ACCOUNTING

FORM 3 – 5 Syllabus
Joanne Zammit
EO Accounting and Business Studies

Directorate for Quality and Standards in

Education
Department of Curriculum Management
 Table of Contents
Rationale for Accounting

Syllabus Aims

Syllabus Objectives

Strands

Learning Outcomes

Assessment Objectives

Scheme of Assessment

Form 3 Syllabus

Form 4 Syllabus

Form 5 Syllabus

Appendix 1 – New Terminology

Appendix 2 – IAS1 Formats (Attached pdf)

Recommended Textbooks
 Accounting

The accounting syllabus introduces learners to the theory and concepts of accounting and the
ways in which accounting is used in a variety of modern economic and business contexts.
Learners focus on the skills of recording, reporting, presenting and interpreting financial
information and build an ideal foundation both for further study and for a future career
within the profession.

Rationale for Accounting

The study of Accounting is invaluable and is relevant to the present and future life of every
person in that it:

- develops problem-solving and computational skills and an awareness and recognition of

the consequences of errors.
- develops skills in the use of figures in business communication, in analysis and in
decision-making
- enhances mental discipline, encourage concentration and fosters critical thinking,
logical organization and orderly presentation.
- facilitates the language of business which is communicated universally within the
business world
- fosters the concept of accountability and transparency

Syllabus aims
The syllabus enables students to develop:

- an understanding of the use of accounting as an aid to business decision making

- an awareness of the business environment dimension
- knowledge and understanding of business through the use of figures, computations and
statistics
- knowledge and understanding of the principles and purposes of accounting of both
profit making and non-profit making organisations. Students will understand the
functions of accounting as a comprehensive and systematic method of recording
transactions of both types of organisations.
 - an understanding of accounting concepts, principles, techniques, procedures and
terminology
- improved skills of numeracy, literacy, communication, enquiry, presentation and
interpretation of accounting information. Thus, students will be able to develop abilities
to quantify, to judge relevance and to write clear and concise explanations.
- mental organization, clear and logical thinking, mental agility and critical thinking skills
- improved accuracy and orderliness
- appreciation of professional ethics
- an understanding of accounting as a means of assessing the financial position of an
organization
- an appreciation to the importance of accounting in the appraisal of the financial
position and performance of the enterprise and in monitoring progress and decision
making.
- an excellent foundation for advanced study

Syllabus objectives

To achieve the aims, Accounting enables students to develop an ability to:

- prepare, understand, interpret and analyse financial statements with confidence and
self-reliance
- appreciate and use financial statements as a means of business communication
- use analytical techniques to arrive at conclusions from financial information for the
purpose of decision making
- prepare relevant reports using financial information
- provide students with an appreciation of the ethical and regulatory framework which
influences and governs the preparation of financial statements.
- develop in students the following skills:
a) decision making
b) problem solving
c) literacy and numeracy skills
d) evaluating and interpreting skills
e) presentation and communication skills
 - develop positive attitude towards
a) profit motive
b) ethical behaviour
c) entrepreneurship
d) innovation

Strands
Accounting is described in the following 4 strands:

- recording of financial information

- reporting of financial information
- evaluation of financial information
- communication of financial information

Recording

Recording is a process of maintaining a file of all transactions that have affected the business
and that have monetary value. In other words, it provides a history of the economic activities of
a particular business

Reporting

Students learn to report financial data through the preparation of financial statements
in accordance with accounting standards and practices.

Evaluation

Users interpret financial information for decision making. This information is in addition to that
already available in reports such as Income Statement and Statement of Financial Position.
Interpretation of financial information should be achieved through the use of such tools as
year-to-year comparison.

Communication

In accounting, language is used in specific ways to communicate data and ideas. Students need
to be aware of the development of written, oral and graphic communication that applies to
accounting situations in the business world.
Learning Outcomes
At the end of the Accounting syllabus, students will be able to:

- describe the role of accounting in society

- record and report financial data using appropriate terminology and in a methodical
manner
- apply the principles and practices of recording and reporting financial information
- demonstrate an understanding of the role of accounting standards
- summarise the information into a set of financial statements and to evaluate the
performance and position of the entity therefrom.
- apply the financial information into making of simple financial decision

Assessment on syllabus objectives

Candidates will be assessed on their ability to:

- recall and demonstrate knowledge of the syllabus content

- show an understanding of the terminology central to the syllabus
- apply the international accounting standards
- prepare and present the financial statents in an orderly way
- interpret, analyse and evaluate given data
Assessment Objectives
The following assessment objectives are tested in Accounting:

Knowledge with understanding

Students should be able to:

- show knowledge and understanding of facts, concepts and principles of accounting

- demonstrate understanding of accounting knowledge through numeracy, literacy,
presentation and comprehension

Questions testing this skill will often ask questions starting with state, identify, mention,
list, calculate, explain

Analysis

Students should be able to:

- choose, analyse and order information in written, numerical and tabular form
- present appropriate information in an accepted accounting format

Questions testing this skill will often ask questions with words like choose, select, prepare,
draw up.

