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, Accounting Information System, Ledger
TIME
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PRINCIPLES OF ACCOUNT 7110 – SPN 21 SCHEME OF WORK 1

YEAR 8 (2YR PROGRAMME)
 Students should be able to:
4
WEEK
 state the purpose of
S
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 principles
 accounting
Information System.
 accounting Equation
effect of transaction.
PRINCIPLES OF ACCOUNT 7110 – SPN 21 SCHEME OF WORK
YEAR 8 (2YR PROGRAMME)
 Role of Accounting Which type of  www.acra.gov.sg/ge
 Difference between business would be the neral/directory.html
book-keeping and most common? Why?  (for actual examples
accounting  Analyse the reasons representing each
 Nature of business why specific types of type of business
transactions businesses choose unit)
 Purpose of book- particular business  http://www.jnj.com
keeping and accounting form.  http://info.sgx.com/w
 Purpose of Compare and ebcorpinfo.inf
accounting period contrast the  ( Gives the latest
 The accounting advantages and information of
process disadvantages of each annual reports of
 Ledger Rules; Assets, type of business unit. Johnson and Johnson
Liabilities, Revenues, Discuss the role of Corporation)
Expenses and Owners accounting information
 http://www.swcolleg
Equity. in making financial
e.com/vircomm/gita/
 Fundamental decisions.
gitall.html
Concepts and accounting. Go to the nearest
 (learn more about
 Accounting mini-mart and list all
the expanded
Information System assets that can be and
accounting equation)
measured in terms of
 Advantages of AIS.  http://www.accpac.c
money.
 Disadvantages of om
Provide case study
AIS.  (To know the
where students are
 Purpose of AIS different kinds of
able to:
Compare and contrast business
the differences of • State the date of the
management
accounting cycle or Balance Sheet.
software e.g.
accounting process in the • Total Assets, Total QuickBooks
computerized and liabilities and owners’ accounting software,
manual system. equity. UBS etc )
• The type of liability in
 http://www.solomom
the business.
.com
• What’s makeup the
 (e-business software
owners’ equity of the
for small to medium
2
 business. sized organisation)

Unit 2– Ledger and Balancing of Accounts

Glossary : Ledger, Purchases (Creditors) Ledger, Sales (Debtors) Ledger, General Ledger, Debit Balance, Credit
Balance
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PRINCIPLES OF ACCOUNT 7110 – SPN 21 SCHEME OF WORK 3

YEAR 8 (2YR PROGRAMME)
 4 Students should be able
WEEK to :
S  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.
PRINCIPLES OF ACCOUNT 7110 – SPN 21 SCHEME OF WORK
YEAR 8 (2YR PROGRAMME)
 The Ledger :  Teacher draws the
ledger and explains its  http://www.bized.ac.
• Rules of Ledger
functions for each type uk/learn/business/ac
Entries.
of accounts. counting/busaccount
• Types of Accounts. s/pizza/stusxfve.htm
 Teacher explains the
Balancing / Closing rules of entries for each
Accounts. 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.
4
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.
TIME
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4 SOURCE DOCUMENTS

PRINCIPLES OF ACCOUNT 7110 – SPN 21 SCHEME OF WORK 5

YEAR 8 (2YR PROGRAMME)
 WEEK Students should be able  Objectivity concept  Ask students to identify  http://www.bized.ac.
S to:-  Definition of source source documents used uk/learn/business/ac
 explain what are source documents. in a particular/ given counting/busaccount
documents and their  Features of source transactions. s/pizza/stuone.htm
importance. documents.  Exercises on matching
 name and state the use  Importance of source transactions to
of an invoice, credit documents. documents.
note, debit note,  Types and uses of  Ask the students to list
cheque, cheque source documents. the source of
counterfoil, till slips, (Invoice, Credit note, documents that a sole
vouchers, receipt, bank Debit note, Cheque, trader can use for his
statement and Cheques counterfoil, Till business.
statement of accounts. Slips, vouchers, Receipt,  Introduce students to
 determine which Bank Statement and the actual examples of
business document is to Statement of Accounts. used source documents
be used in a particular  Books of original entry taken from different
transaction / situation. or prime entry. businesses. Ask
 Comprehend that the students to name the
information in these documents and their
documents is used in purposes.
the recording of the  Role Play of a simple
business transactions. cash transaction and the
 state the different books subsequent settlement
of original entry. of debt.
 A project for students to
create their own
business documents.

PRINCIPLES OF ACCOUNT 7110 – SPN 21 SCHEME OF WORK 6

YEAR 8 (2YR PROGRAMME)
 TIME
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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, 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.
PRINCIPLES OF ACCOUNT 7110 – SPN 21 SCHEME OF WORK
YEAR 8 (2YR PROGRAMME)
SUGGESTED TEACHING SUGGESTED
LESSON CONTENTS
LEARNING ACTIVITIES ON-LINE
JOURNAL
 Definition of journals.  Recording the
 Role of journal in the information in the
accounting process. source documents into
 Recording transactions different types of
from source documents journals.
into the journals.  Post the transactions in
 The General Journal. the General Journal and
 Advantages of using the the Special Journal to
General Journal. the appropriate
 Uses of the General accounts in the ledgers.
Journal.  List the similarities and
 Recording into the differences between
General Journal. special journals and
general journal.
• Trade and cash
discount.  Calculate the trade
discount and cash
• Purchases Journal.
discount by giving
• Returns Outwards
numerical example.
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
7
  distinguish between a Petty Cash.
trade discount and cash  Posting.
discount.  Ledger.
 calculate and record the  Posting from the
trade discount into the General Journal
relevant journal.  Posting from the
Purchases Journal.

