Igcse Accounting 2-3

Unit 1 – Introduction to Book Keeping

keeping, Accountin Accounting, g, Transacti Transaction, on, Accountin Accounting g period, period, Assets, Assets, Liabilitie Liabilities, s, Revenues, Revenues, Expenses, Expenses, Glossary : Book keeping, Owners Equity, proprietorship, Partnerships, Limited Companies, Going Concern, Monetary Concept, Consistency Concept, Objectivity Concept, Historical Cost, Accounting Period, Conservatism Concept, Accounting Entity Concept, Accrual Concept, Dual Concept, Ledger TIME FRAM E

SPECIFIC OBJECTIVES

IGCSE ACCOUNTING 0452 – SPN 21 SCHEME OF WORK YEAR 9 (3YR PROGRAMME)

LESSON CONTENTS

SUGGESTED TEACHING LEARNING ACTIVITIES

SUGGESTED ON-LINE

2

5 WEEK S

Students should be able to:  state the purpose of book-keeping and accounting.  explain the difference between book-keeping and accounting.  explain what a transaction is.  describe the 3 types of business.  describe the accounting process.  use Ledger rules for accounts to record transactions.  explain the purpose of the accounting period.  accounting Equation effect of transaction.  apply accounting principles.  discuss the accounting policies

Role of Accounting Difference between book-keeping and accounting Nature of business  transactions Purpose of book keeping and accounting  Purpose of accounting period  The accounting process  Ledger Rules; Assets, Liabilities, Revenues, Expenses and Owners Equity.  Fundamental Concepts and accounting.  Compare and contrast the differences of accounting cycle or accounting process in the computerized computerized and manual system.  Objectives of accounting policies.  

 Which type of business would be the most common? Why?  Analyse the reasons why specific types of businesses choose particular business form.  Compare and contrast the advantages and disadvantages of each type of business unit.  Discuss the role of accounting information in making financial decisions.  Go to the nearest minimart and list all assets that can be and measured in terms of money.  Provide case study where students are able to: • State the date of the Balance Sheet. Total Assets, Total • liabilities and owners’ equity. The type of liability in the business. • What’s makeup the owners’ equity of the business. Describe the 3 types of business organization through Role Play; the students are to identify the characteristics of •

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www.acra.gov.sg/ge neral/directory.html  (for actual examples representing each type of business unit)  http://www.jnj.com  http://info.sgx.com/w ebcorpinfo.inf  ( Gives the latest information of annual reports of Johnson and Johnson Corporation)  http://www.swcolleg e.com/vircomm/gita/ gitall.html  (learn more about the expanded accounting equation)  http://www.accpac.c om  (To know the different kinds of business management software e.g. QuickBooks accounting software, UBS etc )  http://www.solomom .com  (e-business software for small to medium 

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the 3 types of business organizations.

sized organisation)

Unit 2– Ledger and Balancing of Accounts Glossary : Ledger, Purchases (Creditors) Ledger, Sales (Debtors) Ledger, General Ledger, Debit Balance, Credit

Balance TIME FRAM E

SPECIFIC OBJECTIVES


LESSON CONTENTS


SUGGESTED ON-LINE 4

5 WEEK S

Students should be able to :  explain the purpose of the ledger.  explain the reasons for maintaining separate ledgers.  analyse transactions and post relevant details to appropriate accounts in the ledgers.  balance ledger accounts.  interpret the details and the balances in the accounts.  record transactions related to drawings of stock, cash or other assets

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The Ledger : Rules of Ledger Entries. Types of Accounts.

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Balancing / Closing Accounts.

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Teacher draws the ledger and explains its functions for each type of accounts. Teacher explains the rules of entries for each type of accounts and asks the students orally and written to prove their understanding. Teacher explains the ways of balancing and closing all the accounts in the ledger and proves the students’ understanding and knowledge by solving the problems of balancing accounts on the board.

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http://www.bized.ac. uk/learn/business/ac counting/busaccount s/pizza/stusxfve.htm

Unit 3– Source Documents and Books of Prime Entry Glossary : Source Documents, Till Slips, An invoice, Cheque counterfoil, Sales invoice, Vouchers, Purchase invoice,

Debit note, Credit note, Cheque, Receipt, Statement of account, Bank statement, Journals, Ledger, General Journal, General Ledger, Purchases Journal, Sales Ledger/Debtors Ledger, Returns Outwards Journal , Purchases Ledger/Creditors Ledger, Sales Journal, Returns Inwards Journal, Trade Discount, Cash Discount Discount , Petty Cash, The Cash Book, Balance, Balance, Bank overdraft, overdraft, Two column column cash book, Three column cash book, Cash discount, Contra entries, Discount allowed, Discount received, Petty Cash Book


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TIME FRAM E

SPECIFIC OBJECTIVES

LESSON CONTENTS

SUGGESTED ON-LINE

SOURCE DOCUMENTS

6 WEEK Stud Studen ents ts shou should ld be able able S to: explain what are source documents and their importance.  name and state the use of an invoice, credit note, debit note, cheque, cheque counterfoil, counterfoil, till slips, vouchers, receipt, bank statement and statement of accounts.  determine which business document is to be used in a particular transaction / situation.  Comprehend that the information in these documents is used in the recording of the business transactions.  state the different books of original entry.


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 Objectivity concept Defi Defini niti tion on of sour source ce documents. Features of source  documents. Impor Importan tance ce of sourc source e documents. Types and uses of  sou source docume uments nts. (Inv (Invoi oice ce,, Cred Credit it note note,, Debi Debitt note note,, Cheq Cheque ue,, Cheques counterfoil, Till Slips, vouchers, Receipt,  Bank Bank Stat Statem emen entt and and Statement of Accounts. Books Books of original original entry or prime entry.

