accounting managment

8/12/2019 Accounting Managment

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GHANA TELECOM UNIVERSITY COLLEGE

FACULTY OF IT BUSINESS

BIT

Course Ti tle: Basic Accounting and Management

Session and Year: Morning/ Evening L 300

I nstructor(s): Maxwell Amo-Hoyte

Course Description: This course exposes students to basic accounting and management and theinterrelationship between the two subject areas. It covers the essentials of double entry bookkeeping as well as preparation of final accounts and related adjustments needed. Students willalso be introduced to interpretation of financial statements. The course will also cover themanagement process and the application of management principles to accounting.

Cour se 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

Cour se Content



Bank reconciliation statements Accruals and prepayments

Analysis & Interpretation of Financial Statements

Ratio analysis

Management

Planning and Decision Making

Nature and significance of planning Nature and significance of decision making

Organizing

Process and significance Forms of organization

Communication

Nature and process of communication Significance of communication Effective communication

Leadership



Application of Management Process in Accounting

Planning: Budgeting Decision Making: Accounting for short run and long run decision making1. Marginal and absorption costing2. Short run decision-making3. Breakeven analysis4. Capital investment appraisal

Organizing the accounting system

Communication in the accounting system 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 ementary r eadin g

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

M ethodology:

Being a technical subject, knowledge transfer will include lecture type classes where the



Evaluation

Students will be evaluated as follows:

ACTIVITY PERCENTAGE

Assignments and Assessments 30

Semester End Examination 70

Total 100



Presented byMaxwell Amo-Hoyte



OBJECTIVES

What is AccountingBook keeping and Accounting

Users of Accounting Information Assets, Liabilities, Capital



Definition1. The process of identifying, measuring, and

communicating economic information to permitinformed judgments and decisions by users of theinformation.



Historical Need for AccountingRecord business transactions

Know whether businesses are financiallysuccessfulKnow what owners own and owed



ObjectivesMaking profit or lossKnow business worth

Worth of transactionsKnow cash possesedKnow debtorsKnow creditorsMonitoring of economic activities



ManagersOwners

InvestorsBanks and creditorsTax authoritiesGovernment

Users of Accounting Information



Book keeping and AccountingBook keeping deals with the data entry in books ofaccounts

Accounting deals with the use to which book keepingrecords are put



…Thank You…



OBJECTIVESUnderstand Concept of Double EntryRelationship Between DE and Accounting Equation

Why Records in T-AccountsMeaning of Debit and CreditGolden RuleDemonstrate in tabular increases and decreases inassets, liabilities and capitalMake entries in T-Accounts



Double Entry1. Relates to the 2 effects of a transaction

The Receiving entity and the giving entity

Also relates to the accounts being increased ordecreasedThis is the means of recording transactions in anaccounting system



Nature of an accountTitle of Account

Debit side Credit Side



Golden RuleDr ReceiverCr Giver



Other RulesDr AssetsCr Liabilities

Cr Capital

Dr Expenses & LossesCr Income & Gains



Other Rules Contd.

…Thank You…

Accounts To Record Entry in Account

Assets An increase A Decrease

DrCr

Liabilities An Increase A Decrease

CrDr

Capital An Increase A Decrease

CrDr



Capital = Assets - Liabilities

To increase Cr Dr Cr

To decrease Dr Cr Dr



OBJECTIVES

Understand Concept of Double EntryCalculate profit by comparing income and expenses

Explain the why expenses are debited and incomecreditedMake entries in T-AccountsExplain concept of drawings



Effect of Profit & Loss on Capital1. Capital=Assets-Liabilities

2. Old Capital + Proft = New Capital



Income and ExpenseDr ExpensesCr Income



…Thank You…

accounting managment

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