Accounting Basics

Topic 1: Principles of accounting and double entry

This unit introduces the core principles of accounting and the double entry system, highlighting its role in managing business finances. Students will learn to record transactions, make end-of-period adjustments, and maintain ledger accounts for irrecoverable debts. The unit also explores key accounting concepts like going concern, prudence, and capital versus revenue expenditure, as well as the treatment and depreciation of non-current assets, with a focus on how these affect profit.

Topic 2: Control Procedures and the Trial Balance

This unit covers the preparation and use of a trial balance, including its limitations. Students will learn about control accounts for trade receivables and payables, along with their role in verifying ledger accuracy. The unit also explores the correction of errors that affect the trial balance, journal entries to rectify mistakes, and the use of suspense accounts. Finally, students will be introduced to statements of revised profit and how errors in control accounts are corrected.

Topic 3: Simplified Financial Statements

This unit teaches students how to prepare financial statements for different organisations. It covers statements of profit or loss, financial position, and adjustments for prepaid or accrued items. Students will also learn about provisions for depreciation and irrecoverable debts, as well as accounting for partnerships and non-profit organisations. The unit also explores departmental records, incomplete records, and how manufacturers allocate costs and handle unrealised profit.

Topic 4: Control Procedures and the Trial Balance

This unit covers essential costing concepts, focusing on inventory valuation, labour costs, and overheads. Students will learn inventory methods like LIFO and FIFO and their effects on profit and financial statements. The unit also discusses labour productivity and remuneration methods. Additionally, it addresses overhead costs, including their types and how to allocate and absorb them. Finally, students will explore job costing for batch production and customer orders.

Topic 5: Analysis of Accounting Statements (Ratios)

This unit focuses on analyzing accounting statements using key financial ratios. Students will learn to calculate ratios like gross profit percentage, current ratio, and return on capital employed, which help assess profitability, liquidity, and asset utilization. The unit emphasizes their importance in evaluating the financial health of sole traders and partnerships and discusses how these ratios can be applied for future financial projections.

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Topic 6: Social And Ethical Accounting

This unit explores the social and ethical dimensions of accounting. Students will learn about the implications of accounting decisions on the local community, environment, and workforce, emphasizing the significance of non-financial factors. The unit also examines how these decisions affect various stakeholders. Additionally, it covers the role of ethics in accounting analysis and decision-making, highlighting the importance of ethical considerations in the accounting profession.

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Accounting Basics

Accounting Advanced