REPORT 191 (NATED) REVISED SUBJECT SYLLABUS
Transcript of REPORT 191 (NATED) REVISED SUBJECT SYLLABUS
REPORT 191 (NATED)
REVISED SUBJECT SYLLABUS
INTRODUCTORY FINANCIAL ACCOUNTING
LEVEL: INTRO
SUBJECT CODE: 04010154
Implementation: January 2021
CONTENTS PAGE
1. GENERAL AIMS
1
2. SPECIFIC AIMS
1
3. PRE-REQUISITES
2
4. DURATION
2
5. EVALUATION
2
6. SEMESTER MARK
2
7. EXAMINATION
3
8. PASS REQUIREMENTS
3
9. LEARNING CONTENT
4
10.
LITERATURE REFERENCE 15
11.
ANNEXURES 16
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Introductory Accounting N4
1. GENERAL AIMS 1.1 GENERAL OBJECTIVES
* To develop the logical thought process and analytical abilities of
students to enable them to apply the fundamental principles of accounting to new and unfamiliar situations.
* To encourage a sound and systematic approach to the solution of
problems. * To contribute to the formative education of students by developing
characteristic demands associated with accounting, such as neatness, orderliness, thoroughness, accuracy, sound judgement and a sense of responsibility.
* To develop the understanding students have of and their integration
with their social environment through the meaningful interpretation of accounting information which they will come across in future.
* To enable students to deal with the basic demands of an accounting
occupation with confidence. 2. SPECIFIC AIMS
* To develop the accounting and numeracy skills of students who enter an accounting occupation directly, to enable them to deal with all procedures followed in the field of accounting.
* To increase students’ understanding of accounting and management
principles.
* To enable students to acquire knowledge and skills of accounting systems generally used by business enterprises.
* To give students the opportunity to apply in practice the theoretical
knowledge of accounting principles and procedures acquired during the learning process by giving them the necessary exposure to practice-related application of exercises directly from source and supporting documents, and by simulating feasible situations related to the accounting practice.
* To enable students to acquire knowledge and skills of all
administrative accounting tasks and related matters; for example completing of and handling business documents, filing, cost accounting, prospects of investment and financing.
* To equip students with knowledge of the required principles,
concepts and procedures of accounting that are in line with generally accepted accounting practice.
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3. PREREQUISITES
A student must have passed grade 12/matric or NCV L4. A pass in Introduction
Accounting will provide entrance for students who obtained a Senior Certificate but
initially lacked the required proficiency to enrol for Financial Accounting N4.
4. DURATION
Full-time: A minimum 5 hours per week for one semester.
Part time: A minimum of 3 hours per week for one semester.
5. EVALUATION
Evaluation is conducted on a continual basis by means of short class and revision tests, formal tests, internal assessment and practice-orientated assignments, exercises as well as an external examination.
5.1 Internal evaluation/assessment 5.1.1 Class and revision tests/assessments
Short class and revision tests are given on a regular basis and are aimed at rectifying problems before proceeding with new modules. Class and revision tests can be short daily tests that take up a short time during each period, and are compiled and marked in accordance with the amount of work done in the module. Exercises done by students, as well as short assignments can also be marked and can count towards the semester mark for class and revision tests.
5.1.2 Formal tests/assessments Formal tests are conducted to cover all modules or work units.
These tests are aimed at evaluating students’ knowledge on completion of modules or work units.
5.1.3 Practice-orientated assignments Students are given a practice-orientated assignment and projects to evaluate whether they have mastered the practical component of Accounting. Student performance with regard to zeal, punctuality in completing tasks or assignments conscientiousness, interest, dedication, adaptability, etc. which should be gradually developed to facilitate entrance to the world of work, is also included. These marks, in relation to the weighted value of the indicated modules, form part of the final semester mark.
6. SEMESTER MARK
6.1. A semester mark is determined out of 100 and is compiled from formal tests, internal examination and marks allocated to an assignment or practical project.
