IGSCE Accounting SoW Working CommitteeHead Coordinator Members - Hjh Harita binti Hj Hassan Marhani binti Haji Mohd Lot Hajah Rozita binti Hj Ismail Leziana binti Abdullah Sekolah Menengah Sayyidina Abu Bakar, Lambak Sekolah Menengah Sayyidina Abu Bakar, Lambak Sekolah Tinggi Perempuan Raja Isteri Maktab Sultan Omar Ali Saifuddien IGCSE ACCOUNTING 0452 – SPN 21 SCHEME OF WORK YEAR 9 (2YR PROGRAMME) 1 Unit 1 – Introduction to Book Keeping Glossary : Book keeping, Accounting, Transaction, Accounting period, Assets, Liabilities, Revenues, Expenses, Owners Equity, proprietorship, Partnerships, Limited Companies, Going Concern, Monetary Concept, Consistency Concept, Objectivity Concept, Historical Cost, Accounting Period, Conservatism Concept, Accounting Entity Concept, Accrual Concept, Dual Concept, Ledger TIME FRAM E SPECIFIC OBJECTIVES LESSON CONTENTS SUGGESTED TEACHING LEARNING ACTIVITIES SUGGESTED ON-LINE IGCSE ACCOUNTING 0452 – SPN 21 SCHEME OF WORK YEAR 9 (2YR PROGRAMME) 2 4 WEEK S Students should be able to: state the purpose of book-keeping and accounting. explain the difference between book-keeping and accounting. explain what a transaction is. describe the 3 types of business. describe the accounting process. use Ledger rules for accounts to record transactions. explain the purpose of the accounting period. accounting Equation effect of transaction. apply accounting principles. discuss the accounting policies Role of Accounting Difference between book-keeping and accounting Nature of business transactions Purpose of bookkeeping and accounting Purpose of accounting period The accounting process Ledger Rules; Assets, Liabilities, Revenues, Expenses and Owners Equity. Fundamental Concepts and accounting. Compare and contrast the differences of accounting cycle or accounting process in the computerized and manual system. Objectives of accounting policies. Which type of business would be the most common? Why? Analyse the reasons why specific types of businesses choose particular business form. Compare and contrast the advantages and disadvantages of each type of business unit. Discuss the role of accounting information in making financial decisions. Go to the nearest minimart and list all assets that can be and measured in terms of money. Provide case study where students are able to: • State the date of the Balance Sheet. • Total Assets, Total liabilities and owners’ equity. • The type of liability in the business. • What’s makeup the owners’ equity of the business. • Describe the 3 types of business organization through Role Play; the students are to identify the characteristics of www.acra.gov.sg/ge neral/directory.html (for actual examples representing each type of business unit) http://www.jnj.com http://info.sgx.com/w ebcorpinfo.inf ( Gives the latest information of annual reports of Johnson and Johnson Corporation) http://www.swcolleg e.com/vircomm/gita/ gitall.html (learn more about the expanded accounting equation) http://www.accpac.c om (To know the different kinds of business management software e.g. QuickBooks accounting software, UBS etc ) http://www.solomom .com (e-business software for small to medium IGCSE ACCOUNTING 0452 – SPN 21 SCHEME OF WORK YEAR 9 (2YR PROGRAMME) 3 the 3 types of business organizations. sized organisation) Unit 2– Ledger and Balancing of Accounts Glossary : Ledger, Purchases (Creditors) Ledger, Sales (Debtors) Ledger, General Ledger, Debit Balance, Credit Balance TIME FRAM E SPECIFIC OBJECTIVES LESSON CONTENTS SUGGESTED TEACHING LEARNING ACTIVITIES SUGGESTED ON-LINE IGCSE ACCOUNTING 0452 – SPN 21 SCHEME OF WORK YEAR 9 (2YR PROGRAMME) 4 4 WEEK S Students should be able to : explain the purpose of the ledger. explain the reasons for maintaining separate ledgers. analyse transactions and post relevant details to appropriate accounts in the ledgers. balance ledger accounts. interpret the details and the balances in the accounts. record transactions related to drawings of stock, cash or other assets The Ledger : • Rules of Ledger Entries. • Types of Accounts. Balancing / Closing Accounts. Teacher draws the ledger and explains its functions for each type of accounts. Teacher explains the rules of entries for each type of accounts and asks the students orally and written to prove their understanding. Teacher explains the ways of balancing and closing all the accounts in the ledger and proves the students’ understanding and knowledge by solving the problems of balancing accounts on the board. http://www.bized.ac. uk/learn/business/ac counting/busaccount s/pizza/stusxfve.htm Unit 3– Source Documents and Books of Prime Entry Glossary : Source Documents, Till Slips, An invoice, Cheque counterfoil, Sales invoice, Vouchers, Purchase invoice, Debit note, Credit note, Cheque, Receipt, Statement of account, Bank statement, Journals, Ledger, General Journal, General Ledger, Purchases Journal, Sales Ledger/Debtors Ledger, Returns Outwards Journal , Purchases Ledger/Creditors Ledger, Sales Journal, Returns Inwards Journal, Trade Discount, Cash Discount , Petty Cash, The Cash Book, Balance, Bank overdraft, Two column cash book, Three column cash book, Cash discount, Contra entries, Discount allowed, Discount received, Petty Cash Book IGCSE ACCOUNTING 0452 – SPN 21 SCHEME OF WORK YEAR 9 (2YR PROGRAMME) 5 TIME FRAM E 5 WEEK S SPECIFIC OBJECTIVES LESSON CONTENTS SUGGESTED TEACHING LEARNING ACTIVITIES SUGGESTED ON-LINE SOURCE DOCUMENTS Students should be able to: explain what are source documents and their importance. name and state the use of an invoice, credit note, debit note, cheque, cheque counterfoil, till slips, vouchers, receipt, bank statement and statement of accounts. determine which business document is