TIME
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PRINCIPLES OF ACCOUNT 7110 – SPN 21 SCHEME OF WORK 8

YEAR 8 (2YR PROGRAMME)
  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.

Unit 4– Cash Book and Petty Cash Book

Glossary : Balance, Bank overdraft, Two column cash book, Three column cash book, Cash discount, Contra
entries, Trade discount, Discount allowed, Discount received, Float, Imprest system, Petty cash book,
Petty cash, Petty expenses, Petty cash voucher, receipts, Reimbursement.
TIME
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1 CASH BOOK
WEEK
Student should be able to:  Dual functions of  Discuss and make  http://www.bhl.co.n
 explain Cash Book as Cash Book. clear about: dual z/easybooks/
a journal and a ledger.  Purposes of Cash functions of a cash (Usefulness of Cash
 list and explain the Book. book; purposes of a Book)
purpose of Cash Book. Two column cash book. cash book; difference
 distinguish between,  Difference between between cash and Microsoft Office
and account for, trade trade discounts and trade discounts; Program, then click
discount and cash cash discounts. difference between on “Microsoft
discount; discount  Difference between discount allowed and Money” (Recording
allowed and discount discount allowed and discount received; of monthly receipts
received. discount received. contra entry and payments)
 explain contra Three column cash book. transactions
transactions.  Contra-entry  Record transactions
 state and follow the transactions in a two column and
procedure of preparing  Processing of three column cash
PRINCIPLES OF ACCOUNT 7110 – SPN 21 SCHEME OF WORK 9
YEAR 8 (2YR PROGRAMME)
 a Cash Book. transactions in the book .
 draw up a Cash Book Cash Book.
following proper rules
and format.

TIME
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LEARNING ACTIVITIES ON-LINE
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PETTY CASH BOOK

 determine and explain  Purpose of the Petty  Explain about the use  www.msn.com.sg
the use of a Petty Cash Cash Book. of petty cash book and (tips on how to
Book.  Features and Imprest system. handle petty cash)
 discuss and explain the Advantages of the  Record transactions in
1 Imprest System. Imprest System. the petty cash book.
WEEK  to state and follow the  Recording of  Give guided exercises
procedure of preparing Transactions in the and reinforcement
the Petty Cash Book. Columnar Petty Cash exercises.
 to prepare a Columnar Book with Analysis
Petty Cash Book Columns for Expenses
following proper rules
and format.

Unit 5– Trial Balance, Trading, Profit and Loss Account and Balance Sheet
PRINCIPLES OF ACCOUNT 7110 – SPN 21 SCHEME OF WORK 10
YEAR 8 (2YR PROGRAMME)
Glossary : Trial Balance, 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.
TIME
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TRIAL BALANCE
Students should be able to:  Determining the  Show how a Trial  www.Accounting10.t
 determine the closing balance of an account Balance is prepared ripod.com
balance of an account  Balancing Assets and at the end of a
 list accounts which are Liabilities Accounts Trading period by  www.Bized.ac.uk
3 debit and credit in using a simple
 Trial Balance
WEEK nature. example using simple
 Purpose of a Trial
S transactions.
 state the purpose of Balance
preparing a Trial  Limitations of a Trial
Balance balance
 explain the limitations of
the Trial Balance

TIME
SUGGESTED TEACHING SUGGESTED
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LEARNING ACTIVITIES ON-LINE
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 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
PRINCIPLES OF ACCOUNT 7110 – SPN 21 SCHEME OF WORK 11
YEAR 8 (2YR PROGRAMME)

Students should be able to:
 calculate gross profit.
 calculate net profit.
 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.
Students should be able to:
 classify assets into Fixed
and Current Assets.
 classify liabilities into
Long Term and Current
Liabilities.
PRINCIPLES OF ACCOUNT 7110 – SPN 21 SCHEME OF WORK
YEAR 8 (2YR PROGRAMME)
TRADING, PROFIT AND LOSS ACCOUNT
 Gross profit.  Revise the closing of
nominal accounts.  www.Askltd.com
 Closing Nominal
accounts.  Show the T-format
 Preparation of Trading Trading and Profit and  www.Staffs.ac.uk
Account. Loss Account on the
 Closing stock, Opening board.  www.Bized.ac.uk
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
Accounts and Capital
Account.
BALANCE SHEET
 Balance Sheet.  WWW.Askltd.com
 Assets and Liabilities.
 Owner’s Equity.  WWW.Staffs.ac.uk
 Preparation of the
Balance Sheet.  WWW.Bized.ac.uk
12
PRINCIPLES OF ACCOUNT 7110 – SPN 21 SCHEME OF WORK 13
YEAR 8 (2YR PROGRAMME)
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 prepare a Balance Sheet  Book-keeping procedure
from a Trial Balance. up to the Balance Sheet.
 Analysis of the Balance
Sheet.
 Balance Sheet Equation.

