Financial Accounting

Also on the syllabus · lessons in preparation

• 03The Accounting EquationAssets = Liabilities + Capital — how the equation works and how every transaction affects it.
• 04Double-Entry BookkeepingThe rules of double-entry, debits and credits, and how every business transaction is recorded.

• 01Source Documents and Books of Original EntryInvoices, receipts, credit notes, and how transactions move from source documents into the day books.
• 02The Cash BookSingle-column, two-column, and three-column cash books, with discounts and contra entries.
• 03The Petty Cash BookThe imprest system, recording small payments, and reimbursing petty cash.
• 04The LedgerClassification of ledgers, posting from day books, and balancing accounts.

• 01The Trial BalancePreparing a trial balance, its purpose, and what to do when it does not balance.
• 02Errors in AccountingErrors that affect the trial balance, errors that do not, and how to correct them with journal entries.
• 03The Suspense AccountOpening, using, and closing a suspense account to resolve trial balance differences.
• 04Bank ReconciliationReconciling the cash book balance with the bank statement, identifying differences, and updating both records.

• 01Final Accounts of Sole ProprietorshipTrading Account, Profit and Loss Account, and Balance Sheet of a sole trader.
• 02Adjustments to Final AccountsAccruals, prepayments, depreciation, bad debts, and provisions in final accounts.
• 03Stock ValuationFIFO, LIFO, and weighted average methods of stock valuation, with worked examples.
• 04Manufacturing AccountsPreparing manufacturing accounts including prime cost, factory overheads, and cost of goods manufactured.

• 01Control AccountsSales ledger control and purchases ledger control accounts, and how they help locate errors.
• 02Departmental AccountsPreparing trading and profit and loss accounts by department, and apportioning expenses.
• 03Branch AccountsRecording transactions between head office and branch, and preparing branch trading accounts.
• 04Single Entry and Incomplete RecordsCalculating profit from incomplete records using the statement of affairs and conversion method.
• 05Joint Venture and Consignment AccountsRecording joint ventures between two parties and consignment transactions between consignor and consignee.
• 06Bills of ExchangeBills payable, bills receivable, discounting bills, and recording bill transactions in the books.
• 07Non-Profit Organisation AccountsReceipts and payments accounts, income and expenditure accounts, and the balance sheet of clubs and societies.
• 08Partnership AccountsPartnership formation, profit sharing, capital and current accounts, admission, retirement, and dissolution.

• 01Company AccountsIssue of shares and debentures, final accounts of a limited company, and appropriation of profit.
• 02Public Sector AccountingGovernment accounting basics, the budget cycle, vote books, and the difference from private sector accounting.
• 03ICT in AccountingComputerised accounting, spreadsheets in bookkeeping, and the differences between manual and computerised systems.