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Ask students to identify source documents used in a part partic icul ular ar// give given n transactions. Exercise Exercises s on matching matching transactions to documents. Ask the students to list the source of docum document ents s that that a sole sole trader trader can use for his business. Intro Introduc duce e studen students ts to the actual actual examples examples of used source documents take taken n from from diff differ eren entt busi busine ness sses es.. Ask Ask stud studen ents ts to name name the the docu docume ment nts s and and thei theirr purposes. Role Role Play Play of a simp simple le cash transaction and the subsequ subsequent ent settlemen settlementt of debt. A project for students to create their own business documents.

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http://www.bized.ac. uk/learn/business/ac counting/busaccount s/pizza/stuone.htm

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Role play lay of simp imply credit transactions.

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TIME FRAM E

SPECIFIC OBJECTIVES

LESSON CONTENTS


SUGGESTED ON-LINE

BOOKS OF PRIME ENTRY


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Student should be able to: define and explain the purpose of the journal.  list the advantages and uses of the General Journal.  differentiate between the General Journal and the specialized journals  record transactions in the following journals:Cash Book, Petty Cash book, Sales Journal, Purchases Journal, Returns Inwards Journal, Returns Outwards Journal and General Journal and post them to ledgers.  enter those transactions that cannot be recorded in any special journal in the General Journal and post it to ledger.  write relevant explanatory narrations for each entry.  identify the source of documents for writing up the journals.  distinguish between a trade discount and cash discount.  calculate and record the trade discount into the 

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Definition of journals. Role of journal in the accounting process. Recording transactions from source documents into the journals. The General Journal. Advantages of using the General Journal. Uses of the General Journal. Recording into the General Journal. Trade and cash discount. Purchases Journal. Returns Outwards Journal. Sales Journal. Returns Inwards Journal. Recording transactions into Purchases Journal and Returns Outwards Journal. Recording transactions into Sales Journal and Returns Inwards Journal. The Cash Book and Petty Cash. Posting. Ledger. Posting from the General Journal •

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Recording the information in the source documents into different types of journals. Post the transactions in the General Journal and the Special Journal to the appropriate accounts in the ledgers. List the similarities and differences between special journals and general journal. Calculate the trade discount and cash discount by giving numerical example.

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relevant journal.

TIME FRAM E

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SPECIFIC OBJECTIVES


Posting from the Purchases Journal.

LESSON CONTENTS


SUGGESTED ON-LINE 10

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differentiate between a General Ledger, a Purchases Ledger and Sales Ledger. post entries from the journals to the appropriate ledgers.

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Posting from the Returns Outwards Journal. Posting from the Sales Journal Posting from the Returns Inwards Journal.

CASH BOOK Student should be able to:  explain Cash Book as a journal and a ledger.  list and explain the purpose of Cash Book.  distinguish between, and account for, trade discount and cash discount; discount allowed and discount received.  explain contra transactions.  state and follow the procedure of preparing a Cash Book.  draw up a Cash Book following proper rules and format.


Dual functions of Cash Book.  Purposes of Cash Book. Two column cash book.  Difference between trade discounts and cash discounts.  Difference between discount allowed and discount received. Three column cash book.  Contra-entry transactions  Processing of transactions in the Cash Book. 

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Discuss and make clear about: dual functions of a cash book; purposes of a cash book; difference between cash and trade discounts; difference between discount allowed and discount received; contra entry transactions Record transactions in a two column and three column cash book . Role play- applied daily life experience (money received/ money paid)

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http://www.bhl.co.n z/easybooks/ (Usefulness of Cash Book) Microsoft Microsoft Office Program, then click on “Microsoft Money” (Recording of monthly receipts and payments)

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PETTY CASH BOOK

Student should be able to:  Explain the meaning of Imprest system  Determine the format of a Petty Cash Book.  Write up the Petty Cash Book.  Post the petty cash items to the ledger accounts.  To differentiate between the type of transactions transactions to be recroded into the Cash Book and the Petty Cash Book. IGCSE ACCOUNTING 0452 – SPN 21 SCHEME OF WORK YEAR 9 (3YR PROGRAMME)

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The Imprest System Recording into the Petty Cash Book Posting from the Petty Cash Book

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Simple introduction on Imprest System for petty cash payments and its advantages. Illustrates the format of an analysed petty cash book. Highlight how the total for each column is totaled at the end of the period. Shows the posting from the petty cash book to the ledger

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http://www.ird.go vt.nz/yoursituatio nbus/running/recor dkeeping/recordk eepingpettycashbookillu stration.html

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Unit 4 – Bank Reconciliation Statement Glossary : Bank statement, Bank reconciliation, Unpresented cheque, Uncredited cheque, Bank charges, Cheque

book, Standing order, Dishonoured cheque, Credit transfer, Bank giro transfer, Interest on fixed deposit, Interest on overdraft, Bank overdraft TIME FRAM E

SPECIFIC OBJECTIVES

Students should be able to: 3 WEEK  explain the reasons for S the discrepancy between Cash Book (Bank Column) and Bank Statement balances.

LESSON CONTENTS   


Bank Statement. Cash Book. Discrepancies between Cash Book (Bank Column) and Bank Statement.

SUGGESTED TEACHING LEARNING ACTIVITIES 

Displays a sample of a Bank Statement and explains the entries.