Unit 6– Payroll Accounting

Glossary : Wages, Salaries, Time Card/Job Card, Piece Rate, Overtime, Commission, Income Tax, National
Insurance, Health Surcharge, Private deductions, Payroll Register, Gross Salary, Net Salary, Payslip.
TIME
SUGGESTED TEACHING SUGGESTED
FRAM SPECIFIC OBJECTIVES LESSON CONTENTS
LEARNING ACTIVITIES ON-LINE
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Students should be able to:  Methods of payment of  Collect actual time card
2
 interpret time cards. wages. or job card or clock card.
WEEK
S  transfer information  Interpret time card.  Show the calculation of
from time cards to the  Salary deductions. wages.
payroll.  Payroll register.  Show the Payroll
 calculate gross and net  Calculate gross and net Register.
earning/pay. earnings.  Show how to calculate
 prepare the payroll net salary.
register.
 explain and calculate
pay using the time basis
and piecework basis.
 explain and calculate
overtime.
 explain statutory

PRINCIPLES OF ACCOUNT 7110 – SPN 21 SCHEME OF WORK 14

YEAR 8 (2YR PROGRAMME)
 deductions for Income
Tax, Social Security and
National Insurance.
 explain voluntary
deductions for pension
contribution.

PRINCIPLES OF ACCOUNT 7110 – SPN 21 SCHEME OF WORK 15

YEAR 8 (2YR PROGRAMME)
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.
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PRINCIPLES OF ACCOUNT 7110 – SPN 21 SCHEME OF WORK 16

YEAR 8 (2YR PROGRAMME)
 3 Students should be able to:
WEEK  explain the accounting
S principles behind the
adjustments in the
accounts on the balance
day prior to the
preparation of the final
accounts.
 make the ledger entries
for the following balance
day adjustments:
• Accrued Expenses
• Accrued Revenue
• Prepaid Expenses
• Unearned Revenue
 determined the
expenses payable or
revenue earned and
transferred to the profit
and Loss Account for the
current accounting
period.
 determine the accruals
and prepayments in the
Balance Sheet at the
end of the accounting
period.
PRINCIPLES OF ACCOUNT 7110 – SPN 21 SCHEME OF WORK
YEAR 8 (2YR PROGRAMME)
 Accounting Principles  Explain the accounting  WWW.Ventureline.C
and Balance Day period concept, om/Glossary.asp
Adjustments. matching and accrual  C21accounting.com/
 Accrued Expenses. concepts student/green/gj_stu
 Accrued Revenue.  Explanation with dent_text_materials_
 Prepaid Expenses. examples taken from frame.html
 Unearned Revenue or simple transaction
Revenue received in relating to accrued and
advanced. prepaid expenses and
income.
 Show the simple steps
in recording
transactions.
 Show how to find the
missing amount to be
transferred to the profit
and loss.
 Show where and why
accrued and prepaid
expenses and income
appears in the Balance
Sheet.
17
Unit 8 – Depreciation of Fixed Assets
Glossary : Depreciation, Straight Line Method, Reducing Balance Method/ Diminishing Method, Revaluation method,
Provision for Depreciation, Disposal, Gain on Disposal, Loss on Disposal
TIME
FRAM SPECIFIC OBJECTIVES
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Students should be able to:
3
WEEK
S  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
Profit and Loss account.
 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.
PRINCIPLES OF ACCOUNT 7110 – SPN 21 SCHEME OF WORK
YEAR 8 (2YR PROGRAMME)
SUGGESTED TEACHING SUGGESTED
LESSON CONTENTS
LEARNING ACTIVITIES ON-LINE
 Causes and Reasons of  What is the relevancy of  http://www.calcbuild
Depreciation. matching concept to the er.com/cgi-
 Methods of depreciation of fixed bin/calcs/AUT2.cgi/a
Depreciation:- assets? ol_gigitalcities
• Straight line  Demonstrate and (A software to help car
• Reducing balance explaining the different owners estimates their
• Revaluation methods. vehicle’s value-try out it
 Recording the  Recording the double has a depreciation
Depreciation of Fixed entry between Provision calculator!)
Assets. for Depreciation a/c and
 Recording Provision for its effect in the Profit  http://www.depreciat
Depreciation a/c, its and Loss A/C and ionsoftware.com/feat
effect in the Profit and Balance Sheet. ures.html
Loss a/c and Balance  Demonstrate on the ( to simplifies the
Sheet. board the disposal tedious fixed asst
 Disposal Account. account and effect on management process)
the Fixed assets a/c.
 Fixed Assets a/c.
 Show the gain/loss on  http://en.wikipedia.o
 Gain/ Loss on Disposal =
disposal in relevant rg/wiki/Depreciation
Selling Price-Net Book
accounts. (more into depreciation)
Value.
 Provision for
depreciation on fixed
asset disposed.
18
PRINCIPLES OF ACCOUNT 7110 – SPN 21 SCHEME OF WORK 19
YEAR 8 (2YR PROGRAMME)
Unit 9– Bad Debts and Provision
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
SPECIFIC OBJECTIVES
FRAME
3 Students should be able to :
WEEKS  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 Profit
and Loss Account and
Balance Sheet.
PRINCIPLES OF ACCOUNT 7110 – SPN 21 SCHEME OF WORK
YEAR 8 (2YR PROGRAMME)
SUGGESTED TEACHING SUGGESTED
LESSON CONTENTS
LEARNING ACTIVITIES ON-LINE
Bad Debts :  Explains the credit sales,  http://www.insolvenc
 Bad Debts existence of debtors and yhelpline.co.uk
 Writing-off Bad Debts bad debts.
 Recovery of Bad Debts  Ask students to
 Partial Settlement of interview sole traders on  https://secure.mas.g
Debtors the effect of credit sales ov.sg/msb/msbQuery
 Difference between Bad and bad debts to their .Cfm?
Debts and Doubtful businesses. tableset=i&tablena
Debts  Explains journal and me =115&tno=17
ledger entries for Bad
Provision for Doubtful Debts written-off,
Debts : Recovery of Bad Debts
 Creation, and Partial Settlement of
 Increasing Debtors.
 Decreasing  Explains the effects of
creation, increasing and
 When Provision for
decreasing of Provision
Doubtful Debts and Bad
for Doubtful Debts in
Debts Accounts exist
Profit and Loss Account
simultaneously
and Balance Sheet.
20
Unit 10 – Final Account with Adjustments
Glossary : Refer to Unit 5, 7, 8 and 9.
TIME
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2 Students should be able to:  The effects and how it  Refer to Unit 5, 7, 8 and  Refer to Unit 5, 7, 8
WEEK  Adjust the following reflect on the Final 9. and 9.
S before the preparation Accounts and Balance
of final accounts:- Sheet.
• Expenses. • Expenses.
• Revenue. • Revenue.
• Prepayments. • Prepayments.
• Revenue prepaid. • Revenue prepaid.
• Revenue received in • Revenue received in
advance. advance.
• Unearned revenue. • Unearned revenue.
• Depreciation of Fixed • Depreciation of Fixed
Assets. Assets.
• Bad Debts and • Bad Debts and
Provision. Provision.