Evaluation

Students should be able to:

- interpret and evaluate accounting information and to draw reasoned conclusions

Questions testing this skill will often ask questions with words like suggest, advise,
explain, comment on, compare

Scheme of Assessment

The Annual Examination paper for Accounting will consist of one common graded paper of 2
hours duration. It will include a set of graded questions from each of the 4 strands and the
learning outcomes as indicated in the syllabus.

Electronic calculators will be permitted. Candidates are strongly advised to show all
workings.
 FORM 3
CONTENT LEARNING OUTCOMES REFERENCE TO SEC
SYLLABUS(2015)
RESOURCES

Module 1: THE ACCOUNTING EQUATION AND THE STATEMENT OF FINANCIAL POSITION

1.1 Book-keeping and

Accounting At the end of the topic, students should:

 An introduction to  define book-keeping Refer to Sec Syllabus

accounting and  define accounting The Nature &
book-keeping  explain the main difference Purpose of
between book-keeping and Accounting
accounting
 explain the main role of accounting Go For Accounting
Page 1-2
Business Accounting
th
1 12 ed Pg 1-9

1.2 Users of accounting

information

 List of users of  identify the users/stakeholders of Refer to Sec Syllabus

accounting accounting information with The Nature &
information particular reference to the local Purpose of
 The need of situation Accounting
accounting  identify the reasons why users need
information for accounting information Go for Accounting Pg
different 1-2
stakeholders Business Accounting
th
1 12 ed Pg9-10
Edexcel IGCSE
Accounting Pg 10

1.3 The accounting

equation

 list examples of  learn a simple Statement of Refer to Sec Syllabus

assets and Financial Position(horizontal/T The Principles of
liabilities style) which explains the basic Double-Entry
 classification of accounting equation
 items as assets  calculate the value of assets, Go For Accounting Pg
and liabilities liabilities and capital using the 3-4
 the accounting accounting equation Business Accounting
th
equation  analyse and state the effects of 1 12 ed Pg 10
transactions on the accounting Edexcel IGCSE
equation Accounting Pg 6-7

Module 2: THE DOUBLE ENTRY SYSTEM

2.1 The Double Entry

System for Assets,
Liabilities and
Capital

 process  state the double entry obeys the Refer to Sec Syllabus
accounting data rules of the accounting equation The Principles of
using the double  understand that for every debit Double Entry
entry system there must be a credit entry (every
 double entry rules transaction is recorded in 2/more
 recording of accounts with equal debit and Remark:
transactions of credit) Asset has a debit
assets, liabilities  identify the accounts to be debited nature
and capital and credited for various Liability has a credit
transactions nature
 record the double-entry using the T Capital has a credit
account/horizontal ledger accounts nature
 apply the double entry rules for
recording assets, liabilities and Go For Accounting Pg
capital 11-18
Business Accounting1
th
12 ed Pg21-32
Edexcel IGCSE Pg 11-
21
2.2 The Double Entry
System for Inventory

 recording  differentiate between purchases Remark:

inventory: and sales transactions Purchases has a debit
purchases, sales,  differentiate between cash and nature (exception
purchases credit transactions with drawings)
returns, sales  learn that inventory increases either Sales has a credit
returns because stock has been bought or nature
stock that was sold has been Purchases Returns
returned by the buyer has a credit nature
 learn that inventory decreases Sales Returns has a
either because stock has been sold debit nature
or stock that was bought by the
company has been returned to the Go For Accounting
supplier Pg19-24
 explain that sales account refers to Business Accounting
th
sales of inventory 1 12 ed Pg21-32
 explain that purchases account Edexcel IGCSE Pg 11-
refers to purchases of inventory and 20
not to other assets such as vans,
equipment and machinery
 apply the double entry rules for
recording inventory:

1. purchases of stock on cash

and on credit terms
2. sales of stock on cash and on
credit terms
3. returns of stock previously
purchased on cash and/or
credit terms
4. returns of stock previously
sold on cash and/or credit
terms

2.3 The Double Entry

System for recording
drawings

 transactions  apply the double entry rules for Remark: Drawings

relating to recording withdrawal of stock has a debit nature
drawings and cash/cheques for owners’
 personal use Go For Accounting Pg
 learn that drawings are always a 26
reduction in capital and never Business Accounting
th
an expense 1 12 ed Pg 50-51

2.4 The Double Entry

System for recording
Expenses and Revenues

 double entry  understand expenses and Remark: Expenses

of expenses revenues have a debit nature
and revenues  apply the double entry rules for Revenues have a
recording expenses and credit nature
revenues
Go For Accounting Pg
25-28
Business Accounting
th
1 12 ed Pg 45-50