SUGGESTED ON-LINE 

http://teachers.cie.or g.uk/teachers support/pdf/7110 s03gp 2.pdf

13

TIME FRAM E

SPECIFIC OBJECTIVES  

explain the need for Bank Reconciliation. review transactions missing from the Cash Book (Bank Column) or the Bank Statement by listing: the items in the Cash Book not entered in the Bank Statement the items in the Bank Statement not entered in the Cash Book adjust the Cash Book (Bank Column) prepare a Bank Reconciliation Statement starting from the Cash Book balance prepare a Bank Reconciliation Statement starting from the Bank Statement balance prepare a Bank Reconciliation Statement when there is a bank overdraft

LESSON CONTENTS  

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Adjust the Cash Book (Bank Column). Bank Reconciliation Statement starting with Cash Book (Bank Column) balance. Bank Reconciliation Statement starting with Bank Statement balance. Differing opening balances and errors in the Cash Book (Bank Column) and the Bank Statement. Bank overdraft and Bank Reconciliation Statement.


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 IGCSE ACCOUNTING 0452 – SPN 21 SCHEME OF WORK YEAR 9 (3YR PROGRAMME)

Allow one student to enter transactions in the Cash Book while the partner records them in the Bank Statement. Teacher supplies the transactions. Demonstrates a transaction on uncredited deposit and explains the need for Bank Reconciliation. Compare a Bank Statement with Cash Book (Bank Column) entries. Show the Cash Book adjustment. Introduce the terms uncredited cheques and unpresented cheques. Demonstrates how a Bank Reconciliation Statement is prepared. Explains the transaction that causes the opening balances in Cash Book (Bank Column) and Bank Statement to differ. Explains how to deal with errors in Cash Book


http://www.franklenc omputer.com/check writing_more_inform ation.html

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http://www.accaglob al.com/cpdrealise/

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http://accounting10.t ripod.com/content.ht ml

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http://www.goggle.c om (search for bank reconciliation)

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http://www.ida.gov.s g/idaweb/ebusiness

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(Bank Column). Explains how an overdrawn balance affects the reconciliation process. Role play-Group students into groups of bankers, traders, customers and suppliers.

Unit 5– Trial Balance IGCSE ACCOUNTING 0452 – SPN 21 SCHEME OF WORK YEAR 9 (3YR PROGRAMME)

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Glossary : Trial Balance, account balance, debit balance, credit balance, errors of omission, errors of commission,

errors of principle, complete reversal of entries, compensating errors, errors of original entry, personal accounts TIME FRAM E

LESSON CONTENTS

SPECIFIC OBJECTIVES


SUGGESTED ON-LINE

TRIAL BALANCE Students should be able to:  deter determin mine e the closin closing g balance of an account accounts which which are  list accounts debit and credit in nature.  stat state e the the purp purpos ose e of preparing a Trial 3 Balance WEEK  explain the limitations of S the Trial Balance recogn gniz ize e that that it is a  reco stat statem emen entt of ledg ledger er balances at a particular date  iden identi tify fy and and expl explai ain n those those erro errors rs which which do not affe ffect the the Trial ial Balance

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Determining the balance of an account Balancing Assets and Liabilities Accounts Trial Balance Purpose of a Trial Balance Limitations of a Trial balance

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Show how a Trial Balance is prepared at the end of a Trading period by using a simple example using simple transactions

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www.Accounting10.t ripod.com

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www.Bized.ac.uk

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Unit 6– Financial Statements without adjustments adjustments Glossary : Gross Profit, Gross Loss, Net Profit, Net Loss, Cost of Goods Available for Sale, Cost of Goods Sold

(Cost of Sales), Additional cost of purchases, Net purchases, Net Sales, Operating Expenses, Other Revenue, Fixed Assets, Assets, Current Current Assets, Assets, Owner’s Owner’s Equity Equity (Proprie (Proprietorsh torship), ip), Long Term Liabilities, Current Liabilities. INCOME STATEMENT AND BALANCE SHEET (FINANCIAL STATEMENT) Students should be able to: calculate gross profit.  calculate net profit or losses  draw up a Trading and Profit and Loss Account.  identify the additional cost on purchases.  determine the cost of goods sold.  transfer net profit/loss to the capital account.  close the Drawings Account.  explain how the closing stock is valued. 

4 WEEK S

Gross profit.  Closing Nominal accounts.  Preparation of Trading Account.  Closing stock, Opening stock.  Additional cost on purchases.  Net profit.  Preparation of Profit and Loss Account.  Closing of Nominal Accounts affecting net profit.  Closing of Drawings Account.  Balancing the Capital Account.  Net loss. Transfer of Account Balances to Final 


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Revise the closing of nominal accounts. Show the T-format Trading and Profit and Loss Account on the board.

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www.Askltd.com

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www.Staffs.ac.uk

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www.Bized.ac.uk

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Accounts and Capital Account.

BALANCE SHEET Students should be able to: classify assets into Fixed and Current Assets.  classify liabilities into Long Term and Current Liabilities.  prepare a Balance Sheet from a Trial Balance. 

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Balance Sheet. Assets and Liabilities. Owner’s Equity. Preparation of the Balance Sheet.

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Show the format of balance sheet and financial postion.

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WWW.Askltd.com

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WWW.Staffs.ac.uk

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WWW.Bized.ac.uk

Book-keeping procedure up to the Balance Sheet. Analysis of the Balance Sheet. Balance Sheet Equation.

