KASNEB ATD Introduction to Financial Accounting Revision Kits

Description

KASNEB ATD Introduction to Financial Accounting Revision Kits

CONTENT
1.1 Introduction to accounting
 Nature and purpose of accounting
 Objectives of accounting
 Users of accounting information and their information needs
 Qualities of useful accounting information
 Accounting concepts/principles
 Accounting standards and their importance
 The accounting equation
1.2 Double entry bookkeeping and books of original entry including manual and computerised
systems
 Source documents
 Books of original entry
 The double entry system and the ledger
 The trial balance and basic financial statements
 Computerised accounting systems- Role of computers, application and accounting softwares
in the accounting process, benefits and challenges of operating computerised accounting
systems
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1.3 Accounting for assets and liabilities
 Accrued expenses and prepaid expenses
 Accounting for revenue including accrued income and prepaid income
 Accounting for accounts receivables, bad debts and allowance for doubtful debts
 Property plant and equipment including capital revenue and expenditure, depreciation,
acquisition and disposal
 Inventory – recognition, measurement and valuation using specific cost method (FIFO and
weighted average cost only)
 Accounting for cash and cash equivalents, bank reconciliation
 Accounting for accounts payable including control account
1.4 Correction of accounting errors and the suspense account
1.5 Financial statements of a sole trader
 Income statement
 Statement of financial position
1.6 Partnership accounts
 Contents of a partnership agreement
 Distinction between current and capital accounts
 Appropriation statement and partners current and capital accounts
 Statement of financial position and income statement (Excluding changes in partnerships)
1.7 Company accounts
 Types of share capital – ordinary shares and preference shares
 Types of reserves – share premium, revaluation reserve, general reserves and retained profits
 Issue of shares (exclude issue by instalment and forfeiture)
 Rights issues and bonus
 Income tax -Accounting treatment and presentation (exclude computation)
 Income statement
 Statement of financial position
1.8 Emerging issues and trends