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The semester mark is compiled as follows:
Tasks Type of assessment activity (the duration and proposed mark allocation can be increased but not reduced)
Scope of assessment
% Contribution to ICASS mark
1 Assignment or practical task Should cover at least
20% of the practical outcomes in the
syllabus.
20%
2 Test The duration and marks should align with the external exam paper/s, e.g. if the examination paper counts 200 marks for 3 hours, then the test should count 60-70 marks for 1 hour duration
At least 40 – 50% of the
syllabus content must be
covered in the test.
30%
3 Internal Examination The duration and marks should align with the external exam paper/s, e.g. if the examination paper counts 200 marks for 3 hours, then the test should count 120-140 marks for 2 hours’ duration
At least 70 – 80% of the
syllabus content must be
covered in the Internal
examination.
50%
TOTAL 100%
6.2 To gain entrance to the external examination, a candidate must obtain a
subminimum of 40% in the semester mark. If entrance to the examination is achieved, a semester mark, on a 40:60 basis, in combination with the external examination mark, will form part of the final (promotion) mark.
6.3 Semester marks obtained are valid for the two years following directly on the examination in which the original semester mark was initially used. After that, this mark is no longer valid. The student must thus register again for the same subject and obtain a new semester mark.
7. EXAMINATION 7.1 The examination paper will be compiled, moderated and marked externally. 7.2 The examination paper consists of practice-orientated questions and
aspects such as application, analysis and synthesis will feature in the compilation of accounts, statements and accounting-related calculations. Although comprehension questions could also be used, these will be limited as far as possible seeing that the examination papers are directly aimed at accounting related tasks as carried out in practice.
7.3 A three-hour paper totalling 200 marks will be set at the end of the semester. 8. PASS REQUIREMENTS 8.1 To pass Introductory Accounting, a candidate must obtain a final mark of
40% by addition of the semester mark and the examination mark in a 40:60 ratio, provided that a sub- minimum of 40% is obtained as a semester mark
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as well as an examination mark.
9 LEARNING CONTENT WEIGHTED VALUE
MODULE 1: INTRODUCTION: FORMS OF OWNERSHIP AND WEALTH
GENERATION 5
(1 2⁄ WEEK)
MODULE 2: OPENING OF A TRADING CONCERN 5
(1 2⁄ WEEK)
MODULE 3: DOCUMENTS AND AUTHORISATION OF DOCUMENTS 5
(1 WEEK)
MODULE 4: ACCOUNTING PRINCIPLES AND DEFINITIONS 5
(1 WEEK)
MODULE 5: ACCOUNTING ENTRIES OF A TRADING CONCERN AND TRIAL
BALANCE 15
(2 WEEKS)
MODULE 6: TRADING ORGANISATION: SUBSIDIARY JOURNALS AND
POSTING TO THE GENERAL LEDGER 30
(4 WEEKS)
MODULE 7: TRADING CONCERN: WAGES AND SALARIES 10
(2 WEEKS)
MODULE 8: BANK RECONCILIATION 10
(2 WEEKS)
MODULE 9: YEAR END PROCEDURES 15
(2 WEEKS)
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MODULE 1: INTRODUCTION: FORMS OF OWNERSHIP AND
WEALTH GENERATION
LEARNING CONTENT LEARNING OBJECTIVES
1. Wealth generation and
forms of business
enterprises
1.1 Wealth generation
1.1.1 The profit motive
1.1.2 Increase and decreasing of
wealth
1.1.3 Capital increase by service and
trading organisations
1.2 Forms of ownership
1.2.1 Sole trader
1.2.2 Partnerships
1.2.3 Companies
1.2.3.1 Non profit companies
1.2.3.2 Profit companies
***Personal liability companies
***State owned company (SOC)
***Public companies
***Private companies
1.2.2 Activities of organisations
***Service activities
***Trading activities
***Manufacturing activities
***Activities with no profit motive
The student should be able to:
1.1 .1 Describe the motive of enterprises
regarding the profit.