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Unit 7– Balance Balance Day Adjustments Glossary : Accounting basic concepts, accrued, accruals, accrued expenses, accrued revenue, balance day

adjustments, expenses, revenue, prepayments, revenue prepaid, revenue received in advance, unearned revenue. TIME FRAM E

SPECIFIC OB OBJECTIVES

LESSON CO CONTENTS


SUGGESTED ON-LINE

ACCRUALS AND PREPAYMENTS 3 Students should be able to: WEEK  recognise the S importance importance of matching costs and revenues  make the ledger entries for the following balance day adjustments: Accrued Expenses Accrued Revenue Prepaid Expenses Unearned Revenue

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Accounting Principles and Balance Day Adjustments. Accrued Expenses. Accrued Revenue. Prepaid Expenses. Unearned Revenue or Revenue received in advanced.

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Explain the accounting period concept, matching and accrual concepts Explanation Explanation with examples taken from simple transaction relating to accrued and prepaid expenses and income. Show the simple steps in recording transactions.

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http://www.howto.co .uk/business/bookke epingbooks/accruals_and_ prepayments/ http://www.bized.co. uk/learn/accounting/ infosystems/bait/wo rk05.htm www.Ventureline.Co m/Glossary.asp http://www.nrbarton .co.uk/about/ourserv ices_bookkeeping08 .html www.C21accounting .com/student/green/ gj_student_text_mat erials_frame.html

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Glossary : Depreciation, Straight Line Method, Reducing Balance Method/ Diminishing Method, Revaluation method,

Provision for Depreciation, Disposal, Gain on Disposal, Loss on Disposal TIME FRAM E

SPECIFIC OBJECTIVES

LESSON CONTENTS


SUGGESTED ON-LINE

DEPRECIATION AND DISPOSAL OF FIXED ASSETS 4 WEEK S

Students should be able to: explain depreciation.  state and explain the causes of depreciation. calculate annual  depreciation.  record depreciation of fixed assets in the general ledger.  record provision for depreciation.  adjust depreciation in Income Statements  adjust provision for depreciation in the Balance Sheet.  explain disposal.  calculate Gain or Loss on Disposal.  provision for depreciation amount in the Disposal a/c.

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Causes and Reasons of Depreciation. Methods of Depreciation:Straight line Reducing balance Revaluation Recording the Depreciation of Fixed Assets. Recording Provision for Depreciation a/c, its effect in the Income Statement and Balance Sheet. Disposal Account. Fixed Assets a/c. Gain/ Loss on Disposal = Selling Price-Net Book Value. Provision for depreciation on fixed asset disposed. •

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What is the relevancy of matching concept to the depreciation of fixed assets? Demonstrate and explaining the different methods. Recording the double entry between Provision for Depreciation a/c and its effect in the Income Statement and Balance Sheet. Demonstrate on the board the disposal account and effect on the Fixed assets a/c. Show the gain/loss on disposal in relevant accounts.

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http://www.howto.co .uk/business/bookke epingbooks/depreciation_t he_straight_line_met hod/

http://www.calcbuild er.com/cgibin/calcs/AUT2.cgi/a ol_gigitalcities (A software to help car owners estimates their vehicle’s value-try out it has a depreciation calculator!) 

http://www.depreciat ionsoftware.com/feat ures.html ( to simplifies the tedious fixed asst management process) 

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http://en.wikipedia.o rg/wiki/Depreciation (more into depreciation)

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Glossary : Bad Debts, Credit Sales, Debtors, Bad Debts Written-off, Recovery of Bad Debts, Partial Settlement of

Debtors, Doubtful Debts, Provision for Doubtful Debts. TIME FRAME


LESSON CO CONTENTS


SUGGESTED ON-LINE

BAD DEBTS AND PROVISION FOR DOUBTFUL DEBTS 3 WEEKS

Students should be able to : explain the credit sales.  explain the reasons for incurring bad debts.  explain the difference between bad debts and doubtful debts.  explain recovery of bad debts and partial settlement of debts.  prepare journal and ledger for writing-off bad debts, recovery of bad debts and making provision for doubtful debts.  show the effects of bad debts, recovery of bad debts and provision for doubtful debts in Income Statement and Balance Sheet. 

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Bad Debts : Bad Debts Writing-off Bad Debts Recovery of Bad Debts Partial Settlement of Debtors Difference between Bad Debts and Doubtful Debts Provision for Doubtful Debts : Creation, Increasing Decreasing When Provision for Doubtful Debts and Bad Debts Accounts exist simultaneously

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Explains the credit sales, existence of debtors and bad debts. Ask students to interview sole traders on the effect of credit sales and bad debts to their businesses. Explains journal and ledger entries for Bad Debts written-off, Recovery of Bad Debts and Partial Settlement of Debtors. Explains the effects of creation, increasing and decreasing of Provision for Doubtful Debts in Income Statement and Balance Sheet.

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http://www.howto.co .uk/business/bookke epingbooks/accounting_fo r_bad_and_doubtful_ debts/

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http://www.insolvenc yhelpline.co.uk

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https://secure.mas.g ov.sg/msb/msbQuery .Cfm? tableset=i&tablena me =115&tno=17

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Glossary : Stock Valuation, Lower of Cost, Market value, Cost, historical cost principle, Conservatism principle, TIME FRAME


LESSON CO CONTENTS


SUGGESTED ON-LINE

INVENTORY VALUATION 2 WEEKS

Students should be able to : State the importance of the correct valuation of inventory.  understand the basis of inventory valuation at the lower of cost and net realisable value.  Explain the basis of valuing the closing stock at the lower of cost or market price.  prepare simple inventory valuation statements.

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Importance of Correct Valuation of inventory Basis of Valuing of the Closing Stock: “Lower of Cost and Market Price”. Effects of Different Figures for stock. Simple Inventory valuation statements.

