module specification

AC3101 - Principles of Accounting (2024/25)

Module specification Module approved to run in 2024/25
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
90 hours Scheduled learning & teaching activities
210 hours Guided independent study
Assessment components
Type Weighting Qualifying mark Description
In-Course Test 20%   One hour in-class test on double-entry bookkeeping
Coursework 40%   1000 word report on limited company accounting statements
Coursework 40%   1000 word report on management accounting case study
Running in 2024/25

(Please note that module timeslots are subject to change)
No instances running in the year

Module summary

Brief description - 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 traders and limited companies.

Delivery  -  It will be delivered using lectures and seminars across the teaching year.
Assessment  -  It will be assessed using one in-class test on the principles of double entry bookkeeping  ( 20% ), one piece of coursework on the principles of financial accounting ( 40% ) and one piece of coursework on the principles of management accounting( 40% ).

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  LO1
2.  accounting adjustments and double-entry bookkeeping, simple suspense and control accounts LO1
3.  interpreting financial statements and capital structure ratios  LO2
4. break-even analysis and budgeting  LO3
5.  short-term decision making with pricing and costs  LO3
6.  investment appraisal techniques  LO3

Balance of independent study and scheduled teaching activity

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 and
understand and effectively use the double-entry system of bookkeeping including simple suspense and control accounts
2. calculate, interpret and understand the limitations of a set of accounting ratios for a limited company
3. calculate and interpret short-term cost analysis and budgeting for internal decision making purposes and 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



Core Text:   

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

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

Websites:   Financial Reporting Council


Accountancy Age

Electronic Databases:  FAME financial database