Module 3: BALANCING OFF ACCOUNTS

3.1 Balancing off

Accounts

 balancing off the  by now record transactions by the Refer to Sec Syllabus
accounts (using double-entry, using T form The Ledger letter d)
balance c/d and  explain the significance of balancing
balance b/d) off accounts Go for Accounting Pg
 interpret an entry and an account 31-40
 balance an account and bring down Business Accounting
th
the balance 1 12 ed Pg 56-64
 balance off accounts which there is Edexcel IGCSE Pg 32-
no balance outstanding 42
 understand that when the balance
of an account is on the debit, we
say that the account has a debit
balance – e.g: trade receivables
 understand that when the balance
of an account is on the credit, we
say the account has a credit balance
– e.g: trade payables
 be able to balance the accounts
 using the running balance format
(with a particular focus on personal
accounts)
 explain that the T accounts
show balancing off at the end of
 the period 
 explain that the three-column
accounts update and show the
balance on the account after every
transaction 

Module 4: THE TRIAL BALANCE

4.1 The Trial Balance

 Purpose of a Trial  learn to extract a Trial Balance Refer to Sec Syllabus

Balance from account balances The Ledger letter f) i
 Errors revealed by  outline the use of a Trial Balance as
a Trial Balance a form of checking the accuracy of Go For Accounting Pg
the double entry 41-44
 learn that the Trial Balance is used Business Accounting
th
as the base to prepare the Financial 1 12 ed Pg 65-69
Statements. Edexcel IGCSE Pg 37-
 state the types of errors that are 39
revealed by a Trial Balance ie:
- errors in calculation
- errors in omitting either the
debit or the credit entry
- posting of entries to the wrong
side of the account
- errors in debiting an account
with one amount and crediting
the corresponding account with
another amount
- prepare an adjusted trial
balance after correcting errors
- calculate a missing figure by
extracting a Trial Balance
- prepare a Trial Balance from a
list of balances and calculate
Capital
Module 5: FINANCIAL STATEMENTS

5.1 The Income

Statement

 preparation of the  explain the difference between Refer to Sec Syllabus

Income Statement gross profit and net profit The Ledger letter e) ii
both in horizontal  close down the appropriate
and vertical accounts and transfer the balances Remark – use the IAS
format to the Income Statement 1 Format (look at
 updating the  calculate the gross profit and net appendix)
balancing off profit/loss for a specified period
accounts which  state what is meant by the terms Go For Accounting Pg
are transferred to ‘net sales’ and ‘net purchases’ 53-59
the Income  differentiate between the two Business Accounting 1
th
Statement stock figures shown in the Income 12 ed Pg79-90
Statement (Trading a/c) Edexcel IGCSE Pg 142-
 show cost of sales 151
 draw up an Income Statement first
in horizontal format (to understand
the double-entry) and then the
vertical layout with all the
appropriate income and expense
entries relating to the given period

5.2 The Statement of

Financial Position

 preparation of the  learn that the Statement of Refer to Sec Syllabus

Statement of Financial Position is not part of the - The Ledger
Financial Position double entry letter e) iii
both in horizontal  draw up the Statement of Financial - Drawings
and vertical Position using the horizontal style
format (and emphasize on the accounting Remarks
equation) - Financial
 draw up the Statement of Financial Statements
Position in a vertical form, (IAS 1 Format
marshaling the assets and liabilities – look
in a specific order (permanence - show Total
and liquidity) Non Current
 differentiate between Non-Current Assets
 Assets and Current Assets and give - show Total
examples Current
 list the non-current assets in Assets
descending order starting with - show Total
those that will remain in use in the Assets
business for the longest time - show Total
 list current assets from top to Liabilities
bottom in increasing order of - show Total
liquidity Capital +
 differentiate between Current Liabilities
Liabilities and Non-Current
Liabilities and give examples Go For Accounting Pg
 show changes in the proprietor’s 61-63
capital as a result of a further Business Accounting 1
th
injection of capital, net profit/loss 12 ed Pg91-99
and drawings in cash/goods Edexcel IGCSE Pg 152-
 explain working capital/net current 157
assets and why this is very
important
 make a note of the Working
Capital at the end of the
 Statement of Financial Position 
Working Capital = Current Assets –
Current Liabilities 

Module 6: ACCOUNTING CONCEPTS AND ASSUMPTIONS

6.1 The accounting

concepts

 the importance of  agree about the need for general Refer to Sec Syllabus
the main agreement to the concepts that - An elementary
accounting govern accounting and explain why knowledge of
concepts and the accounting standards exist the following
principles  explain the basic accounting accounting
underlying the concepts and principles concepts and
preparation of - the Accrual in particular,
final accounts Concept/Matching principle how they
- the Business Entity Concept affect the
- the Prudence Concept preparation of
- The Consistency Concept the final
accounts
 including the
Statement of
Financial
Position

Remark
- Students
should be
reminded
about these
accounting
concepts and
principles at
relevant
sections of
the syllabus,
where
appropriate.

