Introduction to financial accounting notes pdf

Types of reserves share premium, revaluation reserve, general reserves and retained profits.Issue of shares (exclude issue instalment and forfeiture).Types of share capital вЂ“ ordinary shares and preference shares.Changes in partnership вЂ“ Admission of a new partner, retirement and change in profit sharing ratio.Distinction between current and fixed capital.Correction of accounting errors and suspense account 5. Trade payables вЂ“ payables control accountsД¤.Cash in hand вЂ“ cash book and petty cashbook.Cash at bank - cashbook and bank reconciliation statement.Trade receivables вЂ“ bad debts and allowance for doubtful debts and receivables control accounts.cost method (FIFO and weighted average cost) Inventory вЂ“ recognition, measurement and valuation using specific.Property, plant and equipment - recognition, capital and revenue expenditure, measurement (depreciation and revaluation), disposal and disclosures - property, plant and equipment schedule.Computerised accounting systems- Role of computers, application and accounting softwares in the accounting process, benefits and challenges of operating computerised accounting systems.Double entry and the ledger general ledger, sales ledger, purchases ledger.Books of original entry: sales journal, purchases journal, returns inward, returns outward journal, cashbook, petty cashbook and general journal.remittance advice, receipts, petty cash vouchers_ sales arid purchase invoices, credit notes and debit notes, bank statements) Source documents (quotations_ purchases order, statement of account.Qualities of useful accounting information.Accounting standards (IAS/IFRS), (Importance and limitations).Users of accounting information and their respective needs.Prepare basic financial statements of sole traders.Prepare books of original entry and basic ledger accounts under double entry system.

This paper is intended to equip the candidate with knowledge, skills and attitudes that will enable him/her to prepare financial statements for different entities LEARNING OUTCOMESДЄ candidate who passes this paper should be able to: PAPER NO 1: INTRODUCTION TO FINANCIAL ACCOUNTING

Introduction to financial accounting notes pdf