1.1.2 Explain the principles of increasing
and decreasing wealth.
1.1.3 Explain how the owner of an
enterprise can increase and
decrease capital in service and
trading organisations.
1.2 Identify the different forms of
ownership and briefly
define each one as well as their
differences and similarities.
1.2.2 Identify the different business activities
of the organisations mentioned in 1.2.2 and
indicate the difference between each in
respect of generating profit.
Didactic guidelines
With reference to learning outcome 1.1 – 1.2:
1. Provide the students with background on satisfaction of needs and the role
played by the entrepreneur in generating profit.
2. Illustrate by means of practical examples.
3. The lecturer should emphasise that new close corporations may not be formed
as per Companies Act 2008.
Assessment
1. Short theory and application questions may be used for evaluating students on
a daily basis by way of class tests or class works.
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2. In examination papers short questions such as multiple choice, fill in the
missing word/s, matching columns and choosing the correct may be asked.
MODULE 2: OPENING A TRADING CONCERN
LEARNING CONTENT
LEARNING OBJECTIVES
2. Opening of a trading
concern
2.1 Management decisions on
opening a trading business
2.1.1 Business activities
2.1.2 Capital acquisition
2.1.3 Forms of ownership
2.1.4 Size of enterprise
2.1.5 Basis of conducting business
2.1.6 Assets needed for operations
2.2 Other preparations to be made
regarding opening date,
introduction or advertising, printing
of documents, appointing
employees, tax registration,
registration with local authorities
etc.
.
The student should be able to:
2.1 Identify all decisions with the opening as
indicated on the content
2.2 Explain other additional preparations
which should be made when starting a
business enterprise.
Didactic guidelines
With reference to learning outcome 2.1 – 2.2
1. The students must be able to identify all decisions with the opening of a trading
concern and all other preparations.
Assessment
1. Short theory and application questions may be used for evaluating students by
way of class tests or class works.
2. In examination papers short questions such as multiple choice, fill in the
missing word/s, matching columns and choosing the correct may be asked.
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MODULE 3: DOCUMENTS AND AUTHORISATION OF
DOCUMENTS
LEARNING CONTENT
LEARNING OBJECTIVES
3. Documents and
authorisation of documents
3.1 Types of documents used:
• Source documents
• Supporting documents
• Internal documents
• External documents
3.2 The purpose and use of the
source document
accounting.
3.3 Filing of documents
3.4 Authorisation of transactions
3.5 Opening a current bank account:
3.5.1 Procedure and documents
3.5.2 Bank deposit slip
• Purpose
• Particulars on the slip
3.5.3 Payment methods
• Electronic Funds Transfer (EFT)
• Debit card slip
• Credit card slip
• Cheque
• Withdrawal slip
The student should be able to:
3.1 Define and explain the purpose and
function of each of the documents
mentioned in the contents.
3.2 Outline the application of source
documents in the recording process as well
as the differences in originals and
duplicates.
3.3 Explain the purpose of filing,
safekeeping, types of filing and the
procedure for safe keeping
3.4 Briefly describe the necessity of
authorising transactions
3.5.1 Explain the procedure to open a bank
account and to identify, interpret and
complete the applicable documents.
3.5.2 Indicate the purpose and particulars on
the deposit slip.
3.5.3 Identify the EFT, debit card, credit card,
cheques, withdrawal slip as
methods of payment and the reasons
thereof.
Didactic guidelines
With reference to learning outcome 3.1 – 3.5
1. The students must be able to define and differentiate between the source
documents as indicated on the contents.
2. Consultations should be made with persons authorising documents in the
campus/college.
Assessment
1. Short theory and application questions may be used for evaluating students by
way of class tests or class works to indicate the difference between original and
duplicate documents.
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2. In examination papers short questions such as multiple choice, fill in the
missing word/s, matching columns and choosing the correct may be asked.
