COLEGIO DE SAN J UAN DE DE L ETRAN I ntramuros, ntramuros, Manila College Col legeof business business Administrati A dministration on and Acco A ccountancy untancy ACCOUNTANCY ACCOUNTANCY AR EA Syllabus School Y ear 2005-2006 I.
Course Number
:
ACCTG 2
II. Course Title
:
Introduction to Partnership and Corporation Accounting
III. Credit
:
3 units
IV. Prerequisite
:
Acctg. 1
V. Course Description : This is a continuation of the first course in accounting. It deals with transactions, financial financial statements, and problems peculiar to the operations of partnership and corporations corporations as distinguished distinguished from sole sole proprietorships. proprietorships. Topics include: partnership partnership formation formation and operations operations including accounting accounting for the admission of partners, changes in capital, and profit-and loss sharing ratios, the conversion of an unincorporated enterprise into a corporation; accounting for incorporated enterprises, including the preparation of financial statements for internal and external purposes; and sample financial statements of companies in the service, manufacturing manufacturing and trading industries. VI. Course Rationale:
To contribute to the full appreciation of the course, a student should be exposed to the formation, operations, dissolution, and liquidation of partnerships, basic considerations considerations in forming a corporation and stock transactions. transactions.
VII. Course Objectives: A. General Objective: At the end of the course the students are expected to have achieved a thorough understanding of the principles, theories, concepts, structures and relationships of a partnership and the corporate form of business enterprise. B. Specific Objectives: Cognitive: Establish a thorough and working understanding understanding of the overall concepts concepts and principles of accounting as as applied to the partnership and corporate forms of business organization as well as the provision of partnership laws related to the formation, objections, dissolution and liquidation; knowledge in the accounting of partnership transactions including conversion of sole proprietorship to partnership; provisions of corporate law related to formation, capital structure and operations of a corporate form of organization; knowledge in the accounting of corporate transactions, transactions, including conversion of partnership to corporation. corporation.
Affective: Accept the business and social responsibilities attached to both the partnership and corporate forms of business. Integrate the values of honesty, objectivity, mutual trust and concern. Value the importance of basic accounting principles leading to the construction of financial information for decision-making. Psychomotor: Perform the necessary steps in the preparation of financial statements of the partnership and corporate forms of business whether engaged in trading or manufacturing operations.
Specific Objectives
Review the basic principles and concepts learned in accounting 1.
Subject Matter
1.Review of accounting cycle a. Recording of business transaction in the journal. b. Posting to the general ledger c. Preparation of trial balance d. Preparation of 10 column worksheet e. Preparation of adjusting entries f. Preparation of financial statements 1.Multiple step income statement 2. Statement of changes in owners equity. 3.Classified balance sheet g. preparations of closing and reversing entries.
Values Integrated
Sense of appreciation
Strategies/ Teaching Methodologies
-Question and Answer -Discussions -Problem Solving
Instructional Material
-Review Illustrative. -Demonstration problem -Book -Exercises
Evaluation
Time Frame
Review tests, Quizzes
1st week2nd week
Expected Output
Reviewed the basic principles and concepts learned in accounting 1.
Specific Objectives
Define partnership clearly. Enumerate the features of a partnership.
Subject Matter
2.Partnership basic concepts & formation a. Partnership defined b. Features of partnership Cite the advantages and c. Elements of a partnership. disadvantages of a d. Kinds of [partnership partnership as compared to e. Kinds of partners sole proprietorship and f. Partners role corporation. g. Advantages and disadvantages of Explain the accounting partnership principles in partnership h. Articles of a partnership formation. i. Rights of partners j. Partners capital and drawing accounts k. Loan Payable and Loan Journalize transactions Receivable accounts related to partnership l. Opening the books of the formation. partnership m. Forms of investment.
Values Integrated
Sense of appreciation . Objectivity and Fairness.
Strategies/Teaching Methodologies
Lecture, Discussion -Question and answer -LectureDemonstration --Problem Solving
Instructional Material
-Illustrative/ Demonstration Problem -Sample of articles of a coPartnership -Book -Exercise -Case Problem -Practice Set
Evaluation
Tests, Quizzes, long examination
Time Frame 3rd-4th week
Expected Output
Defined partnership clearly. Enumerate the features of a partnership. Cited advantages disadvantages partnership compared to proprietorship corporation.
the and of a as sole and
Explained the accounting principles in partnership formation. Journalized transactions related to partnership formation.
