Exam Unit: Financial Accounting (1.1)

Learning Outcome

To demonstrate an understanding of the maintenance of a full set of accounts for a body, whether corporate or non-corporate. To show a full understanding of techniques of maintaining and controlling all financial books from which a trial balance can be prepared, and from this to be able to prepare trading and profit and loss accounts and balance sheet. The Learner will also be able to show an understanding of the basic principles of taxation including sales taxes.

Double Entry Bookkeeping:
1. The accounting equation and the balance sheet
2. The double entry system for assets, liabilities and capital
3. The asset of stock
4. The effect of profit or loss on capital and the double entry system for expenses and revenues
5. Balancing off accounts
6. The trial balanceFinancial Statements of Sole Traders:
1. Trading and profit and loss accounts
2. Balance sheets
3. Accounting conceptsBooks of Original Entry:
1. Books of original entry and ledgers
2. The banking system
3. Cash books
4. The sales day book and the sales ledger
5. The purchase day book and the purchase ledger
6. The returns day book
7. The journal
8. The analytical petty cash book and the imprest system
9. Value added tax
10. Columnar day books
11. Employee’s pay
12. Computers and accounting
13. Computerised accounting systems
Adjustments for Financial statements:
1. Capital expenditure and revenue expenditure
2. Bad debts, provisions for doubtful debts, and provisions for discounts on debtors
3. Depreciation of fixed assets
4. Double entry records for depreciation
5. Accruals and prepayments
6. Stock valuation
7. Bank reconciliations
8. Control accounts
9. Errors and suspense accountsSpecial Accounting Procedures:
1. Accounting ratios
2. Single entry and incomplete records
3. Receipts and payments accounts and income and expenditure accounts
4. Manufacturing accounts
5. Departmental accounts
6. Cash flow statements
7. Joint venture accountsPartnership Accounts and Company Accounts
1. Partnership accounts
2. Goodwill
3. Revaluation of partnership assets
4. Partnership dissolution
5. Financial statements of corporations