to be used in a particular transaction / situation. Comprehend that the information in these documents is used in the recording of the business transactions. state the different books of original entry. Objectivity concept Definition of source documents. Features of source documents. Importance of source documents. Types and uses of source documents. (Invoice, Credit note, Debit note, Cheque, Cheques counterfoil, Till Slips, vouchers, Receipt, Bank Statement and Statement of Accounts. Books of original entry or prime entry. Ask students to identify http://www.bized.ac. source documents used uk/learn/business/ac in a particular/ given counting/busaccount transactions. s/pizza/stuone.htm Exercises on matching transactions to documents. Ask the students to list the source of documents that a sole trader can use for his business. Introduce students to the actual examples of used source documents taken from different businesses. Ask students to name the documents and their purposes. Role Play of a simple cash transaction and the subsequent settlement of debt. A project for students to create their own business documents. IGCSE ACCOUNTING 0452 – SPN 21 SCHEME OF WORK YEAR 9 (2YR PROGRAMME) 6 Role play of simply credit transactions. IGCSE ACCOUNTING 0452 – SPN 21 SCHEME OF WORK YEAR 9 (2YR PROGRAMME) 7 TIME FRAM E SPECIFIC OBJECTIVES LESSON CONTENTS SUGGESTED TEACHING LEARNING ACTIVITIES SUGGESTED ON-LINE BOOKS OF PRIME ENTRY IGCSE ACCOUNTING 0452 – SPN 21 SCHEME OF WORK YEAR 9 (2YR PROGRAMME) 8 Student should be able to: define and explain the purpose of the journal. list the advantages and uses of the General Journal. differentiate between the General Journal and the specialized journals record transactions in the following journals:Cash Book, Petty Cash book, Sales Journal, Purchases Journal, Returns Inwards Journal, Returns Outwards Journal and General Journal and post them to ledgers. enter those transactions that cannot be recorded in any special journal in the General Journal and post it to ledger. write relevant explanatory narrations for each entry. identify the source of documents for writing up the journals. distinguish between a trade discount and cash discount. calculate and record the trade discount into the Definition of journals. Role of journal in the accounting process. Recording transactions from source documents into the journals. The General Journal. Advantages of using the General Journal. Uses of the General Journal. Recording into the General Journal. • Trade and cash discount. • Purchases Journal. • Returns Outwards Journal. • Sales Journal. • Returns Inwards Journal. Recording transactions into Purchases Journal and Returns Outwards Journal. Recording transactions into Sales Journal and Returns Inwards Journal. The Cash Book and Petty Cash. Posting. Ledger. Posting from the General Journal Recording the information in the source documents into different types of journals. Post the transactions in the General Journal and the Special Journal to the appropriate accounts in the ledgers. List the similarities and differences between special journals and general journal. Calculate the trade discount and cash discount by giving numerical example. IGCSE ACCOUNTING 0452 – SPN 21 SCHEME OF WORK YEAR 9 (2YR PROGRAMME) 9 relevant journal. Posting from the Purchases Journal. TIME FRAM E SPECIFIC OBJECTIVES LESSON CONTENTS SUGGESTED TEACHING LEARNING ACTIVITIES SUGGESTED ON-LINE IGCSE ACCOUNTING 0452 – SPN 21 SCHEME OF WORK YEAR 9 (2YR PROGRAMME) 10 differentiate between a General Ledger, a Purchases Ledger and Sales Ledger. post entries from the journals to the appropriate ledgers. Posting from the Returns Outwards Journal. Posting from the Sales Journal Posting from the Returns Inwards Journal. CASH BOOK Student should be able to: explain Cash Book as a journal and a ledger. list and explain the purpose of Cash Book. distinguish between, and account for, trade discount and cash discount; discount allowed and discount received. explain contra transactions. state and follow the procedure of preparing a Cash Book. draw up a Cash Book following proper rules and format. Dual functions of Cash Book. Purposes of Cash Book. Two column cash book. Difference between trade discounts and cash discounts. Difference between discount allowed and discount received. Three column cash book. Contra-entry transactions Processing of transactions in the Cash Book. Discuss and make clear about: dual functions of a cash book; purposes of a cash book; difference between cash and trade discounts; difference between discount allowed and discount received; contra entry transactions Record transactions in a two column and three column cash book . Role play- applied daily life experience (money received/ money paid) http://www.bhl.co.n z/easybooks/ (Usefulness of Cash Book) Microsoft Office Program, then click on “Microsoft Money” (Recording of monthly receipts and payments) IGCSE ACCOUNTING 0452 – SPN 21 SCHEME OF WORK YEAR 9 (2YR PROGRAMME) 11 PETTY CASH BOOK Student should be able to: Explain the meaning of Imprest system Determine the format of a Petty Cash Book. Write up the Petty Cash Book. Post the petty cash items to the ledger accounts. To differentiate between the type of transactions to be recroded into the Cash Book and the Petty Cash Book. IGCSE ACCOUNTING 0452 – SPN 21 SCHEME OF WORK YEAR 9 (2YR PROGRAMME) The Imprest System Recording into the Petty Cash Book Posting from the Petty Cash Book Simple introduction on Imprest System for petty cash payments and its advantages. Illustrates the format of an analysed petty cash book. Highlight how the total for each column is totaled at the end of the period. Shows the posting from the petty cash