Unit 11 – 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
SUGGESTED TEACHING SUGGESTED
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LEARNING ACTIVITIES ON-LINE
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PRINCIPLES OF ACCOUNT 7110 – SPN 21 SCHEME OF WORK 21

YEAR 8 (2YR PROGRAMME)
 2 Students should be able to:  Bank Statement.  Displays a sample of a  http://teachers.cie.or
WEEK  explain the reasons for  Cash Book. Bank Statement and g.uk/teachers
S the discrepancy  Discrepancies between explains the entries. support/pdf/7110
between Cash Book Cash Book (Bank s03gp 2.pdf
(Bank Column) and Bank Column) and Bank
Statement balances. Statement.

PRINCIPLES OF ACCOUNT 7110 – SPN 21 SCHEME OF WORK 22

YEAR 8 (2YR PROGRAMME)
 TIME
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 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
PRINCIPLES OF ACCOUNT 7110 – SPN 21 SCHEME OF WORK
YEAR 8 (2YR PROGRAMME)
SUGGESTED TEACHING SUGGESTED
LESSON CONTENTS
LEARNING ACTIVITIES ON-LINE
 Adjust the Cash Book  Allow one student to  http://www.franklenc
(Bank Column). enter transactions in the omputer.com/check
 Bank Reconciliation Cash Book while the writing_more_inform
Statement starting with partner records them in ation.html
Cash Book (Bank the Bank Statement.
Column) balance. Teacher supplies the  http://www.accaglob
 Bank Reconciliation transactions. al.com/cpdrealise/
Statement starting with  Demonstrates a
Bank Statement transaction on  http://accounting10.t
balance. uncredited deposit and ripod.com/content.ht
 Differing opening explains the need for ml
balances and errors in Bank Reconciliation.
the Cash Book (Bank  Compare a Bank
Column) and the Bank Statement with Cash
 http://www.goggle.c
om
Statement. Book (Bank Column)
(search for bank
 Bank overdraft and entries.
reconciliation)
Bank Reconciliation  Show the Cash Book
Statement. adjustment.
 http://www.ida.gov.s
 Introduce the terms
g/idaweb/ebusiness
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
23
 with errors in Cash Book
(Bank Column).
 Explains how an
overdrawn balance
affects the reconciliation
process.

