overview of how to record transactions, debits and credits, accounting cycle, analyzing and journalizing transactions, posting transactions to ledger. Preparing trial balance and preparing financial statements, Overview of adjusting entries, adjusted trial balance, accounting process revisit, preparing financial statements, Cash flow statement, typical activities of cash flow statement, Detailed cash flow statement, Liabilities in perspective, current and long term liabilities and their effect on financial position, Authorized, issued and paid up capital, cash dividends, stock splits and stock dividends, Repurchase of shares, other issuance of common stock, retained earnings restriction, other components of stockholders equity and resulting effect on different financial position indicators, Statement of stockholders equity, notes to the financial statement, annexure attached to financial statements, Financial statement analysisobjectives, sources of information, evaluating trends and components of the business, calculating ratios, Financial statement analysis, Inventories and costing of inventories, methods of inventory valuation, Accounting for Property Plant & Equipments.