book to the ledger http://www.ird.go vt.nz/yoursituatio nbus/running/recor dkeeping/recordk eepingpettycashbookillu stration.html 12 Unit 4 – Bank Reconciliation Statement Glossary : Bank statement, Bank reconciliation, Unpresented cheque, Uncredited cheque, Bank charges, Cheque book, Standing order, Dishonoured cheque, Credit transfer, Bank giro transfer, Interest on fixed deposit, Interest on overdraft, Bank overdraft TIME FRAM E 2 WEEK S SPECIFIC OBJECTIVES LESSON CONTENTS SUGGESTED TEACHING LEARNING ACTIVITIES Displays a sample of a Bank Statement and explains the entries. SUGGESTED ON-LINE Students should be able to: Bank Statement. explain the reasons for Cash Book. the discrepancy Discrepancies between between Cash Book Cash Book (Bank (Bank Column) and Bank Column) and Bank Statement balances. Statement. http://teachers.cie.or g.uk/teachers support/pdf/7110 s03gp 2.pdf IGCSE ACCOUNTING 0452 – SPN 21 SCHEME OF WORK YEAR 9 (2YR PROGRAMME) 13 TIME FRAM E SPECIFIC OBJECTIVES explain the need for Bank Reconciliation. review transactions missing from the Cash Book (Bank Column) or the Bank Statement by listing: • the items in the Cash Book not entered in the Bank Statement • the items in the Bank Statement not entered in the Cash Book adjust the Cash Book (Bank Column) prepare a Bank Reconciliation Statement starting from the Cash Book balance prepare a Bank Reconciliation Statement starting from the Bank Statement balance prepare a Bank Reconciliation Statement when there is a bank overdraft LESSON CONTENTS Adjust the Cash Book (Bank Column). Bank Reconciliation Statement starting with Cash Book (Bank Column) balance. Bank Reconciliation Statement starting with Bank Statement balance. Differing opening balances and errors in the Cash Book (Bank Column) and the Bank Statement. Bank overdraft and Bank Reconciliation Statement. SUGGESTED TEACHING LEARNING ACTIVITIES Allow one student to enter transactions in the Cash Book while the partner records them in the Bank Statement. Teacher supplies the transactions. Demonstrates a transaction on uncredited deposit and explains the need for Bank Reconciliation. Compare a Bank Statement with Cash Book (Bank Column) entries. Show the Cash Book adjustment. Introduce the terms uncredited cheques and unpresented cheques. Demonstrates how a Bank Reconciliation Statement is prepared. Explains the transaction that causes the opening balances in Cash Book (Bank Column) and Bank Statement to differ. Explains how to deal with errors in Cash Book SUGGESTED ON-LINE http://www.franklenc omputer.com/check writing_more_inform ation.html http://www.accaglob al.com/cpdrealise/ http://accounting10.t ripod.com/content.ht ml http://www.goggle.c om (search for bank reconciliation) http://www.ida.gov.s g/idaweb/ebusiness IGCSE ACCOUNTING 0452 – SPN 21 SCHEME OF WORK YEAR 9 (2YR PROGRAMME) 14 (Bank Column). Explains how an overdrawn balance affects the reconciliation process. Role play-Group students into groups of bankers, traders, customers and suppliers. Unit 5– Trial Balance IGCSE ACCOUNTING 0452 – SPN 21 SCHEME OF WORK YEAR 9 (2YR PROGRAMME) 15 Glossary : Trial Balance, account balance, debit balance, credit balance, errors of omission, errors of commission, errors of principle, complete reversal of entries, compensating errors, errors of original entry, personal accounts TIME FRAM E SPECIFIC OBJECTIVES LESSON CONTENTS SUGGESTED TEACHING LEARNING ACTIVITIES SUGGESTED ON-LINE TRIAL BALANCE Students should be able to: determine the closing balance of an account list accounts which are debit and credit in nature. state the purpose of preparing a Trial Balance explain the limitations of the Trial Balance recognize that it is a statement of ledger balances at a particular date identify and explain those errors which do not affect the Trial Balance Determining the balance of an account Balancing Assets and Liabilities Accounts Trial Balance Purpose of a Trial Balance Limitations of a Trial balance Show how a Trial Balance is prepared at the end of a Trading period by using a simple example using simple transactions www.Accounting10.t ripod.com www.Bized.ac.uk 2 WEEK S IGCSE ACCOUNTING 0452 – SPN 21 SCHEME OF WORK YEAR 9 (2YR PROGRAMME) 16 Unit 6– Financial Statements without adjustments Glossary : Gross Profit, Gross Loss, Net Profit, Net Loss, Cost of Goods Available for Sale, Cost of Goods Sold (Cost of Sales), Additional cost of purchases, Net purchases, Net Sales, Operating Expenses, Other Revenue, Fixed Assets, Current Assets, Owner’s Equity (Proprietorship), Long Term Liabilities, Current Liabilities. INCOME STATEMENT AND BALANCE SHEET (FINANCIAL STATEMENT) Students should be able to: calculate gross profit. calculate net profit or losses draw up a Trading and Profit and Loss Account. identify the additional cost on purchases. determine the cost of goods sold. transfer net profit/loss to the capital account. close the Drawings Account. explain how the closing stock is valued. Gross profit. Closing Nominal accounts. Preparation of Trading Account. Closing stock, Opening stock. Additional cost on purchases. Net profit. Preparation of Profit and Loss Account. Closing of Nominal Accounts affecting net profit. Closing of Drawings Account. Balancing the Capital Account. Net loss. Transfer of Account Balances to Final Revise the closing of nominal accounts. Show the T-format Trading and Profit and Loss Account on the board. www.Askltd.com www.Staffs.ac.uk www.Bized.ac.uk 3 WEEK S IGCSE ACCOUNTING 0452 – SPN 21 SCHEME OF WORK YEAR 9 (2YR PROGRAMME) 17 Accounts and Capital Account. BALANCE SHEET Students should be able to: classify assets into Fixed and Current Assets. classify liabilities into Long Term and Current