Scheme of Studies for BS (Computer Science) 2023

Accounting Fundamentals
Course Code: MSAF-176

Semester Credit Hours Prerequisite

[BSCS-2] [3+0] [None]

Course Description
This Course teaches students how to properly read financial statements. The student will be able
to read the three most common financial statements by the end of this course: the income statement,
balance sheet, and statement of cash flows. Then the student can apply his knowledge in a business
context.
Course Learning Outcomes (CLOs)
The course learning outcome along with domain and BT level are listed below

S. # CLO STATEMENT DOMAIN BT LEVEL PLO

CLO-1 Identify why accounting is a necessary C C1
skill. Describe the key concepts and 1
elements of accounting. Understanding

CLO-2 Describe accounting cycle: Preparation C C2

of Journal, ledger, trial balance, income
statement, statement of retained earnings, Analysis
2
statement of owner’s equity and balance
sheet.

CLO-3 Demonstrate accounting entries in C C3

different concerns like adjustments of 3
entries, merchandising concerns etc. Evaluation

* BT= Bloom’s Taxonomy, C=Cognitive Domain, P=Psychomotor Domain, A= Affective Domain

Course Materials
Introduction to Accounting. Accounting Information. Types of Accounting Information. Role of
Accounting Information in making decisions. Accounting Cycle. Accounting Period, Credit,
Debit, Fiscal Year, How to balance the fundamental accounting equation; Debits and Credits; "T"
Accounting; General Journal. Accrual Basis Accounting Applying Matching Principle and
Realization Principle in recording expenses and Revenue. Trial Balance, Its Uses and Limitations.
The Accounting Cycle. Journal, Ledgers and Trial balance. Financial Statements. Nature and
general purpose of Financial Statements. Relevant Accounting Principles. Purpose of the Income
Statement; Multi-Step Income Statement; Statement of Retained Earnings and Classified Balance
Sheet. Relation of Income statement, Statement of Owner's Equity and Balance Sheet. Need for
adjusting entries, Types of Adjusting Entries. Accumulated Depreciation. Book Value. Depreciate
able Assets Converting liabilities to Revenue. Accruing uncollected revenue. Adjusted trial
balance. Purpose of Adjusted Trial Balance. Closing The Temporary Accounts. GAAP(Generally

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 Scheme of Studies for BS (Computer Science) 2023
Accepted Accounting principles). Introduction to Merchandising Concerns. Journal Entries in
Periodic & Perpetual Systems Accounting for Merchandising Concerns Cash and credit purchase
transactions, Cost Transaction. Special cases in Merchandising Companies Net method. Special
cases in Merchandising Companies Gross method. Merchandising Exercise. Practice of the entries
for all merchandising concerns.

Course Weekly Schedule

The course schedule for 17 weeks is detailed below

Week Topic
Introduction to Accounting. Accounting Information. Types of Accounting Information.
1 Role of Accounting Information in making decisions. Importance of Accounting
Information for internal and External users. Accounting Systems.
Basic Terms. Business and its types. Types of Accounts (Assets, Liabilities, Capital,
2 Expense and Revenue. Types of Accounts. Accounting Cycle. Accounting Period,
Credit, Debit, Fiscal Year,
How to balance the fundamental accounting equation; Debits and Credits;
"T" Accounting; Double Entry Accounting; Transactions. Cash and credit transaction.
3 Effect of Transactions on Accounting Equation. Source Documents; General Journal.
Journalizing the events of increase in capital, increase and decrease in Assets and
Liabilities.
General Journal. Accrual Basis Accounting Applying Matching Principle and
Realization Principle in recording expenses and Revenue. General Journal and its
4 relationship to ledger. Posting (Process of transferring information from the journal to
the individual accounts in the Ledger. Types of Ledgers.
Trial Balance, Its Uses and Limitations. The Accounting Cycle. Journal, Ledgers and
5 Trial balance.
Financial Statements. Nature and general purpose of Financial Statements. Relevant
6 Accounting Principles. Purpose of the Income Statement; Multi-Step Income Statement;
What are Retained Earnings, Revenue, Expenses, Net Income, Income Tax,
Statement of Retained Earnings and Classified Balance Sheet. Relation of Income
7 statement, Statement of Owner's Equity and Balance Sheet.

8 Practice from journal to Balance Sheet. Accounting Cycle.

9 Mid Term Exams

Need for adjusting entries, Types of Adjusting Entries. The concept of Depreciation.
10 Accumulated Depreciation. Book Value. Contra Asset Account. Depreciate able Assets.
Useful Life. Converting Assets to Expenses; Prepaid Expenses, Accrued Expenses

Converting liabilities to Revenue. Accruing uncollected revenue. Adjusted trial balance.

11 Purpose of Adjusted Trial Balance. Effects of Adjusting Entries on Financial Statements

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 Scheme of Studies for BS (Computer Science) 2023
Week Topic
Preparing a Worksheet and its uses. Closing The Temporary Accounts. Preparation of
12 After Closing Trial Balance.
GAAP(Generally Accepted Accounting principles). Introduction to Merchandising
13 Concerns. Operating cycle of Merchandising Companies
Journal Entries in Periodic & Perpetual Systems Accounting for Merchandising
14 Concerns
Cash and credit purchase transactions, Cost Transaction (Transportation cost), Purchases
15 return and purchases Discount transaction journal entries.
Special cases in Merchandising Companies Net method. Special cases in Merchandising
16 Companies Gross method. Credit terms, Cash discounts, Returns of Unsatisfactory

17 Merchandising Exercise. Practice of the entries for all merchandising concerns.

Recommended Textbooks
1. Financial & managerial accounting (The basis for business decisions), Meigs & Meigs, 15th edition,
McGraw Hill/ Irwin, 2009.

Recommended Reference (Books/Websites/Articles)

1. Software Engineering, A practitioner’s approach, Pressman R. S. & Maxim B. R., 8th
Edition, McGraw-Hill, 2015.
2. Fundamentals of accounting, Libby & Libby, 8th edition, McGraw Hill, 2013.

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