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http://tutor2u.net/bu siness/presentations/ accounts/stockvaluat ion/default.html http://www.encyclop edia.com/doc/1O18inventoryvaluation.h tml http://www.principle sofaccounting.com/c hapter%208.htm

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Glossary : Trading concern, non-trading concern, capital expenditure, capital receipts, revenue expenditures, revenue

receipts. TIME FRAME


LESSON CO CONTENTS


SUGGESTED ON-LINE

CAPITAL AND REVENUE EXPENDITURES AND RECEIPTS 2 WEEKS

Student should be able to: distinguish and account for capital and revenue expenditures.  distinguish and account for capital and revenue receipts.  list and compare the capital and revenue expenditures and receipts of a trading concern and non-trading concern.  calculate and comment on the effect on profit of incorrect treatment  calculate and comment on the effect on asset valuations of incorrect treatment.

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Difference between capital and revenue expenditures. Difference between capital and revenue receipts. Capital and revenue expenditures of a trading concern and non-trading concern. Capital and revenue receipts of trading concern and non-trading concern.

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Introduce the terms: capital expenditure, revenue expenditure, capital receipts and revenue receipts. List on the board (in table form) the expenditures and income of a trading concern and non-trading concern. Divide the class into 2 groups, then let them contact local shop for 1 group and the other group to contact a local club. Ask the shop and the club about their capital and revenue expenditures and

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http://www.bized.ac. uk/stafsup/options/a ccounting/work03.ht ml http://teacher.cie.org .uk/teacher_support/ pdf/7110_w03_gp_1. pdf

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receipts. Presentation in the class will follow. Divide students into groups. Teachers prepare examples of capital, revenues and expenditures on a manila cards and ask students to identify them into their categories.

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Unit 8 – Financial Statements with Adjustments Glossary Glossary : Refer Refer to Unit 5, 7, 8 and and 9. TIME FRAM E

SPECIFIC OBJECTIVES

Students should be able to: 4 WEEK  explain the S difference between a trading business and a service business  prepare income statements (trading and profit and loss accounts) and balance sheets for trading businesses in either horizontal or vertical form  prepare income statements (profit and loss accounts) and balance sheets for service businesses in either horizontal or vertical form  make adjustments for provision for depreciation using the straight line (equal instalment), diminishing diminishing (reducing) balance and revaluation methods  make adjustments

LESSON CONTENTS 


The effects and how these reflect on the Income Statement and Balance Sheet. Expenses. Revenue. Prepayments. Revenue prepaid. Revenue received in advance. Unearned revenue. Depreciation of Fixed Assets. Bad Debts and Provisions Drawings of goods


Refer to Unit 5, 7, 8 and 9.


Refer to Unit 5, 7, 8 and 9.

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for accrued and prepaid expenses and accrued and prepaid income  make adjustments for bad debts and provisions for doubtful debts  make adjustments for goods taken by the owner for own use.


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Unit 9 – Manufacturing Accounts Glossary : Cost of Raw Materials Consumed, Direct Costs, Prime Costs, Factory Overheads/Indirect Cost, Costs Of

Production, Cost of Manufacturing, Work In Progress, Unfinished goods, Stock of Unfinished goods, Gross Profit on Trading, Market Price of Finished Goods, Finished Goods. TIME FRAME

4 WEEKS


Students should able to : define the two types of costs : Dire Direct ct Cost Cost (Pri (Prime me Cost) Indirect Cost the  prepare manufacturing account.  give examples of Direct Cost and Indirect Cost  compute the Prime Cost  calc calcul ulat ate e the the Cost Cost of Manufacturing (production) show the treatm treatmen entt of  show Work In Progress  prepare Income Statement Statements s to calcula calculate te gro gross pro profit fit and net profit of a manufacturing manufacturing business prepar are e the the Bala Balanc nce e  prep Sheet of a manufacturing business  make make adju adjust stme ment nts s to

LESSON CO CONTENTS 

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Manufacturing Account: Costs of Raw Materials. Direct Costs. Prime Costs. Indirect Costs. Work In Progress. Costs of Production. Market Price. Manufacturing Profit.


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Manufacturer’s Trading and Profit and Loss Account : Finished Goods. Gross Profit on manufactured and finished goods. • •

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Manufacturer’s Balance Sheet Closing Stock On Raw Materials. Closing Stock on Finished Goods.

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Educati catio onal vis visit to manufac manufacturi turing ng firm for the the stud studen ents ts able able to understa understand nd the Cost of Raw Raw Mate Materi rial als, s, Dire Direct ct Cost, Cost, Indirect Indirect Cost and Cost Of Production. Assign a project for each group in a class to manu manufa fact ctur ure e simp simple le produc duct and ask the the stud studen ents ts to calc calcul ulat ate e Cost Cost of Raw Raw Mater Materia ials, ls, Direct Cost, Indirect Cost and Cost of Production. Provi Provide de 1 produ product ct and and ask students to identify the the mate materi rial al used used in producing it and calc calcul ulat ate e the the cost cost (if (if possible).

SUGGESTED ON-LINE

http://www.howto.co .uk/business/bookkeepi ngbooks/manufacturing_a ccounts/  http://www.howto.co .uk/business/bookkeepi ngbooks/compiling_a_ma nufacturing_account_st ep_by_step/  http://www.bized.co. uk/learn/accounting/inf osystems/bait/test05.h tm  www.staff.ucsm.ac.u k/.../Manufacturing %20Introduction %201.ppt  http://basiccollegeac counting.com/category /costaccounting/manufactur ing-accounts/ 

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financial statements.