MODULE 4: ACCOUNTING PRINCIPLES AND CONCEPTS
LEARNING CONTENT
LEARNING OBJECTIVES
4. Accounting principles and
concepts
4.1 Definition of concepts:
4.1.1 Assets
4.1.2 Owners equity
4.1.3 Liabilities
4.1.4 Capital
4.1.5 Acquisition of non-current assets
4.1.6 Current assets and liabilities
4.1.7 Income and expenses
4.1.8 Purchase and sale of trading
inventory
4.2 The accounting cycle
4.3 The accounting equation
The student should be able to:
4.1 Define each of the accounting
concepts in the contents column as
according to IFRS and give a
practical example for each concept.
4.2 Give a graphical representation of
the accounting cycle.
4.3 Record transactions in the
accounting equation using the
structure provided in annexure 1.
Didactic guidelines
With reference to learning outcome 4.1 – 4.3
1. The students must be able to explain the accounting concepts as according to
IFRS, draw the accounting cycle and record transactions in the accounting
equation structure. (See Annexure 1)
2. The students must be able to define trade payables and trade receivables in
connection with settlement of accounts.
Assessment
1. Short theory and more application questions may be used for evaluating
students by way of class tests or assignments.
2. In examination papers the accounting equation entries from source
documents/transactions may be asked.
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MODULE 5: ACCOUNTING ENTRIES OF A TRADING CONCERN
LEARNING CONTENT
LEARNING OBJECTIVES
5. Accounting entries of a
trading concern
5.1 The principle of double entry
5.2 General Ledger entries
5.2.1 Capital contribution by the
owner.
5.2.2 Purchase of non-current
assets
5.2.4 Payment of operating
expenses
5.2.5 Cash withdrawals
5.2.6 Purchase of inventory (periodic
inventory system)
5.2.7 Sale of inventory (periodic
inventory system)
5.3 Posting to the ledger
accounts
5.4 Trial balance
5.4.1 Purpose of the trial balance
5.4.2 Transfer of balances and
totals from the ledger to the
trial balance
5.4.3 Tracing of errors
5.4.4 Opening of accounts in the
ledger from a given trial
balance
The student should be able to:
5.1 Explain the double entry principle and
to apply it practically.
5.2 Explain the following regarding the
ledger accounts and apply those
practically:
• The purpose of a ledger account
• The structure of a ledger account,
different columns, as well as debit and
credit sides.
• Different sections of ledger accounts
namely balance sheet and nominal
accounts section.
• Grouping of accounts in the ledger.
• Identify and determine which account is dr or
cr.
5.3 Enter the different transactions
mentioned in 5.2 directly from the
source document to the ledger
account.
5.4.1 Explain the purpose of the trial balance.
5.4.2 Transfer the balances and totals from the
ledger to the trial balance.
5.4.3 Test the correctness of the double entries
by means of a trial balance and trace
errors if the trial balance does not balance.
5.4.4 Open accounts in the general ledger from
a given trial balance.
Didactic guidelines
With reference to learning outcome 5.1 – 5.4
1. The students must be able to perform accounting entries and record the
transactions in the ledger by applying the double entry.
Assessment
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1. Practical application questions may be used for evaluating students by way of
formal tests, informal tests and assignments.
2. In examination papers the recording of general ledger account entries from
source documents/transactions may be asked.
MODULE 6: TRADING CONCERNS: SUBSIDIARY JOURNALS AND
POSTING TO THE LEDGER
LEARNING CONTENT
LEARNING OBJECTIVES
6. The Cash Receipts Journal
6.1.1 The relation between the
CRJ and the debit side of
the bank account.
6.1.2 The purpose and use of the
CRJ to make a summary of
all cash transactions.
6.1.3 Analysis columns
6.1.4 Entries from source
Documents (duplicate
receipts, cash register roll
and duplicate deposit slips)
• Cash received for sales
• Other income
• Cash received from trade
receivables
6.1.5 Folio references to the
ledger
6.1.6 Balancing the CRJ
6.1.7 Posting to the ledger
6.2 The Cash Payments Journal
6.2.1 The relation between the
CPJ and the credit side of
the bank account.