Liabilities. prepare a Balance Sheet from a Trial Balance. Balance Sheet. Assets and Liabilities. Owner’s Equity. Preparation of the Balance Sheet. Show the format of balance sheet and financial postion. WWW.Askltd.com WWW.Staffs.ac.uk WWW.Bized.ac.uk Book-keeping procedure up to the Balance Sheet. Analysis of the Balance Sheet. Balance Sheet Equation. IGCSE ACCOUNTING 0452 – SPN 21 SCHEME OF WORK YEAR 9 (2YR PROGRAMME) 18 Unit 7– Balance Day Adjustments Glossary : Accounting basic concepts, accrued, accruals, accrued expenses, accrued revenue, balance day adjustments, expenses, revenue, prepayments, revenue prepaid, revenue received in advance, unearned revenue. TIME FRAM E 2 WEEK S SPECIFIC OBJECTIVES LESSON CONTENTS SUGGESTED TEACHING LEARNING ACTIVITIES SUGGESTED ON-LINE ACCRUALS AND PREPAYMENTS Students should be able to: recognise the importance of matching costs and revenues make the ledger entries for the following balance day adjustments: • Accrued Expenses • Accrued Revenue • Prepaid Expenses • Unearned Revenue Accounting Principles and Balance Day Adjustments. Accrued Expenses. Accrued Revenue. Prepaid Expenses. Unearned Revenue or Revenue received in advanced. Explain the accounting period concept, matching and accrual concepts Explanation with examples taken from simple transaction relating to accrued and prepaid expenses and income. Show the simple steps in recording transactions. http://www.howto.co .uk/business/bookke epingbooks/accruals_and_ prepayments/ http://www.bized.co. uk/learn/accounting/ infosystems/bait/wo rk05.htm www.Ventureline.Co m/Glossary.asp http://www.nrbarton .co.uk/about/ourserv ices_bookkeeping08 .html www.C21accounting .com/student/green/ gj_student_text_mat erials_frame.html IGCSE ACCOUNTING 0452 – SPN 21 SCHEME OF WORK YEAR 9 (2YR PROGRAMME) 19 Glossary : Depreciation, Straight Line Method, Reducing Balance Method/ Diminishing Method, Revaluation method, Provision for Depreciation, Disposal, Gain on Disposal, Loss on Disposal TIME FRAM E SPECIFIC OBJECTIVES LESSON CONTENTS SUGGESTED TEACHING LEARNING ACTIVITIES SUGGESTED ON-LINE DEPRECIATION AND DISPOSAL OF FIXED ASSETS 3 WEEK S Students should be able to: explain depreciation. state and explain the causes of depreciation. calculate annual depreciation. record depreciation of fixed assets in the general ledger. record provision for depreciation. adjust depreciation in Income Statements adjust provision for depreciation in the Balance Sheet. explain disposal. calculate Gain or Loss on Disposal. provision for depreciation amount in the Disposal a/c. Causes and Reasons of Depreciation. Methods of Depreciation:• Straight line • Reducing balance • Revaluation Recording the Depreciation of Fixed Assets. Recording Provision for Depreciation a/c, its effect in the Income Statement and Balance Sheet. Disposal Account. Fixed Assets a/c. Gain/ Loss on Disposal = Selling Price-Net Book Value. Provision for depreciation on fixed asset disposed. What is the relevancy of matching concept to the depreciation of fixed assets? Demonstrate and explaining the different methods. Recording the double entry between Provision for Depreciation a/c and its effect in the Income Statement and Balance Sheet. Demonstrate on the board the disposal account and effect on the Fixed assets a/c. Show the gain/loss on disposal in relevant accounts. http://www.howto.co .uk/business/bookke epingbooks/depreciation_t he_straight_line_met hod/ http://www.calcbuild er.com/cgibin/calcs/AUT2.cgi/a ol_gigitalcities (A software to help car owners estimates their vehicle’s value-try out it has a depreciation calculator!) http://www.depreciat ionsoftware.com/feat ures.html ( to simplifies the tedious fixed asst management process) IGCSE ACCOUNTING 0452 – SPN 21 SCHEME OF WORK YEAR 9 (2YR PROGRAMME) 20 http://en.wikipedia.o rg/wiki/Depreciation (more into depreciation) IGCSE ACCOUNTING 0452 – SPN 21 SCHEME OF WORK YEAR 9 (2YR PROGRAMME) 21 Glossary : Bad Debts, Credit Sales, Debtors, Bad Debts Written-off, Recovery of Bad Debts, Partial Settlement of Debtors, Doubtful Debts, Provision for Doubtful Debts. TIME FRAME 2 WEEKS SPECIFIC OBJECTIVES LESSON CONTENTS SUGGESTED TEACHING LEARNING ACTIVITIES Explains the credit sales, existence of debtors and bad debts. Ask students to interview sole traders on the effect of credit sales and bad debts to their businesses. Explains journal and ledger entries for Bad Debts written-off, Recovery of Bad Debts and Partial Settlement of Debtors. Explains the effects of creation, increasing and decreasing of Provision for Doubtful Debts in Income Statement and Balance Sheet. SUGGESTED ON-LINE BAD DEBTS AND PROVISION FOR DOUBTFUL DEBTS Students should be able to : explain the credit sales. explain the reasons for incurring bad debts. explain the difference between bad debts and doubtful debts. explain recovery of bad debts and partial settlement of debts. prepare journal and ledger for writing-off bad debts, recovery of bad debts and making provision for doubtful debts. show the effects of bad debts, recovery of bad debts and provision for doubtful debts in Income Statement and Balance Sheet. Bad Debts : Bad Debts Writing-off Bad Debts Recovery of Bad Debts Partial Settlement of Debtors Difference between Bad Debts and Doubtful Debts Provision for Doubtful Debts : Creation, Increasing Decreasing When Provision for Doubtful Debts and Bad Debts Accounts exist simultaneously http://www.howto.co .uk/business/bookke epingbooks/accounting_fo r_bad_and_doubtful_ debts/ http://www.insolvenc yhelpline.co.uk https://secure.mas.g ov.sg/msb/msbQuery .Cfm? tableset=i&tablena me =115&tno=17 IGCSE ACCOUNTING 0452 – SPN 21 SCHEME OF WORK YEAR 9 (2YR PROGRAMME) 22 Glossary : Stock Valuation, Lower of Cost, Market value, Cost, historical cost principle, Conservatism principle, TIME FRAME 1 WEEKS SPECIFIC OBJECTIVES LESSON CONTENTS SUGGESTED TEACHING LEARNING ACTIVITIES SUGGESTED ON-LINE INVENTORY VALUATION Students should be able to : State the importance of the correct valuation of inventory. understand the basis of inventory valuation at the lower of cost and net realisable value. Explain the basis of valuing the closing stock at the lower of cost or market price. prepare simple inventory valuation statements. Importance of Correct Valuation of inventory Basis of Valuing of the Closing Stock: “Lower of Cost and Market Price”. Effects of Different Figures for stock. Simple Inventory valuation statements. http://tutor2u.net/bu siness/presentations/ accounts/stockvaluat ion/default.html http://www.encyclop edia.com/doc/1O18inventoryvaluation.h tml http://www.principle sofaccounting.com/c hapter%208.htm IGCSE ACCOUNTING 0452 – SPN 21 SCHEME OF WORK YEAR 9 (2YR PROGRAMME) 23 Glossary : Trading concern, non-trading concern, capital expenditure, capital receipts, revenue expenditures, revenue receipts. TIME FRAME 1 WEEKS SPECIFIC OBJECTIVES LESSON CONTENTS SUGGESTED TEACHING LEARNING ACTIVITIES Introduce the terms: capital expenditure, revenue expenditure, capital receipts and revenue receipts. List on the board (in table form) the expenditures and income of a trading concern and non-trading concern. Divide the class into 2 groups, then let them contact local shop for 1 group and the other group to contact a local club. Ask the shop and the club about their capital and revenue expenditures and SUGGESTED ON-LINE CAPITAL AND REVENUE EXPENDITURES AND RECEIPTS Student should be able to: distinguish and account for capital and revenue expenditures. distinguish and account for capital and revenue receipts. list and compare the capital and revenue expenditures and receipts of a trading concern and non-trading concern. calculate and comment on the effect on profit of incorrect treatment calculate and comment on the effect on asset valuations of incorrect treatment. Difference between capital and revenue expenditures. Difference between capital and revenue receipts. Capital and revenue expenditures of a trading concern and non-trading concern. Capital and revenue receipts of trading concern and non-trading concern. http://www.bized.ac. uk/stafsup/options/a ccounting/work03.ht ml http://teacher.cie.org .uk/teacher_support/ pdf/7110_w03_gp_1. pdf IGCSE ACCOUNTING 0452 – SPN 21 SCHEME OF WORK YEAR 9 (2YR PROGRAMME) 24 receipts. Presentation in the class will follow. Divide students into groups. Teachers prepare examples of capital, revenues and expenditures on a manila cards and ask students to identify them into their categories. IGCSE ACCOUNTING 0452 – SPN 21 SCHEME OF WORK YEAR 9 (2YR PROGRAMME) 25 Unit 8 – Financial Statements with Adjustments Glossary : Refer to Unit 5, 7, 8 and 9. TIME FRAM E 3 WEEK S SPECIFIC OBJECTIVES Students should be able to: explain the difference between a trading business and a service business prepare income statements (trading and profit and loss accounts) and balance sheets for trading businesses in either horizontal or vertical form prepare income statements (profit and loss accounts) and balance sheets for service businesses in either horizontal or vertical form make adjustments for provision for depreciation using the straight line (equal instalment), diminishing (reducing) balance and revaluation methods make adjustments LESSON CONTENTS SUGGESTED TEACHING LEARNING ACTIVITIES Refer to Unit 5, 7, 8 and 9. SUGGESTED ON-LINE Refer to Unit 5, 7, 8 and 9. The effects and how these reflect on the Income Statement and Balance Sheet. • Expenses. • Revenue. • Prepayments. • Revenue prepaid. • Revenue received in advance. • Unearned revenue. • Depreciation of Fixed Assets. • Bad Debts and Provisions • Drawings of goods IGCSE ACCOUNTING 0452 – SPN 21 SCHEME OF WORK YEAR 9 (2YR PROGRAMME) 26 for accrued and prepaid expenses and accrued and prepaid income make adjustments for bad debts and provisions for doubtful debts • make adjustments for goods taken by the owner for own use. IGCSE ACCOUNTING 0452 – SPN 21 SCHEME OF WORK YEAR 9 (2YR PROGRAMME) 27 Unit 9 – Manufacturing Accounts Glossary : Cost of Raw Materials Consumed, Direct Costs, Prime Costs, Factory Overheads/Indirect Cost, Costs Of Production, Cost of Manufacturing, Work In Progress, Unfinished goods, Stock of Unfinished goods, Gross Profit on Trading, Market Price of Finished Goods, Finished Goods. TIME FRAME 3 WEEKS SPECIFIC OBJECTIVES LESSON CONTENTS SUGGESTED TEACHING LEARNING ACTIVITIES Educational visit to manufacturing firm for the students able to understand the Cost of Raw Materials, Direct Cost, Indirect Cost and Cost Of Production. Assign a project for each group in a class to manufacture simple product and ask the students to calculate Cost of Raw Materials, Direct Cost, Indirect Cost and Cost of Production. Provide 1 product and ask students to identify the material used in producing it and calculate the cost (if possible). SUGGESTED ON-LINE Students should able to : Manufacturing Account: define the two types of • Costs of Raw costs : Materials. • Direct Cost (Prime • Direct Costs. Cost) • Prime Costs. • Indirect Cost • Indirect Costs. prepare the • Work In Progress. manufacturing account. • Costs of Production. give examples of Direct • Market Price. Cost and Indirect Cost • Manufacturing Profit. compute the Prime Cost calculate the Cost of Manufacturer’s Trading Manufacturing and Profit and Loss (production) Account : show the treatment of • Finished Goods. Work In Progress • Gross Profit on prepare Income manufactured