ASSESSMENT SYLLABUS ACCOUNTING

BGCSE Accounting Assessment Syllabus

Page 1

©BEC 2014

ASSESSMENT SYLLABUS ACCOUNTING

BOTSWANA GENERAL CERTIFICATE OF SECONDARY EDUCATION ASSESSMENT SYLLABUS FOR ACCOUNTING BECOMES EFFECTIVE FOR EXAMINATION IN 2014

BGCSE Accounting Assessment Syllabus

Page 2

©BEC 2014

ASSESSMENT SYLLABUS ACCOUNTING

CONTENTS

SECTION PAGE FOREWORD…………………………………………………….……..

4

ACKNOWLEDGEMENTS……………………………………………….... 5 1.

INTRODUCTION…………………………………………………….. 6

2.

AIMS………………………………………………………………….. 7

3.

SCHEME OF ASSESSMENT……………………………………… 8

4.

ASSESSMENT OBJECTIVES…………………………………….. 9

5.

ASSESSMENT GRID……………………………………………….. 10

6.

CONTENT……………………………………………………………. 11

7.

GRADE DESCRIPTORS…………………………………………… 26

8.

APPENDIX A GLOSSARY OF TERMS…………………………... 28

9.

APPENDIX B TABLES, QUANTITATIVE SKILLS AND PRINCIPLES……………………………………………................... 31

10.

APPENDIX C INTERNATIONAL STANDARDS-TERMINOLOGY

32

ASSESSMENT SYLLABUS ACCOUNTING

FOREWORD The Botswana Examinations Council is pleased to authorise the publication of this revised assessment Syllabus for the senior secondary programme. It marks a watershed in the development of the public education system in Botswana and signals another milestone of progress in fulfilment of the goals set by the Revised National Policy on education, government Paper No. 2 of 1994. The purpose of this revised syllabus is to further guide schools, teachers and other educational institutions on what will be assessed in the subject area and how the assessment will be carried out for certification of students completing the course. The syllabus, therefore, should be used as a source of information on the examination. Critical to the success of the secondary education programme, is the recognition of individual talents, needs and learning styles of students. Hence, the role of teachers in the classrooms has to adapt to the changed environment. They must be able managers, facilitators, and proficient in planning and directing a variety of learning activities. They should be conscious of the need for the students to be accountable and responsible for their own learning to some extent. They must also take into account the widening different levels of achievement which they aspire to. This implies active participation by both students and teachers, the creation of rich and diverse learning environments and the use of relevant assessment procedures to monitor the development of each learner. In pursuit of the above principle, the examination emphasises the assessment of students across a broad ability range and different levels of achievement. It also calls for the demonstration of what each candidate knows, understands and can do. It is important then that we value the student’s own experiences, build upon what they know and reward them for positive achievement. At the same time, we must be prepared to offer them guidance and counselling at all levels, assist them to make the best decisions in keeping with their own interests, career prospects and ability. In that way we shall prevail in nurturing at the roots of our system, the national ideals of democracy, development, self-reliance, unity and social harmony. This syllabus document is the outcome of a great deal of professional consultation and collaboration. On behalf of the Botswana Examinations Council, I wish to record my appreciation for the input received from Cambridge International Examinations and thank sincerely all those who contributed to and were involve in the production of this syllabus.

_____________________ Executive Secretary

ASSESSMENT SYLLABUS ACCOUNTING

ACKNOWLEDGEMENTS The Botswana Examinations council wishes to express its gratitude to all colleagues who contributed in different ways to the planning, development and production of this Senior Secondary Accounting Assessment Syllabus. Special thanks must go to all members of the Business Subjects Task Force whose names are listed below. Mr A. Charton

Nanogang Community Junior Secondary School

Mr U. Manohar

Tonota College of Education

Ms K. Gumede

Shashe River School

Mrs R, Makgasa

University of Botswana

Mr E. V. Ndalama

University of Botswana

Ms T. Tlhong

Junior Achievement Botswana

Mr J. A. Appiah

BEC

Mr N. Appadoo

Radikolo Community junior Secondary School

Mr N. Ntuli

Shashe River School

Mr S. H. Kayumba

BOCODOL

Mr J. Joseph

Matshekge Hill School

Mrs C. Muwezwa

BIAC

Mr C. Mbekomize

BIAC

Mrs G. Ngakaeaja

Moshupa Secondary School

Mrs P. A. Amu

Maru-a-Pula Secondary School

Mrs M. Taboka

BOCODOL

Mr M. Hulela

Department of Secondary Education

Mr l. Lisimba

Kanye Private School (BAPS)

Mr J. K. Dadzeasah

Curriculum Development Division

Mr E. Atakura-Amaniampong

Naledi Secondary School

Mr Kannan

Gaborone Secondary School

The Division would also like to acknowledge the technical support provided by the University of Cambridge Local Examinations Syndicate (UCLES) in the production of this syllabus. This Accounting syllabus reflects the outcome of a genuinely collaborative work across a broad educational spectrum and reiterates its gratitude to all individuals and organisations who contributed in its production.

