SYLLABUS

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FINANCIAL ACCOUNTING
1. Introduction

2. Principles of Double Entry

3. Cash Book & Bank Reconciliation
Meaning, History, functions and importance of Book-keeping and Accounting, career opportunities in Accounting, and various Accounting professional and regulatory bodies.

a. Meaning, purpose, and importance of sources documents, and double entry principle.

b. Meaning, preparation and importance of the following subsidiary books of accounts: cash book, Sales Day Book, Returns outward Book, and Journal proper.

c. Purpose of ledger, and classification of Accounts (i.e. personal and impersonal accounts).

a. Meaning of cash book and its preparation
b. Preparation of two and three column cash book and imprest Account system.
c. Preparation of trial balance and correction of errors/suspense Accounts.
d. Bank reconciliation statement (causes of discrepancy and its treatments)

4. Trading Account (final accounts of a sole trader)

5. Reserves and provisions

6. Control Accounts and Self Balancing ledgers.

7. Manufacturing Accounts

8. Single Entry and incomplete Records
a. Identify trading account items and its terminologies.
b. preparation of trading, profit and loss accounts; and the balance sheet.
c. adjustments (Provision for bad debts, provision for discounts on debtors, accruals
an d prepayments)
d. accounting ratios (mark-up margin, gross profit as percentage of sales, stock turn or Rate of turnover)

a. provision for doubtful debts, and bad debts.
b. depreciation, reasons and treatments of various methods.
c. amortisation and depletion of fixed assets.
d. reserves, meaning and types. Accounting treatment of revenue and capital reserves.

a. meaning and uses of control accounts.
b. preparation f sales or Debtors control Account.
c. preparation of purchases or creditors control Account.

a. Simple manufacturing or production account, showing various classifications (prime cost, overhead cost etc).
b. Preparation of final accounts of manufacturing concern.

a. meaning and nature
b. computation of profit from two balance sheet and drawing of statement of affairs.
c. preparation of final accounts from a set of incomplete records.
9. Accounts of non-profit making Organizations

10. Partnership Accounts

11. Company Accounts

12. Departmental and Branch Accounts

13. Hire Purchase Accounts

14. Consignment Accounts

15. Joint Venture Accounts

16. Public Sector Accounting

17. Introduction To Data Processing
a. receipts and payments accounts.
b. income and expenditure accounts
c. treatment of subscriptions, accumulated fund, payments in advance and arrears.
d. preparation of balance sheet.

a. introduction (meaning and terminologies).
b. treatment of partners capital and current accounts.
c. admission of new partner, goodwill accounts, and dissolution of partnership. Questions will not be asked on piecemeal dissolution.
d. profit and loss appropriation account and balance sheet.

a. Meaning and purpose of Company Accounts.
b. Various forms of capital (i.e Nominal, authorized, issued, called-up etc).
c. Issue and redemption of shares, at par, premium and discount.
d. Acquisition of existing business
e. Conversion of Partnership into a limited. Company (simple treatments only).
f. Interpretation of accounts using simple ratios
g. Preparation of final accounts of company (Internal use only)

a. preparation of departmental and total profits
b. inter-branch transactions (within the country).
c. relationship between head office and branches Accounts.

a. meaning and purpose of hire purchase
b. making entries in the books of the hirer and seller

a. meaning and terminologies
b. accounting treatments in the books of the consignor.
c. consignee's account preparation
d. account sales.

a. meaning and purpose
b. joint venture accounts
c. memorandum account

a. sources of public revenue
b. capital and recurrent expenditure
c. simple government accounting procedures

a. Historical Developments of Computer
b. Basic Elements. Components. Classifications and functions of a computer.
c. Basic terminologies of a computer
d. Computer application in an Accounting environment.

1. AIMS AND OBJECTIVES
The examination in this subject sets out to assess candidates’
(a) understanding of accounting principles and the role of accounting in recording business transactions;
(b) appreciation and application of the rules and functions of Accounting as they apply to organization;
(c) foundation for further studies in Accounting.

2. SCHEME OF THE EXAMINATION

There will be two papers – Paper 1 and Paper 2, both of which will constitute a composite paper to be taken at one sitting.

PAPER 1: Will comprise fifty multiple choice questions, all of which should be answered in 1 hour for 25 marks.
PAPER 2: Will be made up of two sections, Sections A and B and will last 2½ hours.
Section A: Will contain four essay questions on Theory of Financial Accounting. Candidates will be required to answer two out of the four questions for 15 marks each.

Section B: Will contain five essay questions on Financial Accounting Practice. Candidates will be required to answer three out of the questions for 15 marks each.
DETAILED SYLLABUS
S/NO TOPICS NOTES
1. Introduction to Financial Accounting
1.1 History, nature and functions of Accounting.
1.2 Users of Accounting information.
1.3 Stages in the Accounting process.
1.4 Characteristics of Accounting information.
2. The Accounting Equation and Double Entry Principles
2.1 Accounting Equation.
2.2 Purpose and functions of source documents.
2.3 Subsidiary books.
2.4 The ledger: classification of Accounts.
2.5 Cash Book: analytical cash book, including petty cash book.
2.6 Preparation of Trial Balance.
2.7 Bank Reconciliation Statements.
2.8 Correction of errors and Suspense Account.

