G.C.E.

ADVANCED LEVEL

-2011 Accounting
Content
1. ACCOUNTING & ACCOUNTING ENVIRONMENT

2. ACCOUNTING FOUNDATION

3. DOUBLE-ENTRY PRINCIPLE

4. RECORDING ACCOUNTING INPUTS

5. FINANCIAL STATEMENTS

6. FIXED ASSETS & DEPRECIATION

7. INCOMPLETE RECORDS

8. ACCOUNTING FOR NON-PROFIT ORGANIZATIONS

9. ACCOUNTING FOR PARTNERSHIPS

10. ACCOUTING FOR LIMITED LIABILITY COMPANIES

11. ACCOUNTING STANDARDS

12. CASH-FLOW STATEMENTS

13. RATIO ANALYSIS

14. COST & MANAGEMENT ACCOUNTING

15. COST & COST CLASSIFICATION

16. OVERHEAD COSTING

17. INVESTMENT DECISIONS

1. ACCOUNTING & ACCOUNTING ENVIRONMENT
 Accounting Function in a Business
 The need for Information in a Business
 Accounting as an Information System
 Definitions
 Accounting Environmental Factors
 The need for Accounting, its objectives & Importance
 Various users of Accounting & their needs
 Financial Statements containing Information
 Supplying Information & its Responsibilities
 Various Parties related to preparing Information
 Qualitative Facts of Accounting Information
 Professional Accounting bodies & their role
 Changes in the Accounting Environment
 New Trends in Accounting

2. ACCOUNTING FOUNDATION
 Accounting Input & Output Process
 Introduction to Assets & Liabilities
 The Accounting Equation
 The effects of Transactions on the Accounting Equation
 Categorizing Assets & Liabilities through the Accounting Equation
 Preparing a basic Balance Sheet
 Capital & Revenue Expenditure
 Introduction to Income & Expenditure
 Preparing a basic Income Statement (Trading, Profit & Loss Account)
 Explaining the Relationship between the Income Statement & Balance Sheet
3. DOUBLE-ENTRY PRINCIPLE

 Introduction to Double-Entry System
 The relationship between the Double-Entry System & the Accounting Equation
 Double-Entry theory with regard to Assets, Liabilities & Capital
 Showing the effects of Transactions on the Accounting Equation through the Double-Entry
System
 Double-Entry theory with regard to Income & Expenditure
 Changes in Capital due Income & Expenditure effects
 Ledger Accounts
 Recording Transactions in ledger accounts (Cash & Non-cash)
 Balancing Accounts & Preparing the Trial Balance
 Preparing a basic Income Statement & a Balance sheet from a given Trial Balance

The Concepts & Issues that emerge from the content
 The Double-Entry System
 Effects of Transactions on the Accounting Equation
 The relationship between Income, Expenditure & Capital
 Double-Entries & Ledger accounts
 Classifying & Balancing Ledger accounts
 Preparing a Trial Balance
 Preparing an Income Statement & a balance Sheet from a Trial Balance

4. RECORDING ACCOUNTING INPUTS

Contents
 Accounting Process in detail
 Source Documents
 Prime-entry books
 The Cash book
 Bank Reconciliation Statement
 Purchases Journal
 Sales Journal
 Returns outwards/Purchases return Journal
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  Returns inwards/Sales return Journal
 General Journal
 Petty Cash book
 Day books, Sub-ledgers, Control accounts & the Trial Balance
 Suspense accounts & Correction of Errors

The Concepts & Issues that emerge from the content

 The Accounting Process
 Source Documents
 Cash book & other Prime-entry books
 Copying transactions to Ledger accounts
 Control accounts
 Bank Reconciliation Statement
 Suspense accounts & Correction of Errors

5. FINANCIAL STATEMENTS

Contents
 Introduction to Financial Statements
 Preparing Financial Statements for Sole-Proprietorships
 Adjustments to be made before preparing Financial Statements
 Trial Balance after Adjustments
 Preparing Financial Statements with Adjustments
 Accounting Standards & Accounting Concepts

The Concepts & Issues that emerge from the content

 Trading, Profit & Loss account
 Manufacturing account
 The Balance Sheet
 Adjustments to Financial Statements
 Accounting Standards & Concepts

6. FIXED ASSETS & DEPRECIATION

Contents
 Introduction to Fixed Assets & Depreciation
 The need for identifying Depreciation
 Calculating Depreciation in various methods & accounting for it
 Acquisitions, Disposals & Revaluations of Fixed Assets
 Accounting syllabus Mindventures educational services 29
The Concepts & Issues that emerge from the content
 Various methods of Depreciating Fixed Assets
 Acquisitions, Disposals & Revaluations of Fixed Assets

7. INCOMPLETE RECORDS

Contents
 Introduction to Incomplete Records
 Preparing Financial Statements form Incomplete Records

The Concepts & Issues that emerge from the content

 Calculating the Operating Profit from Incomplete Records
 Calculating the Net Profit using the Net Assets
 Preparing an Income Statement & a Balance Sheet for an organization that doesn’t keep
accounting records