PRINCIPLES OF ACCOUNT 7110 – SPN 21 SCHEME OF WORK 24

YEAR 8 (2YR PROGRAMME)
Unit 12 – Departmental Account
Glossary : Department, Apportionment of expenses, (refer unit 5)
TIME
SUGGESTED TEACHING SUGGESTED
FRAM SPECIFIC OBJECTIVES LESSON CONTENTS
LEARNING ACTIVITIES ON-LINE
E

2 Student should be able to:  Introduction.  Ask students to prepare

WEEK  define Departmental  Purpose of Final account,
S Accounts. Departmental accounts. apportioning the
 explain the purpose of  Apportionment of undivided expenses in
preparing the expenses. proportion to the sales,
Departmental account.  Analysed Trading and floor areas, number of
 calculate the allocation Profit and Loss Account. employees, etc
of expenses for each
department in the Final
account.
 prepare simple
columnar Trading
Accounts when dealing
with a business which
has two or more
departments;- in the
correct format and in
accordance to the policy
of the business in the
allocation of the various
expenses.

PRINCIPLES OF ACCOUNT 7110 – SPN 21 SCHEME OF WORK 25

YEAR 8 (2YR PROGRAMME)
Unit 13 – Capital and Revenue Expenditures and Receipts
Glossary : Trading concern, non-trading concern, capital expenditure, capital receipts, revenue expenditures, revenue
receipts.
TIME
SUGGESTED TEACHING SUGGESTED
FRAM SPECIFIC OBJECTIVES LESSON CONTENTS
LEARNING ACTIVITIES ON-LINE
E

PRINCIPLES OF ACCOUNT 7110 – SPN 21 SCHEME OF WORK 26

YEAR 8 (2YR PROGRAMME)
 1 Student should be able to:
WEEK  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.
Unit 14 - Incomplete Records
Glossary : Incomplete records, Statement of Affairs, Single Entry,
PRINCIPLES OF ACCOUNT 7110 – SPN 21 SCHEME OF WORK
YEAR 8 (2YR PROGRAMME)
 Difference between  Introduce the terms:  http://www.bized.ac.
capital and revenue capital expenditure, uk/stafsup/options/a
expenditures. revenue expenditure, ccounting/work03.ht
 Difference between capital receipts and ml
capital and revenue revenue receipts.
receipts.  List on the board (in  http://teacher.cie.org
 Capital and revenue table form) the .uk/teacher_support/
expenditures of a expenditures and pdf/7110_w03_gp_1.
trading concern and income of a trading pdf
non-trading concern. concern and non-trading
 Capital and revenue concern.
receipts of trading  Divide the class into 2
concern and non-trading groups, then let them
concern. 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
receipts. Presentation
in the class will follow.
27
 TIME
FRAM SPECIFIC OBJECTIVES
E
Students should be able to:
3
 Identify the weakness of
WEEK
incomplete records
S
 Calculate profit using
the comparison of
capital methods
 Calculate profit using
method of analysis.
 Compute purchases,
sales, debtors, creditors,
expenses, revenues and
assets from incomplete
records.
 Prepare Statement of
Affairs.
PRINCIPLES OF ACCOUNT 7110 – SPN 21 SCHEME OF WORK
YEAR 8 (2YR PROGRAMME)
SUGGESTED TEACHING SUGGESTED
LESSON CONTENTS
LEARNING ACTIVITIES ON-LINE
 Weakness of Incomplete  Explain the importance http://toolkit.cch.com/te
records of double entry book- xt/P06_1350.asp
 Calculate Profit or Loss keeping. (to find out more about
from Incomplete  Explain with example:- single and double entry
Records • The calculation of accounting system)
 Comparison of Capital profit using
Method capital
 Method of Analysis comparison and
 Statement of Affairs 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 book-
keeping. 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.
28
PRINCIPLES OF ACCOUNT 7110 – SPN 21 SCHEME OF WORK 29
YEAR 8 (2YR PROGRAMME)
Unit 15 – Non-Trading Organizations
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
SPECIFIC OBJECTIVES
FRAME
4 Student should be able to:
WEEKS  distinguish between
Receipts and Payments
Accounts and Income
and Expenditure
Accounts.
 draw up the Receipts
and Payments Accounts,
Refreshments and
Subscriptions Accounts.
 calculate the
Accumulated Fund.
 prepare the Income and
Expenditure Accounts
and Balance Sheets.
SUGGESTED TEACHING SUGGESTED
LESSON CONTENTS
LEARNING ACTIVITIES ON-LINE
 Refreshments Trading  Discuss and explain:-
Account. • Receipts and
 Subscriptions Accounts. Payments Accounts;
 Receipts and Payments • Income and
Accounts. Expenditure
 Income and Expenditure Accounts.
Accounts.  Illustrate the similarities
 Accumulated Fund. and differences between
 Balance Sheets. non-trading
organizations.
 Calculate Accumulated
fund using simple
examples.
 Prepare subscription a/c.
 List the steps in
preparing the final
accounts and balance
sheet of non-trading
concerns.