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Work In Progress at the end.

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Unit 10 – Correction of Errors Errors and Suspense Account Glossary : Errors of omission, Errors of commission, Errors of principle, Errors of original entry, Compensating

errors, Reversal of entries, Suspense account, Differences in books, Understate, Overstate, Undercast, Overcast, Undervalue, Overvalue TIME FRAME

4 WEEKS

SPECIFIC OBJECTIVES

LESSON CONTENTS

Students Students should be able Do Not Revealed to:  Correction of errors not revealed by a Trial Balance  lists, identify and analyse errors not thru making journal and revealed by a Trial ledger entries. Balance. Error of omission  identify and correct Error of commission errors revealed by a Error of principle Trial Balance with Compensating error Suspense Account. Error of original entry  make journal and Error of complete ledger entries reversal supporting the Revealed: correction of errors. Creatio tion of Suspe uspen nse  Cre  post entries to Account when errors Suspense Account revealed by the Trial where necessary. Balance:  analyze the effects Wron Wrong g cast castin ing g in the the and correction of books of original entries. errors on: Incomplete double Trial Balance. entries. Profit and Loss Double entries Accounts. completed but with Balance Sheet. different amounts. Posting to the same side •


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Demonstra Demonstrate te correcti correction on of error on the board the list of transactions, transactions, which do not revea eveale led d and revealed by trial balance. Record the errors in the ledg ledger er acco accoun unts ts and and corr correct ect each each error error thru thru ledger and journal entries. Intr Introd oduc uce e and and expl explai ain n t he function of a Suspense Suspense Account Account when a Trial Balance totals are not equal. Ident dentiify and correct ect errors, errors, which which affect affect the agreem agreement ent of the Tria Triall Balance Balance totals and how they are corrected. Anal Analyz yze e the the effe effect cts s of error errors s in Trial Trial Balan Balance ce and draw up the corrected Trial Balance. Anal Analyz yze e the the effe effect cts s of errors and also its

SUGGESTED ON-LINE  http://www.howto.co.

uk/business/bookkee pingbooks/the_trial_balan ce_errors/  http://www.howto.co.

uk/business/bookkee pingbooks/correction_of_ errors/  http://www.gen.com/a

rchives/gen/1997/ma y2b/pg3a.htm  http://accounting10.tri pod.com/slides11.1.p pt  http://www.bized.ac.u k/stafsup/options/acc ounting/work04.htm  http://www.bized.ac.u k/stafsup/options/acc ounting/mod2.t suspense.htm  http://teachers.cie.org .uk/teachersupport/p 30

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in both accounts. Corr Correc ecti tion on of an erro errorr requir requiring ing more more than than two entries. Effe Effect cts s of corr correc ecti tion on of errors on Trial Balance. Effe Effect cts s of corr correc ecti tion on of errors on profit. Effe Effect cts s of corr correc ecti tion on on Balance Sheet.

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correction correction on Gross Profit and Net Profit. Anal Analyz yze e the the effe effect cts s of errors and also its corr correct ection ion on Balan Balance ce Sheet. Group work-1 st Task-ask eac each group to make errors errors on purpose. purpose. Task 2- exch exchan ange ge the the task task with different group and ask them to correct the errors.

df/7110 w03 gp2.pdf  http://www.google.co m (search for bookkeeping errors) http://www.ida.gov.sg  http://www.ida.gov.sg /idaweb/ebusiness

Unit 11 – Control Account Glossary : Subsidiary Ledger, Control Accounts, Trade receivables Control Account/ Revenue Ledger Control Account,

Total Trade receivables Account, Trade payables Control Account/Raw materials Ledger Control Account, Transfer (Contra), Minority Balances. TIME FRAM E

SPECIFIC OBJECTIVES

Student should be able to: 3 WEEK  explain the purpose of S control accounts.  draw up the Trade receivables Control Account.  draw up the Trade payables Control account.  enter the following items into the relevant control account:- credit

LESSON CONTENTS      


Control Account. Purposes / Uses of Control Account. Trade receivables Control Account. Trade payables Control Account. Transfers ( Contras ). Minority Balances in Control Accounts


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Prepare the Trade rece receiv ivab able les s Cont Contro roll account and Trade payables Control account from the given transactions. Name the the source rce of infor formatio tion for for the the cons constr truc ucti tio on of both both control accounts. Show Show the uses uses of the the Control Accounts

SUGGESTED ON-LINE  

http://www.ventureli ne.com/glossary.asp http://www.bized.co. uk/learn/accounting/i nfosystems/bait/mod 2_w_control.htm

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Revenue and raw materials, receipts and payments, discounts, returns, bad debts, dishonoured cheque, interest on overdue account, contra entries, refund, opening and closing balances on both sides of the accounts. identify and use the books of prime entry as sources of information for the control account entries. explain how the transfers (contra) between the Revenue and raw materials ledgers are presented in the control accounts. describe how minority balances arise and how they affect the control accounts.

Unit 12 - Incomplete Records Glossary : Incomplete records, Statement of Affairs, Single Entry, Capital Comparison, Analysis of records, Margin, Mark-up, Inventory Turnover TIME FRAM E

SPECIFIC OBJECTIVES


LESSON CONTENTS


SUGGESTED ON-LINE 32

Students should be able to: 4  prepare an opening and WEEK closing statement of S affairs  calculate profit (before tax) or net loss from changes in capital  calculate Revenue, raw materials, bank balance and gross profit from incomplete information  apply margin, mark-up and Inventory turnover calculations to arrive at missing figures.