Go For Accounting Pg
125-128
Business Accounting
th
1 12 ed Pg112-128

Module 7: BOOKS OF ORIGINAL ENTRY AND LEDGERS

7.1 Books of original

entry and ledgers

 Explanation of the  explain the purpose of Day Books Refer to Sec Syllabus
theoretical part of and their relationship with the Books of Original
Books or original ledger Entry
entry and ledgers  learn that transactions are
classified and details about them Go For Accounting Pg
are entered in the appropriate 121-124
book of original entry Business Accounting
th
 understand that the books of 1 12 ed Pg129-134
Edexcel IGCSE Pg 62
original entry are used as a basis
for posting the transactions in
summary form to the double entry
accounts in the various ledgers
 learn about the following books
 of original entry/journals/day books
- Sales Day Book
- Purchases Day Book
- Sales Returns Day Book
- Purchases Returns Day
Book
- Cash Book
- General Journal/Journal
 be able to explain the following
ledgers
- Sales Ledger
- Purchases Ledger
- General/Nominal Ledger
- Private Ledger
 explain the types of accounts:
- Personal accounts
- Impersonal accounts (Real
and Nominal accounts)

Module 8: CASH BOOK

8.1 The Cash Book

 Dual function as a
book or original  explain the advantages of keeping Refer to Sec Syllabus
entry and as a cash in the bank The Cash Book and
ledger account for  explain the purpose of the cash the Petty Cash Book
bank and cash book
 Two-column and  record transactions in the cash Go For Accounting Pg
three-column column and bank column of the 77-88
cash book cash book Business Accounting 1
th
 post the entries from the cash book 12 ed Pg 148-165
to the respective ledgers Edexcel IGCSE Pg 86-
 interpret transactions and details in 97
the cash book eg: discount, total
banked or withdrawn (contra
entry)
 explain that a folio column in the
cash book helps trace entries made
into accounts in the ledgers
 explain the meaning of cash
discount
 explain that cash discounts appear
 in the Income Statement
 calculate cash discount 

 explain the difference between
cash discount and trade discount 

Module 9: PETTY CASH BOOK

9.1 The Petty Cash Book

 the petty  explain the need for a petty cash Refer to Sec Syllabus
cashbook using book The Cash Book and
the Imprest  compare the purpose of the petty the Petty Cash Book
System cash book with the cash book
 advantages of the  learn that the petty cash book
imprest system saves both the cash book and the Go For Accounting Pg
ledger accounts from containing a 89-98
lot of trivial detail Business Accounting
th
 explain the imprest system and 1 12 ed Pg203-211
float Edexcel IGCSE Pg
 outline the advantages of the 98-105
imprest system of keeping petty
cash
 understand that the petty cash
book helps the senior cashier to
delegate this type of work to a
more junior member of staff
 learn that the cashier check the
work performed by the petty
cashier
 calculate and record the amount of
reimbursement required to restore
the petty cash balance to the
imprest amount
Module 10: SALES DAY BOOK AND SALES LEDGER

10.1 Sales Day Book and

Sales Ledger

 sales journal and  explain the purpose of the sales Refer to Sec Syllabus
sales ledger day book/journal/book of prime Books of Original
 trade discounts entry Entry
 interpret the items posted from The Ledger
sales journal to the appropriate
accounts in the ledgers Go For Accounting Pg
 calculate trade discount given to 103-107
customers Business Accounting
th
 distinguish between cash and 1 12 ed Pg
credit sales Edexcel IGCSE Pg
 know that cash sales are not 132-141
entered in the sales day book
 distinguish between trade and cash
Discounts
 prepare a sales invoice (including
trade discount and VAT where
necessary)
 prepare the Sales Journal and the
ledgers (including VAT where
necessary)
 explain that with the big amount of
credit transactions involving trade
payables and receivable, separate
ledgers are kept for them ie:
- all trade receivables are
kept in the sales ledger
- all trade payables are kept
in the purchases ledger
- all other accounts are kept
in the general ledger
Module 11: PURCHASES DAY BOOK AND PURCHASES LEDGER

11.1 Purchases Book and

Purchases Ledger

 Purchases Journal  explain the purpose of the Refer to Sec Syllabus

and Ledger purchases journal Books of Original
 Trade discounts  interpret the items posted from the Entry
purchases journal to the The Ledger
appropriate ledger accounts
 explain the meaning of trade Go For Accounting Pg
discount 99-102
 outline the reasons for giving trade Business Accounting
th
discount 1 12 ed Pg174-179
 calculate trade discount given by Edexcel IGCSE Pg
suppliers 132-141
 distinguish between cash and
credit purchases
 distinguish between trade and cash
discounts
 know that cash purchases are not
entered in the purchases journal
 understand that the purchases day
book is a list of all credit purchases
 the purchases journal is used to
post the items to the personal
accounts in the purchases ledger
 prepare Purchases Day Book and
ledgers (including VAT where
necessary)
Module 12: RETURNS DAY BOOKS

