Accounting Grade 12

Overview

The AS Level Accounting syllabus aims to enable candidates to develop an ability to apply accounting concepts, principles, and practices. It also makes the students understand the role of accounting as an information system for monitoring, problem solving and decision-making and the place of accounting in changing economic, social, and technological environments. Students enrolled in this course at Wesgreen develop a critical and analytical approach to examining and evaluating accounting policies and practices in the real-world scenarios. This course also develops skills of communication, analysis, interpretation, and presentation of both qualitative and quantitative accounting information.

Learning Outcomes

The aims are to enable students to develop:

  • an understanding of how to plan, budget and manage financial resources
  • an ability to critically apply, analyze and evaluate accounting policies and practices
  • an understanding how to use accounting information to make viable business decisions
  • making and the place of accounting in changing economic, social, and technological environments
  • develop skills of communication, analysis, interpretation, and presentation of both qualitative and quantitative accounting information.

Unit Overviews

Term 1

Units 1 The accounting cycle                     

Approximate length: 1 week

By the end of these units, the learner should be able to interpret and analyze Capital and Revenue expenditure and receipts & prepare ledger accounts, construct various daybooks, prepare Trial balance and financial statements for the sole traders.

Cambridge International Curriculum Standards

  • Understand the principles of the double entry system for recording business transactions within an accounting environment
  • Understand the accounting concepts underpinning the preparation of accounts
  • Record cash and bank transactions in the cash book and post them to the appropriate ledger account  Record credit transactions and settlements and post them to the ledger account
  • Distinguish between trade, cash and settlement discounts and record the treatment of settlement discounts in the books of account.
  • Identify the correct book of prime entry for sales and purchase transactions, and post transactions and totals to the correct ledger accounts
  • Understand the functions of the cash book for prime and double entry
  • Balance ledger accounts and the cash book correctly, carrying down the balances as appropriate
  • Understand the different classes of ledger account and the advantages of using separate ledgers for each
  • Prepare trial balances from the ledger accounts and correct errors which do not affect the trial balance
  • Make appropriate journal entries, use a suspense account to correct errors which do not affect the trial balance, prepare journal entries for corrections, and amend profit and other accounts/ statements

Unit 2 Accounting for non-current assets             

Approximate length: 1 week

By the end of this unit, the learner should be able to deal with the double entry for provision for depreciation and disposal of non-current assets and observe the treatment of profit and loss on disposal and provision for depreciation in the final accounts.

Cambridge International Curriculum Standards

  • Understand the causes of depreciation and the methods for recording it in the books of account
  • Calculate the annual charges for depreciation using the most appropriate method
  • To identify the purpose of accounting for depreciation and the application of relevant accounting concepts in respect of non-current assets.
  • To prepare ledger accounts and journal entries for non-current assets, depreciation, and disposal (including entries for part exchange)
  • To record the effect of providing for depreciation in the income statement and statement of financial position

Unit 3 Reconciliation and verification                      

Approximate length: 2 weeks

By the end of this unit, the students should understand the need to reconcile and verify ledger accounts using documentation from internal and external sources. 

Cambridge International Curriculum Standards

  • prepare a bank reconciliation statement from relevant information
  • prepare ledger accounts and journal entries to correct errors using a suspense account and record the effects of these in the financial statements
  • prepare sales and purchase ledger control accounts
  • reconcile control accounts and ledgers
  • ·outline the uses and limitations of control accounts.

Unit 4 Preparation of financial statements: sole traders  

Approximate length: 2 weeks

By the end of these two units, the learner should be able to make further adjustments into final accounts of a sole trader including accruals, prepayments, irrecoverable debts, and provision for bad debts and closing inventory.

Cambridge International Curriculum Standards

  • Understand the need for and purpose of financial statements
  • Produce a basic income statement and statement of financial position for a sole trader
  • Make adjustments for irrecoverable and doubtful debts
  • Make adjustments in the financial statements for accruals, pre-payments, depreciation and inventory
  • Produce an income statement and statement of financial position for a sole trader with adjustments
  • Produce an income statement and statement of financial position for a sole trader from incomplete information

Unit 5 Preparation of financial statements: partnerships

Approximate length: 3 weeks

By the end of this unit, the learner should be able to construct partnership financial statements and differentiate between fixed and fluctuating capital accounts of partners. They will be able to construct and explain the use of current accounts for partners, incorporate partnership changes such as change in the profit/loss ratio, new partner entry, retirement of a partner and dissolution of the business in the preparation of capital and current accounts and show the effect of these changes on the financial statements of partnership.

Cambridge International Curriculum Standards

  • Prepare income statements, appropriation, current and capital accounts, and statements of financial position for a partnership from either full or incomplete accounting records
  • Deal with goodwill, revaluation of assets and changes of partnership arising from the introduction of new partners and/or retirement of existing partners or the dissolution of the partnership

Unit 6 Preparation of financial statements: limited companies     

Approximate length: 2 weeks 

By the end of this unit, learner should be able to prepare and analyze an income statement, statement of financial position and simple cash flows for a limited company from full or incomplete accounting records. Learner will be able to distinguish between rights and bonus issue of shares, record changes to a statement of equity and analyze the effects of capital and revenue reserves on the shareholder’s equity.