and Statements to calculate finished goods. gross profit and net profit of a manufacturing Manufacturer’s business Balance Sheet prepare the Balance • Closing Stock On Raw Sheet of a Materials. manufacturing business • Closing Stock on make adjustments to Finished Goods. http://www.howto.co .uk/business/bookkeepi ngbooks/manufacturing_a ccounts/ http://www.howto.co .uk/business/bookkeepi ngbooks/compiling_a_ma nufacturing_account_st ep_by_step/ http://www.bized.co. uk/learn/accounting/inf osystems/bait/test05.h tm www.staff.ucsm.ac.u k/.../Manufacturing %20Introduction %201.ppt http://basiccollegeac counting.com/category /costaccounting/manufactur ing-accounts/ IGCSE ACCOUNTING 0452 – SPN 21 SCHEME OF WORK YEAR 9 (2YR PROGRAMME) 28 financial statements. • Work In Progress at the end. IGCSE ACCOUNTING 0452 – SPN 21 SCHEME OF WORK YEAR 9 (2YR PROGRAMME) 29 Unit 10 – Correction of Errors and Suspense Account Glossary : Errors of omission, Errors of commission, Errors of principle, Errors of original entry, Compensating errors, Reversal of entries, Suspense account, Differences in books, Understate, Overstate, Undercast, Overcast, Undervalue, Overvalue TIME FRAME 3 WEEKS SPECIFIC OBJECTIVES Students should be able to: lists, identify and analyse errors not revealed by a Trial Balance. identify and correct errors revealed by a Trial Balance with Suspense Account. make journal and ledger entries supporting the correction of errors. post entries to Suspense Account where necessary. analyze the effects and correction of errors on: • Trial Balance. • Profit and Loss Accounts. • Balance Sheet. LESSON CONTENTS Do Not Revealed Correction of errors not revealed by a Trial Balance thru making journal and ledger entries. • Error of omission • Error of commission • Error of principle • Compensating error • Error of original entry • Error of complete reversal Revealed: Creation of Suspense Account when errors revealed by the Trial Balance: • Wrong casting in the books of original entries. • Incomplete double entries. • Double entries completed but with different amounts. • Posting to the same side SUGGESTED TEACHING LEARNING ACTIVITIES Demonstrate correction of error on the board the list of transactions, which do not revealed and revealed by trial balance. Record the errors in the ledger accounts and correct each error thru ledger and journal entries. Introduce and explain the function of a Suspense Account when a Trial Balance totals are not equal. Identify and correct errors, which affect the agreement of the Trial Balance totals and how they are corrected. Analyze the effects of errors in Trial Balance and draw up the corrected Trial Balance. Analyze the effects of errors and also its SUGGESTED ON-LINE http://www.howto.co. uk/business/bookkee pingbooks/the_trial_balan ce_errors/ http://www.howto.co. uk/business/bookkee pingbooks/correction_of_ errors/ http://www.gen.com/a rchives/gen/1997/ma y2b/pg3a.htm http://accounting10.tri pod.com/slides11.1.p pt http://www.bized.ac.u k/stafsup/options/acc ounting/work04.htm http://www.bized.ac.u k/stafsup/options/acc ounting/mod2.t suspense.htm http://teachers.cie.org .uk/teachersupport/p IGCSE ACCOUNTING 0452 – SPN 21 SCHEME OF WORK YEAR 9 (2YR PROGRAMME) 30 in both accounts. correction on Gross Profit df/7110 w03 gp2.pdf and Net Profit. Correction of an error http://www.google.co requiring more than two Analyze the effects of m (search for bookentries. errors and also its keeping errors) correction on Balance http://www.ida.gov.sg Effects of correction of Sheet. errors on Trial Balance. /idaweb/ebusiness Effects of correction of Group work-1st Task-ask each group to make errors on profit. errors on purpose. Task Effects of correction on 2- exchange the task Balance Sheet. with different group and ask them to correct the errors. Unit 11 – Control Account Glossary : Subsidiary Ledger, Control Accounts, Trade receivables Control Account/ Revenue Ledger Control Account, Total Trade receivables Account, Trade payables Control Account/Raw materials Ledger Control Account, Transfer (Contra), Minority Balances. TIME FRAM E 2 WEEK S SPECIFIC OBJECTIVES Student should be able to: explain the purpose of control accounts. draw up the Trade receivables Control Account. draw up the Trade payables Control account. enter the following items into the relevant control account:- credit LESSON CONTENTS Control Account. Purposes / Uses of Control Account. Trade receivables Control Account. Trade payables Control Account. Transfers ( Contras ). Minority Balances in Control Accounts SUGGESTED TEACHING LEARNING ACTIVITIES SUGGESTED ON-LINE Prepare the Trade http://www.ventureli receivables Control ne.com/glossary.asp account and Trade http://www.bized.co. payables Control uk/learn/accounting/i account from the given nfosystems/bait/mod transactions. 2_w_control.htm Name the source of information for the construction of both control accounts. Show the uses of the Control Accounts IGCSE ACCOUNTING 0452 – SPN 21 SCHEME OF WORK YEAR 9 (2YR PROGRAMME) 31 Revenue and raw materials, receipts and payments, discounts, returns, bad debts, dishonoured cheque, interest on overdue account, contra entries, refund, opening and closing balances on both sides of the accounts. identify and use the books of prime entry as sources of information for the control account entries. explain how the transfers (contra) between the Revenue and raw materials ledgers are presented in the control accounts. describe how minority balances arise and how they affect the control accounts. Unit 12 - Incomplete Records Glossary : Incomplete records, Statement of Affairs, Single Entry, Capital Comparison, Analysis of records, Margin, Mark-up, Inventory Turnover TIME