ASSESSMENT SYLLABUS ACCOUNTING

1. Introduction As part of the Senior Secondary Education Programme, this Accounting Assessment Syllabus is designed to assess candidates who have completed a two-year course based on the Senior Secondary Accounting Teaching Syllabus. This syllabus aims to assess positive achievement at all levels of ability. Candidates will be assessed in ways that encourage them to show what they know, understand and can do, and which provide opportunities to articulate their insights, perceptions and responses. Candidates will be assessed on two compulsory papers. Both papers questions are based on the whole syllabus. The papers are described in the Scheme of Assessment given in Section 3. Candidates will be graded on a scale A* to G. (Grade A* was introduced for all BGCSE subjects with effect from the 2000 examination). As a guide to what might be expected of a candidate, Grade Descriptors are given in Section 7. This Accounting Assessment Syllabus should be read in conjunction with the Senior Secondary Accounting Teaching Syllabus.

ASSESSMENT SYLLABUS ACCOUNTING 2. General Aims of Assessment

Candidates following this Accounting Assessment Syllabus should acquire and develop: •

knowledge and skills of numeracy, literacy, communication, enquiry, presentation and interpretation;

•

understanding of accounting terminology, principles and procedures;

•

knowledge and understanding of the aims, activities, and accounting procedures in farming, manufacturing, trading and non-trading organisations;

•

knowledge and understanding of the principles and purposes of accounting in providing information for monitoring and making effective decisions appropriate to the needs of profit making and non-profit making organisations;

•

knowledge of basic business processes and entrepreneurial skills;

•

positive work habits, values and attitudes, such as accuracy, neatness and orderliness necessary for the world of work;

•

an appreciation of the use of computers in the business world, and of using accounting software for recording business transactions and the production of financial reports;

•

critical and logical thinking, self-reliance and initiative, which will serve as the basis for further training in business;

•

an appreciation of the environment and how changes in the environment affect business activities.

As far as possible, the Aims will be reflected in the Assessment Objectives. However, some of them cannot be readily assessed.

ASSESSMENT SYLLABUS ACCOUNTING 3. Scheme of Assessment

All candidates take two compulsory components (Papers 1 and 2). Candidates will be graded on a scale A* – G. Candidates failing to achieve grade G will be unclassified (U) and no grade will appear on the certificate.

3. SYLLABUS COMPONENTS

Paper 1

2 hours

This paper will consist of 5-6 structured questions with question one having 10 subquestions as multiple choice items. Questions 2-6 may have different marks and will be based on topics from the whole of the syllabus. All questions are compulsory. There are 120 marks for this paper. The paper will carry 50% of the total final marks.

Paper 2

2 hours

The paper will comprise of 5-6 structured questions based on topics from the whole of the syllabus. The questions may have different marks and will be based on topics from the whole of the syllabus. All questions are compulsory. There are 120 marks for this paper. The paper will carry 50% of the total final marks.

Weighting of Papers Weighting (%) Paper 1

50%

Paper 2

50%

ASSESSMENT SYLLABUS ACCOUNTING 4. Assessment Objectives

The three assessment objectives in Accounting are: A Knowledge with Understanding B Analysis C Evaluation For assessment purposes, the objectives have been broken down into smaller units. A Knowledge with Understanding Candidates should be able to: • • •

demonstrate appropriate knowledge and understanding of facts, terms, concepts, conventions, principles and techniques that are in the syllabus; demonstrate their understanding of the appropriate accounting knowledge through numeracy, literacy, presentation and interpretation. apply knowledge and information to a variety of accounting situations and problems appropriate to their level of attainment;

B Analysis Candidates should be able to: •

select and order data which is relevant to the identified needs of business;

•

analyse and present information in an appropriate accounting format;

•

display an understanding of the role and the limitations of accounting information as a basis for decision making.

•

recognise, select and organise relevant data in order to identify the needs of business in written, numerical and diagrammatic form.

C Evaluation Candidates should be able to: • • •

present reasoned explanations, understand implications and communicate in an accurate and logical manner; make reasoned judgements and present accurate recommendations; develop an ability to interpret and evaluate accounting information and to draw reasoned conclusions.

