Book - Keeping Topics - FormThree

 

TOPIC 1: General Journal

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General Journal 

1. Explain the purpose of the General journal 

2. Explain the relationship of the general journal to the ledger 

3. Prepare journal entries to record common business transactions 

4. Post information from the general journal to the ledger Accounts 

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TOPIC 2: Corrections of Errors

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1. Correction of Errors .

   • Identify wrong entries .

2. The Effect of Errors .

   • Explain the effect of errors on the value of stock .

3. Preparation of Journal Entries Necessary to Correct Errors .

   • Prepare a corrected Trial Balance .

   • Outline uses of the Trail Balance .

 

TOPIC 3: Adjustments

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Adjustments .

• Explain why the life of a business is divided into accounting period .

• State why the accounts must be adjusted at the end of each accounting period .

• Explain how adjusting entries are related to the concept of accrual accounting and matching principle .

• Describe the four basic adjusting retries .

• Prepare adjusting entries for prepaid expenses, unearned revenue, accrued Revenues and depreciation .

• Prepare entries to dispose of accrued revenue and expense items in thee new accounting period .

• Explain the difference between the cash and accrual basis of accounting .

• Explain the importance of comparability in the financial statements of a business, period after period .

• Explain how the realization principle and the matching principle attribute to comparability .

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TOPIC 4: Capital Expenditure and Revenue Expenditure

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Capital Expenditure and Revenue Expenditure .

• Give the meaning of capital expenditure and revenue expenditure .

• Distinguish capital expenditure items from revenue expenditure items .

• Explain the importance of distinguishing capital expenditure from revenue expenditure .

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TOPIC 5: Depreciation

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1. Depreciation .

   • Determine the cost of a fixed asset .

   • Write up an asset account .

   • Distinguish between copula and revenue expenditure .

   • Explain the relationship between depreciation and the matching principle .

2. Computing Depreciation .

   • Compute depreciation by the straight line .

   • Compute depreciation by Units of output .

   • Compute depreciation by Declining balance .

   • Compute depreciation by Sum of the years digits .

   • Compute depreciation by Revaluation .

   • Compute depreciation by Double declining balance .

   • Show the asset account, the provision for depreciation account as balance sheet extracts .

   • Write up an asset disposal account and extracts from the balance sheet .

   • Show journal entries to record depreciation on fixed asset .

   • Identify methods of providing depreciation employed .

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TOPIC 6: Bad Depts

 

Bad Depts .

• Show the bad debts account .

• The provision for bad debts account .

• Prepare a computation of the amount to be shown as Trade debtors in the company balance sheet .

• Prepare a provision for discounts on debtors .

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TOPIC 7: Financial Statements

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Financial Statements .

• Describe general purpose financial statements .

• Explain why general purpose financial statements must follow generally accepted accounting principles .

• Describe an income statement .

• Prepare a balance sheet .

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TOPIC 8: Balalnce Sheet

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Balance Sheet (Classified) .

• Define each asset and liability classification appearing on a balance sheet .

• Classify balance sheet items .

• Prepare a classified balance sheet .

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TOPIC 9: Manufacturing Account

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Manufacturing Account .

• Explain the difference in accounting for stocks between manufacturing companies and merchandising companies .

• Describe the three basic types of manufacturing cost .

• Distinguish between indirect and direct manufacturing costs .

• Distinguissh between product costs and period costs .

• Prepare a schedule of cost of finished goods manufactured .

• Determine the cost of work in process stocks and the costs of finished goods stocks .

• Prepare closing entries for a manufacturing company .

• Describe the basic differences in the financial statements of manufacturing companies and merchandising companies .

• Describe the procedure inherent in a general accounting system for a manufacturing company .

• List the different accounts that appear on a manufacturing company’s books .

• State what the accounts in a manufacturing company’s books represent .

• Explain the purpose of a manufacturing Account .

• Explain how a manufacturing Accounts is composed .

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TOPIC 10: Control Account

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Control Account .

• Construct control account from subsidiary records .

• Prepare control accounts from account balance .

• Explain how a control ledger and its subsidiary ledger operate .

• Give the rule for posting to a subsidiary ledger and its controlling account .

• Record corrections in the control and suspense accounts .

• Reconcile the sales and purchases ledger control accounts with the individual balances .

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TOPIC 11: Incomplete Records

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Incomplete Records .

• Draw up statements to show profit or loss from incomplete records .

• Prepare trading, profit and loss account .

• Prepare balance sheet .

• Calculate amount of cash stolen .

• Calculate the value of stock at cost which had been stolen .

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TOPIC 12: Accounts of Non - Profit Making Organisations

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Accounting of Non-Profit Making Organizations .

• Prepare statements of affairs .

• Prepare income and expenditure account from a Receipts and payments account .

• Calculate the value of the accumulated fund .

• Reconstruct income account and expenditure accounts .

• Prepare the balance sheet .

• State the advantages and disadvantages of Receipts and payments accounts .

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TOPIC 13: Elements of Auditing

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1. Governmant Budgeting Procedure .

   • Define a budget .

   • State steps in the preparation of the budget .

   • Explain the purpose of central government budgeting .

2. Modern Approaches of Budgeting .

   • Explain zero base budgeting .

   • State the incremental budgeting .

   • Explain the static budgeting .

   • Explain the flexible budgeting .

   • Explain the continuous budgeting .

   • Explain the traditional budgeting .

   • Explain th performance budgeting .

   • Explain the costing of estimates: Revenue estimates procedure .

   • Give the meaning of budget surplus deficit and balanced budgets .

   • State the objects of financial budgets .

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