PRINCIPLES OF ACCOUNT 7110 – SPN 21 SCHEME OF WORK 30

YEAR 8 (2YR PROGRAMME)
PRINCIPLES OF ACCOUNT 7110 – SPN 21 SCHEME OF WORK 31
YEAR 8 (2YR PROGRAMME)
Unit 16 – Control Account
Glossary : Subsidiary Ledger, Control Accounts, Debtors Control Account/ Sales Ledger Control Account, Total Debtors
Account, Creditors Control Account/Purchases Ledger Control Account, Transfer (Contra), Minority Balances.
TIME
SUGGESTED TEACHING SUGGESTED
FRAM SPECIFIC OBJECTIVES LESSON CONTENTS
LEARNING ACTIVITIES ON-LINE
E
2 Student should be able to:  Control Account.  Prepare the Debtors  http://www.ventureli
WEEK  explain the purpose of  Purposes / Uses of Control account and ne.com/glossary.asp
S control accounts. Control Account. Creditors Control
 draw up the Debtors  Debtors Control account from the given
Control Account. Account. transactions.
 draw up the Creditors  Creditors Control  Name the source of
Control account. Account. information for the
 enter the following  Transfers ( Contras ). construction of both
items into the relevant  Minority Balances in control accounts.
control account:- credit Control Accounts
sales and purchases,
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)
PRINCIPLES OF ACCOUNT 7110 – SPN 21 SCHEME OF WORK 32
YEAR 8 (2YR PROGRAMME)
 between the sales and
purchases ledgers are
presented in the control
accounts.
 describe how minority
balances arise and how
they affect the control
accounts.

PRINCIPLES OF ACCOUNT 7110 – SPN 21 SCHEME OF WORK 33

YEAR 8 (2YR PROGRAMME)
Unit 17 – 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 SUGGESTED TEACHING SUGGESTED
SPECIFIC OBJECTIVES LESSON CONTENTS
FRAME LEARNING ACTIVITIES ON-LINE
3 Students should able to :  Manufacturing Account:  Educational visit to
WEEKS  define the two types of • Costs of Raw manufacturing firm for
costs : Materials. the students able to
• Direct Cost (Prime • Direct Costs. understand the Cost of
Cost) • Prime Costs. Raw Materials, Direct
• Indirect Cost • Indirect Costs. Cost, Indirect Cost and
 prepare the Cost Of Production.
• Work In Progress.
manufacturing account.  Assign a project for each
• Costs of Production.
 give examples of Direct group in a class to
• Market Price.
Cost and Indirect Cost manufacture simple
• Manufacturing Profit. product and ask the
 compute the Prime Cost
students to calculate
 calculate the Cost of  Manufacturer’s Trading
Cost of Raw Materials,
Manufacturing and Profit and Loss Direct Cost, Indirect Cost
(production) Account : and Cost of Production.
 show the treatment of • Finished Goods.
Work In Progress • Gross Profit on
 prepare Trading Account manufactured and
to calculate gross profit finished goods.
of a manufacturing
business  Manufacturer’s
 prepare Profit and Loss Balance Sheet :
Account for calculating • Closing Stock On Raw
net profit of a Materials.
manufacturing business
• Closing Stock on
 prepare the Balance Finished Goods.
Sheet of a
• Work In Progress at
PRINCIPLES OF ACCOUNT 7110 – SPN 21 SCHEME OF WORK 34
YEAR 8 (2YR PROGRAMME)
 manufacturing business the end.