12.1 Sales Return Day

Book

 Sales Return Day  explain the purpose of the sales Refer to Sec Syllabus
Book/Returns returns day book Books of Original
Inwards Day Book  state the reasons why goods Entry
previously sold to customers are The Ledger
Returned
 interpret the items posted from the Go For Accounting Pg
sales returns journal to the 104-106
appropriate ledger accounts Business Accounting 1
th
 learn that the returns in day book 12 ed Pg180-191
is used to post each item to the Edexcel IGCSE Pg 77-
credit of the personal account of 85
the customer in the sales ledger
 learn that the total of the sales
return journal is debited at the end
of the period to the sales return
account in the general ledger
 include trade and cash discounts
and VAT where necessary
12.2 Purchases Return
Day Book

 Purchases Return  explain the purpose of the Refer to Sec Syllabus

Day Book/Returns purchases returns journal Books of Original
Outwards Day  outline the resources why goods Entry
Book previously bought are returned to The Ledger
the supplier
 interpret the items posted from the Go For Accounting Pg
purchases returns journal to the 101-102
appropriate accounts in the ledgers Business Accounting 1
th
 know that the goods returned to 12 ed Pg180-191
suppliers are all entered in a Edexcel IGCSE Pg 77-
returns outwards day book 85
 know that the returns outwards
journal is used to debit the
personal account of each supplier
in the purchases ledger
 understand that the total of the
 purchases returns journal is
credited at the end of the period to
the purchases returns account in
the general ledger
 include trade and cash discounts
and VAT where necessary

Module 13: THE JOURNAL

13.1 The
Journal/General Journal

 the general  explain what the journal is used for Refer to Sec Syllabus
journal  understand that the general Books of Original
journal is the place for items that Entry
do not pass fully through the other The Ledger
five books of prime entry
 know how to post transactions Go For Accounting Pg
from the general journal to the 115-120
appropriate accounts in the ledgers
Business Accounting 1
th
12 ed Pg192-202
Edexcel IGCSE Pg116-
131

Module 14: CAPITAL AND REVENUE EXPENDITURE

14.1 Capital and

Revenue Expenditure

 distinction  explain the meaning of capital and Refer to Sec Syllabus

between capital revenue expenditure The Ledger letter c)
and revenue  understand that some items are a
expenditure mixture of capital and revenue Go For Accounting Pg
Expenditure 187-190
 Capital and revenue  learn that revenue expenditures Business Accounting 1
th
receipts are found in the Income Statement 12 ed Pg275-284
 learn that capital expenditures are Edexcel IGCSE Pg 57-
found in the Statement of Financial 61
Position
 FORM 4

CONTENT LEARNING OUTCOMES REFERENCE TO SEC

SYLLABUS (2015)
RESOURCES

Module 1: BANK RECONCILIATION STATEMENTS

1.1 Bank Reconciliation

Statement

 causes of  explain the difference between Refer to Sec Syllabus

discrepancy bank loan and bank overdraft –
between the cash  be able to show where bank The Cash Book and
book balance and account, bank overdraft and bank the Petty Cash Book
the bank statement loans are found in Statement of e), f) and g).
balance Financial Position
 aim for preparing  explain the purpose of preparing Go For Accounting Pg
the bank a bank reconciliation statement 335-348
reconciliation  analyse and interpret a bank Business Accounting 1
th
statement Statement 12 ed Pg373-384
 identify and discuss the causes of Edexcel IGCSE Pg 106-
discrepancy between the cash 115
book balances and the balance on
the bank statement
 reconcile the cash book balance
with the bank statement balance
by adjusting cash book entries
and then prepare a bank
reconciliation statement
Module 2: IRRECOVERABLE DEBTS, ALLOWANCE FOR DOUBTFUL DEBTS AND IRRECOVERABLE
DEBTS RECOVERED

2.1 Irrecoverable debts,

allowance for doubtful
debts and irrecoverable  explain bad debts and reasons for Refer to Sec Syllabus:
debts recovered incurring such irrecoverable debts Bad Debts and
 discuss the difference between Provision for Doubtful
irrecoverable debts and Debts
allowance for doubtful debts
 write off irrecoverable debts Go for Accounting Pg
calculate allowance for doubtful
debts using generic method (% x
total receivables at year end)
calculate allowance for doubtful
debts using the specific method
calculate allowance for doubtful
debts on both generic and specific
together 145-156
 post irrecoverable debts Business Accounting 1
th
Recovered 12 ed Pg 285-299
 explain that maintaining Edexcel IGCSE Pg 184-
allowance for doubtful debts is 193
important in order to abide by the
prudence and accrual concept Reminder:

