SEM 6 › Business Processes & Accounting Systems
ITE3622 · SEM 6

Business Processes & Accounting Systems

Offline study guides — one per week, built from the lecture notes and lecture videos. Green bar = sections you marked as understood.

Exam practicePast papers with worked answersReal exam questions from previous years, fully solved, plus which topics come up most.
Week 01Business Processes & Accounting Information Systems (AIS)What a business process is, the three core business processes and Porter's value chain, accounting information and its users, what an AIS is and why it matters, its five components, AIS principles, and internal control.
Week 02Accounting Process, Double Entry & Primary Entry JournalsWhat accounting is, the entity concept, stakeholders and their needs, the Conceptual Framework (objective, qualitative characteristics, elements, recognition, measurement), debit and credit rules, the accounting equation, T-accounts and balancing, source documents, and the four day books.
Week 03Cash Book, Petty Cash Book & General JournalThe cash book as both a day book and a ledger account; one-, two- and three-column cash books (contra entries, discounts allowed and received); the petty cash book and the imprest system; and the general journal for everything else.
Week 04Capital vs Revenue Expenditure, the Ledger & the Trial BalanceTelling capital expenditure from revenue expenditure, the general ledger and its classification, posting and balancing ledger accounts, preparing a trial balance, its purposes and its limitations (errors it can't detect), with a full worked example.
Week 05Financial Statements I — Trading Account, Income Statement & LKAS 1Gross profit via the trading account (cost of sales), net profit via the comprehensive income statement (admin, distribution, finance expenses), and LKAS 1 / IAS 1: components, fair presentation, going concern, accruals, consistency, materiality, offsetting, comparatives, current vs non-current, OCI.
Week 06Statement of Financial Position, Closing Inventory, Depreciation & LKAS 16Preparing the statement of financial position, the closing inventory adjustment (lower of cost and NRV), LKAS 16 PPE (definition, recognition, cost, cost vs revaluation model), straight-line and reducing-balance depreciation, and disposals.
Week 07Year-End Adjustments — Accruals, Prepayments, Bad Debts & Impairment ProvisionsThe accrual concept and the four timing adjustments (accrued and prepaid expenses, income receivable and income in advance), bad debts, and the provision for impairment of receivables (new, increased and decreased), with their effects on the P&L and the SFP.
Week 08Material Costing & LKAS 2 InventoriesInventory types, the cost of inventory and NRV (LKAS 2), the purchase function (centralised vs decentralised, purchase procedure, material cost), storing materials (stock levels, EOQ), and pricing issues with FIFO and weighted average — with every lecture example solved.
Week 09Labour Costing — Time Keeping, Remuneration, Salary Sheet, EPF & ETFDirect vs indirect labour, time keeping and time booking, job cards, job evaluation, time rates (with overtime), piece rates and bonus schemes, the salary sheet, and Sri Lanka's EPF (12% + 8%) and ETF (3%).
Week 10Overhead Costing — Allocation, Apportionment, Re-apportionment & AbsorptionWhat overheads are and how they're classified, cost centres, allocation vs apportionment and the bases used, re-apportioning service departments (direct, step-down, reciprocal), overhead absorption rates (actual vs predetermined, six methods, blanket vs departmental), and under/over absorption.
Week 11Pricing — Objectives, Demand & Elasticity, Cost-plus (Markup vs Margin) and Pricing StrategiesWhy price matters, when a price must be set, the six-step pricing policy, pricing objectives, demand and price elasticity, markup vs margin, full-cost vs marginal-cost plus pricing, target return, value-based, psychological, geographical, skimming, penetration, status quo, discounts and discriminatory pricing.
Week 12Ratio Analysis — Liquidity, Gearing, Efficiency, Profitability & Shareholder RatiosWhy we use ratios, the five families of ratios with every formula and how to interpret high and low values, benefits and limitations, plus a live ratio calculator built from a mini set of financial statements.
Week 13Project Appraisal — Payback, ARR, Time Value of Money, NPV & IRRWhat project appraisal is and its key issues, non-discounting methods (payback, ARR), the time value of money and discounting, NPV with the four-project example, IRR by interpolation (23.38%), and which method is best.
Week 14Budgeting — Purposes, Budgetary Control, the Master Budget & Functional Budgets to the Cash BudgetWhat a budget is, its purposes and functions, steps in budgetary control, types of budgets and master budget components, sales forecasting, and the full LFT chain (sales → production → material usage → material purchases → labour → cash budget), plus limitations.
Week 15Standard Costing & Variance AnalysisStandard cost vs budgeted cost, setting material, labour and overhead standards, the four types of standards, the standard cost card (Rs 134 example), the variance tree with every formula (material, labour, variable and fixed overhead, sales), a full worked variance example, and the advantages and limitations.

★Mixed practice exam

20 random questions drawn from all 15 weeks (168 in the bank). Every attempt is a new mix — a good way to test whole-subject knowledge before the exam.