ACCTG2 - Introduction to Partnership and Corporation Accounting

COLEGIO DE SAN JUAN DE LETRANIntramuros, Manila

College of business Administration and AccountancyACCOUNTANCY AREA

SyllabusSchool Year 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 statements, and problems peculiar to the operations of partnership and corporations as distinguished from sole proprietorships. Topics include: partnership formation and operations including 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 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 in forming a corporation and stock 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 of the overall concepts and principles of accounting 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, including conversion of partnership to 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 Subject Matter Values Strategies/ Instructional Evaluation Time Expected

Integrated Teaching Methodologies

Material Frame Output

Review the basic principles and concepts learned in accounting 1.

1.Review of accounting cyclea. Recording of business

transaction in the journal.b. Posting to the general ledgerc. Preparation of trial balanced. Preparation of 10 column

worksheete. Preparation of adjusting

entriesf. Preparation of financial

statements1.Multiple step income statement2. Statement of changes in owners equity.3.Classified balance sheet

g. preparations of closing and reversing entries.

Sense of appreciation

-Question and Answer-Discussions-Problem Solving

-Review Illustrative.-Demonstration problem-Book -Exercises

Review tests,Quizzes

1st week- 2nd week

Reviewed the basic principles and concepts learned in accounting 1.

Specific Objectives Subject Matter Values Integrated

Strategies/Teaching Methodologies

Instructional Material

Evaluation Time Frame

Expected Output

Define partnership clearly.Enumerate the features of a partnership.

Cite the advantages and disadvantages of a partnership as compared to sole proprietorship and corporation.

Explain the accounting principles in partnership formation.

Journalize transactions related to partnership formation.

2.Partnership basic concepts & formation

a. Partnership definedb. Features of partnershipc. Elements of a partnership.d. Kinds of [partnershipe. Kinds of partnersf. Partners roleg. Advantages and

disadvantages of partnership

h. Articles of a partnershipi. Rights of partnersj. Partners capital and

drawing accountsk. Loan Payable and Loan

Receivable accountsl. Opening the books of the

partnershipm. Forms of investment.

Sense of appreciation

.Objectivity and Fairness.

Lecture, Discussion-Question and answer-Lecture-Demonstration--Problem Solving

-Illustrative/ Demonstration Problem-Sample of articles of a co-Partnership-Book-Exercise-Case Problem-Practice Set

Tests, Quizzes, long examination

3rd-4th week

Defined partnership clearly.Enumerate the features of a partnership.

Cited the advantages and disadvantages of a partnership as compared to sole proprietorship and corporation.

Explained the accounting principles in partnership formation.

Journalized transactions related to partnership formation.

Specific Objectives Subject Matter Values Integrated Strategies/Teaching Methodologies



Expected Output

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 dissolutionApply the accounting principles with regards to goodwill and bonus recognition.Journalize the transaction related to dissolution.

3. Partnership operation and division of profit and losses

a. Income statement.b. Closing entriesc. Worksheetd. Methods of dividing

profits and lossese. Factors for an equitable

method of distribution.f. Statement of changes in

partner’s equity.

4. Changes in partners equitya. Dissolution definedb. Causes of dissolution c. Accounting procedures to

dissolutiond. Admission by punchese. Admission by Investmentf. Withdrawal of a partnerg. Death of a partnerh. Incorporation of a

partnershipi. Recognition of goodwill,

bonus and asset revaluation.

Accuracy Appreciation Honesty and fairness

Values of fairness and integrity

-Lecture, discussion-Question and answer-Lecture-demonstration-Problem solving-Research

-Lecture, discussion-Question and answer-Lecture-demonstration-Problem solving-Group discussion

-Illustrative/ Demonstration Problem--Exercise-Practice Set

-Illustrative/ Demonstration Problem--Exercise-Practice Set-cases



5th-7th week

8th-9th week

Determined the net income or net loss of partnership business.

Prepared income statement of a service or merchandising partnership.

Applied the different ways of distributing net profit or net loss.

Specific Objectives Subject Matter Values Integrated Strategies/Teaching Methodologies



Expected Output

COMMUNITY SERVICE INTEGRATION

Provide the students with the basic operational knowledge of partnership accounting that they may apply to adopted community.

Differentiate dissolution from liquidation.Apply the legal provisions for partnership liquidation; apply accounting procedures for lump-sum liquidation.Prepare the statement of liquidationRecord the transactions involved in lump-sum liquidation.

Nature, formation and organization of partnership.

