Principles of Accounting

This module introduces the student to the fundamental concepts and practices of financial accounting. Accounting is presented as a manifestation of various social and political pressures, which required that techniques be developed to account for trading and wealth. The topics covered include accounting in its political, regulatory, historical, social, economic, corporate governance and international contexts; introduction to the theoretical, conceptual and regulatory frameworks of accounting; traditional accounting model; capital, income and profit and measurement; principles of double entry bookkeeping; books of prime entry, ledgers, trial balance, internal controls, use of computers in recording and control of data, construction of final accounts for sole traders, partnerships and limited companies; accruals, prepayments and adjustments; depreciation and stocks; distribution of profits; profit and loss accounts and balance sheets, cashflow statements; nature, purpose, scope and framework of auditing.