module specification

AC3101 - Principles of Accounting (2017/18)

Module specification Module approved to run in 2017/18
Module title Principles of Accounting
Module level Foundation (03)
Credit rating for module 30
School Guildhall School of Business and Law
Total study hours 300
210 hours Guided independent study
90 hours Scheduled learning & teaching activities
Assessment components
Type Weighting Qualifying mark Description
In-Course Test 20%   In class test
Coursework 40%   Coursework
Coursework 40%   Coursework
Running in 2017/18
Period Campus Day Time Module Leader
Year City Tuesday Morning

Module summary

This module focuses on the accounting requirements of business organisations for internal and external reporting and decision making. It will examine
the financial and management accounting techniques and decisions for sole tradersand limited companies.

Module aims

1.  to enable students to understand the underlying principles of double entry bookkeeping, the financial and management accounting processes and to prepare/construct relevant accounting statements
2.  to enable students to evaluate the strengths and weaknesses of accounting information systems and how they relate to the decision making uses of financial accounting statements
3.  to enable students to analyse and interpret the financial accounting statements of a limited company
4.  to enable students to understand management accounting techniques and their relevance to management decision making


1.  the income statement, the statement of financial position, the statement of cash flows
2.  accounting adjustments and double-entry bookkeeping, simple suspense and control accounts
3.  interpreting financial statements and capital structure ratios
4. break-even analysis and budgeting
5.  short-term decision making with pricing and costs
6.  investment appraisal techniques

Learning and teaching

The learning and teaching strategy for the module is based upon key principles and techniques being introduced in a weekly 1 hour lecture which students then develop and practice using seminar examples.  The week-by-week content of the module runs alongside the topics covered in the core textbook.  Students will use the online resource centre accompanying the textbook which has additional practice questions and answers, flashcard glossaries of key terms, multiple choice questions, PowerPoint slides and a test bank.

Students will be responsible for attempting set questions in advance of seminar groups.  Reflective learning will take place in the evaluation of users needs for decision making.

Learning outcomes

On completing the module students will be able to :

1.  construct a set of financial accounting statements for a sole trader and a  limited company, highlight the decision making needs of external users of financial reports
2.  understand and effectively use the double-entry system of bookkeeping including simple suspense and control accounts
3. calculate, interpret and understand the limitations of a set of accounting ratios for a limited company
4. calculate and interpret short-term cost analysis and budgeting for internal decision making purposes  
5.  understand the principles involved in cost estimation for planning, control and decision making and use and interpret performance measurement  and investment appraisal techniques for long-term decision making

Assessment strategy

The assessment strategy for the module will comprise three elements.  The one in-class test will assess knowledge and understanding of double entry bookkeeping, one coursework will require students to prepare an individual report and construct final accounting statements for a limited company whilst the second coursework will assess the management accounting learning outcomes.


Core textbook
Carey M., Knowles C. and Towers-Clark J.  Third Edition  (  2017 )  Accounting a smart approach Oxford University Press

Additional reading

Weetman, P.  ( 2015 )  Financial and Management Accounting   Seventh edition  FT Prentice Hall

Financial Reporting Council


Accountancy Age