Module Code and Title:       ACT201          Accounting Fundamentals

Programme:                          BCA

Credit Value:                         12

Module Tutor:                       Arindam Ghosh, Madhav Verma

Module Coordinator:             Arindam Ghosh

General Objective: The overall objective of this module is to help students develop an entry-level aptitude in maintaining books of accounts as necessary for a small business. The module provides students with a basic understanding of business and accounting processes followed by typical organizations. Students may apply this knowledge in the future for accounting purposes for their own businesses and/or for the purposes of developing and using software solutions for business/accounting problems.

Learning Outcomes – On completion of the module, learners will be able to:

1. Describe basic accounting theories principles and practices.
2. Record sample business transactions in appropriate account books.
3. Prepare financial statements for a typical trading business.
4. Describe the extent of the data that goes into the analysis of financial accounting information and how IT is can serve as an enabler for such analysis.
5. Use an accounting package to record simple transactions and generate accounting reports.
6. Compute the basic numerical aspects of a business transaction.
7. Prepare cash-flow statements.
8. Evaluate and record basic accounting transactions accurately and thoroughly for different types of business organizations.

Learning and Teaching Approach:

Assessment Approach:

A. Written assignments: Portion of Final Mark: 10%

Each student will complete 2 written assignments (500 words each), each being worth 5%, on topics related with hypothetical practical problems on accounting.

40% - Content, identifying the problems areas

40% - Analysis of problems and suggest solutions using appropriate business analysis tools and techniques.

20% - Presentation, writing style- use of proper academic style

B. Lab Practical Exam: Portion of Final Marks: 10%

Students will be assigned a topic which they need to solve in Computer lab through Tally package. The performance of the students will be assessed on the basis of the following criteria:

20%- Understanding the problem

30%- Analysing the data

50%- Solving the problem

C. Class problem solving exercises: Portion of Final Mark: 15%

Students will be required to solve situation-based business-related problems in class using different techniques and tools of accounting covered under each units. There will be 3 such problem solving exercises each of 30-40 min duration.

Each test is worth 5% which will be assessed on the following criteria.

      40% - Identifying and analysing the problem

      60% - Correct solution of the problem

D. Presentation: Portion of Final Mark: 10%

Students will be assigned topics in groups of 4-5. Each individual student will present a part of the work. The duration of whole presentation will be 10-12 minutes, followed by Q&A.

40% - Group mark: coordination of presentation and distribution of work among the group member.

60% - Individual mark will be assessed on following criteria:

20% - Subject knowledge and Ability to answer Q& A

20% - Presentation skills: body language, pronunciation, audibility, timing

20% - Organization of presentation

E. Quizzes: Portion of Final Marks: 10%

Each student will complete two short written individual quizzes of 20 min duration each, covering the subject matter discussed before and after midterm. Each quiz worth 5% will be fact-based to evaluate their ability to solve the problems through accounting concepts and techniques. The assessment criteria is entirely based on accuracy of answers to factual financial questions.

F. Class participation and preparedness: Portion of Final Mark: 5%

Each student will be assessed based on their active participation and preparedness in the class by contributing to the class discussions by answering questions, stating their opinions, and solving in class exercises during the sessions.

This will be assessed based on contribution to the class discussion and listening to and responding logically to the viewpoints of others.

G. Midterm: Portion of Final Marks: 15%

This a college wide examination conducted at the half-way into the semester. This examination is conducted for 1 hour and 30 Minutes and it includes all topics till the half-way point in the subject matter.

Prerequisites:

Subject Matter:

1. Business Processes
   • Business Types and Structures
   • Nature of business processes: routines, activities, and the value chain
   • Process innovation methodologies and approaches including analysis of existing processes and design of new processes
   • Information Technology as an enabler of business process innovation
2. Financial Accounting Information
   • External and internal accounting information requirement
   • Objectives of financial accounting; qualitative characteristics of financial accounting information
   • Accounting concepts and conventions
   • Accounting information systems
   • Limitations of financial statements
3. Accounting cycle & Preparation of Financial Statements
   • Accounting equation and effects of business transaction on accounting equation
   • Journal- General journal and special journals
   • Posting and balancing of ledgers
   • Concept of multiple ledgers (theory only)
   • Preparation of trial balance.
   • Elements of Balance Sheet- Assets, liabilities and owner’s equity
   • Elements of Income Statement- revenue, income, expense, and losses
4. Preparation of Final Accounts of Sole Proprietorship
   • Introduction; Trading Account
   • Profit and Loss Account; Balance Sheet
   • Adjustment entries
5. Cash Flow Statement
   • Introduction, Definition, Objectives of Preparing Cash Flow statement
   • Difference between Cash flow statement and Income Statement
   • Classification of activities, Operating, financial and investment
   • Preparation of Cash Flow Statement
6. Introduction to Accounting packages
   • Introduction; Company creation, alteration and deletion
   • Creating account Master
   • Accounts information; Group creation
   • Ledger creation-single and multiple, ledger configuration, alteration and deletion
   • Accounting entries –Vouchers creation and recording transaction
   • Backup
   • Report viewing and printing -Trail balance, Profit and loss statement
   • Balance sheet and Cash flow statement.

Reading List

1. Essential Reading:
   • Grewal, T.S., (2000) Double Entry Book Keeping, (latest edition available), Sultan Chand, Delhi
   • Albrecht, W. Steve, (2000) Financial Accounting Concepts and Applications South-Western
   • Nadhani, A. (n.d.). Tally.ERP 9: Basic Accounts, Invoice, Inventory (2012 ed.). BPB.
   • Narayanaswamy, R. (2014). Financial Accounting: A Managerial Perspective (2nd ed.). PHI.
2. Additional Reading:
   • Sehgal, D.Sehgal. (2006). Fundamentals of financial accounting. Taxmann allies services
   • Gupta, R.L. & Radhaswamy, M. (2001). Advanced Accountancy, Sultan Chand & Sons, New Delhi.
   • HOW TO READ A CASH FLOW STATEMENT (2nd ed.). (2013). McGraw Hill Education (India) Private Limited.
   • Horngren, C. (2008). Introduction to Financial Accounting (9th ed.). Pearson Education.

Date: May 30, 2015