FRAM E SPECIFIC OBJECTIVES LESSON CONTENTS SUGGESTED TEACHING LEARNING ACTIVITIES SUGGESTED ON-LINE IGCSE ACCOUNTING 0452 – SPN 21 SCHEME OF WORK YEAR 9 (2YR PROGRAMME) 32 3 WEEK S Students should be able to: prepare an opening and closing statement of affairs calculate profit (before tax) or net loss from changes in capital calculate Revenue, raw materials, bank balance and gross profit from incomplete information apply margin, mark-up and Inventory turnover calculations to arrive at missing figures. Statement of Affairs Calculate Profit or Loss from Incomplete Records Comparison of Capital Method Method of Analysis Explain the importance of double entry bookkeeping. Explain with example:• The calculation of profit using capital comparison and method of analysis Organize students into groups of five to seven. Try to find some vendors (school canteen) who do not practice the double entry system of bookkeeping. Try offering the service and suggest to the vendor that the group can help them to carry out the proper way to book-keeping under the double entry system. List out the steps to be taken by the group of student on how to implement it. Divide students into groups. Give samples of certain source of documents or/and some additional information about the business. Then ask them to http://toolkit.cch.co m/text/P06_1350.asp (to find out more about single and double entry accounting system) http://www.accaglob al.com/archive/sa_ol darticles/11670 (mastering the techniques) IGCSE ACCOUNTING 0452 – SPN 21 SCHEME OF WORK YEAR 9 (2YR PROGRAMME) 33 calculate the raw materials, Revenue, Trade receivables, Trade payables, expenses, revenues and assets. IGCSE ACCOUNTING 0452 – SPN 21 SCHEME OF WORK YEAR 9 (2YR PROGRAMME) 34 Unit 13 – Accounts of Clubs and Societies Glossary : Receipts and payments accounts, Bar / Refreshments Trading, Bar / Refreshments profit, income and expenditure account, surplus, deficit, accumulated fund, subscription account, subscriptions in advance, subscriptions in arrears. TIME FRAME 3 WEEKS SPECIFIC OBJECTIVES Student should be able to: distinguish between Receipts and Payments Accounts and Income and Expenditure Accounts. draw up the Receipts and Payments Accounts prepare accounts for revenue-generating activities e.g. Refreshments and Subscriptions Accounts. calculate the Accumulated Fund. prepare the Income and Expenditure Accounts and Balance Sheets. LESSON CONTENTS Comparison of Accounting Terms Used by a Business and Those Used by a Club or Society. Receipts and Payments Accounts. Income and Expenditure Accounts. Refreshments Trading Account. Subscriptions Accounts. Accumulated Fund. Balance Sheets. SUGGESTED TEACHING LEARNING ACTIVITIES Discuss and explain:• Receipts and Payments Accounts; • Income and Expenditure Accounts. Illustrate the similarities and differences between non-trading and business organizations. Calculate Accumulated fund using simple examples. Prepare subscription a/c. List the steps in preparing the Financial statements and balance sheet of non-trading concerns. Ask students to imagine themselves owning a club (e.g badminton club)-provide info- terms of subscription, entrance fee and etc..The club has a café too. Students will be given SUGGESTED ON-LINE www.bized.co.uk IGCSE ACCOUNTING 0452 – SPN 21 SCHEME OF WORK YEAR 9 (2YR PROGRAMME) 35 documents with info about the café e.g regarding the refreshments. From all the above info, ask them to calculate the refreshment profit. Using the same club, give additional info on expenses and income to calculate the subscription and surplus. IGCSE ACCOUNTING 0452 – SPN 21 SCHEME OF WORK YEAR 9 (2YR PROGRAMME) 36 Unit 14 – Limited Companies Glossary : Authorised, Registered or Nominal Capital, Issued capital, Subscribed capital, Called-up capital, Uncalled capital, Paid-up capital, Unpaid-up capital, Ordinary shares, Preference shares, Deferred shares, Debentures, Dividends, Interim dividends, Final dividends, Shareholders fund. TIME FRAM E 3 WEEK S SPECIFIC OBJECTIVES Student should be able to: describe the features of a Limited Company. distinguish between limited and unlimited liability. Understand and distinguish between authorized, called-up, paid-up share capital. explain the differences between share capital (ordinary shares and preference shares) and loan capital (debentures). explain the different classes of capital of a limited company comprising preference share capital, ordinary share capital, general reserve and retained profits. calculate the dividends paid on shares. LESSON CONTENTS Limited Companies and their Features. Classification of Capital. Classes of Shares. Debentures. Profit and Loss Account of a Limited Company. Dividends. Balance Sheet of a Limited Company. Comparison of the Capital Structure of the Sole Trader, Partnership and Limited Liability Company. SUGGESTED TEACHING LEARNING ACTIVITIES Describe the features of a limited company. Compare the above features with other type of business i.e. sole proprietorship and partnership. Explain the meaning of the different classification of capital. Explain the different classes of shares with respect to the payment of dividends. Explain the function of Debentures and highlight their differences with shares of a company. Explain final and interim dividends and how they are calculated for the different shares. Prepare the format of Appropriation account showing clearly the calculation of dividends Explain shareholders funds and how they are SUGGESTED ON-LINE Visit coco cola web site at: www.Cocoacola.Co m Refer to the latest annual report and ask student to identify relevant items. Log on to the Registrar of Companies’ web site at: www.rcb.gov.sg http://sbinformation .about.com/cs/owne rship1/a/LLC.htm IGCSE ACCOUNTING 0452 – SPN 21 SCHEME OF WORK YEAR 9 (2YR PROGRAMME) 37 contrast the capital structure of sole proprietorships, partnerships and limited companies. prepare the appropriation account. calculate the share holders fund. calculated. • Compare Financial statements between Sole Proprietorship and Partnership. Group work-Each produce concept map/ flow chart showing steps in preparing the final account for both Limited companies and partnership and make the comparison.