Module For Fundamentals of Accounting

MODULE FOR FUNDAMENTALS OF ACCOUNTING, PARTNERSHIP, AND
CORPORATION ACCOUNTING
Course Title: Accounting Module #1

Course Description: Fundamentals of Accounting 1
Credit Units: 3 units
Total Number of Hours: 56 hours lecture and quizzes + 4 hours major exam
Coverage for Prelim Examination
This subject provides an introduction to accounting, with emphasis on the

importance of accounting to business. It deals with the study of the accounting process
for service and merchandising concerns operated as single proprietorships. Students
explore the role of accounting information in the decision-making process and learn how
to use the various types of accounting information found in financial statements and
annual reports.
Learning Outcomes for Students:
Upon completion of the course, students will be able to:

a. Describe the nature, functions, scope and limitations of accounting, its
major users and uses and its relationship to other disciplines;
b. Develop basic skills in analyzing, recording, classifying, and
summarizing transactions of a single proprietorship engaged in service
and merchandising business;
c. Apply the basic accounting principles, theories and concepts as they
apply to specific accounts, like cash, receivables, payables, inventories
and plant assets;
d. Prepare in good form properly classified financial statements;
e. Appreciate the need for the fair and reliable reporting of assets,
liabilities, owner’s equity, revenue and expenses, as they affect the
economic decision of statement users; and
f. Gather first-hand information, through observation and personal
interview of business proprietors, about how single proprietorships are
operated.
Course Content:
Time Frame: 6 hours
Specific Objectives:
1. Clearly define accounting and cite the importance of accounting to business in
its decision-making process.
2. Identify the users of accounting information.
3. Describe the different fields of accounting.
4. Properly classify the elements of financial statements and give examples of
each.
5. Appreciate the importance of the accounting principles and assumptions in
recording transactions and in the preparation of the financial reports.
Content Coverage:
1. Definition, purpose, and nature of accounting.
2. Users of accounting information.
3. Specialized accounting fields.
4. Definition, classification of the accounting elements.
5. Forms of business organizations and their activities.
6. Accounting concepts, principles and assumptions.
Time Frame: 6 hours

1. Interpret the accounting equation.
2. Identify, classify, and analyze business transactions.
3. Measure transactions in terms of value received and value parted with.
4. Use appropriate account titles and identify the normal balances of accounts.
Content Coverage:
1. The accounting equation.
2. Business transactions and source documents.
3. T-account
4. The rules of debits and credits
Time Frame: 22 hours

1. Journalize and post transactions relating to a service company.
2. Compute for the balances of accounts and prepare a trial balance.
3. Prepare adjusting entries and appreciate the need of preparing the entries.
4. Prepare working papers.
5. Generate and interpret financial statements.
6. Close the nominal account balances at the end of the accounting period.
7. Present a post-closing trial balance.
8. Identify which adjusting entries are to be reversed in the next accounting
period.
Content Coverage:
1. Journalizing
2. Posting entries to the general ledger
3. Preparation of the following:
a. Trial balance
b. Worksheet
c. Adjusting entries for prepayments, accruals, provision for doubtful
accounts, allowance for depreciation
d. Financial statements
e. Closing entries
f. Post-closing trial balance
g. Reversing entries
4. Interpreting financial statements

1. Distinguish a service concern from a merchandising/trading concern.
2. Analyze and journalize transactions of a merchandising/trading concern.
3. Compute for VAT Input and Output Tax.
4. Post entries to the general ledger.
5. Present and interpret standard financial statements.
Content Coverage:
1. Journalizing
2. Posting entries to the general ledger
3. Preparation of the following:
h. Trial balance
i. Worksheet
j. Adjusting entries for prepayments, accruals, provision for doubtful
accounts, allowance for depreciation
k. Financial statements
l. Closing entries
m. Post-closing trial balance
n. Reversing entries
4. Interpreting financial statements
Prelim Examination: 4 hours

Type of Examination: 20 multiple choice questions – 10 theory and 10 short problem
(20%), long problem – from analyzing business transactions to preparation of financial
statements (80%)
Regular quizzes shall also be given every after the end of each content coverage.
Course Description: Fundamentals of Accounting 2 – Partnership Accounting
Total Number of Hours: 56 hours discussion + 4 hours major exam
Coverage for Midterm Examination
This concerns basic knowledge in partnership formation, operations, dissolution,

changes in ownership and lump-sum liquidation.

a. Be able to analyze the technical aspect of accounting in partnership;
b. Explain how partnership accounting differs from sole proprietorship;
c. Sharpen his interest in accounting studies; and
d. Appreciate the role of partnership accounting in effective business
organization.
Course Content:
1. Define a partnership.
2. Differentiate a partnership business from a single proprietorship.
3. Enumerate the different characteristic of a partnership.
4. Explain the advantages and disadvantages of a partnership over the other
forms of business organizations.
5. Describe the different kinds of partnerships.
6. Classify the partners in partnership.
7. State the importance and the contents of the articles of co-partnership.
8. Enumerate the requirements in forming a partnership.
9. Discuss the different ways of forming a partnership.
10. Record the formation of a partnership/corporation.
11. Prepare the statement of financial position after the formation of a partnership.
Content Coverage:
1. Definition of partnership.
2. Characteristics of a partnership.
3. Advantages and disadvantages of partnership.
4. Kinds of partnership.
5. Classification of partners.
6. Articles of Co-partnership.
7. Formation of a partnership.
1. Account for the partners’ capital, drawing, and loan accounts.
2. Explain the different methods of distributing the profit/loss to the partners.
3. Compute for the profit or loss of a partnership at the end of an accounting
period.
4. Distribute the profit/loss of a partnership to partners according to their
agreement.
5. Record the distribution of the profit/loss in the books of the partnership.
Content Coverage:
1. Partners’ capital, loan and drawing accounts.
2. Profit or loss distribution to partners equally, arbitrary ratio, capital ratio, bonus,
salaries and interests to partners, remainder based on agreed ratios.
3. Closing entries to distribute profit or loss.