PRINCIPLES OF ACCOUNT 7110 – SPN 21 SCHEME OF WORK 35

YEAR 8 (2YR PROGRAMME)
Unit 18 – 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 SUGGESTED TEACHING SUGGESTED
SPECIFIC OBJECTIVES LESSON CONTENTS
FRAME LEARNING ACTIVITIES ON-LINE
Students should be able Do Not Revealed  Demonstrate correction  http://www.gen.com/a
4
to:  Correction of errors not of error on the board the rchives/gen/1997/ma
WEEKS
 lists, identify and revealed by a Trial Balance list of transactions, y2b/pg3a.htm
analyse errors not thru making journal and which do not revealed
revealed by a Trial ledger entries. and revealed by trial  http://accounting10.tr
Balance. • Error of omission balance. ipod.com/slides11.1.
 identify and correct • Error of commission  Record the errors in the ppt
errors revealed by a • Error of principle ledger accounts and
Trial Balance with • Compensating error correct each error thru  http://www.bized.ac.u
Suspense Account. • Error of original entry ledger and journal k/stafsup/options/acc
 make journal and entries. ounting/work04.htm
• Error of complete
ledger entries reversal  Introduce and explain
supporting the Revealed: the function of a  http://www.bized.ac.u
correction of errors. Suspense Account when k/stafsup/options/acc
 Creation of Suspense
 post entries to a Trial Balance totals are ounting/mod2.t
Account when errors
Suspense Account not equal. suspense.htm
revealed by the Trial
where necessary. Balance:  Identify and correct
 analyze the effects errors, which affect the  http://www.bized.ac.u
• Wrong casting in the
and correction of agreement of the Trial k/stafsup/options/acc
books of original entries.
errors on: Balance totals and how ounting/mod2.w
• Incomplete double
they are corrected. suspense.htm
entries.
• Trial Balance.  Analyze the effects of
• Double entries
• Profit and Loss errors in Trial Balance  http://teachers.cie.or
completed but with
Accounts. and draw up the g.uk/teachersupport/
different amounts.
• Balance Sheet. corrected Trial Balance. pdf/7110 w03
• Posting to the same side
 Analyze the effects of gp2.pdf
in both accounts.
errors and also its
PRINCIPLES OF ACCOUNT 7110 – SPN 21 SCHEME OF WORK 36
YEAR 8 (2YR PROGRAMME)
  Correction of an error correction on Gross  http://www.google.co
requiring more than two Profit and Net Profit. m (search for book-
entries.  Analyze the effects of keeping errors)
 Effects of correction of errors and also its
errors on Trial Balance. correction on Balance  http://www.ida.gov.sg
 Effects of correction of Sheet. /idaweb/ebusiness
errors on profit.
 Effects of correction on
Balance Sheet.
Unit 19 – Partnership (Admission / Goodwill / Amalgamation )
Glossary : Fixed Capital Account, Current Account, Profit and Loss Appropriation Account, Credit/debit balance in the
Current Account, Goodwill, Premium, Revaluation Account, Amalgamation.
TIME
SUGGESTED TEACHING SUGGESTED
FRAM SPECIFIC OBJECTIVES LESSON CONTENTS
LEARNING ACTIVITIES ON-LINE
E
5 PARTNERSHIP
WEEK
S Students should be able to:  Main differences  Explain with example:-  WWW.Tutor2u.net
 differentiate between a between Partnership and • The Profit and Loss
partnership from a sole Sole Proprietorship Appropriation  WWW.Bized.ac.uk
proprietorship.  Partnership Agreement Account.
 calculate interest on  Capital and Current • The Current Account  WWW.Accounting1
capital and interest on Accounts of a of the partner. 0.tripod.com
drawings. Partnership • The Owners’ Equity is
 draw up the profit and  Interest on capital presented in the  WWW.Accaglobal.c
Loss Appropriation  Partner’s salaries Balance Sheet with om
Account.  Interest on Drawings details of the Current
 draw up Current Account  Distribution of profits Accounts OR the
of a partner.  Profit and Loss balance brought
 prepare the Balance Appropriation account forward only.
Sheet of a Partnership  Loans from partners
 Balance Sheet

PRINCIPLES OF ACCOUNT 7110 – SPN 21 SCHEME OF WORK 37

YEAR 8 (2YR PROGRAMME)
 ADMISSION OF A PARTNER AND GOODWILL
Students should be able to:  When Goodwill must be  Explain with  WWW.Tutor2u.net
 define goodwill valued example:-
 record goodwill in the  Raising a Goodwill • The Goodwill  WWW.Bized.ac.uk
books Account Account
 write off goodwill  Writing off Goodwill • The Revaluation  WWW.Accounting1
 follow the procedure in  Admission of a partner Account 0.tripod.com
admission of a partner and goodwill • The Capital
 calculate assets  Payment of a Premium Accounts  WWW.Accaglobal.c
revaluation and the for goodwill om
payment of Premium or  Admission of a partner
the raising of a Goodwill and revaluation of
Account assets

TIME
SUGGESTED TEACHING SUGGESTED
FRAM SPECIFIC OBJECTIVES LESSON CONTENTS
LEARNING ACTIVITIES ON-LINE
E
 construct the Capital
Account of the existing
partner(s) after the
revaluation of assets
and the payment of
premium or the raising
of the Goodwill account.
 draw up the Balance
Sheet of the new
partnership.

AMALGAMATION

PRINCIPLES OF ACCOUNT 7110 – SPN 21 SCHEME OF WORK 38

YEAR 8 (2YR PROGRAMME)
 Students should be able to:  Revaluation of assets.  Explain with example:- • WWW.Tutor2u.net
 define amalgamation.  Opening the goodwill • Show the Capital
 explain procedure taken account. Accounts • WWW.Bized.ac.uk
before amalgamation  Discharging the • Show the Revised
takes effect. liabilities or bring them Balance Sheet • WWW.Accounting10.t
 adjust the Capital into the new ripod.com
Accounts of the two partnership.
firms that are to merge.  Adjustments to the • WWW.Accaglobal.co
 prepare combined capital accounts. m
Balance Sheet of the  Combined balance sheet
new partnership. of the new partnership.