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Statement of Affairs Calculate Profit or Loss from Incomplete Records Comparison of Capital Method Method of Analysis

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Explain the importance of double entry bookkeeping. Explain with example: The calculation of profit using capital comparison and method of analysis Organize students into groups of five to seven. Try to find some vendors (school canteen) who do not practice the double entry system of bookkeeping. Try offering the service and suggest to the vendor that the group can help them to carry out the proper way to book-keeping under the double entry system. List out the steps to be taken by the group of student on how to implement it. Divi Divide de stud studen ents ts into into groups. Give samples of certain source of documents or/and some addition additional al informa information tion abou aboutt the the busi busine ness ss.. Then ask them to

http://toolkit.cch.co m/text/P06_1350.asp (to find out more about single and double entry accounting system)  http://www.accaglob al.com/archive/sa_ol darticles/11670 (mastering the techniques) 

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calculate the raw mate materi rial als, s, Reve Revenu nue, e, Trade receivables, Trade paya payabl bles es,, expe expens nses es,, revenues and assets.


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Unit 13 – Accounts of Clubs and and Societies

Receipts and payments payments accounts, accounts, Bar / Refreshme Refreshments nts Trading, Trading, Bar / Refreshm Refreshments ents profit, income and Glossary : Receipts expenditure account, account, surplus, surplus, deficit, accumulated accumulated fund, fund, subscription subscription account, subscriptions in advance, subscriptions in arrears. TIME FRAME

4 WEEKS


Student should be able to:  distinguish between Receipts and Payments Accounts and Income and Expenditure Accounts.  draw up the Receipts and Payments Accounts  prepare accounts for revenue-generating activities e.g. Refreshments Refreshments and Subscriptions Accounts.  calculate the Accumulated Fund.  prepare the Income and Expenditure Accounts and Balance Sheets.


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Comparison of Accounting Terms Used by a Business and Those Used by a Club or Society. Receipts and Payments Accounts. Income and Expenditure Accounts. Refreshments Trading Account. Subscriptions Accounts. Accumulated Fund. Balance Sheets.


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www.bized.co.uk

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 IGCSE ACCOUNTING 0452 – SPN 21 SCHEME OF WORK YEAR 9 (3YR PROGRAMME)

Discuss and explain:Receipts and Payments Accounts; Income and Expenditure Accounts. Illustrate the similarities and differences between non-trading and business organizations. Calculate Accumulated fund using simple examples. Prepare subscription a/c. List the steps in preparing the Financial statements and balance sheet of non-trading concerns. Ask students to imagine themselves owning a club (e.g badminton club)-provide info- terms of subscription, entrance fee and etc..The club has a café too. Students will be given

SUGGESTED ON-LINE

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documents with info about the café e.g regarding the refreshments. From all the above info, ask them to calculate the refreshment profit. Using the same club, give additional info on expenses and income to calculate the subscription and surplus.

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Unit 14 – Limited Companies Glossary : Authorised, Registered or Nominal Capital, Issued capital, Subscribed capital, Called-up capital, Uncalled

capital, Paid-up capital, Unpaid-up capital, Ordinary shares, Preference shares, Deferred shares, Debentures, Dividends, Interim dividends, Final dividends, Shareholders fund. TIME FRAM E


4 Student should be able to: WEEK  describe the features of S a Limited Company.  dist distin ingu guis ish h betw betwee een n limi limite ted d and and unli unlimi mite ted d liability.  Understand and dist distin ingu guis ish h betw betwee een n autho authoriz rized, ed, calle called-u d-up, p, paid-up share capital.  explain explain the differen differences ces betwe between en shar share e capit capital al (ord (ordin inar ary y shar shares es and and preferen preference ce shares) shares) and loan capital (debentures).  expl explai ain n the the diff differ eren entt classe classes s of capit capital al of a limited company comprisi comprising ng prefere preference nce share share capital, capital, ordinar ordinary y share share capit capital al,, gener general al rese reserv rve e and and reta retain ined ed profits. calculate e the dividend dividends s  calculat paid on shares.

LESSON CO CONTENTS        


Limited Limited Companie Companies s and their Features. Classification of Capital. Classes of Shares. Debentures. Profit Profit and Loss Account Account of a Limited Company. Dividends. Balance Sheet of a Limited Company. Comparison of the Capital Capital Structur Structure e of the Sole Trader, Partnership Partnership and and Limi Limite ted d Liab Liabil ilit ity y Company.

SUGGESTED TEACHING LEARNING ACTIVITIES  

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SUGGESTED ON-LINE

Describe the features of a  Visit coco cola web limited company. site at: Compare t he above www.Cocoacola.Co features with other type of m business i.e. sole Refer Refer to the latest latest proprietorship and annua an nual l repor rep ort t and and partnership. a s k s t u d e n t to Explain the meaning of the iden identi tify fy rele releva vant nt differ different ent classi classific ficati ation on of items. capital. Explain t he different clas classe ses s of shar shares es with with  Log on to the respect to the payment of Registrar of dividends. Comp Compan anie ies’ s’ web web Expl Explai ain n the the func functi tion on of site at: Debentures Debentures and highlight highlight www.rcb.gov.sg thei theirr diff differ eren enc ces with with shares of a company. Explai Explain n final final and interi interim m  http://sbinformation .about.com/cs/owne dividends and how they are rship1/a/LLC.htm calculated for the different shares. Prepa repare re the the form format at of Appr Approp opri riat atio ion n acco accoun untt showing clearly the calculation of dividends Explain shareholders funds and how they are 37

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contr ntrast the the capita pitall structure of sole proprietorships, partnerships and limited companies. prepare the appropriation account. calcul lcula ate the the sha share holders fund.

