KNEC FINANCIAL ACCOUNTING NOTES – MODULE I

KNEC FINANCIAL ACCOUNTING NOTES – MODULE I Course outline Introduction to accounting:  Definition of terms used in accounting  Users of accounting information  Information needs  Qualities of good accounting information  Nature of accounting equation  Effects of business transactions The ledger and the trial balance  Definition of a ledger and an account  Importance of a ledger  Relationship between a ledger and an account  Classifications of ledgers  Nature of double- entry system  Definition of a trial balance  Importance of a trial balance  Balancing off of accounts  Definition of a trial balance  Importance of a trial balance Types of errors and their correction  Types of errors that do not affect the agreement of a trial balance  Types of errors that do not affect the agreement of a trial balance  Types of errors that affect the agreement of a trial balance  Functions of suspense account  Corrections of errors using a Source documents  Meaning of source documents  Types of source documents  Uses of source documents  Relationship between source documents and books of account Books of original entry  Definition of books of original entry  Classifications of books of original entries  Preparation of books of original entry  Posting transactions from the books of original entry to the ledger The cashbook  Definition of cashbook  Types of cashbook  Types of discounts  Recording transactions in a cashbook Petty cashbook  Definition of petty cashbook  Imprest system  Purpose of petty cash  Preparation of petty cashbook Bank reconciliation statements  Definition of bank reconciliation statements  Purpose of preparing bank reconciliation statements  Causes of the differences between bank statements and the cashbook balance  Steps/procedure in preparing bank reconciliation statement Control accounts  Definition of control accounts  Uses of control accounts  Preparation of control account Accounting concepts, conventions and bases  Definition of accounting concepts, conventions and bases  Types of accounting concepts, conventions and bases Capital and revenue expenditure  Definition of capital and revenue expenditure  Double entry system for revenue and capital expenditure  Classification of expenditure Adjustments to final accounts  Meaning of final accounts  Purpose of final accounts adjustment  Procedure of making adjustments in final accounts Accounting for fixed assets  Definition of depreciation  Causes of depreciation  Reasons for providing for depreciation  Methods for providing for depreciation  Double entry for depreciation.  Accounting for disposal of fixed assets  The fixed asset movement schedule Final Accounts for sole-proprietorship  Definition of final accounts  Types of final accounts  Preparation of final accounts Non-Profit Making Organizations  Definition of Non-profit making Organization  Differences between Receipts and payment accounts  Relationship between Income and Expenditure accounts  Preparation of final accounts of Non-profit making Organizations Emerging Trends and Issues in Financial Accounting  Emerging trends and issues in financial accounting  Challenges posed by emerging trends and issues in financial accounting  Coping with the challenges posed by emerging trends and issues in       financial accounting to managing emerging financial issues FILE FILE PAGES: 158 FILE FORMAT:PDF