PRINCIPLES OF ACCOUNT 7110 – SPN 21 SCHEME OF WORK 39

YEAR 8 (2YR PROGRAMME)
Unit 20 – 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
SUGGESTED TEACHING SUGGESTED
FRAM SPECIFIC OBJECTIVES LESSON CONTENTS
LEARNING ACTIVITIES ON-LINE
E

PRINCIPLES OF ACCOUNT 7110 – SPN 21 SCHEME OF WORK 40

YEAR 8 (2YR PROGRAMME)
 3 Student should be able to:  Limited Companies and  Describe the features of  Visit coco cola web
WEEK  describe the features of their Features. a limited company. site at:
S a Limited Company.  Company Accounts.  Compare the above WWW.Cocoacola.Co
 distinguish between  Classification of Capital. features with other type m
limited and unlimited  Classes of Shares. of business i.e. sole Refer to the latest
liability.  Debentures. proprietorship and annual report and
 explain the different  Dividends. partnership. ask student to
classes of capital of a  Explain the meaning of identify relevant
 Final Accounts of
limited company. the different items.
Limited Companies.
 explain the differences classification of capital.
 Comparison of the
between ordinary Capital Structure of the  Explain the different  Log on to the
shares, preference classes of shares with Registrar of
Sole Trader, Partnership
shares and deferred respect to the payment Companies’ web
and Limited Liability
shares. of dividends. site at:
Company.
 state the differences  Explain the function of WWW.rcb.gov.sg
between shares and Debentures and
debentures. highlight their
 calculate the dividends differences with shares
paid on shares. of a company.
 state the difference  Explain final and interim
between interim dividends and how they
dividends and final are calculated for the
dividends. different shares.
 contrast the capital  Prepare the format of
structure of sole Appropriation account
proprietorships, showing clearly the
partnerships and limited calculation of dividends
companies.  Explain shareholders
 prepare the funds and how they are
appropriation account. calculated.
 calculate the share
holders fund.

PRINCIPLES OF ACCOUNT 7110 – SPN 21 SCHEME OF WORK 41

YEAR 8 (2YR PROGRAMME)
Unit 21 – Interpretation and Analysis of Final Account and Balance Sheet
Glossary : Turnover, Interpret, Analyse, Acid-test ratio( quick/liquid ratio), Current ratio, Gross profit margin, Net profit
margin, Average stock, Liquidity, Mark-up, Quick (liquid) assets, Rate of return on capital, Rate of stock
turn, Ratio analysis, Working capital, Working capital ratio, Capital employed, Capital owned.
TIME
SUGGESTED TEACHING SUGGESTED
FRAM SPECIFIC OBJECTIVES LESSON CONTENTS
LEARNING ACTIVITIES ON-LINE
E
3 Student should be able to:  Importance of  Introduce with the  http://www.office.c
WEEK  To explain the interpretation and meaning of the words om/global
S importance of analysis analysis of final accounts “interpret” and  (Useful
and interpretation of and balance sheet. “analyse” (use of explanations
financial statements.  Calculation of main dictionary).  on financial
 To compute the different accounting ratios as  Show how to calculate analysis)
accounting ratios. follows: the different accounting  http://www.manage
 To comment upon the • gross profit ratios based on given mentsystems.net/b
significance of the margin situations. enefits/benemain.ht
accounting ratios in the • mark up on cost  Group students into 3/4. m
final accounts and • rate of stockturn Show a financial  (Accounting
balance sheet of a • net profit margin statements of a software to assist in
business. • expense ratio business, compare its financial analysis)
performance for the
• working capital  http://www.ventureli
given years using the
• liquid ratio ne.com/
accounting ratios,
• capital employed Interpret and analyse  (Sample industry
• rate of return on the significance of the  analysis and ratios
capital invested accounting ratios in the  computed)
• return on capital final accounts and  http://www.sgx.com
employed balance sheet. .sg
 Significance of the  Annual reports of
accounting ratios in the well-known retail
performance (final chains.
accounts and balance
sheet) of the business.

PRINCIPLES OF ACCOUNT 7110 – SPN 21 SCHEME OF WORK 42

YEAR 8 (2YR PROGRAMME)
PRINCIPLES OF ACCOUNT 7110 – SPN 21 SCHEME OF WORK 43
YEAR 8 (2YR PROGRAMME)
REFERENCES:

 Principles of Accounts;Marshall Cavendish Education 2nd Edition; Betsy Li, Tan Sai Kim, Goh Lin Chin.

 Principles of Accounts;Marshall Cavendish Education 3rd Edition; Betsy Li, Tan Sai Kim, Goh Lin Chin.

 Principles of Accounts;Marshall Cavendish Education 4th Edition; Betsy Li, Tan Sai Kim, Goh Lin Chin.

 Principles of Accounts;Marshall Cavendish Education 5th Edition; Betsy Li, Tan Sai Kim, Goh Lin Chin.

 Principles of Acounts; 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.

 Bookkeeping and Accounts; FT Prentice Hall; Frank Wood.

 IGCE Accounting; Cambridge; Catherine Concom

 BGCE ‘O’ Level – Past Years’ Exam Questions.

RECOMMENDED BOOKLET FOR STUDENTS:

 Principles of Accounts – MCQs Bank 2000 – 2006, Topical Past Year Papers;7110 / 1; ISBN – 99917 48 74 1
Cg Hj Md Yura Faisal bin Hj Mohd Yusof; BA (Hons) Education (Economics & Geography)

PRINCIPLES OF ACCOUNT 7110 – SPN 21 SCHEME OF WORK 44

YEAR 8 (2YR PROGRAMME)