calculated. Com Compare are Finan inanc cial ial stat statem emen ents ts betw betwee een n Sole Proprietorship and Partnership. Group work-Each work-Each produce produce concep conceptt map/ map/ flow flow chart chart showing steps in preparing the final account for both Limi Limite ted d comp compan anie ies s and and partnership partnership and make the comparison comparison.(Teac .(Teacher her will assess assess the work done from each group). •

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Unit 15 – Partnership Glossary : Partnership Agreement , Interest on Capital or Drawings, Share of Profit, Current Account, Profit and Loss

Appropriation Account TIME FRAM E


4 Students should be able to: WEEK Contras astt a partn partner ershi ship p  Contr S with a sole proprietorship.  Explain Explain the advantag advantages es and and disa disadv dvan anta tage ges s of forming a partnership  Outline Outline the importan importance ce and contents of a partnership agreement. calcul ulat ate e inte intere rest st on  calc capit capital al and inter interest est on drawings


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Comp Compar aris ison on betw betwee een n Part Partne ners rshi hip p and and Sole Sole Proprietorship businesses. The The Adva Advant ntag ages es and and Disadvantages of Partnership Businesses. Partnership Agreement Loans from partners Interest on capital Partner’s salaries Interest on Drawings


Explain with example: The The Profit Profit and and Loss Loss Appropriation Account. The Current Account of the partner. The Owners’ Equity is presented in the Balanc Balance e Sheet Sheet with with details of the Current Accounts OR the balance brought forward only.


www.Tutor2u.net

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www.Bized.ac.uk

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www.Accounting10. tripod.com

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www.Accaglobal.co m

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dra draw up the the inco ncome stat statem emen ent, t, prof profit it and and Los Loss Appro propriati iatio on Acco Accoun untt and and bala balanc nce e sheet. draw draw up Capi Capita tall and and Curr Curren entt Acco Accoun untt of a partner.

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Distribution of profits Profit and Loss Appropriation account Capita pitall and Cur Current ent Accounts of a Partnership Balance Sheet

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Comp Compar are e Fina Financ ncia iall statements statements between between Sole Sole Prop Proprie rietor torsh ship ip and Partnership. Gro Group work-Ea k-Eac ch pro produce uce concept ept map/ flow chart showing steps in prep prepar arin ing g the the fina finall account for both sole trader and partnership and make the comparison.(Teacher will assess the work work done from each group)

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Unit 16 – Interpretation and Analysis of Financial Statement Glossary : Turnover, Interpret, Analyse, Acid-test ratio( quick/liquid ratio), Current ratio, Gross profit margin, Profit

(before tax) margin, Average Inventory, Liquidity, Mark-up, Quick (liquid) assets, Rate of return on capital, Rate of Inventory turn, Ratio analysis, Working capital, Working capital ratio, Capital employed, Capital owned. TIME FRAM E



LESSON CO CONTENTS


SUGGESTED ON-LINE

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4 Student should be able to: WEEK  understand and S calculate the accounting ratios which measures profitability  understand and calculate the accounting ratios which measures liquidity  prepare simple statements showing inter-firm comparison and recognize their limitations  understand how owners and other interested parties use accounting statements  recognize the limitations of accounting statements

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Importance of interpretation interpretation and analysis of Financial statements and balance sheet. Calculation of profitability profitability ratios as follows: Return on capital employed (ROCE) Gross profit as a percentage of Revenue Profit (before tax) as a percentage of Revenue Calculation of liquidity ratios as follows: Current ratio Quick ratio Rate of Inventory turnover Collection period for Trade receivables Payment period for Trade payables

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Inter-form Comparison Users of Accounting Statement Limitations of Accounting Statements

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Introduce with the  http://www.office.c meaning of the words om/global “interpret” and  (Useful “analyse” (use of explanations on dictionary). financial analysis) Show how to calculate  http://www.manage the different accounting mentsystems.net/b ratios based on given enefits/benemain.ht situations. m Group students into 3/4.  (Accounting Show a financial software to assist in statements of a financial analysis) business, compare its  http://www.ventureli performance for the ne.com/(Sample ne.com/ (Sample given years using the industry analysis accounting ratios, and ratios Interpret and analyse computed) the significance of the  http://www.sgx.com accounting ratios in the .sg Annual reports Financial statements and of well-known retail balance sheet. chains. Group work- From case  http://www.accounti study ask students to ngformanagement. calculate and comments com/accounting_rat on the business ios.htm performances and giving suggestions on how to improve and etc.

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REFERENCES: 

Bookkeeping and Accounts; FT Prentice Hall; Frank Wood.

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IGCSE Accounting; Cambridge; Catherine Coucom.

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Principles of Accounts; Marshall Cavendish Education 2nd /3rd/4th/5th Edition; Betsy Li, Tan Sai Kim, Goh Lin Chin.


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Principles of Accounts; A complete Course with S.B.A Guides; CEP; David Ramlochan; Chairman Lalla

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‘O’Level Principles of Accounts; Loh Boon Foo, Ng Kim Hwa; Longman

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Principles of Accounts; Pearson Longman; Low-Wong Yee Yong, Wang-Aung Ah Hong.

RECOMMENDED BOOKLET FOR STUDENTS: 

Principles of Accounts –

Topic by topic with Notes and Exercises; 1st Edition; Hjh Harita binti Hj Hassan & Marhani binti Hj Mohd Lot Upper Secondary 4-ISBN 99917-54-12-1 o o Upper Secondary 5-ISBN 99917-54-13-x •


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Igcse Accounting 2-3

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