ASSESSMENT SYLLABUS ACCOUNTING 5. Assessment Grid The following table shows the approximate percentage of the marks allocated to each Assessment Objective in each paper.

Assessment Objectives

Paper 1

Paper 2

A Knowledge with understanding

70%

50%

B Analysis

20%

30%

C Evaluation

10%

20%

The following table shows the approximate raw marks allocated to each Assessment Objective in each paper.

Assessment Objectives

Paper 1

Paper 2

A Knowledge with understanding

84

60

B Analysis

24

36

C Evaluation

12

24

SPECIFICATION GRID Weighting of the Assessment Objectives The approximate weightings for the Assessment Objectives will be as follows:

Assessment Objective

Weighting

A. Knowledge with understanding

60%

B. Analysis

25%

C. Evaluation

15%

ASSESSMENT SYLLABUS ACCOUNTING 6. Content MODULE 1: BASIC ACCOUNTING SYSTEMS Unit 1:

Basic Principles and Concepts of Accounting

TOPIC Introduction to Accounting

GENERAL OBJECTIVES

SPECIFIC OBJECTIVES

Learners should be able to:

Learners should be able to:

understand the nature and functions of accounting.

-

explain the meaning of accounting; explain the objectives of accounting;

-

explain the importance of accounting information to various users; identify the branches of accounting (Cost & Management Accounting, Financial Accounting); explain the concept of business entity and money measurement.

The Accounting Equation

demonstrate an understanding of the accounting equation.

-

-

Double Entry System

The Ledger

demonstrate an understanding of the principle of double-entry system.

demonstrate an understanding and acquire skills of recording transactions in the ledger

state the accounting equation;

- explain the elements of the accounting equation; - explain the relationships between the elements of the accounting equation; explain the statement of financial position and its components; relate the accounting equation to the statement of financial position;

-

illustrate the effects of transactions (assets, liabilities, drawings, revenue, capital, and expenses) on the accounting equation and the statement of financial position.

-

explain the meaning of the double entry system in relation to the dual concept;

-

relate the accounting equation to the double entry system; state the rules of double entry;

-

illustrate the rules of double entry.

-

explain the ledger and its importance; identify the uses of the columns of the ledger;

-

record transactions using the double entry system (for capital, assets, liabilities, expenses, income, drawings);

-

divide the ledger into specialist areas(sales, purchases, general); record transactions in the sales, purchases and general ledgers in the traditional and running

-

ASSESSMENT SYLLABUS ACCOUNTING balance methods; The Trial Balance

understand the importance of preparing the trial balance.

BGCSE Accounting Assessment Syllabus

balance off accounts in the ledger; explain the balance on the ledger accounts.

-

explain the meaning of the trial balance; state the reasons for preparing a trial balance;

-

prepare a trial balance; explain why trial balance totals should equal one another.

Page 12

©BEC 2014

ASSESSMENT SYLLABUS ACCOUNTING Unit 2: Subsidiary Books

TOPIC Introduction to Subsidiary Books

GENERAL OBJECTIVES

SPECIFIC OBJECTIVES

Learners should be able to:

Learners should be able to:

understand why the various books of prime entry are used.

- define subsidiary books; - list the types of subsidiary books; -

Purchases Journal

Sales Journal

explain the benefits to the business of using subsidiary books; explain the accounting cycle/process.

understand the documentation procedures in credit purchases.

-

demonstrate understanding and acquire the skill of recording credit purchases in the journal.

-

explain why the purchases journal is used; prepare the purchases journal from details extracted from the purchases invoice;

-

post from the purchases journal to the purchases and general ledgers.

-

differentiate between cash and credit sales; state the need for credit control;

-

state the contents of the sales invoice; explain the terms relating to sales on the invoice (trade discount, E&OE, cash discount, carriage forward, carriage paid).

-

explain why the sales journal is used; prepare the sales journal from details extracted from the sales invoice;

-

post from the sales journal to the sales and the general ledgers.

understand the documentation procedures in credit sales.

demonstrate an understanding of and acquire the skill of recording credit sales in the journal.

BGCSE Accounting Assessment Syllabus

differentiate between cash and credit purchases;

-

explain the importance of checking invoices against delivery notes and purchase orders; - state the contents of the purchases invoice.

