INTRODUCTION

The Book Keeping syllabus is designed to assess the candidates’ basic knowledge of business activities and understanding of the financial system for the purpose of establishing a business and laying a good foundation for further studies.

OBJECTIVES

The aim of this paper is to test candidates’:

i. knowledge of basic skills required to start a business;

ii. ability to appreciate the rules and functions of book keeping;

iii. ability to apply the basic knowledge and skills in Book Keeping to modern business activities.

SCHEME OF THE EXAMINATION

There will be two papers, Papers 1 and 2, both of which will be a composite paper to be taken in one sitting.

PAPER 1: Will consist of forty multiple choice questions all of which must be answered in 50 minutes for 40 marks.

PAPER 2: Will consist of two sections, Sections A and B as follows:

Section A: Will cover the Theory of Book-Keeping and contain four questions. Candidates will be required to answer two for 20 marks.

Section B: Will cover the Practice of Book-Keeping and contain five questions. Candidates will be required to answer three for 60 marks. The paper will last 2 hours.

1. Introduction to Book Keeping

1.1 Meaning of Book Keeping
- Definition, history, nature, importance, and functions of Book Keeping
- Career opportunities and beneficiaries of bookkeeping;
- Qualities and values of bookkeepers.

1.2 Assets and Liabilities:
- Definition, differences, classification, and examples of Assets and Liabilities.

1.3 Business Transactions:
- Meaning and types of business transactions;
- Parties involved in business transactions.

1.4 Classification of Accounts:
- personal accounts (debtors and creditors);
- Impersonal accounts (real and nominal). 1.5 Source Documents
- Definition, identification, types, and uses of source documents.

2. Concepts and Conventions

- Definition
- Identification and the differences between concepts and conventions.

3. Books of Original Entry

- Definition
- Purpose
- Types
- Format, uses, and preparation of Books of Original entry

4 Ledger and Principles of Double Entry

4.1 Ledger: - definition, classification, format, uses and preparation of ledgers.

4.2 Principles of Double Entry:
- Meaning, history, rules, and making double entries.

5. Cash Book

5.1 Meaning, purpose, description, differences, and preparation of:
- Single column
- Double column
- Three column
- Petty cash book

6. Bank Reconciliation Statement

- Meaning and purpose
- Terminologies and banking documents
- Causes of differences between cash book and bank statement balance

7. Trial Balance and Errors

- meaning and functions of trial balance
- rules and preparation of trial balance
- meaning, types, classification of errors
- correction of errors and preparation of Suspense Account

8. Financial Statements of Sole Proprietorship

8.1 Trading Account
- Definition, purpose, format and preparation of simple Trading Account
- Methods of valuing stock (FIFO and LIFO).

8.2 Profit and Loss Account
- Definition, purpose, format and preparation of Profit and Loss Account

8.3 Balance Sheet
- Meaning, content, format and preparation of a simple balance sheet.

9. Adjustments to Financial Statements

9.1 Adjustment for prepayments, accruals, depreciation, bad and doubtful debts;

9.2 Meaning and methods of depreciation (straight line and reducing balance).

10. Control Accounts

- Meaning and preparation of Sales Ledger and Purchases Ledger Control Accounts.

11. Single Entry and Incomplete Records

- Meaning, limitations and preparation of final accounts from incomplete records

12. Accounts of Not-For-Profit Making organizations

Purpose, content and preparation of Receipts and Payments Accounts, Income and Expenditure Account.

14. Partnership Accounts

- meaning and terms
- partnership deed, drawings, interest on capital, interest on drawings
- preparation of Capital and Current Accounts, Profit and Loss and Appropriation Account and Balance Sheet
- admission of new partners and Goodwill Account.

15. Joint Venture Accounts

- Meaning and purpose
- Differences between joint venture and partnership

16. Departmental and Branch Accounts

- Importance and differences
- Preparation of Departmental and simple Branch Accounts.

17. Introduction to Company Accounts

- Formation and terminologies
- Preparation of simple financial statements.

18. Interpretation of Accounts

- Purpose and computation of ratios
- Net profit margin
- Stock turnover
- Quick ratio
- Acid test ratio
- Gross profit margin
- Return on capital employed

19. Purchase of Business

Reasons, terminologies and preparation of accounts related to purchase and sale of business.

20. Consignment Accounts

Terminologies and preparation of simple Consignment Accounts.

21. Hire Purchase

Meaning and preparation of accounts in the seller’s and hirer’s books.

22 Contract Accounts

- Meaning, purpose and terminologies
- Preparation of Contract Accounts.

23. Cooperative Accounts

Meaning and objectives of cooperative societies.

NOTE: Emphasis should be on application

RECOMMENDED TEXT

1. Business Accounting Vol.1 and 2 F. Wood

2. Book-keeping and Accounts (ELBS) Spicer & Peggler

3. Inroduction to Accouting for Business Studies F.P. Langley

4. Accounting I ad II Jennings

5. Essential Financial Accounting for Senior Secondary School O.A Longe and R.A. Kezeem

Purchase of machine of #50,000 was debited to purchase account,This is an error of ?

Explanation

Video Explanation

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