DEPARTMENT OF CONTINUING EDUCATION,SCHOOL OF LIBERAL STUDIES,NUHU BAMALLI POLYECHINIC,P.M.B. 1061, ZARIA.LECTURE NOTE FOR PRELIMINARY MANAGEMENT STUDIES.ONFINANCIAL ACCOUNTING-1COMPILED BY:I.YUSUF
COURSE OUTLINEONFINANCIAL ACCOUNTING (1)1STSEMESTER, 2010/2011 SESSION1.INRODUCTION;2.NATURE AND SCOPE OF ACCOUNTING;3.THEORY OF DOUBLE ENTRY SYSTEM;4.CASH BOOK;5.BANK TRANSACTIONS AND RECONILIATION STATEMENTS;6.PREPATION OF FINAL ACCOUNTS OF A SOLE TRADER;7.DEPARTMENTAL ACCOUNTS;8.PREPARATION OF ACCOUNTS FROM INCOMPLETE RECORDS; AND9.ACCOUNTS OF NOT-FOR-PROFIT MAKING ORGANISATION.
INTRODUCTIONAccounting begins as far back as 3600BC. There has been record keeping on tabulates, such as animalskins, leaf, bones, stone, among others. The records are of events and properties, because possessionsas at then are few. As time pass by, traditional rulers ask their people to start keeping record of inventoryof properties. Accounting system of these days was developed by Italian merchant in 13thand 14thcenturyon double entry system, event though there was no consensus on the place in which it originate. Whatled to the development of double entry system are: i) Power of expressions, ii) Introduction of Arabic andRomans numbers and iii) The expansion of trade around Italian city. Before double entry system, therewas single entry, but the system can not accommodate the complexity of transactions,as such doubleentry was introduced.However, in the year 1340it was believed to be a starting point of double entry andLuka Pacioliwhobase in Vennis is the founding father. He did much in spreading the system. His book was first to circulateor published on double entry system. The book was later copied into other languages such as German,French, English, among others.Moreover,in 17thand 18thcentury, Italian city decline commercially and the business was then taken overby Spain, Portugal, France, united kingdom, among others who are then, the new world trade centers.19thand 20thcentury was the year for industrial revolution. The reason for the revolution was as a result ofchange from home based production to factory based production. Thereby other filed of accountingemerged such as Public Sector Accounting, Auditing, cost Accounting, management Accounting. Taxationand a host of others. Finally, 21stcentaury was the period for Information and Communication Technology(ICT) which led to activities being processed on-line. e.g. e-banking, e-commerce, e-transaction, e-registration, e-learning, among others. Therefore, the main aim of Book-keeping and Accounting is toprovide information to owners as to the position of assets and liabilities of the business and its mainsignificance is to serve as a tool for management decision,NATURE AND SCOPE OF ACCOUNTINGDifference between Book-keeping and Accounting:i.Book-keeping is an act of recording information of business transaction. While accounting isthe process of expressing economic activities of every day life in monetary terms.