(Teacher will assess the work done from each group). Unit 15 – Partnership Glossary : Partnership Agreement, Interest on Capital or Drawings, Share of Profit, Current Account, Profit and Loss Appropriation Account TIME FRAM E 3 WEEK S SPECIFIC OBJECTIVES Students should be able to: Contrast a partnership with a sole proprietorship. Explain the advantages and disadvantages of forming a partnership Outline the importance and contents of a partnership agreement. calculate interest on capital and interest on drawings LESSON CONTENTS SUGGESTED TEACHING LEARNING ACTIVITIES SUGGESTED ON-LINE Comparison between Explain with example:Partnership and Sole • The Profit and Loss Proprietorship Appropriation businesses. Account. • The Current Account The Advantages and of the partner. Disadvantages of • The Owners’ Equity is Partnership Businesses. presented in the Partnership Agreement Balance Sheet with Loans from partners details of the Current Interest on capital Accounts OR the Partner’s salaries balance brought Interest on Drawings forward only. www.Tutor2u.net www.Bized.ac.uk www.Accounting10. tripod.com www.Accaglobal.co m IGCSE ACCOUNTING 0452 – SPN 21 SCHEME OF WORK YEAR 9 (2YR PROGRAMME) 38 draw up the income statement, profit and Loss Appropriation Account and balance sheet. draw up Capital and Current Account of a partner. Distribution of profits Profit and Loss Appropriation account Capital and Current Accounts of a Partnership Balance Sheet • • Compare Financial statements between Sole Proprietorship and Partnership. Group work-Each produce concept map/ flow chart showing steps in preparing the final account for both sole trader and partnership and make the comparison.(Teacher will assess the work done from each group) IGCSE ACCOUNTING 0452 – SPN 21 SCHEME OF WORK YEAR 9 (2YR PROGRAMME) 39 Unit 16 – Interpretation and Analysis of Financial Statement Glossary : Turnover, Interpret, Analyse, Acid-test ratio( quick/liquid ratio), Current ratio, Gross profit margin, Profit (before tax) margin, Average Inventory, Liquidity, Mark-up, Quick (liquid) assets, Rate of return on capital, Rate of Inventory turn, Ratio analysis, Working capital, Working capital ratio, Capital employed, Capital owned. TIME FRAM E SPECIFIC OBJECTIVES LESSON CONTENTS SUGGESTED TEACHING LEARNING ACTIVITIES SUGGESTED ON-LINE IGCSE ACCOUNTING 0452 – SPN 21 SCHEME OF WORK YEAR 9 (2YR PROGRAMME) 40 3 WEEK S Student should be able to: understand and calculate the accounting ratios which measures profitability understand and calculate the accounting ratios which measures liquidity prepare simple statements showing inter-firm comparison and recognize their limitations understand how owners and other interested parties use accounting statements recognize the limitations of accounting statements Importance of interpretation and analysis of Financial statements and balance sheet. Calculation of profitability ratios as follows: • Return on capital employed (ROCE) • Gross profit as a percentage of Revenue • Profit (before tax) as a percentage of Revenue Calculation of liquidity ratios as follows: • Current ratio • Quick ratio • Rate of Inventory turnover • Collection period for Trade receivables • Payment period for Trade payables Inter-form Comparison Users of Accounting Statement Limitations of Accounting Statements Introduce with the meaning of the words “interpret” and “analyse” (use of dictionary). Show how to calculate the different accounting ratios based on given situations. Group students into 3/4. Show a financial statements of a business, compare its performance for the given years using the accounting ratios, Interpret and analyse the significance of the accounting ratios in the Financial statements and balance sheet. Group work- From case study ask students to calculate and comments on the business performances and giving suggestions on how to improve and etc. http://www.office.c om/global (Useful explanations on financial analysis) http://www.manage mentsystems.net/b enefits/benemain.ht m (Accounting software to assist in financial analysis) http://www.ventureli ne.com/(Sample industry analysis and ratios computed) http://www.sgx.com .sg Annual reports of well-known retail chains. http://www.accounti ngformanagement. com/accounting_rat ios.htm IGCSE ACCOUNTING 0452 – SPN 21 SCHEME OF WORK YEAR 9 (2YR PROGRAMME) 41 REFERENCES: Bookkeeping and Accounts; FT Prentice Hall; Frank Wood. IGCSE Accounting; Cambridge; Catherine Coucom. Principles of Accounts; Marshall Cavendish Education 2nd /3rd/4th/5th Edition; Betsy Li, Tan Sai Kim, Goh Lin Chin. IGCSE ACCOUNTING 0452 – SPN 21 SCHEME OF WORK YEAR 9 (2YR PROGRAMME) 42 Principles of Accounts; A complete Course with S.B.A Guides; CEP; David Ramlochan; Chairman Lalla ‘O’Level Principles of Accounts; Loh Boon Foo, Ng Kim Hwa; Longman Principles of Accounts; Pearson Longman; Low-Wong Yee Yong, Wang-Aung Ah Hong. RECOMMENDED BOOKLET FOR STUDENTS: Principles of Accounts – Topic by topic with Notes and Exercises; • 1st Edition; Hjh Harita binti Hj Hassan & Marhani binti Hj Mohd Lot o Upper Secondary 4-ISBN 99917-54-12-1 o Upper Secondary 5-ISBN 99917-54-13-x IGCSE ACCOUNTING 0452 – SPN 21 SCHEME OF WORK YEAR 9 (2YR PROGRAMME) 43