6.2.2 The purpose and use of the
CPJ to make a summary of
all cheque payments.
6.2.3 Analysis columns
6.2.4 Entries from source
documents (credit and debit
card)
• Purchase of non-current
assets
The student should be able to:
6. Explain the reason for using a CRJ as a book of
first entry.
6.1.1 Indicate the relation between the CRJ and the
debit side of the bank account.
6.1.2 Explain the purpose and use of the CRJ to make
a summary of all cash transactions.
6.1.3 Open the appropriate analysis columns.
6.1.4 Write down all cash receipts from the source
document (duplicate receipts, cash register roll
and duplicate deposit slips)
6.1.5 Indicate folio references.
6.1.6 Cross balance the CRJ
6.1.7 Posting from the CRJ to the general ledger
6. Explain the reason for using a CPJ as a book of
first entry.
6.2.1 Indicate the relation between the CPJ and the
credit side of the bank account.
6.2.2 Explain the purpose and use of the CPJ to make
a summary of all cheque payments.
6.2.3 Open the appropriate analysis columns.
6.2.4 Write down all cash payments from the source
document (credit and debit card)
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• Payment of current
expenditure.
• Purchase of trading inventory
• Cash withdrawals of the
owner
• Other payments on behalf of
the owner
• Payments to trade payables
6.2.5 Folio references to the
ledger
6.2.6 Balancing the CPJ
6.2.7 Posting to the ledger
6.3 Analysis cash book
6.3.1 The relation between the
cash book and the bank
account.
6.3.2 Analysis columns
6.3.3 Cash received and paid out
6.3.4 Balancing the cash book
6.4.5 Posting to the ledger
6.4 Petty cash journal
6.4.1 The purpose of the petty
cash
6.4.2 The transfer of money from
the bank to the petty cash
account
6.4.3 The use of petty cash
vouchers
6.4.4 Opening the petty cash
journal
6.4.5 Cash payments from petty
cash:
• Purchase of non-current
assets
• Payment of current
expenditure.
• Purchase of trading inventory
• Cash withdrawals of the
owner
• Other payments on behalf of
the owner
6.4.4 Posting of the petty cash
entries to the ledger
6.4.5 Closing off the petty cash
Account
• The imprest system
6.2.5 Indicate folio references.
6.2.6 Cross balance the CPJ
6.2.7 Posting from the CPJ to the general ledger
6.3 Explain the reasons for using the analysis cash
book as a book of first entry.
6.3.1 Indicate the relation between the cash book and
other cash journals.
6.3.2 Open the appropriate analysis columns.
6.3.3 Enter all the amounts received and paid out
from source documents into the analysis cash
book.
6.3.4 Balance the analysis cash book.
6.3.5 Post the analysis columns to the general ledger.
6.4 Explain the purpose of the petty cash
6.4.1 Enter the transfer of money to the petty cash
account.
6.4.2 Fill in petty cash vouchers and attach supporting
documents.
6.4.3 Open the petty cash journal with analysis
columns.
6.4.4 Enter the payments as indicated in the contents
column from petty cash petty cash vouchers into
the petty cash journal.
6.4.5 Balance the petty cash journal and post the
amounts to the petty cash and post to the
ledgers accounts.
6.4.4 Balance the petty cash account according to
the imprest system and the system of varying
balances.
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• The system of varying
balances
Didactic guidelines
With reference to learning outcome 6.1 – 6.4
1. The students must be able to record transactions in the subsidiary journals and
post to the general ledger using source documents/transactions.
(See annexure 3 for journals)
Assessment
1. Practical application questions may be used for evaluating students by way of
formal tests, informal tests and assignments.