1. Define partnership dissolution.
2. Distinguish dissolution with changes in ownership structure from dissolution
with liquidation.
3. Explain the causes why partnerships are dissolved.
4. Differentiate admission of a new partner by purchase from investment.
5. Compute for bonus resulting from the admission of a new partner.
6. Record the admission of a new partner.
7. Compute for bonus resulting from the withdrawal, retirement or death of a
partner.
8. Record the settlement to partners upon his withdrawal or retirement at book
value, more than book value and less than book value.
Content Coverage:
1. Partnership dissolution – Change in ownership
a. Definition of dissolution
b. Causes of dissolution
c. Admission of a new partner by purchase, by investment – with bonus to new
or old partners
d. Withdrawal or retirement of a partner at book value, more than book value,
and at less than book value
e. Death of a partner

1. Differentiate liquidation from dissolution.
2. Explain the steps in partnership liquidation.
3. State the requirements of SEC in liquidating a partnership.
4. Compare lump sum from installment liquidation.
5. Compute and distribute the gain or loss resulting from the realization of the
noncash assets.
6. Prepare the statement of partnership liquidation in a lump sum liquidation.
7. Compute for the settlement to partners.
8. Record the liquidation of a partnership.
Content Coverage:
1. Partnership Liquidation
a. Liquidation vs Dissolution
b. Causes of partnership liquidation
c. Rules in partnership liquidation
d. Methods of partnership liquidation – lump sum and installment
e. Statement of partnership liquidation
f. Schedule of safe payment to partners
g. Recording partnership liquidation
Midterm Examination: 4 hours

Type of Examination: 20 multiple choice questions (10 theory and 10 short problems –
20%), long problems (80%)
Course Description: Fundamentals of Accounting 3 – Corporation Accounting
Total Number of Hours: 56 hours discussion + 4 hours major exam
Coverage for Final Examination
This concerns basic knowledge in corporation accounting – the third basic form of
business organization. Topics include accounting for incorporated businesses, share
capital transactions, accumulated profits and losses, dividends, treasury shares and
conversion of partnership to corporation.

a. Consider and use the technical aspects in the accounting of
corporations;
b. Explain how corporation accounting differs from sole proprietorship and
partnership;
c. Sharpen his interest in accounting;
d. Appreciate the role of corporation accounting in effective business
organization; and
e. Able to handle and execute solutions to problems about corporation
accounting.
Course Content:
1. Define a corporation.
2. Differentiate a corporation from partnership business and single proprietorship.
3. Enumerate the different characteristic of a corporation.
4. Explain the advantages and disadvantages of a corporation over the other
forms of business organizations.
5. Describe the different kinds of corporation.
6. Classify the persons involved in a corporation.
7. State the importance and the contents of the articles of incorporation.
8. Enumerate the requirements in forming a corporation.
9. Record the formation of a corporation.
10. Prepare the statement of financial position after the formation of a corporation.
Content Coverage:
1. Definition of corporation.
2. Characteristics of a corporation.
3. Advantages and disadvantages of corporation.
4. Kinds of corporation.
5. Classification of persons in a corporation.
6. Articles of Incorporation.
7. Formation of a corporation.

1. Explain how Stockholders’ Equity are treated, accounted and presented.
2. Explain the relevance of Stockholders’ Equity accounts for business
management decisions.
3. Use Stockholders’ Equity accounts as tools in business investment evaluation.
Content Coverage:
1. Stockholders’ Equity
a. Concept and organization
b. Books and records
c. Share Capital
1. Paid-in Capital
2. Subscribed Capital
3. Share Premium
d. Issuance of Share Capital – Premium and Discount
e. Classes of Share Capital
f. Delinquent Subscription
g. Sale of Securities in units
h. Treasury Shares
i. Retained Earnings

1. Demonstrate how Book Value per share is computed
2. Explain the relevance of Book Value per share in evaluating investment
possibilities
3. Use Book Value per share in evaluating investment possibilities
Content Coverage:
1. Book Value per share
a. Book Value per share formula
b. Preferred dividends rights
1. Cumulative
2. Non-cumulative
3. Participating
4. Non-participating
Final Examination: 4 hours
Type of Examination: 20 multiple choice questions (10 theory and 10 short problems –
20%), long problems (80%)
Prepared by:
JOHN REY B. RODRIGUEZ, CPA

Instructor
Approved by:
CESARIO O. EDULAN, CPA, MSBA

Dean
College of Business and Accountancy

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What are the main topics covered in the accounting modules?

What are the main topics covered in the accounting modules?

What are the learning outcomes for students in Module 1?

What are the learning outcomes for students in Module 1?

MODULE FOR FUNDAMENTALS OF ACCOUNTING, PARTNERSHIP, AND

Course Title: Accounting Module #1

This subject provides an introduction to accounting, with emphasis on the

Learning Outcomes for Students:

Upon completion of the course, students will be able to:

Time Frame: 6 hours

Time Frame: 22 hours

Time Frame: 22 hours

Prelim Examination: 4 hours

This concerns basic knowledge in partnership formation, operations, dissolution,

Learning Outcomes for Students:

Upon completion of the course, students will be able to:

Time Frame: 12 hours

Time Frame: 14 hours

Midterm Examination: 4 hours

Learning Outcomes for Students:

Upon completion of the course, students will be able to:

Time Frame: 24 hours

Time Frame: 18 hours

JOHN REY B. RODRIGUEZ, CPA

CESARIO O. EDULAN, CPA, MSBA

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