8. ACCOUNTING FOR NON-PROFIT ORGANIZATIONS

Contents
 Introduction to Non-profit organizations & their accounting methods
 Receipts & Payments Account
 Trading, Profit & Loss account certain trade activities
 Income & Expenditure Account & the Balance Sheet

The Concepts & Issues that emerge from the content
 Non-Profit motive organizations
 Receipts & Payments Account
 The Subscriptions Account
 Income & Expenditure Account
 Accumulated Fund

9. ACCOUNTING FOR PARTNERSHIPS

Contents
 Introduction
 Capital Account, Current Account & Drawings Account
 Financial Statements of Partnerships
 Appropriation of Profits
 Accounting for Changes in Partners
 Accounting syllabus Mindventures educational services 30
The Concepts & Issues that emerge from the content
 Partnerships
 Legal issues on Accounting for Partnerships
 Financial Statements prepared by Partnerships
 Accounting for Goodwill
 Revaluations of Assets

10. ACCOUNTING FOR LIMITED LIABILITY COMPANIES

Contents
 The Legal Background on Accounting for Limited Liability Companies
 Raising Capital by Issuing Shares
 Types of Shares that can be issued
 Reserves & Provisions
 Bonus & Rights issues
 Financial Statements of Limited Liability Companies
 Disclosures to Accounting Statements as per Standards
 Published Financial Statements

The Concepts & Issues that emerge from the content

 The Legal background & Issues on Limited Liability Companies
 Raising Capital in a Limited Liability Company
 Reserves & Provisions
 Main Financial Statements in a Limited Liability Company

11. ACCOUNTING STANDARDS

 Contents
 Introduction to Accounting Standards
 Prudence Accounting methods in Accounting Standards
 Disclosure Requirements in Financial Statements

The Concepts & Issues that emerge from the content

 Accounting Standards
 The Role of Accounting Standards
 Accounting Standards 3, 5, 8, 9, 10 & 12
Accounting syllabus Mindventures educational services 31
12. CASH-FLOW STATEMENTS

Contents
 Introduction to Cash-flow Statements
 Preparing a Cash-flow Statement

The Concepts & Issues that emerge from the content

 Cash-flow Statement
 The need to prepare a Cash-flow Statement
 The Content of a Cash-flow Statement
 Preparing a Cash-flow Statement

13. RATIO ANALYSIS

Contents
 Interpreting Financial Statements by various Ratios

The Concepts & Issues that emerge from the content

 The need for Interpreting Financial Statements
 Methods used to Interpret Financial Statements
 Accounting Ratios

14. COST & MANAGEMENT ACCOUNTING

Contents
 Introduction to Cost & Management Accounting
 Relationship between Cost & Management accounting & Financial Accounting
 Recording the Cost component in a Manufacturing Organization

The Concepts & Issues that emerge from the content

 Cost & Management Accounting
 The relationship between Cost & Management Accounting & Financial Accounting
 The Cost combination in a Manufacturing Organization
Accounting syllabus Mindventures educational services 32
15. COST & COST CLASSIFICATION

Contents
 Cost Classification
 Material Costing
 Labour Costing
 Direct Costs
 Overheads

The Concepts & Issues that emerge from the content

 Components of Costs
 Stock Valuation methods such as FIFO, LIFO Etc
 Calculation of Salaries, Wages, Overtime & Bonus payments
 Overhead Analysis Sheet
 Allocation, Apportionment, Re-apportionment & Absorption

16. MARGINAL COST

Contents
 Marginal Costing

The Concepts & Issues that emerge from the content

 Fixed Costs
 Variable Costs
 Contribution per Unit
 Break-even Point
 Profit to Volume Ratio
 Contribution to Sales Ratio
 Margin of Safety

17. INVESTMENT DECISIONS

Contents
Investment Decisions

The Concepts & Issues that emerge from the content

 Project Cash-flows
 Time Value of Mone
Accounting syllabus Mindventures educational services 33
Accounting a/l examination testing method There are 2
Accounting papers called Accounting I & Accounting II which are 3 hours each.
Accounting I Part 1 is compulsory which carries 40 marks. The first 20 questions are
Multiple Choice Questions (MCQ) where the correct answer should be selected from the 5
alternative answers given. The remaining 20 questions expect short & exact answers.
Part 2 has 6 questions of which the 1st question is compulsory (20 Marks). Out of the
remaining 5 questions, 4 questions should be answered (10 Marks each). Topics 1-9 in the
syllabus are covered in this paper. Accounting II Part 1 is compulsory which carries
40 marks. The first 20 questions are Multiple Choice Questions (MCQ) where the correct
answer should be selected from the 5 alternative answers given. The remaining 20
questions expect short & exact answers. Part 2 has 6 questions of which the 1 st question
is compulsory (20 Marks). Out of the remaining 5 questions, 4 questions should be
answered (10 Marks each). Topics 10-17 in the syllabus are covered in this paper.