2. In examination papers students should be able to draw up subsidiary journals
directly from the source documents and transactions, questions should be
formulated based on that. No transactions involving trade payables and trade
receivables should be asked, only payments transactions for the trade
payables and trade receivables can be asked.
MODULE 7: TRADING CONCERNS: WAGES AND SALARIES JOURNALS
LEARNING CONTENT
LEARNING OBJECTIVES
7. Wages and salaries journal
7.1.1 Types of wage systems
• Hourly wage system
• Piece wage system
7.1.2 Overtime remuneration
7.1.3 Deductions
• Pension fund
• Pay as you earn (PAYE)
• Unemployment Insurance
Fund (UIF)
• Medical Aid Fund
• Staff Association
7.1.4 Draw up the wages journal
7.1.5 Draw up the salaries journal
7.1.6 Recording of wages and
salaries transactions in the
The student should be able to:
7.1.1 Identify and explain types of wage systems.
7.1.2 Describe the different ways of controlling
overtime remuneration and to calculate
overtime.
7.1.3 Define the purpose of the deductions in the
contents column and determine the employee
and employer’s share of the deductions
(see annexure 3.5 & 3.6)
7.1.4 Draw up the wages journal (see annexure 3.5)
7.1.5 Draw up the salaries journal (see annexure 3.6)
7.1.6 Record appropriate accounting entries regarding
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cash payments journal.
the wages and salaries journal in the cash
payments journal.
Didactic guidelines
With reference to learning outcome 7.1.1 – 7.1.6
1. The students must be able to record transactions in the subsidiary journal and
post to the ledger. (See annexure 3.5 and 3.6)
2. The students should be made aware of the supporting documents such as
clock cards, wage advice slips, salary advice slips, cheques, tax tables and
supporting systems such as clocking systems.
3. The students are not required to post wages/salaries journal transactions to the
general ledger accounts.
Assessment
1. Practical application questions may be used for evaluating students by way of
formal tests, informal tests and assignments.
2. In examination papers students should be able to complete the wages/salaries
journals from transactions or source documents, questions should be
formulated based on that.
MODULE 8: BANK RECONCILIATION
LEARNING CONTENT
LEARNING OBJECTIVES
8. Bank reconciliation
8.1 Aim of bank reconciliation
8.2 Aim and use of bank
Statement.
8.3 Reasons for the differences
between the balance of the
bank statement and the
balance of the bank account
8.3.1 Items on the journals but not
in the bank statement
• Outstanding deposits
• Outstanding payments
(EFT)
• Outstanding cheques
8.3.2 Items on the bank statement
but not in the journals
• Bank charges
• Interest on bank overdraft
• Stop orders/ Debit orders
The student should be able to:
8.1 Describe the aim of bank reconciliation
8.2 Explain the aim and functions of the bank
statement
8.3 Compare the bank statement with the cash
journals and identify and record any
discrepancies.
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• Deposits by trade
receivables
• Interest on current account
8.3.3 Errors in the cash
journals/cash book
8.3.4 Errors on the bank statement
• Deposits erroneously
credited on the bank
statement
• Amounts debited in error on
the bank statement
8.4 Steps to reconcile the bank
statement and the cash
journals
8.4.1 Record the transactions
omitted in the cash journals/
cash book
8.4.2 Draw up a bank
reconciliation statement:
• When the bank account has
a positive balance
• When a bank account has a
negative balance
8.5 Reconciliation of the bank
statement with a bank
reconciliation of the previous
month
8.6 Payment of cheques stopped
as a result of:
• Lost cheques
• Stale cheques
8.7 Post-dated cheques:
• Received
• Issued
8.4 Record the supplementary entries in the cash
journals/cash book, and draw up a bank
reconciliation statement.
8.5 Compare the bank statement with the cash
journals/ cash books of the current month and
the reconciliation of the previous month and
make the necessary entries.
8.6 Describe the procedure to stop the payment of a
cheque, to record the cancelation of the cheque
in the appropriate cash journal/cash book and
record issuing of a new cheque.
