Banking Certificate Course: Accountancy I
Objective: To enable candidates gain basic knowledge of preparation and interpretation of basic financial accounting theory and introduction to cost accounting leading to decision making.
SYLLABUS:
1. Definition, Accounting Concept and Users of Accounting Information.
	• Definition of Accounting • Historical background of accounting • Accounting concepts and their importance • Users of accounting information • Fields in Accounting i.e.   - Financial Accounting   - Cost Accounting   - Management Accounting
2. Accounting Records.
	• Accounting Equation • The Double Entry System and rules for recording • Daybooks and posting from Daybooks to Control accounts and subsidiary ledgers • Posting in Ledger Accounts and Balancing of ledger accounts • Extraction of trial balance • Correction of errors
3. Financial Statements.
• Year end adjustments; accruals and prepayments, provision for depreciation, provision for bad debts, inclusion of opening and closing stocks in financial statements. • Closing entries for revenues and expense accounts. • Preparation of the income statement, balance sheet and cash flow statements. • Disclosure requirements as per the law and pronouncements by accounting profession.
4. Profit Measurement, Asset Valuation and Accounting for Balance Sheet items.
	• Accounting for fixed assets; tangible and intangible fixed assets, revaluation of fixed assets and the revaluation reserve, depreciation and amortization. • Capital and Revenue expenditure. • Accounting for stocks, and stock valuation. • Accounting for debtors, provision for doubtful debts and bad debts. • Accounting for Cash Balances, Internal control over cash. • Reconciliation. - Cash and Bank Balances - Suspense Accounts - Inter-bank Accounts • Valuation of foreign denominated currencies as per accounting standards and recommendations of accounting profession
5. Preparation of Manufacturing Accounts.
	• Direct and indirect costs, Prime cost, Manufacturing overheads • Generation of the cost of good manufactured • Treatment of stocks of raw material, work in progress and finished goods in accounts of manufacturing entities
6. Partnership Accounting.
	• The partnership Agreement, Law of Contract Ordinance with relevance to partnerships, preparation of the Appropriation Account, Current Accounts and Capital Accounts. • Changes in Partnership; admissions and retirements and changes in profit sharing plan.
7. Preparation of Accounts of Limited Companies
	• Formation and types of companies as per Companies Ordinance, Cap 212. • Issue of shares and share premium. • Published accounts of companies, and regulation of accounts and audit. • Reserves, distributable and non-distributable reserves. • Company profits, corporation tax, dividends and provisions. • Other aspects related to disclosure requirements for published company accounts, i.e. exceptional items, extra ordinary items and prior year adjustments.
8. Specific Accounting Requirements of Banking Institutions.
9. Introduction to Cost Accounting for Decision making.
	• Cost behaviour; fixed and variable cost. • Cost - volume - profit relationship and break even analysis. Limitations of break-even analysis • Marginal costing and its use in routine decision making. • Preparation and appraisal of forecast statements (cash budgets, budgeted profit and loss accounts and balance sheets).
10. Performance Assessment.
	• Interpretation of Financial Statements and ratio analysis: profitability ratios, liquidity ratios, efficiency or activity ratios, gearing ratios and market based ratios. • Preparation and use of a cash flow statement. • Limitation of ratio analysis. • Financial institutions compliance rations.
THE EXAMINATION Time Allowed:Three hours Examination Format Section A:Compulsory questions on preparation of final accounts and trial balance Section B: 4 questions from other sections. Students to answer 3 questions each 20 marks.
Recommended Readings • Tanzania Institute of Bankers (2003) Accountancy I: Colour Print, Dar es Salaam • Edwards & Mellet, Introduction to Accounting (CIB/Bankers Books) • NBAA; Accounting Standards, Guidelines and recommendations • Banking and Financial Institutions Act. (No. 12), 1991.