SCHEME OF WORK

CARIBBEAN UNION COLLEGE SECONDARY

SUBJECT: PRINCIPLES OF ACCOUNTS

CLASS: FORM FOUR

Week

Unit/Topic

Goal

Objectives
Pupils will be able to:

Unit 1
Introduction to the
Accounting World

Students should be able to appreciate the concepts and conventions and their
applications in the accounting environment.

1. Trace the development of accounting

2. State the difference between book-keeping and
accounting
3. State the importance of book keeping and accounting
4. State the various job opportunities
5. Describe the types of business units
6. State the accounting concepts
7. Describe briefly the accounting cycle

Unit 2
The Accounting Equation

Students should be able to grasp the concept of assets, liabilities and capital
and apply their relationships in the accounting process

1. Define the terms: assets, liabilities, owners equity,

expenses and revenues
2. State the accounting equation and explain the
relationship between its components
3. Classify assets into fixed assets and current assets
4. Classify liabilities into current and long-term liabilities
5. Calculate assets, liabilities and capital
6. State and explain the effects of transactions on the
accounting equation
7. State the purpose of the balance sheet and how it is

Week

Unit/Topic

Goal

Objectives
Pupils will be able to:

related to the accounting equation

8. State the expanded accounting equation
9. Explain the relationship between revenues, expenses
and owners equity
10. Redraft a balance sheet after taking into account the
transactions given
11. State the tree classes of accounts
Unit 3
The Ledger and Double
Entry Accounting System

Students would be able to complete a ledger using debit and credit entries
given transactions which typically occur in a business

1. Explain the meaning of accounts and understand the

principles of double entry
2. State the rules for recording assets, liabilities, owners
equity, revenues and expenses
3. Analyze and classify transactions according to their
nature and enter into the appropriate accounts
4. Record transactions according to the double entry
principle
5. Balance the accounts
6. Explain the meanings of debit and credit balance
7. Generalize the type of balance for assets, liabilities,
capital, revenues and expenses

Unit 4
Trial Balance

Students will be taught the value of the Trial balance and its implications in
the determination of errors in accounts

1. State the purposes of preparing a trial balance

2. Construct a trial balance from the accounts in the
Ledger
3. Give examples of errors revealed by the Trial Balance
4. Explain the limitations of the Trial Balance
5. Give examples of errors not revealed by the Trial
Balance
6. Classify the items in the Trial Balance into assets,
liabilities, owners equity, expenses and revenues by
referring to their balances.

Week

Unit/Topic

Goal

Objectives
Pupils will be able to:

Unit 5
Final Accounts and
Balance Sheet

Students will be able to utilize the Trading and Profit and loss accounts and
Balance Sheet as a pre-requisite for the analysis of business transactions and
profitability

1. State the purposes of preparing the Trading and Profit

and loss accounts and Balance Sheet
2. Define and calculate gross profit
3. Calculate the cost of goods sold
4. Define and calculate net profit
5. State the relationship between net profit, drawings and
capital
6. Prepare a Trading and Profit and Loss Account in the
correct format
7. Prepare a classified balance sheet

Unit 6
Source Documents and
Books of Prime Entry

Students will be taught the usefulness of proper accounting via the use of
source documents and the recording of information derived in the relevant
journal.

1. State the process of recording a business transaction

2. State the different books of prime entry
3. State the functions of the general journal as well as
special journals
4. Identify the source documents for the different types of
journals
5. Record information in the source documents into the
different types of journals
6. Post the transactions in the General Journal and the
special journals to the appropriate accounts in the
Ledgers
7. Explain the difference between trade discount and cash
discount by giving numerical examples

Unit 7
Cash Book

Students will be able to utilize the cash book and the petty cash book for the
completion of accurate accounting

1. Explain the purpose of the cash book and the petty cash
book
2. Record transactions correctly in the cash book and the
petty cash book

Week

Unit/Topic

Goal

Objectives
Pupils will be able to:

3. Post entries for discount received, discount allowed,

dishonored cheques to the respective accounts in the
ledger
4. Record contra entries correctly
5. Explain the imprest system
Unit 8
The Accounting Process
A review

Students will see the relation between all the accounting tools given and
taught in the accounting cycle

1. Classify and analyze information in the source

documents and make the entries in the books of prime
entry
2. Post information in the books of prime entry to the
appropriate accounts in the ledger
3. Extract a Trial Balance from the accounts in the Ledger
4. Prepare the Trading, Profit and Loss Accounts and
Balance Sheet from the information in the Trial
Balance

Unit 9
Adjusting Entries

Students will be taught to appreciate the concept of accruals in the

accounting cycle of a company and the adjustment of accounts to facilitate
this

1. Distinguish between the cash basis of accounting and

the accrual basis of accounting
2. Explain the need for adjustments for expenses and
revenues at the end of an accounting period
3. Distinguish between expenses and expenses incurred,
revenues received and revenues earned
4. Prepare the necessary journal entries and ledger entries
for the following year end adjustments:
- accrued expenses
- prepaid expenses
- accrued revenues
- revenues received in advance
5. Conclude that accrued expenses and revenues received
in advance are liabilities and prepaid expenses and
accrued revenues are assets

Week

Unit/Topic

Goal

Objectives
Pupils will be able to:

Unit 10
Bad Debts and Provision
for Doubtful Debts

Pupils will learn that all debts are not necessarily repaid by customers of a
business. As such accounts are to be adjusted to reflect this.