8.7 Follow the correct procedure and make the
correct entries regarding transactions involving
post-dated cheques.
Didactic guidelines
With reference to learning outcome 8.1 – 8.7
1. The students must be able to perform all the necessary procedures for bank
reconciliation from comparisons, supplementary entries in the journals up to
and including drafting the bank reconciliation statement.
Assessment
1. Practical application questions may be used for evaluating students by way of
formal tests, informal tests and assignments.
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2. In examination papers students must be able to do supplementary entries on
the cash journals, compile the bank account in the ledger and prepare a bank
reconciliation statement.
MODULE 9: TRIAL BALANCE, FINAL ACCOUNTS AND FINANCIAL STATEMENTS
LEARNING CONTENT
LEARNING OBJECTIVES
9.1 Calculation of profit
9.1.1 Explain and execute the
procedure for the calculation
of the profit.
• Inventory taking using the
periodic inventory system
• Trading account
• Profit or loss account
• Statement of profit or loss
9.2 Statement of financial
position
9.2.1 Purpose of the statement of
financial position
9.2.2 Draw up the statement of
financial position in vertical
form
• Assets
• Equity and liabilities
• Notes to the statement of
financial position: Property
plant and equipment (PPE),
cash and cash equivalents
9.2.3 Draw up the statement of
changes in equity
The student should be able to:
9.1 Explain and execute the procedure regarding the
calculation of the profit
• Determine the opening inventory and the closing
inventory using the periodic inventory system.
• Draw up the Trading account to determine the
gross profit.
• Draw up the Profit or loss account to determine
the net profit/loss.
• Explain the relation between the final accounts
and the Statement of profit or loss.
9.2.1 Explain the purpose of the statement of financial
position.
9.2.2 Draw up the statement of financial position in
vertical form and the applicable notes.
9.2.3 Draw up the statement of changes in equity as
per annexure
Didactic guidelines
With reference to learning outcome 9.1.1 – 9.2.3
1. The students must be able to perform all the necessary procedures for end of
year transactions from drafting the final accounts up to and including the
financial statements.
Assessment
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1. Practical application questions may be used for evaluating students by way of
formal tests, informal tests and assignments.
2. In examination papers the students should be asked to prepare the financial
statements. (see annexures 4.1 & 4.2)
11. LITERATURE REFERENCE 1. UNISA FAC1501 AND 1502 STUDY GUIDES 2. WWW.IFRS.ORG 3. INTRODUCTORY ACCOUTING SYLLABUS 1995 VERSION
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11. ANNEXURES
1. ACCOUNTING EQUATION STRUCTURE
DATE GENERAL LEDGER
ACCOUNT DEBIT ACCOUNT CREDIT ASSETS = OWNERS EQUITY + LIABILITIES
2. FRAMEWORK/STRUCTURE FOR LEDGER ACCOUNT
General ledger of GSC Enterprise Enterprise
Name of Account B1
Date Details fol Amount Date Detail fol Amount
3. FRAMEWORK/STRUCTURES FOR JOURNALS
3.1 Cash Receipts Journal of XXX (Name of business) – Month 20xx CRJ 01
Doc No
Day Details Analysis of receipts
Bank Sales Trade receivables
control
Sundry Accounts
Amount Fol Details
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3.2 Cash Payments Journal of XXX (Name of business) – Month 20xx CPJ 02
Doc No