3. Accounting Concepts 3.1 Meaning.
3.2 Types.
3.3 Significance.
3.4 Limitations.
4. The Final Accounts of a Sole Trader/proprietorship 4.1 Trading, profit and loss accounts/Income statement.
4.2 Balance sheet/statement of financial position.
4.3 Adjustments to final accounts.
5. Provisions and Reserves 5.1 Provision for doubtful debts/Allowance for doubtful debts.
5.2 Provision for discounts.
5.3 Depreciation – concepts, reasons for recording and methods:
(i) straight line;
(ii) reducing balance;
(iii) sum of the years digits;
(iv) revaluation.
5.4 Accounting for depreciation.
5.5 Reserves – revenue and capital reserves.
6. Manufacturing Accounts 6.1 Purpose of Manufacturing Accounts.
6.2 Cost classification in Manufacturing Accounts.
6.3 Preparation of final Accounts of Manufacturing concern.
7. Control Accounts and Self-balancing Ledgers 7.1 Meaning and uses of control accounts
7.2 Types:
(i) sales ledger control
(ii) purchases ledger control
7.3 Preparation of Control Accounts
7.4 Reconciliation of Control Accounts
8. Single Entry and Incomplete Records 8.1 Meaning and limitations
8.2 Computation of profit or loss from opening and closing balance sheets.
8.3 Conversion of singe entry to double entry.
8.4 Preparation of final accounts from a set of incomplete records.
8.5 Mark up and Margin

9. Accounts of Not-for-Profit Making Organizations 9.1 Meaning and terminologies.
9.2 Receipts and payments accounts.
9.3 Subscriptions Account
9.4. Income and expenditure accounts.
9.5 Accumulated fund.
9.6 Balance sheet.
9.7 Profit or loss from income generating activities.
10. Partnership Accounts 10.1 Nature and formation of partnership.
10.2 Partnership agreements/Deed.
10.3 Profit and loss appropriation accounts.
10.4 Partners capital account and balance sheet
10.5 Admission of a new partner.
10.6 Treatment of goodwill and revaluation of assets
10.7 Dissolution of partnership (Questions will not be set on Garner V. Murray and piecemeal realization)
11. Company Accounts 11.1 Nature and formation of a company.
11.2 Types of companies and shares.
11.3 Issue of shares.
11.4 Loan capital, debentures/loan notes and mortgages.
11.5 Final accounts of company for internal use only.
11.6 Interpretation of accounts using simple ratios.
11.7 Purchase of business account.
*11.8 Statement of Cash Flow (using direct and indirect methods).
NOTE: Separate questions may be set to meet statutory requirements of individual countries. Candidates’ answers must meet statutory requirements of individual countries.
12. * Accounting for Value Added Tax


12.1 Purpose of VAT.
12.2 Characteristics of VAT.
12.3 Bases of computing input/output VAT.
12.4 Preparation of VAT returns.
12.5 Exempt goods and services.

13. Departmental and Branch Accounts 13.1 Meaning and importance
13.2 Differences between a department and branch.
13.3 Preparation of departmental account.
13.4 Preparation of Branch Account excluding foreign branches.
13.5 Inter branch transactions.
14. Public Sector Accounting 14.1 Meaning and difference between Public Sector and Private Sector Accounts.
14.2 Sources of public revenue.
14.3 Capital and recurrent expenditures.
14.4 Preparation of simple government accounts.
15. * Information Technology in Accounting 15.1 Manual and computerized Accounting Processing Systems.
15.2 Processes involved in data processing.
15.3 Computer Hardware and Software.
15.4 Merits and demerits of manual and computerized accounting processing systems.
16** Miscellaneous Accounts 16.1 Meaning, introduction, terminologies and preparation of simple:
(i) Joint Venture Accounts
(ii) Consignment Accounts
(iii) Contract Accounts
(iv) Hire Purchase Accounts

17.** Financial system 17.1 Meaning and components.
17.2 Meaning, functions and features of:
(i) money market;
(ii) capital market;
(iii) insurance market.
17.3 Methods of raising funds from the capital market:
(i) offer for sale;
(ii) offer for subscription;
(iii) rights issue;
(iv) private placement;
17.4 Requirements for accessing the capital market.
17.5 Benefits of capital market to:
(i) investors;
(ii) government;
(iii) economy;
(iv) individual company;
17.6 Types, features and reasons for regulation.



NOTE: * Available to candidates in Ghana only
** Available to candidates in Nigeria, The Gambia, Sierra Leone and Liberia only


RECOMMENDED TEXT BOOKS
1. Business Accounting volume 1 - West African Edition by Frank Wood and Omunya.
2. Business Accounting Volume 2 - Frank Wood.
3. Accounting and Finance - Frank Wood.
4. Foundation Accounting - A. H. Millchamp.
5. Basic Accounting - J. D. Magee.
6. Accounting for Senior Secondary School - S. C. Malhorta, P. K. Botchweyand, P. A. Amankwah.
7. Accounting in Business - R. J. Bull.
8. Company Accounts - J. N. Amorin.
9. Principles of Accounting - K. B. Appiah Mensah
10. Incorporated private Partnership Act 1962, Act 152.