Page 13

©BEC 2014

ASSESSMENT SYLLABUS ACCOUNTING Unit 3: Verification of Accounts

TOPIC

Bank Reconciliation

GENERAL OBJECTIVES

SPECIFIC OBJECTIVES

Learners should be able to:

Learners should be able to:

acquire the skill of preparing bank reconciliation statement

-

explain the meaning of bank reconciliation; explain the need to confirm bank account records with bank statement records;

-

explain the causes and effects of differences between bank account records and bank statement records; describe the procedure for reconciling bank account records with bank statement records;

-

Correction of Errors

acquire knowledge and understanding of the treatment of errors in the ledger accounts.

-

complete entries in the cash book; prepare a bank reconciliation including an overdraft.

-

state the errors which do not affect the trial balance; explain errors which do not affect the trial balance;

-

Control Accounts

demonstrate the use of control accounts in locating errors.

BGCSE Accounting Assessment Syllabus

statement

use the journal to correct errors which do not affect the trial balance; explain the errors which affect the trial balance

-

explain the suspense account; use a suspense account to correct the errors which affect the trial balance.

-

explain control accounts;

-

explain the purpose of control accounts; state the sources of information for control accounts;

-

prepare debtors’ and creditors’ control accounts; reconcile the purchases ledger and sales ledger with their respective control accounts.

Page 14

©BEC 2014

ASSESSMENT SYLLABUS ACCOUNTING Unit 4:

Accounting Concepts and Conventions

TOPIC

Accounting Concepts

GENERAL OBJECTIVES

SPECIFIC OBJECTIVES

Learners should be able to:

Learners should be able to:

appreciate the importance of accounting concepts for external reporting purposes.

-

BGCSE Accounting Assessment Syllabus

-

identify the accounting concepts (costs, money measurement, entity, dual aspect, realisation, time interval going-concern, consistency, prudence, accrual, substance over form, materiality, matching); explain each of the accounting concepts;

-

illustrate each of the accounting concepts; explain the limitations of accounting concepts;

-

discuss the implications of the accounting concepts in financial recording and reporting.

Page 15

©BEC 2014

ASSESSMENT SYLLABUS ACCOUNTING MODULE 2: FINANCIAL STATEMENTS Unit 1: Accounts of the Sole Trader

TOPIC

Financial statements

GENERAL OBJECTIVES

SPECIFIC OBJECTIVES

Learners should be able to:

Learners should be able to:

demonstrate an understanding of how to prepare the income statement of a merchandised business.

-

explain a sole trader in relation to profit; state the purpose of preparing the income statement - differentiate between gross profit and profit for the year;

-

close the nominal accounts affecting the income statement; explain how the closing inventory is valued (cost and net realisable value);

demonstrate an understanding of how to prepare the income statements of a service business.

demonstrate an understanding of how to prepare the statement of financial position of a sole trader

-

-

explain the differences between a merchandised business and a service business; explain the format of the income statement of a service business;

-

draw up the income statement for a service business in a vertical format.

-

explain the meaning of the statement of financial position; identify the components of the statement of financial position;

-

-

BGCSE Accounting Assessment Syllabus

determine the cost of goods sold and the gross profit in the income statement; draw up income statements in a vertical format from the trial balance.

explain how statement of financial position items are presented; prepare a statement of financial position of a sole trader in a vertical format (items in order of permanence and liquidity); evaluate the usefulness of the financial statements in presenting information for users.

Page 16

©BEC 2014

ASSESSMENT SYLLABUS ACCOUNTING Unit 2: Adjustments in the accounts

TOPIC

Bad Debts and Provision for Doubtful Debts

GENERAL OBJECTIVES

SPECIFIC OBJECTIVES

Learners should be able to:

Learners should be able to:

acquire knowledge and skill of treating bad debts and provision for doubtful debts in the financial statements

-

-

Provision for Discount

understand how to make provision for discount against debtors.

-

BGCSE Accounting Assessment Syllabus

explain the meanings of bad and doubtful debts; explain the need to declare some debts as bad and to provide for doubtful debts (matching, conservatism or prudence concepts); show the accounting entries for writing off bad debts; show the accounting entries for the recovery of bad debts; explain how the provision for doubtful debts is estimated (e.g. Ageing of debts); show the accounting entries for creating provisions for doubtful debts; show the effects of provision for doubtful debts on the profit for the year and the statement of financial position; show the accounting entries for increasing and decreasing the provision for doubtful debts. explain the need for provision for discount allowed (prudence concept); show the accounting entries of provision for discount; show the effect of provision for discount on the net profit and the statement of financial position.

Page 17

©BEC 2014

ASSESSMENT SYLLABUS ACCOUNTING TOPIC

Depreciation of non-current assets

GENERAL OBJECTIVES

SPECIFIC OBJECTIVES

Learners should be able to:

Learners should be able to:

demonstrate an understanding of the nature and calculation of depreciation.