Specific Objectives
Determine the net income or net loss of partnership business. Prepare income statement of a service or merchandising partnership. Apply the different ways of distributing net profit or net loss.
Enumerate the different causes of dissolution. Revise the partners equity after dissolution Apply the accounting principles with regards to goodwill and bonus recognition. Journalize the transaction related to dissolution.
Subject Matter
Values Integrated
3. Partnership operation and division of profit and losses a. Income statement. b. Closing entries c. Worksheet d. Methods of dividing profits and losses e. Factors for an equitable method of distribution. f. Statement of changes in partner’s equity.
Accuracy Appreciation Honesty and fairness
4. Changes in partners equity a. Dissolution defined b. Causes of dissolution c. Accounting procedures to dissolution d. Admission by punches e. Admission by Investment f. Withdrawal of a partner g. Death of a partner h. Incorporation of a partnership i. Recognition of goodwill, bonus and asset revaluation.
Values of fairness and integrity
Strategies/Teaching Methodologies
-Lecture, discussion -Question and answer -Lecture-demonstration -Problem solving -Research
Instructional Material
-Illustrative/ Demonstration Problem --Exercise -Practice Set
Evaluation
Tests, Quizzes, long examination
Time Frame 5th-7th week
Expected Output
Determined the net income or net loss of partnership business. Prepared income statement of a service or merchandising partnership.
-Lecture, discussion -Question and answer -Lecture-demonstration -Problem solving -Group discussion
-Illustrative/ Demonstration Problem --Exercise -Practice Set -cases
Tests, Quizzes, long examination
th
th
8 -9 week
Applied the different ways of distributing net profit or net loss.
Specific Objectives
Subject Matter
ValuesIntegrated
Strategies/Teaching Methodologies
Instructional Material
Evaluation
Time Frame
Expected Output
COMMUNI TY SERVI CE I NTEGRATION
Provide the students with Nature, Lecture-discussion Illustration, formation and Organizing skills the basic operational organization of partnership. Obedience and Project study in Exercises knowledge of partnership compliance to partnership organization Problem-solving accounting that they may government rules apply to adopted community.
Quizzes Seat works
Provided the students with the basic operational knowledge of partnership accounting that they may apply to adopted community.
MID-TERM EXAMINATION
Differentiate dissolution from liquidation. Apply the legal provisions for partnership liquidation; apply accounting procedures for lump-sum liquidation. Prepare the statement of liquidation Record the transactions involved in lump-sum liquidation.
5. Partnership Liquidation (general Partnership) a. Liquidation defined b. Distinction between dissolution and liquidation c. Liquidation by Lumpsum method d. Statement of partnership Liquidation. e. Entries in liquidation. f. Cash distribution by lump-sum method 1. Partners with loan account 2. Deficient partners in solvent 3. Exercise of the right of offset
Values of fairness and integrity
-Lecture, discussion -Question and answer -Lecture-demonstration -Problem solving
-Illustrative/ Demonstration Problem --Exercise -Practice Set -Cases
Tests, Quizzes, long examination
th
10 week
Differentiated dissolution from liquidation. Applied the legal provisions for partnership liquidation; apply accounting procedures for lump-sum liquidation. Prepared the statement of liquidation Recorded the transactions involved in lumpsum liquidation.
Specific Objectives
Subject Matter
Define corporation. Discuss the attributes of a corporation Explain the incorporation requirements. List down the different kinds of corporation. Describe the kinds of Capital Stock. Examine the different components of stockholders equity Journalize capital stock transaction.(using two methods) Journalize dividends, treasures stocks & retained earnings. Compute EPS and BVS.
6.Accounting for Corporate formation and Operation. a. Formation of corporation. Definition 1. Characteristics. 2. Types of corporation 3. Distinction between partnership and corporation. b. Accounting for formation and operation. 1. Recording of preferred and common stock (par, non-par, stated value) transactions under memorandum & journal entry methods. 2. Incorporation of sole proprietorship and/or partnership.
