This unit is essential as it introduces financial accounting, which serves as the universal language of business. Mastering these concepts provides a systematic framework for recording, analyzing, and communicating a company’s financial health, a skill that is indispensable for effective decision-making by all stakeholders.
Curriculum
- 4 Sections
- 26 Lessons
- 16 Weeks
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- 2.1 The Role of Accounting6
- 1.12.1.1 Differentiating Between Book-keeping and Accounting
- 1.22.1.2 The Benefits of Using Information and Communication Technology (ICT) in Accounting
- 1.32.1.3 The Fundamental Accounting Equation: Assets = Capital + Liabilities
- 1.42.1.4 Classification of Assets into Non-current and Current
- 1.52.1.5 Classification of Liabilities (Non-current & Current) and Defining Capital
- 1.62.1.6 The Structure and Purpose of the Balance Sheet
- 2.2 The Double Entry System of Book-keeping7
- 2.12.2.1 The Principle of the Double Entry System and the Use of ‘T’ Accounts
- 2.22.2.2 Applying Double Entry Rules for Assets, Liabilities, and Capital
- 2.32.2.3 Applying Double Entry Rules for Inventory Accounts (Purchases, Sales, Returns)
- 2.42.2.4 Applying Double Entry Rules for Incomes and Expenses
- 2.52.2.5 Applying Double Entry Rules for Drawings and Carriages
- 2.62.2.6 The Process of Balancing Off ‘T’ Accounts
- 2.72.2.7 The Purpose, Preparation, and Limitations of a Trial Balance
- 2.3 Documentary Records and Books of Prime Entry8
- 3.12.3.1 The Role of Source Documents: Invoice, Debit Note, Credit Note, and Statement of Account
- 3.22.3.2 The Function of the Main Books of Prime Entry (Journals)
- 3.32.3.3 Procedures for the Sales Journal and Sales Returns Journal
- 3.42.3.4 Procedures for the Purchases Journal and Purchases Returns Journal
- 3.52.3.5 Posting from Journals to the Sales, Purchases, and General Ledgers
- 3.62.3.6 The Purpose and Use of the General Journal
- 3.72.3.7 The Dual Function of the Cash Book and the Concept of Contra Entries
- 3.82.3.8 Understanding Cash Discounts: Discount Allowed vs. Discount Received
- 2.4 Sole Trader Financial Statements5
- 4.12.4.1 The Purpose of Financial Statements for a Sole Trader
- 4.22.4.2 The Income Statement: Constructing the Trading Account to Determine Gross Profit
- 4.32.4.3 The Income Statement: Constructing the Profit and Loss Account to Determine Net Profit
- 4.42.4.4 The Balance Sheet: Its Structure and Role in Showing Financial Position
- 4.52.4.5 Analyzing Key Balance Sheet Figures: Working Capital, Capital Owned, and Capital Employed
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