-

explain the meaning of depreciation and its effects on non-current assets (prudence and matching concept);

-

explain the causes of depreciation; explain the methods of depreciation (straight line, reducing balance, revaluation);

-

calculate depreciation using the above methods; state the advantages and disadvantages of each of the above methods of depreciation.

-

acquire knowledge of recording depreciation in the general ledger.

-

record depreciation of non-current assets in the ledger using the provision for depreciation account;

-

show the effect of depreciation on the profit for the year and the statement of financial position; record disposal of non-current assets and the adjustment needed in the assets and provisions for depreciation accounts and disposal account.

-

BGCSE Accounting Assessment Syllabus

Page 18

©BEC 2014

ASSESSMENT SYLLABUS ACCOUNTING Unit 3:

Partnership

TOPIC

Nature of Partnership

Accounting for Partnership

GENERAL OBJECTIVES

SPECIFIC OBJECTIVES

Learners should be able to:

Learners should be able to:

understand the nature of partnership.

-

explain the meaning of partnership; explain the features of partnership agreement;

-

explain the position of the partnership when there is no partnership deed.

-

explain the composition of the financial statements of a partnership; explain the importance of the profit and loss appropriation account;

demonstrate understanding and skill preparing the financial statements of partnerships

-

prepare profit and loss appropriation account; differentiate between fixed and fluctuating capital accounts;

-

explain the importance of the current account of partners; prepare the capital and current account of partners in the ledger;

-

prepare the partnership financial statements; explain the meaning of goodwill;

-

prepare the accounting entries for goodwill on admission of a new partner; state the accounting differences between a sole trader and a partnership.

-

Purchase of Business

demonstrate an understanding of the accounting entries required for the purchase of a business either by the sole trader or partnership.

-

explain the factors that may affect the purchase price of a business;

-

calculate the goodwill and adjust for the revaluation of assets for a business purchased; explain the need to re-value some of the assets of a business purchased;

-

-

BGCSE Accounting Assessment Syllabus

differentiate between the purchase of a business by a sole trader and the amalgamation of two sole traders’ businesses; record the purchase of a business in the buyer’s books of account; prepare the balance sheet of a business which has bought another business or two businesses which have amalgamated.

Page 19

©BEC 2014

ASSESSMENT SYLLABUS ACCOUNTING Unit 4:

Introduction to Company Accounts

TOPIC

GENERAL OBJECTIVES

SPECIFIC OBJECTIVES

Learners should be able to:

Learners should be able to:

know and understand the capital structure of limited liability companies.

-

explain the meaning of limited liability company;

-

explain shares and debentures;

-

differentiate between types of shares (ordinary and preference);

-

classify the share capital of a limited company (authorised, issued, called-up, uncalled, calls in arrears, paid-up).

-

identify the items of differences between the income statement of a sole trader/partnership and limited liability company;

-

explain interim and final dividends;

-

calculate the interim and final dividends;

-

explain capital reserves, general reserves, special reserves and shareholders' funds;

-

prepare a simple income statement and appropriation account of a limited company;

-

identify the items of difference between the statement of financial position of sole trader/partnership and limited companies;

-

prepare a simple statement of financial position of a limited liability company;

-

calculate the shareholders’ funds.

Limited Liability Companies

Final Accounts

demonstrate an understanding and skill preparing simple financial statements of limited liability companies.

BGCSE Accounting Assessment Syllabus

Page 20

©BEC 2014

ASSESSMENT SYLLABUS ACCOUNTING MODULE 3: OTHER FORMS OF ACCOUNTS Unit 1:

Manufacturing Accounts

TOPIC

Production Costs

Manufacturing, accounts and income statements

GENERAL OBJECTIVES

SPECIFIC OBJECTIVES

Learners should be able to:

Learners should be able to:

demonstrate understanding of how to calculate production costs.

-

explain the purpose of preparing manufacturing account;

-

calculate cost of raw materials used;

-

explain direct and indirect costs with examples

-

explain the term ‘prime cost’;

-

calculate prime cost of production;

-

explain the term factory overheads with examples;

-

explain work in progress;

-

calculate production cost;

-

calculate the unit cost of production.

-

explain the relationship between manufacturing account and income statement;

-

prepare the manufacturing account and income statement;

-

explain market price of manufactured goods;

-

ascertain manufacturing profit or loss;

-

prepare the statement of financial position of a manufacturing business.

demonstrate understanding and skill of preparing manufacturing account and income statement.