Values Integrated
Adherence to legal provisions Faithfulness Values of fairness, honesty and integrity Care and Accuracy
Strategies/Teaching Methodologies
-Lecture, discussion -Question and answer -Lecture-demonstration -Problem solving
Instructional Material
-Illustrative/ Demonstration Problem --Exercise -Practice Set -Cases
Evaluation
Time Frame
Tests, Quizzes, long examination
11th-14th week
Expected Output Defined corporation. Discussed the attributes of a corporation Explained the incorporation requirements. Listed down the different kinds of corporation. Described the kinds of Capital Stock. Examined the different components of stockholders equity Journalized capital stock transaction.(using two methods) Journalize dividends, treasures stocks & retained earnings. Compute EPS and BVS
Specific Objectives
Subject Matter
Values Integrated
Strategies/Teaching Methodologies
Discuss the nature of manufacturing business. Differentiate manufacturing from merchandising business
7. non-cost manufacturing system. a. Introduction of the elements of manufacturing costs -Direct materials -Direct loan. -Manufacturing expenses. b. Preparation of statement of cost of goods manufactured and income statement.
Values of attentiveness and care
Demonstration-Lectures, question and browser
-Illustrative/ Demonstration Problem --Exercise -Cases
Tests, Quizzes
15th-16th week
8. Voucher system a. Characteristics of the voucher system. b. Books of accounts used c. Accounting entries made.
Value of carefulness and patience
Lecture-discussion Lecture demonstration Problem-solving Question and answer.
-Illustrative/ Demonstration Problem --Exercise -Cases
Tests, Quizzes
17 week
. Journalize manufacturing transactions. Prepare statement of cost of goods manufactured and sold.
Define what the voucher system is Examine critically the features of the system. Explain the basic concepts of the system. Prepare journal entries using the different books of accounts.
Instructional Material
Evaluation
Time Frame
th
Expected Output
Discussed the nature of manufacturing business. Differentiated manufacturing from merchandising business Journalized manufacturing transactions. Prepared statement of cost of goods manufactured and sold. Defined what the voucher system is Examined critically the features of the system. Explained the basic concepts of the system. Prepared journal entries using the different books of accounts
Specific Objectives
Subject Matter
Correlate the inter relationships of different accounts Analyze the entries made. Compute for missing items and amounts.
9.Simple reconstruction of accounts. a. Determination of net income or loss through reconstruction of. 1. Sales 2. Purchase 3. Expenses 4. Other income 5. Capital accounts b. Reconstruction of accounts from trial balance.
Values Integrated
Strategies/Teaching Methodologies
Instructional Material
Evaluation
Values of accuracy, care and patience
Lecture-discussion Lecture demonstration Question and answer.
Demonstration problems Exercises
Quizzes and tests
Organization skills Compliance to government rules
Lecture-discussion Project study on how to organize a corporation and/or cooperative.
Illustration Exercises Problem-solving
Quizzes Seatwork Examination
Time Frame
Expected Output
18th week
Correlated the inter relationships of different accounts Analyzed the entries made Compute for missing items and amounts.
COMMUNI TY SERVICE I NTEGRATION
Provide thestudents with the basic skills in cooperatives and corporation accounting that they may apply in the adoptedcommunity.
Nature, formation and organization of corporation as well as cooperatives.
FINAL EXAMINATION
Provided the students with the basic skills in cooperatives and corporation accounting that they may apply in the adopted community.
VIII.
Grading System
MIDTERMS
FINALS
CLASS STANDING QUIZZES MIDTERM EXAM
30% 30% 40%
MI DTERM GRADE 100%
CLASS STANDING QUIZZES FINAL EXAM
30% 30% 40%
PRE-FINAL GRADE 100%
FINAL GRADE MIDTERM
IX.
50%
+
PRE-FINAL GRADE
50%
=
100%
Course Policies: Policies on attendance, tardiness and academic dishonesty are found in the Student Handbook.
In case of missed examination and assignments, the student is given the chance to make-up within a week from the day he/she reported, otherwise, it will be equivalent to 50%. Students have to pass an Examination covering Acctg. 1 and 2. X.
Textbook: Baysa and Lupisan, Accounting for Partnership and Corporation, 2005 edition
XI. References: Manuel, Zenaida,, Accounting for Partnership and Corporation, 2004 Edition Ballada, Win Lu, Partnership and Corporation Accounting (Made Easy), 2004 edition
