Accounting Managment

GHANA TELECOM UNIVERSITY COLLEGE FACULTY OF IT BUSINESS BIT

Cour se Ti tle:  Basic Accounting and Management Ses Sessi on and Y ear: ar :  Morning/ Evening L 300 I nstru nstru ctor(s): ctor(s): Maxwell Amo-Hoyte Cour se Descri Descri ption : This course exposes students to basic accounting and management and the

interrelationship between the two subject areas. It covers the essentials of double entry book keeping as well as preparation of final final accounts and related adjustments needed. Students will also be introduced to interpretation of financial statements. The course will also cover the management process and the application of management principles to accounting. Cour se objectives: objectives:

The course should equip students to  Make adjustments to and prepare final accounts for sole proprietors and companies  Analyze and interpret financial statements  Appreciate the management process and its application to accounting   

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Bank reconciliation statements

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Accruals and prepayments prepayments

Analysis & Interpretation of Financial Statements 

Ratio analysis

Management

Planning and Decision Making 

Nature and significance of planning

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Nature and significance of decision making

Organizing 

Process and significance

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Forms of organization

Communication 

Nature and process of communication communication

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Significance of communication

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Effective communication communication

 Application of Management Process in Accounting 

Planning: Budgeting

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Decision Making: Accounting for short run and long run decision making 1. Marginal and absorption costing 2. Short run decision-making 3. Breakeven analysis 4. Capital investment appraisal

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Organizing the accounting system

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Communication in the accounting system

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Control: Performance monitoring and variance analysis

Requi red textbooks

 Business Accounting 1: F Wood and A. Sangster  Accounting Handbook - Notes Questions and Answers: A. A. Twumasi  Management Theory & Practice: G.A. Cole  Management –  A Global Perspective: H. Weihrich & H Koontz Suggested suppl ementar y r eadin g

 Book Keeping and Accounts: Spicer and Pegler’s  Management –  Theory and Practice: N.C. Jan & Saakshi M ethodology:

Evaluation

Students will be evaluated as follows: ACTIVITY

PERCENTAGE

 Assignments and Assessments

30

Semester End Examination

70

Total

100

Presented by Maxwell Amo-Hoyte

OBJECTIVES    

 What is Accounting Book keeping and Accounting Users of Accounting Information  Assets, Liabilities, Capital

Definition 1.

The process of identifying, measuring, and communicating economic information to permit informed judgments and decisions by users of the information.

Historical Need for Accounting 

Record business transactions

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Know whether businesses are financially successful

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Know what owners own and owed

Objectives       

Making profit or loss Know business worth  Worth of transactions Know cash possesed Know debtors Know creditors Monitoring of economic activities

Users of Accounting Information      

Managers Owners Investors Banks and creditors Tax authorities Government

Book keeping and Accounting 

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Book keeping deals with the data entry in books of accounts  Accounting deals with the use to which book keeping records are put

…Thank You…

Presented by Maxwell Amo-Hoyte

OBJECTIVES      

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Understand Concept of Double Entry Relationship Between DE and Accounting Equation  Why Records in T-Accounts Meaning of Debit and Credit Golden Rule Demonstrate in tabular increases and decreases in assets, liabilities and capital Make entries in T-Accounts

Double Entry 1.  

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Relates to the 2 effects of a transaction The Receiving entity and the giving entity  Also relates to the accounts being increased or decreased This is the means of recording transactions in an accounting system

Nature of an account Title of Account Debit side

Credit Side

Golden Rule  

Dr Receiver Cr Giver

Other Rules   

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Dr Assets Cr Liabilities Cr Capital Dr Expenses & Losses Cr Income & Gains

Other Rules Contd.  Accounts

To Record

Entry in Account

 Assets

An increase  A Decrease

Dr Cr

Liabilities

An Increase  A Decrease

Cr Dr

Capital

An Increase  A Decrease

Cr Dr

…Thank You…

Capital

=

Assets

-

Liabilities

To increase

Cr

Dr

Cr

To decrease

Dr

Cr

Dr

Presented by Maxwell Amo-Hoyte

OBJECTIVES   

 

Understand Concept of Double Entry Calculate profit by comparing income and expenses Explain the why expenses are debited and income credited Make entries in T-Accounts Explain concept of drawings

Effect of Profit & Loss on Capital 1.

Capital=Assets-Liabilities

2. Old Capital + Proft = New Capital

Income and Expense  

Dr Expenses Cr Income

…Thank You…