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The World of Accounting

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IMBS Interactive Syllabus

CSEC Principles of Accounts

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SECTION 1 - ACCOUNTING AS A PROFESSION

1.1: Explain the concept and purposes of Accounting.

1.2: Identify the users of accounting information.

1.3: Describe traditional and emerging careers in the field of Accounting.

1.4: Discuss ethical issues in the field of Accounting.

SECTION 2 - ACCOUNTING AS A SYSTEM

2.1: Outline the concepts and conventions that guide the accounting process.

2.2: Describe the accounting cycle.

2.3: Appraise the accounting features of various types of business organisations.

2.4: Identify the main financial statements prepared by various business organisations.

2.5: Assess the role and impact of technology on the accounting process.

2.6: Explain the concept of a Balance Sheet and the balance sheet equation.

2.7: Identify the components of a Balance Sheet.

2.8: Give examples of different types of assets and liabilities.

2.9: Construct Balance Sheets.

2.10: Determine which items in a Balance Sheet will change as a result of various transactions.

SECTION 3 - BOOKS OF ORIGINAL ENTRY

3.1: Explain the uses of books of original entry.

3.2: Distinguish between cash and credit transactions.

3.3: Identify source documents related to books of original entry.

3.4: Prepare source documents for use in transaction descriptions.

3.5: Translate source documents into transaction descriptions.

3.6: Use source documents to make entries into books of original entry.

3.7: Distinguish between trade and cash discounts.

3.8: Distinguish between discounts allowed and discounts received.

3.9: Balance cash books.

3.10: Interpret the balances of the cash books.

3.11: Indicate treatment of totals from books of original entry.

SECTION 4 - LEDGERS AND THE TRIAL BALANCE

4.1: Describe the different classes of accounts.

4.2: Identify the different types of ledgers.

4.3: Explain the significance of debit and credit in each class of account.

4.4: Draw up simple account formats, neatly and accurately.

4.5: Post from books of original entry to the general ledger and the subsidiary ledgers.

4.6: Balance and close accounts.

4.7: Interpret entries and balances.

4.8: Use the balances brought down to construct the trial balance.

4.9: Outline the uses and limitations of the trial balance.

SECTION 5 - THE PREPARATION AND ANALYSIS OF FINANCIAL STATEMENTS OF THE SOLE TRADER

5.1: Explain the purpose of preparing financial statements.

5.2: Identify the components of the Financial Statements.

5.3: Draw up the income statement for sole traders to determine gross profit or loss and net profit or loss.

5.4: Prepare classified balance sheet in vertical style.

5.5: Explain the significance of the working capital for the operation of a business.

5.6: Use ratios to determine the performance (profitability) of the business.

5.7: Calculate ratios to demonstrate the financial position of a business.

5.8: Show the effect of net profit or loss on capital.

5.9: Make recommendations about a business based on ratio analysis.

SECTION 6 - ACCOUNTING ADJUSTMENTS

6.1: Explain accounting concepts that underpin the need for adjustments.

6.2: Explain why adjustments are made to financial statements.

6.3: Prepare journal entries and ledger accounts to reflect adjustments and the treatment in the balance sheet.

6.4: Explain the reasons for bad debts.

6.5: Prepare journal entries and ledger accounts to write off bad debts and create provision for doubtful debts.

6.6: Indicate the treatment of bad and doubtful debts in the Income Statement and Balance Sheet.

6.7: Discuss the nature of depreciation.

6.8: Calculate annual depreciation expenses using straight line method and reducing balance method.

6.9: Prepare journal entries and ledger accounts for provision for depreciation.

6.10: Distinguish between capital expenditure and revenue expenditures.

6.11: Determine the amount of expenses or revenues to be transferred to the Income Statement.

6.12: Prepare income statements to reflect adjusting entries.

6.13: Prepare Financial Statements after adjustments.

SECTION 7 - CONTROL SYSTEMS

7.1: Explain the uses of control systems in the accounting process.

7.2: Outline the THREE most commonly used control systems in the accounting process.

7.3: Distinguish between those errors which affect and those which do not affect the trial balance.

7.4: Prepare journal entries for the correction of errors.

7.5: Explain the need for suspense account.

7.6: Construct a suspense account.

7.7: Construct a statement of revised profit after the correction of errors.

7.8: Explain the purposes of control accounts and how they are prepared.

7.9: Identify the sources of information for entries made in control accounts.

7.10: Construct sales and purchases ledger control accounts.

7.11: Explain the significance of the balances on control accounts.

7.12: Identify items that will result in differences between cash book and bank statement balances.

7.13: Construct a bank reconciliation statement using the adjusted cash book balance.

SECTION 8 - ACCOUNTING FOR PARTNERSHIPS

8.1: Define a partnership business.

8.2: State the features of a partnership.

8.3: Give reasons for establishing partnerships.

8.4: Outline the essential components of a partnership agreement.

8.5: Prepare journal entries and ledger accounts to record the capital of partnership.

8.6: Use various methods to share profit/loss among partners.

8.7: Prepare appropriation account of partnerships.

8.8: Prepare current account of partners.

8.9: Explain the significance of the brought down balances on partners' current accounts.

8.10: Prepare balance sheet of partnerships.

SECTION 9 - ACCOUNTING FOR LIMITED LIABILITY COMPANIES, CO-OPERATIVES AND NON-PROFIT ORGANISATIONS

9.1: Identify the essential features of limited liability companies, co-operatives and non-profit organisations.

9.2: Identify the types of limited liability companies, co-operatives and non-profit organisations.

9.3: Outline the advantages and disadvantages of a limited liability company.

9.4: Describe the various methods of raising capital available to limited liability companies and co-operatives.

9.5: Identify the various types of shares and the rights of the owners of each type of share.

9.6: Prepare journal entries to record the issue of shares and debentures.

9.7: Calculate dividend payments for various types of shares.

9.8: Appropriate profits between dividends and reserves.

9.9: Prepare the final accounts of limited liability companies and co-operatives.

9.10: Analyse performance and position using ratios.

9.11: Prepare receipts and payment accounts for non-profit organisations.

SECTION 10 - MANUFACTURING AND INVENTORY CONTROL

10.1: Distinguish between direct and indirect costs.

10.2: Prepare manufacturing accounts.

10.3: Calculate unit cost of items produced.

10.4: Prepare final accounts for a manufacturing concern.

10.5: Apply basic costing principles.

10.6: List methods of inventory valuation.

10.7: Calculate the value of closing inventory using either FIFO or LIFO; AVCO.

SECTION 11 - ACCOUNTING FOR THE ENTREPRENEUR

11.1: List methods of payment.

11.2: Identify basic source documents of the payroll.

11.3: Prepare spreadsheet to arrive at net pay amounts after deductions.

11.4: Identify main accounting software used for payroll.

11.5: Distinguish between voluntary and statutory deductions.

11.6: Calculate employees' earnings.

11.7: Prepare cash flow projections within a six-month period.

11.8: Prepare sales and production budgets for a three-month period.

11.9: Use accounting knowledge and skills to prepare a simple business plan.