Day Payee Bank Purchases Trade payables control
Sundry Accounts
Amount Fol Details
3.3 ANALYSIS CASH BOOK of XXX (Name of business) – Month 20xx CB 03 Receipts
Doc No
Day Details Analysis of receipts
Bank Sales Trade receivables
control
Sundry Accounts
Amount Fol Details
Payments
Doc No
Day Payee/Details Bank Purchases Trade payables control
Sundry Accounts
Amount Fol Details
3.4 Petty Cash Journal of XXX – (Name of business) – Month 20xxx PCJ 03
Doc No
Day Details Petty Cash Wages Postage Stationery Sundry Accounts
Amount Details
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3.5 Wages Journal of (Name of business) for the week ended (Date Month) 20xx Employee Normal time Overtime Gross
Wages DEDUCTIONS Total
Deduct-ions
Net Wages
Employers Contribution Total
Hours Rate Amount Hours Rate Amount Pension Fund
PAYE Medical Aid
UIF Staff Ass
Pension fund
Medical aid
UIF
3.6 Salaries Journal of XXX (Name of business) for the month ended XXX (Date Month) 20xxx Employee Gross
Salary DEDUCTIONS Total
Deductions Net Salary
Employers Contribution Total
Pension Fund
PAYE Medical Aid
UIF Staff Ass
Pension fund
Medical aid
UIF
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4. FRAMEWORK/STRUCTURES FOR FINANCIAL STATEMENTS
4.5 PERIODIC INVENTORY SYSTEM
STATEMENT OF PROFIT OR LOSS FOR THE YEAR OF (NAME OF BUSINESS) ON DATE MONTH 20XX
Revenue XXX
Cost of sales (XXX)
Opening inventory XXX
Add: Purchases XXX
Add: Carriage on purchases XXX
Add: Import duty XXX
Add: Custom duties XXX
Total inventory XXX
Less: Closing inventory (XXX)
Gross profit XXX
OTHER OPERATING INCOME XXX
Rent income XXX
Commission income XXX
GROSS INCOME FOR THE YEAR XXX
OPERATING EXPENSES (XXX)
Packing material XXX
Stationery XXX
Salaries XXX
Telephone XXX
Insurance XXX
Donation expense XXX
Maintenance XXX
Repairs XXX
Water and electricity XXX
Net Profit/ (Loss) for the period XXX
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4.2 STATEMENT OF FINANCIAL POSITION OF (NAME OF BUSINESS) FOR THE YEAR ENDED DATE MONTH YEAR
ASSETS
Non-Current Assets XXX
Property, plant and Equipment 1 XXX
Other financial assets 3 XXX
Current Assets XXX
Inventory 2 XXX
Trade and other receivables 3 XXX
Cash and cash equivalents 3 XXX
TOTAL ASSETS XXX
EQUITY AND LIABILITIES
Owners’ Equity XXX
Capital XXX
Non-Current Liabilities XXX
Loans and borrowings 4 XXX
Current Assets XXX
Trade and other payables 4 XXX
Bank overdraft XXX
TOTAL EQUITY AND LIABILITIES XXX
NOTES TO THE STATEMENT OF FINANCIAL POSITION
1. PROPERTY, PLANT AND EQUIPMENT
LAND AND BUILDING
EQUIPMENT VEHICLE TOTAL
Carrying Value at beginning XXX XXX XXX XXX
Carrying Value at the end XXX XXX XXX XXX
2. INVENTORY R
Inventory (Date, Month and Year) XXX
XXX
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3. FINANCIAL ASSETS R
NON-CURRENT FINANCIAL ASSETS XXX
Fixed deposit/Investment (Bank name and interest rate) XXX
CURRENT FINANCIAL ASSETS XXX
Trade and other Receivables XXX
Trade receivables control XXX
Cash and Cash Equivalent XXX
Bank (Dr) XXX
Cash float XXX
Petty cash XXX
4. FINANCIAL LIABILITIES R
NON-CURRENT FINANCIAL LIABILITIES XXX
Long-term loan (Bank name and interest Rate) XXX
Mortgage bond XXX
CURRENT FINANCIAL LIABILITIES XXX
Trade And Other Payables XXX
Trade payables control XXX
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED (DAY, MONTH AND YEAR)
Balance at the beginning (Date, Month And Year) XXX
Add/Less: Net Profit or loss for the year XXX/ (XXX)
Less: Drawings (XXX)
Balance at the end (Date, Month And Year) XXX