Prudence and
accrual/matching
Concept
Module 3: CONTROL ACCOUNTS

3.1 Control accounts

 Sales Ledger  explain the purpose of the Sales Refer to Sec Syllabus-
Control account Ledger Control account Control Accounts for
 Purchases Ledger  state the ledger in which the Sales Debtors and Creditors
Control account Ledger control account is found
 Advantages of  explain the purpose of the Go For Accounting Pg
control accounts Purchases Ledger Control account 191-204
 Sources of data for  state the ledger in which the Business Accounting 1
th
control accounts Purchases Ledger control account 12 ed Pg386-401
is found
 state the pros of keeping control
accounts ie: used to provide
totals of trade payables and trade
receivables etc and serve as an
independent check on the sales
and purchases ledgers. There is
no need to check all the books in
full to find an error
 explain that control accounts may
be used to provide totals of trade
payables and trade receivables,
locate errors and act as a
deterrent against fraud
 identify the sources of
information for the control
account entries from the books of
prime entry
 know that transfer between sales
and purchases ledgers should be
prepared in the journal and
shown in the control accounts
 draw up the Sales Ledger control
account showing details in total
figures of items such as credit
sales, amount received from
trade receivables, cash discounts
allowed, sales returns, bad debts,
dishonoured cheques and contra
entries to Purchases Ledger
control account etc
 draw up the Purchases Ledger
Control account showing details
in total figures of items such as
credit purchases, amount paid to
trade payables, cash discounts
received, purchases returns and
contra entries to Sales Ledger
control account etc
 understand that control accounts
are, for many businesses, outside
the double entry system and are
there as memorandum accounts
in the general ledger or in the
individual ledgers
 prepare sales and purchases
ledger control accounts to
include credit sales and
purchases, payments and
receipts, cash discounts, returns,
bad debts, dishonoured cheques,
interest on overdue accounts,
contra entries, refunds, opening
and closing balances (debit and
credit within each account)
Module 4: DEPRECIATION OF NON-CURRENT ASSETS

4.1 Depreciation of non-current assets

 nature and calculation  define depreciation Refer to Sec Syllabus-

of non-current assets  understand the factors which Depreciation
 name and describe the cause depreciation mainly physical
straight line, deterioration, economic factors, the Business Accounting
diminishing reducing) time factor and depletion 1
balance and revaluation th
 calculate depreciation using both 12 ed Pg300-312
methods of
the straight line and the reducing
depreciation
balance method
 calculate the revaluation method
 calculate depreciation on assets
bought or sold within an accounting
period


4.2 Double entry records for depreciation

 Incorporate  prepare the following accounts to Refer to Sec Syllabus-

depreciation into record depreciation: Depreciation a) – d)
the accounting Go For Accounting Pg
records disposal of - non-current asset account 157-170
non-current assets - accumulated provision for
 disposal of non- depreciation account Business Accounting
current assets - Income Statement (extracts) 1 (12th ed) pg 313 –
- Statement of Financial Position 329
(extract)
Edexcel IGCSE Pg 176
– 183
Prepare the following accounts to record
the disposal of non-current assets

- Non-current asset account

- Accumulated provision for Remarks
department account
- Disposal of non-curret asset Apply the prudence,
account consistency and the
- Income Statement (extract) accrual concept

- Calculate gain/loss on disposal

Module 5: ACCRUALS AND PREPAYMENTS

5.1 Accruals and

Prepayments

 Accrued expenses  learn that adjustments are Refer to Sec Syllabus-

and revenues needed so that the expenses and Accruals and
 Prepaid expenses income shown in the financial Prepayments
and revenues statements equal the expenses
incurred in the period and the Go for Accounting Pg
revenue that has arisen in the 129-144
period Business Accounting 1
th
 show workings to determine the 12 ed Pg 335-350
Edexcel IGCSE
adjusted expenses/revenues to Pg 194-208
be transferred to the Financial
Statements

 prepare the following:

- accrued expenses
- accrued revenues
- prepaid expenses
- prepaid revenues Remark: The
 explain that balances relating to accrual/matching
the adjustments are shown as Concept
current assets and current
liabilities in the Statement of
Financial Position
 understand the accrual concept
and its implications in the
treatment of expenses and
revenues for the financial year
5.2 Financial Statements
with adjustments

 adjustments to  prepare the financial statements

Financial following the format recommended
Statements by IAS1 including adjustments for
depreciation, allowances for doubtful
debts, accruals and prepayments
(including VAT where necessary)

record the appropriate entries in the
accounts and financial statements at
the end of a period for accrued
expenses, prepaid expenses, accrued
income and prepaid income
Module 6: CORRECTION OF ERRORS