BGCSE Accounting Assessment Syllabus

Page 21

©BEC 2014

ASSESSMENT SYLLABUS ACCOUNTING Unit 2: Single Entry and Incomplete Records

TOPIC

Financial statements from incomplete records

GENERAL OBJECTIVES

SPECIFIC OBJECTIVES

Learners should be able to:

Learners should be able to:

know and understand the calculation of profit or loss by capital comparison.

-

explain the meaning of single entry and incomplete records;

-

state the disadvantages of single entry and incomplete records as a method of bookkeeping;

-

use the accounting equation to show that profit increases capital;

-

prepare statement of affairs to ascertain the capital;

-

calculate profit or loss by comparing the capital at the beginning and capital at the end.

-

calculate credit purchases using total trade payables account;

-

calculate credit sales using total trade receivables account;

-

calculate missing figures using various ledger accounts and cash book;

-

prepare income statements from all the information available;

-

prepare the statement of financial position from all the information available.

know and understand the preparation of financial statements from single entry and incomplete records

BGCSE Accounting Assessment Syllabus

Page 22

©BEC 2014

ASSESSMENT SYLLABUS ACCOUNTING Unit 3: Non-Profit Making Organisations TOPIC

Receipts and payments account

Income and expenditure account and the statement of financial position

GENERAL OBJECTIVES

SPECIFIC OBJECTIVES

Learners should be able to:

Learners should be able to:

demonstrate understanding of the preparation of receipts and payments account of non-trading organisations.

-

differentiate between a trading organisation and non-trading organisation;

-

state the sources of revenue of the non-trading organisations; state the items of expenditure of non-trading organisations;

know and understand how the income and expenditure accounts and the statements of financial position of non-trading organisations are prepared

-

prepare the receipts and payments account of non-trading organisation.

-

explain the difference between capital and revenue receipt; capital and revenue expenditure;

-

prepare the subscriptions account; differentiate between receipts and payments account; and income and expenditure account

-

make adjustments in the accounts of nontrading organisations; prepare the income statement of fund raising activities of non-trading organisation;

-

BGCSE Accounting Assessment Syllabus

-

prepare the income and expenditure account calculate the accumulated fund;

-

prepare the statement of financial position.

Page 23

©BEC 2014

ASSESSMENT SYLLABUS ACCOUNTING Unit 4: Payroll Accounting TOPIC

Payroll records

Bookkeeping entry for payroll

GENERAL OBJECTIVES

SPECIFIC OBJECTIVES

Learners should be able to:

Learners should be able to:

know and understand the methods of remuneration and payroll records.

-

acquire the skill of preparing pay roll accounts

-

explain the two major ways of calculating remuneration (time rate and piece rate); identify the main documents used in processing payroll (clock card, time sheet, pay slip, register/wages sheet);

-

complete the clock card and time sheet.

-

explain voluntary and statutory deductions and the Pay As You Earn (PAYE);

-

explain gross and net pay; calculate gross and net pay;

-

complete the payroll register, pay slip, wages sheet; journalise the entries in the payroll sheet;

-

Unit 5:

post the journal entries for payroll into the accounts in the general ledger.

Farm Accounts

TOPIC

Farm income and expenses

Farm income statement and statement of financial position

GENERAL OBJECTIVES

SPECIFIC OBJECTIVES

Learners should be able to:

Learners should be able to:

demonstrate understanding of the nature of farm income and expenses.

-

know and understand the preparation of farm income statement and the statement of financial position

BGCSE Accounting Assessment Syllabus

-

explain the importance of farm records and accounts; identify the records to be kept on the farm;

-

complete crop record and livestock books identify the sources of farm income and expenses;

-

calculate the cost of farm produce; estimate the selling price of farm produce;

-

value the produce used by the farmer and the workers.

-

calculate the value of closing inventory of farm produce and livestock using standard rates;

-

prepare farm income statement; value farm equipment and buildings;

-

prepare the position.

Page 24

farm

statement

of

financial

©BEC 2014

ASSESSMENT SYLLABUS ACCOUNTING Unit 1: Basic Principles and Concepts of Accounting

TOPIC

Ratios

GENERAL OBJECTIVES

SPECIFIC OBJECTIVES

Learners should be able to:

Learners should be able to:

know and understand the calculation and uses of accounting ratios.

-

explain the meaning of accounting ratios;

-

classify accounting ratios into profitability, liquidity, efficiency and capital structure ratios; define liquidity ratios;

-

calculate liquidity ratios (current, quick); explain the uses of liquidity ratios;

-

define efficiency ratios; calculate efficiency ratios (rate of inventory turn, collection period of trade receivables, payment period of trade payables);

-

explain the uses of efficiency ratios; define profitability ratios;

-

calculate profitability ratios (percentage of gross profit and net profit to sales, net profit as a percentage of capital employed); show the effects of transactions on the working capital;

Interpretation and evaluation of financial statements

understand the importance of accounting ratios for the interpretation and evaluation of business performance.