Cambridge International Curriculum Standards

  • Preparation of financial statements: limited companies
  • Understand the structure and content of limited company accounts
  • Prepare income statement, statement of financial position, share issue ledger accounts and statement of changes in equity for limited companies from full or incomplete accounting records

Unit 7 Analysis and communication of accounting information to stakeholders       

Approximate length: 2 weeks

By the end of this unit, learner should understand the need for the analysis of financial data to aid decision making by stakeholders.

Cambridge International Curriculum Standards

  • identify and discuss the differing requirements for information of user groups including management, employees, potential investors, creditors, government, public and environmental bodies; and communicate
  • the information required by these different stakeholder groups
  • calculate key accounting ratios to measure profitability, liquidity, and efficiency: –– Profitability ratios including gross margin, mark up, profit margin, return on capital employed, expenses to revenue ratio (operating expenses to revenue ratio) –– Liquidity ratios including current ratio, liquid (acid test) ratio–– Efficiency ratios including non-current asset turnover
  • trade receivables turnover (days), trade payables turnover (days), inventory turnover (days), rate of inventory turnover (times)
  • use ratios to evaluate and comment on the profitability, liquidity, and efficiency of an organization
  • identify and discuss the limitations of accounting information. Use profitability, liquidity, and efficiency ratios to make calculations and comments, understanding their limitations

General teaching methodologies will include Online and Face to Face (Blended) learning, Face to face students will be in class while online learners will log in remotely and follow the instructor, who will have the laptop camera facing the smartboard. Teaching will be done using a combination of writing and illustrating on the smartboard and PowerPoint presentations.  This should include a combination of oral and visual methods to differentiate instruction modes to cater to student preferences effectively.

Use of Phoenix to allocate differentiated activities catering to varying learning abilities of the students – these online activities will include quizzes, assignments, research-based projects, digital group activities and formative tests.

Feedback to students will be given through the Gems Phoenix platform. Feedback will include rubrics, teacher, and peer marking.

Questions from students – time allocated to allow students the opportunity to ask questions and give written and oral feedback through digital platforms.

Term 2

Unit 8 Costing for materials and labor            

Approximate length: 1 week

By the end of this unit, learner should understand the need to account for material and labor costs. Cambridge International Curriculum Standards

  • identify and calculate fixed costs, variable costs, semi variable
  • costs and stepped costs Identify the difference between direct and indirect material
  • Calculate the value of the closing inventory using FIFO, LIFO and AVCO
  • Understand the effect of different inventory valuation methods on profit
  • Calculate labor costs using different methods of remuneration

Unit 9 Traditional costing methods – absorption costing 

Approximate length: 2 weeks

By the end of this unit, learners should understand the application of traditional costing methods, and calculate the total cost of production under full costing or absorption costing technique for manufacturing concerns.

Cambridge International Curriculum Standards

  • Identify and define different cost centres
  • Allocate and apportion overhead expenditure between production and service departments
  • Calculate overhead absorption rates and explain the causes of under and over absorption of overheads  Prepare absorption costing statements
  • Explain the uses and limitations of absorption costing

Unit 10 Traditional costing methods – marginal costing 

Approximate length: 2 weeks

By the end of this unit, learners should understand the application of traditional costing methods, and calculate the total cost of production under marginal costing or contribution costing technique. Cambridge International Curriculum Standards

  • Identify the different types of costs that organizations incur
  • Calculate from data for a given product the contribution, break-even point, margin of safety and contribution to sales ratio
  • Prepare marginal costing statements and break-even charts and profit-volume charts from given data
  • Analyze the difference in profit resulting from marginal and absorption costing methods  Use marginal costing techniques to evaluate and make recommendations
  • Identify the uses and limitations of marginal costing

Unit 11 Traditional costing methods – cost-volume profit analysis 

Approximate length: 1 week

By the end of this unit, learners should understand the application of traditional costing methods, and calculate the total cost of production under marginal costing or contribution costing technique Cambridge International Curriculum Standards

  • Identify and explain the advantages and limitations of cost–volume–profit analysis
  • Evaluate and interpret cost-volume-profit data
  • Prepare costing statements using unit, job, and batch costing principles
  • Apply costing concepts to make business decisions and recommendations using supporting data.

Unit 12 Application of accounting to business planning 

Approximate length: 2 weeks

By the end of this unit, learners should understand the benefit to business planning using accounting data. Learners will be able to recognize budgeting as a significant managerial function and identify its benefit and limitations from financial aspect.

Cambridge International Curriculum Standards

  • explain the need for a business to plan
  • explain why organizations prepare budgets and the benefits they bring to the planning process
  • explain the advantages and disadvantages of budgetary control, including both financial and nonfinancial factors.

Past and specimen papers            

Approximate length: 2 weeks

  • Revision for Mock exams

Term 3

Mock Examinations and Study Leave for CIE (External Examinations)

Assessment

Formative: Throughout the units, the learners will complete graded work, quizzes, assignments, past paper projects and investigation activities, which allows the teacher to assess the students’ attainment and inform their planning.

Next Steps

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