6.1 Errors not affecting Trial At the end of the topic, students should:
Balance

 Double entry to  write up journal entries and/or Refer to Sec Syllabus –

correct errors draw up ledger accounts to Correction of Errors
 Effects of errors on correct errors not revealed by the
the profits Trial Balance Go for Accounting Pg.
 understand the following errors 219 – 234
- Error of omission
- Error of commission Business Accounting 1
- Error of principle (12th ed.) Pg. 402 –
- Error of reversal of entries 409
- Error of original entry
- Compensating errors
 learn that when errors are found,
they should be amended by using
proper double entry procedures –
via journal, where entries are first
recorded before being posted to
the appropriate ledger of
accounts
 explain the effects of errors on
the profit
6.2 Suspense account

 Explain why a  learn to make the necessary Refer to Sec Syllabus:

suspense account may entries to set up a suspense Correction of Errors
be used and create it account
in order to balance the  learn that some errors may cause Business Accounting 1
Trial Balance the profits originally calculated to (12th ed) Pg. 410 - 427
have been incorrect
Module 7: MANUFACTURING ACCOUNTS

7.1 Manufacturing accounts 



 Calculation of prime
 distinguish between direct Refer to Sec Syllabus
cost and production and indirect costs 
cost of goods  Manufacturing Account
manufactured   identify cost accounting
 terms: direct material,
 Drawing up a Go For Accounting Pg 273-288
direct labour, prime cost Business
manufacturing account
and factory(production) th
 and income statement  Accounting 1 12 ed Pg 481-
 overheads 
 Adjust the 499
 make adjustments for
manufacturing account Edexcel IGCSE Pg 231-240
 work in progress 
in respect of work in
progress   calculate factory
 cost of production 
 prepare a manufacturing
account and income
 statement 
 learn that the net profit in
the Income Statement
shows what is left of gross
profit after all
administration, selling and
distribution and finance
costs incurred have been
 deducted 
 learn how work in progress
must be adjusted so as to
identify the production costs
of goods completed in the
period 
Module 8: DEPARTMENTAL ACCOUNTS

8.1 Departmental Accounts

 drawing up a  explain why departmental Refer to Sec Syllabus –

Departmental accounts can be more Departmental accounts
Account meaningful to management
that a single income Go for Accounting Pg
statement 253-264
 apportion expenses between Business Accounting
th
departments on an 1 12 ed Pg 500-512
appropriate basis
 understand that a negative
contribution is only one
guide to close a section of
the business.
 draw up departmental
accounts (up to 3
departments) taking into
consideration the allocation
and the apportionment of
expenses by department
 FORM 5
CONTENT LEARNING OUTCOMES REFERENCE TO SEC
SYLLABUS (2015)
RESOURCES

Module 1: PARTNERSHIP ACCOUNTS

1.1 Partnerships At the end of the topic, students

should:

 Pros and cons of forming  learn that there is no Refer to Sec

a partnership limited liability in Syllabus-
 Importance and contents partnerships except for Partnerships a)
of a partnership limited/sleeping partners – f)
Agreement  learn that partnership is
formed from 2 owners
 Capital and current and more
Accounts  learn what the partnership Go For
 Drawing up of the ledger deed is about and make a Accounting Pg
accounts and financial list of the common terms 289-304
statements for a contained in the Business
Partnership Partnership Agreement Accounting 1
th
 Purpose of an  explain the pros and cons of 12 ed Pg537-
Appropriation account forming a partnership 560
  explain the current account 
 draw up the Final Accounts
 of the Partnership 
 draw up the
partners’ capital and
 current accounts 
 draw up the partners’
 drawings account 
 draw up the
 Appropriation account 
 differentiate between
debit and credit balances in
 current accounts 
 draw up the extracts from
the Statement of Financial
 Position 
 explain and post
goodwill account 
Module 2: INTRODUCTION TO ACCOUNTING RATIOS
2.1 Accounting Ratios
Accounting ratios and
formulae
 use accounting ratios to Refer to Sec
calculate missing figures in Syllabus
financial statements Accounting
 learn that if mark up is known Ratios
margin can be easily be
calculated and vice-vers
 discuss what may cause these Go for
ratios to change over time Accounting Pg
 calculate the following 205 - 218
accounting ratios and formulae

Business
- Working capital ratio Accounting 1
th
(current ratio) 12 ed Pg 435-
- Quick ratio (acid test 445
ratio) Edexcel IGCSE
- Gross profit margin Pg 266-279
(gross profit as a
percentage of sales)
- Percentage of expenses
to turnover
- Net profit margin (net
profit as a percentage
of sales)
- Stockturn (or rate of
stock turnover)
- Mark-up and margin
- Return on capital
employed
2.2 Interpretation of accounting
ratios