-

-

BGCSE Accounting Assessment Syllabus

make suggestions and recommendations for improving profitability and working capital; explain the uses of profitability ratios. discuss the importance of accounting ratios to owner-manager, trade creditors, lenders and employees; compare accounting ratios over time and within industry; discuss the limitations of accounting ratios; show the interrelationship of gross and net profits to valuation of inventory, rate of inventory turn, turnover, expenses, capital.

Page 25

©BEC 2014

ASSESSMENT SYLLABUS ACCOUNTING 7. Grade Descriptors

Grade Descriptions are provided to give a general indication of the standards of achievement expected of candidates for the award of particular grades. The grade awarded will depend on the extent to which the candidate has met the Assessment Objectives. Grade A To achieve an A grade, a candidate has the following abilities: •

An excellent ability to identify detailed facts, principles and techniques in relation to the content of the syllabus;

•

A thorough ability to define and explain the main principles and themes of the syllabus;

•

An excellent ability to classify, interpret and comment on information presented in various forms;

•

An excellent ability to select, and use appropriate data in an orderly manner;

•

A thorough ability to interpret and evaluate accounting information and draw reasoned conclusions and make excellent decisions.

Grade C To achieve a C grade, a candidate has the following abilities: •

A sound ability to identify facts, principles and techniques in relation to the content of the syllabus;

•

A good ability to use and comment on information presented in a non-verbal as well as a verbal manner;

•

A sound ability to define the main principles and themes of the syllabus;

•

A sound ability to select and use appropriate data;

•

An ability to interpret and evaluate accounting information and draw reasoned conclusions.

Grade E To achieve an E Grade, a candidate has the following abilities: •

Some ability to identify specific facts, principles or techniques in relation to the content of the syllabus;

•

Some familiarity with definitions of the central principles of the syllabus;

ASSESSMENT SYLLABUS ACCOUNTING •

Some ability to classify and present data in a simple way and some ability to select and organise relevant information from a set of data;

•

Some ability to select and use appropriate data;

•

A rudimentary ability to gather information relating to a particular topic, present it in an ordered manner and draw some basic conclusions.

Note:The minimum mark required for the award of grade A* will be determined arithmetically. The grade threshold will be fixed as far above the threshold for grade A as the threshold for grade B is below grade A. i.e. the A* threshold will be as far above grade A as grade B is below it or any other method specified by the council.

BGCSE Accounting Assessment Syllabus

Page 27

©BEC 2014

ASSESSMENT SYLLABUS ACCOUNTING 8. Appendices

Appendix A Glossary of Terms Account for Explain the reasons for, giving an indication of all relevant circumstances. This is very different from “Give an account of’, which asks only for a detailed description. Analyse Study in depth, identify and describe in detail the main parts or characteristics of something. Analysis To take apart or break down the whole into its component parts or to examine or consider in detail the component parts or features of the whole. Assess Examine closely, with a view to measuring or ‘weighing up’ a particular situation. Consider in a balanced way: strengths and weaknesses, points for and against. In conclusion, state your judgment clearly. Calculate This is used when a numerical answer is required. In general, working should be shown when two or more steps are involved. Comment State clearly and in a moderate fashions your opinions on the material in question. Support your views with references to suitable evidence, examples or explanation as appropriate. Compare Look for qualities and characteristics which resemble each other. Emphasise similarities but be aware also of points of difference. Contrast Stress the dissimilarities and differences between the items in question, but do not ignore points of similarity.

ASSESSMENT SYLLABUS ACCOUNTING Criticise Express your balanced judgment about the merit or truth of the material in question. Give the results of your scrutiny, establishing both strengths and weaknesses. Be specific. Define Give concise, clear and authoritative meanings. Do not give too many details, but be sure to state the limitations of the definition. Show how the thing that you are defining differs from things in other categories. Describe Give the main characteristics or features of the matter in question, or relate in sequence form. Determine This often implies that the quantity concerned cannot be measured directly but is obtained by calculation or substituting measured or known values of other quantities into a standard formula. Discuss Examine and analyse carefully, giving reasons for and against and the advantages and disadvantages of the factors being considered. Be complete and give details by considering all sides of the issue to reach a balanced conclusion with reasons. Or give a critical account of the points involved in the topic. Distinguish Show how one thing differs from another by using certain characteristics, such as the income effect and how it differs between normal, inferior and Giffen goods. Enumerate State in list or outline form, giving points concisely one by one. Evaluate Carefully appraise the matter in hand, citing both advantages and limitations. Emphasise the views of authorities as well as your personal opinion – to put value to something, to assess its worth or to analyse and assess the role or function of something. Explain Clarify, interpret and spell out the material you present. Give reasons for important features or developments and try to analyse causes or say how it works. Make sense of something, to provide the reasons for something being or happening in a particular way or to give a causal account of something.

