Zambia Grade 12 Principles of Accounts Syllabus

This syllabus outlines the key concepts and skills for Principles of Accounts. It is designed to prepare students for further studies and careers in accounting and finance. The syllabus emphasizes practical application and critical evaluation of accounting principles.

Grade 10

10.1 Principles of Accounts

• 10.1.1 General Outline of Accounting: Explains the importance of Principles of Accounts and the system of checks and balances.
• 10.1.2 Job Opportunities: Identifies career prospects in the accounting profession, such as Accountant, Bookkeeper, Cashier, Bursar, Assistant Accountant, Financial Manager, and Finance Minister.
• 10.1.3 Accounting Concepts (Conventions): Identifies and explains fundamental accounting concepts like Cost, Prudence, Going Concern, Business Entity, Realization, Objectivity, Dual Aspect, Consistency, Accrual, Materiality, and Periodical.

10.2 Business Transactions

• 10.2.1 Types of Business Transactions: Explains and records different business transactions, including cash transactions, bank transactions, credit transactions, and barter transactions.

10.3 Books of Prime Entry

• 10.3.1 Source Documents Used in Books of Prime Entry: Explains the various source documents used, such as receipts, cash sale slips, bank paying-in slips, cheques, tickets, invoices, credit notes, and petty cash vouchers.
• 10.3.2 Types of Books of Prime Entry: Explains and records transactions in different books of prime entry, including the Purchases Day Book, Sales Day Book, Cash Book, Purchases Returns Day Book, Sales Returns Day Book, General Journal, and Petty Cash Book.

10.4 Double Entry

• 10.4.1 Principle of Double Entry: Explains the principle of double entry, including debit and credit entries, and its role in confirming the dual aspect and tracking the movement of value.
• 10.4.2 Types of Accounts: Explains the different types of accounts: Real Accounts, Personal Accounts, and Nominal Accounts.

10.5 Ledger

• 10.5.1 Types of Ledgers: Explains the purpose of the ledger and different types of ledgers, including the General Ledger, Debtors/Sales Ledger (Accounts Receivable Ledger), and Creditors/Purchases Ledger (Accounts Payable Ledger).

10.6 Trial Balance

• 10.6.1 Purpose of Trial Balance: Explains the purpose of the Trial Balance, which is to check for arithmetic errors, ensure the completion of double entry, and detect potential fraud.

10.7 Final Accounts

• 10.7.1 Trading Account (Income Statement): Explains and prepares the Trading Account, calculating net sales, cost of sales, and gross profit/loss.
• 10.7.2 Profit and Loss Account (Income Statement): Explains and prepares the Profit and Loss Account, calculating income, expenses, and net profit/loss.
• 10.7.3 Balance Sheet (Statement of Financial Position): Explains and prepares the Balance Sheet, calculating various types of capital, assets, and liabilities.

Grade 11

11.1 Adjustments in the Final Accounts

• 11.1.1 Adjustments to Final Accounts: Explains the term "adjustment" and its application to final accounts.
• 11.1.2 Depreciation: Explains the concept of depreciation.
• 11.1.3 Methods of Depreciation: Describes and calculates depreciation using methods like Straight Line/Equal Installment, Diminishing Balance, and Revaluation.
• 11.1.4 Disposal of Fixed Assets: Explains the process of disposing of fixed assets.
• 11.1.5 Other Types of Adjustments: Explains other adjustments like accruals, prepayments, bad debts, and provision for bad and doubtful debts.

11.2 Limitations of the Trial Balance

• 11.2.1 Errors Not Revealed by the Trial Balance: Explains errors like omission, original entry, commission, principle, complete reversal, compensation, and transposition. Prepares journal entries to correct these errors.
• 11.2.2 Errors Revealed by the Trial Balance: Explains and corrects errors like single error/part omission, undercast, and overcast.

11.3 Suspense Account

• 11.3.1 Suspense Account: Prepares and clears suspense accounts.

11.4 Bank Reconciliation

• 11.4.1 Bank Reconciliation: Explains the reasons for differences between the Cash Book balance and Bank Statement, prepares a revised Cash Book, and reconciles bank statements.

11.5 Control Accounts

• 11.5.1-11.5.5 Control Accounts: Explains the purpose, sources of information, types, and preparation of control accounts, including Sales Ledger Control Accounts and Purchases Ledger Control Accounts.

11.6 Accounts of Non-Profit Making Organizations or Clubs Accounts

• 11.6.1-11.6.2 Accounts of Non-Profit Making Organizations: Identifies and prepares accounts for non-profit organizations, including Receipts and Payments, Income and Expenditure, Trading Accounts, Profit and Loss Account, and Balance Sheet.

11.7 Capital and Revenue Receipts and Expenditure

• 11.7.1 Capital and Revenue Expenditure: Explains capital and revenue expenditure items.
• 11.7.2 Capital and Revenue Receipts: Explains capital and revenue receipts items.

Grade 12

12.1 Incomplete Records

• 12.1.1 Single Entry and Incomplete Records: Explains the concept of incomplete records and the statement of affairs.
• 12.1.2 Difference between Double and Single Entries: Explains the difference between double and single-entry systems and converts incomplete records to double-entry. Calculates purchases and sales using control accounts.
• 12.1.3 Final Accounts of Incomplete Records: Prepares final accounts (Trading Account, Profit and Loss Account, and Balance Sheet) from incomplete records.

12.2 Partnerships

• 12.2.1 Formation of Partnerships: Explains the formation of partnerships, including the partnership deed or articles of partnership.
• 12.2.2 Final Accounts under Partnerships: Explains and prepares final accounts for partnerships, including handling premium, goodwill, admission of new partners, and appropriation of profits.

12.3 Manufacturing Accounts

• 12.3.1 Types of Costs: Explains different types of manufacturing costs (direct and indirect).
• 12.3.2 Types of Stocks: Identifies different types of manufacturing stocks (raw materials, work-in-progress, finished goods).
• 12.3.3 Manufacturing Accounts: Prepares manufacturing accounts.
• 12.3.4 Current Market Value: Calculates manufacturing profit.
• 12.3.5 Financial Statements/Final Accounts: Prepares final accounts for manufacturing businesses.

12.4 Ethics in Accountancy

• 12.4.1 Ethics: Explains the importance of ethics in accountancy, including integrity, trustworthiness, discipline, honesty, and accountability.
• 12.4.2 Effects of Non-Adherence to Ethics: Identifies and explains the effects of unethical behavior, such as corruption, fraud, money laundering, and embezzlement.

12.5 Interpretation of Final Accounts

• 12.5.1 Accounting Ratios and Percentages: Explains the importance of accounting ratios and percentages and calculates various ratios like Gross Profit %, Net Profit %, Turnover, Rate of Turnover, Debtors/Sales, Creditors/Purchases, Working Capital, Capital Employed, Liquidity Ratio, Acid Test, Return on Capital Employed (ROCE), and Return on Capital Invested (ROCI).