 Interpretation of accounting  explain the importance of Refer to Sec

ratios measuring the liquidity and Syllabus
 Analysis of the performance profitability of a business Accounting
of the firm in terms of  interpret the ratios and Ratios
profitability, liquidity and performance indicators
efficiency through use of calculated. Business
ratios  compare the liquidity and Accounting 1
th
profitability of a business over 12 ed Pg621-
two years or with that of other 652
similar businesses
 explain how the use of ratios
can help in analyzing the
profitability, liquidity, efficiency
and capital structure of
businesses
 discuss that a business must be
both profitable and sufficiently
liquid to be successful. One
factor without the other can
lead to serious troubles
Module 3: SINGLE ENTRY AND INCOMPLETE RECORDS

3.1: Single entry and

Incomplete Records

 Determine a business profit  explain why accounting Refer to Sec

or loss from incomplete information may be Syllabus-
 records by  incomplete e.g: because of Incomplete
- Comparing changes non-adherence to the double- Records
in capital over time entry system of recording
- Analyzing records  transactions, partial records  Go For
to derive the  prepare opening and Accounting Pg
missing information  closing statement of affairs  235-253
in preparing the  prepare an income Business
Financial statement and statement of Accounting 1
th
Statements financial position from 12 ed Pg447-
records kept on single entry  466

 calculate purchases and sales Edexcel IGCSE
figures by opening a total Pg 209-220
accounts payable and total
 accounts receivable accounts 
 compute figures from
 incomplete records: 
- Capital
- : drawing up a
statement of affairs
with adjustments made
to assets and liabilities
- Credit purchases:
drawing up trade
payables accounts from
information available
- Credit sales: drawing up
trade receivable
accounts from
information available
- Total sales: deriving the
total sales figures from
information available
- Expenses: drawing up
the expense a/c from
given data and find the
 actual amount of
expenses incurred after
considering accruals and
prepayments
- Depreciation: calculate
the rate of
depreciation, length of
useful life, amount of
depreciation, cost of
non-current assets

Module 4: RECEIPTS AND PAYMENTS ACCOUNTS AND INCOME AND EXPENDITURE

ACCOUNTS

4.1: Receipts and Payments

accounts and Income and
Expenditure accounts

 Main difference between the  distinguish between Receipts Refer to Sec

financial statements of non- and Payments Accounts and Syllabus Non-
profit oriented organisations Income and Expenditure Profit making
and those of profit-oriented Accounts Organisations
organisations  prepare accounts for the
following – receipts and
payments, revenue generating Go For
activities such as subscriptions Accounting
 prepare a receipts and Pg305-330
payments account and explain Business
the significance of the balance Accounting 1
th
shown 12 ed Pg467-
 prepare a subscription a/c 480
 define and calculate Edexcel IGCSE
Accumulated Fund Pg 221-230
 prepare Income and
Expenditure Accounts and
Statement of Financial Position
Module 5: AN INTRODUCTION TO THE FINANCIAL STATEMENTS OF LIMITED LIABILITY
COMPANIES

5.1 Limited Liability Companies

 Explanation of limited  Explain the meaning of limited Refer to Sec

liability companies liability Syllabus
 Different classes of shares  Discuss the difference between Limited
 Difference between shares public and private company Liability
and loans  Understand the meaning of Companies
 Financial Statements of Limited separate legal entity
Liability Companies  Explain ordinary shares, Go for
preference shares, debentures Accounting Pg
and other loans 321-334
 Learn the contents and the Business
purpose of a company’s Accounting 1
th
appropriation account 12 ed Pg598-
 Explain the difference between 627
authorized and issued (fully Edexcel IGCSE
paid) capital Pg 255-265
 Explain the difference between
nominal and market value of
shares
 Calculate the dividends
including interim dividends
 Calculate loan interest
 Distinguish between charges
against the Income Statement
and the appropriation a/c
 The treatment of a general
reserve
 The treatment of retained
earnings
 The treatment of premium in
the final accounts.
 Prepare the Final Accounts of a
Limited Liability Company
Appendix 1

New Terminology Old Terminology

Inventory Stock

Opening Inventory Opening Stock

Closing Inventory Closing Stock

Trade Receivables Debtors

Trade Payables Creditors

Non-Current Assets Fixed Assets

Non-Current Liabilities Long-Term Liabilities

Irrecoverable Debts Bad Debts

Irrecoverable Debts Recovered Bad Debts Recovered

Allowance for Doubtful Debts Provision for Bad Debts

Sales Returns Returns Inwards

Purchases Returns Returns Outwards

Income Statement Trading, Profit and Loss Account

Statement of Financial Position Balance Sheet

Allowance for Depreciation Depreciation Provision

Other Receivables Expenses prepaid/Revenues due

Other Payables Expenses due/Revenues prepaid

Appendix 2

Attached to the syllabus kindly find pdf format of Final Accounts as recommended by IAS1. The
following Final Accounts are attached:

  Income Statement 
  Statement of Financial Position – Sole Trader 
  Statement of Financial Position – Partnerships 
  Profit and Loss Appropriation – Companies 
  Statement of Financial Position – Companies 
 Statement of Financial Position – Non-Profit making Organisations (Clubs) 

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