BGCSE Accounting Assessment Syllabus

Page 29

©BEC 2014

ASSESSMENT SYLLABUS ACCOUNTING Examine To study something closely or in depth to assess. Find This is a general term that may be interpreted as calculate, measure, or determine. How far You are expected to make your case or present your material in a logical sequence, while remaining aware of the possible need to introduce contradictory or counterbalancing evidence. You will need to give your opinion and assessment of the issue. Identify To find, locate or recognise, to establish to say what it is. Illustrate Use specific examples, figures or diagrams to explain, demonstrate or clarify a problem, situation or view. Be sure to include diagrams if they are specifically asked for. Justify Make out a case, prove or give reasons for decisions, statements or conclusions, taking care to be convincing and showing that something is correct, appropriate and reasonable. List Write an itemised series of words, phrases or concise statements. Outline Provide a framework description of main points and subordinate points, omitting minor detail and stressing the arrangement or classification of the material. Relate Show how things are connected to each other, or how one causes another or is like another. Review Examine a subject critically, analysing and commenting on the important points and stages of development. State Present the main points or definition in brief and clear sequence.

BGCSE Accounting Assessment Syllabus

Page 30

©BEC 2014

ASSESSMENT SYLLABUS ACCOUNTING APPENDIX B Tables, Quantitative Skills and Principles Tables The column of a table will be headed or titled and the appropriate unit needed would be added. E.g. Pula, grams, etc. Quantitative Skills Candidates will be required to perform some quantitative operations, including calculations. They should be able to use scientific calculators. The mathematical requirements, which form part of this syllabus, are listed below. Add, subtract, multiply and divide number; use simply accounting formulae; understand and use averages; read, interpret and draw simple references from tables and statements. Find percentages of quantities; construct and interpret ledgers; journals; financial statements. Calculate with simple fractions, decimals, percentage or ratios; manipulate and solve simple accounting equations; substitute numbers in simple accounting equations; interpret and use tables and graph. Accounting Principles The syllabus and question papers will conform to generally acceptable international accounting practices.

BGCSE Accounting Assessment Syllabus

Page 31

©BEC 2014

ASSESSMENT SYLLABUS ACCOUNTING APPENDIX C International Standards – Terminology The list below is to help Centres become familiar with international terminology which Botswana Examinations Council (BEC) uses in accounting syllabus. Well-known standards, which are relevant to the level of study, will be included in question papers, mark schemes and associated documents. It is recommended that Centres use this terminology in their teaching and learning materials, however, candidates will not lose marks for using different terms.

International usage

Previous BEC/Botswana usage

Statement of financial position (balance sheet) Bank (and other) loans Interest bearing loans and borrowing

Balance sheet

Loans repayable after 12 months

Bank overdrafts and loans Interest bearing loans and borrowing

Loans repayable within 12 months

Capital or equity/shareholders’ equity

Capital

Cash (and cash equivalents)

Bank and cash

Cost of sales

Cost of goods sold

Current assets

Current assets

Current liabilities

Current liabilities Creditors: amounts due within 12 months

Finance costs

Interest payable

Finance income/investment revenues

Interest receivable

Financial statements

Final accounts

Gross profit

Gross profit

Income statement

Trading and profit & loss account

Intangible assets

Goodwill, etc.

Inventory/inventories

Stock

BGCSE Accounting Assessment Syllabus

Page 32

©BEC 2014

ASSESSMENT SYLLABUS ACCOUNTING (of raw materials and finished goods) Investment property

Investments

Non-current assets

Fixed assets

Non-current liabilities

Long-term liabilities Creditors: amounts falling due after more than one year

Other operating expenses

Sundry expenses (administration and distribution)

Other operating income

Sundry income

Other payables

Accruals

Other receivables

Prepayments

Plant and equipment

Plant and equipment

Profit (before tax) for the year

Net Profit

Property

Land and buildings

Raw materials Ordinary goods purchased

Purchases

Revenue

Sales

Share capital

Share capital

Trade payables

Creditors

Trade receivables

Debtors

Work in progress

Work in progress

BGCSE Accounting Assessment Syllabus

Page 33

©BEC 2014