CSEC Principles of Accounts (Grade 10) By Ms. Janet Cable
RATIONALE
Accounting is the financial information system that provides relevant information to those who manage or use economic resources or engage in other economic activity. Principles of Accounts is a
course of study that provides an introduction to the principles and techniques that accountants employ in measuring, processing, evaluating and communicating information about the financial
performance and position of a business. This course in Principles of Accounts helps students to develop an understanding of a range of theoretical and practical techniques used in Accounting. It helps to develop skills that should enable them to participate more effectively and responsibly in today’s business and technology-based environment, to improve the management of personal financial activities, such as, budgeting, savings and investment. In addition, this course prepares students for post-secondary and professional studies and entry level employment in Accounting.
AIMS
The syllabus aims to:
- introduce fundamental concepts, practices and purposes of Accounting;
- encourage the development of critical thinking and entrepreneurial skills;
- foster attitudes useful in adapting to a dynamic business environment;
- provide a foundation for further studies in accounting;
- foster an awareness of the place of technology in Accounting; and,
- provide an acceptable level of competence for entry-level employment.
Lessons
- Outline the concepts and conventions that guide the accounting process
- Describe the accounting cycle
- Appraise the accounting features of various types of business organisations
- Identify the main financial statements prepared by various business organisations
- Assess the role and impact of technology on the accounting process
- Explain the concept of a Balance Sheet and the balance sheet equation
- Identify the components of a Balance Sheet
- Give examples of different types of assets and liabilities
- Construct Balance Sheets
- Determine which items in a Balance Sheet will change as a result of various transactions
- Explain the uses of books of original entry
- Distinguish between cash and credit transactions
- Identify source documents related to books of original entry
- Prepare source documents for use in transaction descriptions
- Translate source documents into transaction description
- Use source documents to make entries into books of original entry
- Distinguish between trade and cash discounts
- Distinguish between discounts allowed and discounts received
- Balance cash books
- Interpret the balances of the cash books
- Indicate treatment of totals from books of original entry
- Describe the different classes of accounts
- Identify the different types of ledgers
- Explain the significance of debit and credit in each class of account
- Draw up simple account formats, neatly and accurately
- Post from books of original entry to the general ledger and the subsidiary ledgers
- Balance and close accounts
- Interpret entries and balances
- Use the balances brought down to construct the trial balance
- Outline the uses and limitations of the trial balance
- Explain the purpose of preparing financial statements
- Identify the components of the Financial Statements
- Draw up the income statement for sole traders to determine gross profit or loss and net profit or loss
- Prepare classified balance sheet in vertical style
- Explain the significance of the working capital for the operation of a business;
- Use ratios to determine the performance (profitability) of the business
- Calculate ratios to demonstrate the financial position of a business
- Show the effect of net profit or loss on capital
- Make recommendations about a business based on ratio analysis
- Explain accounting concepts that underpin the need for adjustments
- Explain why the adjustments are made to financial statements
- Prepare journal entries and ledger accounts to reflect adjustments and the treatment in the balance sheet
- Explain the reasons for bad debts
- Prepare journal entries and ledger accounts to write off bad debts and create provision for doubtful debts
- Indicate the treatment of bad and doubtful debts in the Income Statement and Balance Sheet
- Discuss the nature of depreciation
- Calculate annual depreciation expenses using straight line method and reducing balance method
- Prepare journal entries and ledger accounts for provision for depreciation
- Distinguish between capital expenditure and revenue expenditures
- Determine the amount of expenses or revenues to be transferred to the Income Statement
- Prepare income statements to reflect adjusting entries
- Prepare Financial Statements after Adjustments
- Bank reconciliation statement (Revision)
- Explain the uses of control systems in the accounting process
- Outline the THREE most commonly used control systems in the accounting process
- Distinguish between those errors which affect and those which do not affect the trial balance
- Prepare journal entries for the correction of errors
- Explain the need for suspense account
- Construct a suspense account
- Construct a statement of revised profit after the correction of errors
- Explain the purposes of control accounts and how they are prepared
- Identify the sources of information for entries made in control accounts
- Construct sales and purchases ledger control accounts
- Explain the significance of the balances on control accounts
- Identify items that will result in differences between cash book and bank statement balances
- Construct a bank reconciliation statement using the adjusted cash book balance
- Define a partnership business
- State the features of a partnership
- Give reasons for establishing partnerships
- Outline the essential components of a partnership agreement
- Prepare journal entries and ledger accounts to record the capital of partnership
- Use various methods to share profit/loss among partners
- Prepare appropriation account of partnerships
- Prepare current account of partners
- Explain the significance of the brought down balances on partners’ current accounts
- Prepare balance sheet of partnerships
- Identify the essential features of limited liability companies, co-operatives and non-profit organisations
- Identify the types of limited liability companies, co-operatives and non-profit organisations
- Outline the advantages and disadvantages of a limited liability company
- Describe the various methods of raising capital available to limited liability companies and co-operatives
- Identify the various types of shares and the rights of the owners of each type of share
- Prepare journal entries to record the issue of shares and debentures
- Calculate dividend payments for various types of shares
- Appropriate profits between dividends and reserves
- Prepare the final accounts of limited liability companies and co-operatives
- Analyse performance and position using ratios
- Prepare receipts and payment accounts for non-profit organisations
- Distinguish between direct and indirect costs
- Prepare manufacturing accounts
- Calculate unit cost of items produced
- Prepare final accounts for a manufacturing concern
- Apply basic costing principles
- List methods of inventory valuation
- Calculate the value of closing inventory using either FIFO or LIFO; AVCO
- List methods of payment
- Identify basic source documents of the payroll
- Lecture11.3 Prepare spreadsheet to arrive at net pay amounts after deductions
- Identify main accounting software used for payroll
- Distinguish between voluntary and statutory deductions
- Calculate employees’ earnings
- Prepare cash flow projections within a six-month period
- Prepare sales and production budgets for a three-month period
- Use accounting knowledge and skills to prepare a simple business plan