MID-TERM EXAMINATION

5. Partnership Liquidation (general Partnership)

a. Liquidation definedb. Distinction between

dissolution and liquidation

c. Liquidation by Lump-sum method

d. Statement of partnership Liquidation.

e. Entries in liquidation.f. Cash distribution by

lump-sum method1. Partners with

loan account2. Deficient partners

in solvent3. Exercise of the

right of offset

Organizing skillsObedience and compliance to government rules

Values of fairness and integrity

Lecture-discussionProject study in partnership organization

-Lecture, discussion-Question and answer-Lecture-demonstration-Problem solving

Illustration, ExercisesProblem-solving

-Illustrative/ Demonstration Problem--Exercise-Practice Set-Cases

QuizzesSeat works


10th week

Provided the students with the basic operational knowledge of partnership accounting that they may apply to adopted community.

Differentiated dissolution from liquidation.Applied the legal provisions for partnership liquidation; apply accounting procedures for lump-sum liquidation.Prepared the statement of liquidationRecorded the transactions involved in lump-sum liquidation.





Expected Output

Define corporation. Discuss the attributes of a corporationExplain the incorporation requirements.List down the different kinds of corporation.Describe the kinds of Capital Stock.Examine the different components of stockholders equityJournalize 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

corporation3. 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.

Adherence to legal provisions

Faithfulness

Values of fairness, honesty and integrity

Care and Accuracy

-Lecture, discussion-Question and answer-Lecture-demonstration-Problem solving

-Illustrative/ Demonstration Problem--Exercise-Practice Set-Cases


11th-14th week

Defined corporation. Discussed the attributes of a corporationExplained the incorporation requirements.Listed down the different kinds of corporation.Described the kinds of Capital Stock.Examined the different components of stockholders equityJournalized capital stock transaction.(using two methods)Journalize dividends, treasures stocks & retained earnings.Compute EPS and BVS





Expected Output

Discuss the nature of manufacturing business.Differentiate manufacturing from merchandising business

.Journalize manufacturing transactions.Prepare statement of cost of goods manufactured and sold.

Define what the voucher system isExamine critically the features of the system.Explain the basic concepts of the system.Prepare journal entries using the different books of accounts.

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.

8. Voucher systema. Characteristics of the

voucher system.b. Books of accounts usedc. Accounting entries made.

Values of attentiveness and care

Value of carefulness and patience

Demonstration-Lectures, question and browser

Lecture-discussionLecture demonstrationProblem-solvingQuestion and answer.

-Illustrative/ Demonstration Problem--Exercise-Cases

-Illustrative/ Demonstration Problem--Exercise-Cases

Tests, Quizzes

Tests, Quizzes

15th-16th week

17th week

Discussed the nature of manufacturing business.Differentiated manufacturing from merchandising businessJournalized manufacturing transactions.Prepared statement of cost of goods manufactured and sold.

Defined what the voucher system isExamined critically the features of the system.Explained the basic concepts of the system.Prepared journal entries using the different books of accounts





Expected Output

Correlate the inter relationships of different accountsAnalyze the entries made.Compute for missing items and amounts.

COMMUNITY SERVICE INTEGRATION

Provide the students with the basic skills in cooperatives and corporation accounting that they may apply in the adopted community.

9.Simple reconstruction of accounts.

a. Determination of net income or loss through reconstruction of.

1. Sales2. Purchase3. Expenses4. Other income5. Capital accounts

b. Reconstruction of accounts from trial balance.

Nature, formation and organization of corporation as well as cooperatives.

FINAL EXAMINATION

Values of accuracy, care and patience

Organization skillsCompliance to government rules

Lecture-discussionLecture demonstrationQuestion and answer.

Lecture-discussionProject study on how to organize a corporation and/or cooperative.

Demonstration problemsExercises

Illustration ExercisesProblem-solving

Quizzes and tests

QuizzesSeatworkExamination

18th week Correlated the inter relationships of different accountsAnalyzed the entries madeCompute for missing items and amounts.

Provided the students with the basic skills in cooperatives and corporation accounting that they may apply in the adopted community.

VIII. Grading System

MIDTERMS FINALSCLASS STANDING 30% CLASS STANDING 30%QUIZZES 30% QUIZZES 30%MIDTERM EXAM 40% FINAL EXAM 40%

MIDTERM GRADE 100% PRE-FINAL GRADE 100%

FINAL GRADE

MIDTERM 50% + PRE-FINAL GRADE 50% = 100%

IX. 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

ACCTG2 - Introduction to Partnership and Corporation Accounting

Documents

Transcript of ACCTG2 - Introduction to Partnership and Corporation Accounting