1. Explain the terms bad debts, bad debts recovered,

provision for doubtful debts
2. Prepare entries in the General Journal and Ledger for
the following:
- Bad Debts
- Bad Debts Recovered
- Provision for doubtful debts
3. Calculate and enter correctly the amount of provisions
for doubtful debts in the Profit and Loss Account
4. Show trade debtors at expected collectable amount in
the Balance Sheet

Unit 11
Accounting for Fixed
Assets

Students are to learn the concept of depreciation and appreciate how this
concept affects the valuation of assets and their subsequent methods of
recording

1. Explain the meaning of depreciation

2. State the reasons for depreciation
3. Distinguish the methods of calculating depreciation and
effects on profit
4. Record depreciation in the General Journal and Ledger

Unit 12
Final Accounts and
Balance Sheet with
Adjustments

Students to apply the concepts of final accounts for adjustment

1. Distinguish between capital expenditure and Revenue

Expenditure
2. State the effects of different treatments of expenditure
on profit and asset valuation
3. Prepare the Trading and Profit and Loss Account and
Balance Sheet, taking into account adjustments on
expenses, revenues and stock

CLASS:

Week

Unit/Topic

Goal

Objectives
Pupils will be able to:

FORM
FIVE
Unit 13
Correction of Errors

Students will be taught the value of proper record keeping and the resultant
errors which may occur if this is not done. The effects of these errors on
Final Accounts will also be taught

1. Correct and explain errors not revealed by the Trial

Balance
2. Correct and explain errors revealed by the Trial
Balance with the help of the Suspense Account
3. Explain the effects of correction of errors on the Trial
Balance, Profit and Loss Account, Balance Sheet

Unit 14
Bank Reconciliation
Statement

Students will be taught the reasons for discrepancies between the cash book
balance and bank statements and how to correct these discrepancies

1. Explain the reasons for the discrepancy between the

Cash Book balance and the Bank Statement Balance
2. Explain the purpose of the Bank Reconciliation
Statement
3. Update the cash book
4. Prepare a Bank Reconciliation statement starting from
the cash book balance and bank statement balance
5. Prepare a Bank Reconciliation Statement when there is
a bank overdraft

Unit 15
Control Accounts

Students will be taught to understand the purpose and importance of control

accounts

1. State the purpose of the Sales Ledger and the Purchases

Ledger
2. State the purpose of control accounts
3. Name the sources of information for the construction of
the Debtors Control Account and the Creditors Control
Account
4. Explain the transfer of inter-ledger indebtedness

Week

Unit/Topic

Goal

Objectives
Pupils will be able to:

5. Prepare the reconciliation between the control accounts

and the subsidiary ledger
Unit 16
Partnership Account

Students will define the term partnership and examine the differences in
accounts prepared for this type of business versus those of a Sole Trader

1. Define partnership
2. Explain the purpose of the Partnership Agreement and
the Partnership Act
3. Explain the accounting entries for the capital account
and current account of the partnership
4. Explain the accounting entries for the allocation of
profit and loss to the partners
5. Explain the accounting entries for:
- interest on capital
- interest on drawings
- Partners salary
6. Explain the accounting entries for advances or loans
made by partners
7. Describe and construct the final accounts and Balance
sheet of a partnership
8. Explain what is good will and record goodwill in the
books

Unit 17
Simple Manufacturing
Accounts

Students will examine the difference in accounts of manufacturing

companies and prepare final accounts which demonstrate those differences

1.
2.
3.
4.

Unit 18
Incomplete Records

Students will appreciate the fact that incomplete records are not desirable,
however, if records are incomplete there are methods which can be used to
make them usable

1. Identify the weaknesses of incomplete records

2. Calculate profit using the comparison of capital method
3. Calculate profit using the analysis method

Define the elements of cost

Give examples of direct costs and indirect costs
Show the treatment of work in progress
Calculate the gross and net profit of a manufacturing
business
5. Prepare the Balance Sheet of a manufacturing business

Week

Unit/Topic

Goal

Objectives
Pupils will be able to:

4. Prepare a Statement of Affairs

Unit 19
Accounts of Non-Trading
Organizations

The accounts of NTOS vary from those of the entities previously taught.
Students will be given the opportunity to examine these accounts and
construct final accounts of their own with provided information

1. State the difference between revenue and capital

receipts of a non-trading concern
2. State the difference between revenue and capital
expenditure of a non-trading concern
3. Draw up the receipts and payments account
4. Draw up the Income and Expenditure Account
5. Differentiate between the Receipts and Payments
Account and Income and Expenditure Account
6. Draw up the Refreshments Trading Account
7. Draw up the Balance Sheet of a non-trading concern

Unit 20
Limited Liability
Companies

Students will be introduced to the Limited Liability Company and will

prepare final accounts for this entity

1. Define the legal status of a company

2. State the reasons for forming a limited liability
company
3. Explain the various ways of raising capital
4. Explain the accounting entries for recording capital and
appropriating profits
5. Prepare the Balance Sheet of a Limited Liability
Company

Unit 21
Co-operatives

Students will be introduced to Co-operatives and will prepare final accounts

for this entity

1. Define a co-operative
2. State the seven principles of co-operatives
3. Explain the different ways of raising capital by cooperatives
4. Apply the basic accounting procedures for cooperatives
5. Prepare the final accounts of co-operatives

Unit 22

Students will be taught basic payroll concepts and how to apply these

1. Interpret time cards

Week

Unit/Topic

Goal

Objectives
Pupils will be able to:

Payroll Accounting

concepts in the preparation of a payroll sheet

2. Transfer information from time cards to the payroll

3. Calculate gross and net earnings
4. Prepare the payroll register

Unit 23
Analysis and
Interpretation of Final
Accounts

Students will be taught that the value of accounting is only as good as its
analysis. They will be taught methods of account analysis

1. Explain the importance of analysis and interpretation of

financial statements
2. Compute and comment upon the significance of the
inter-relationship of the Trading, Profit and Loss
Account items
3. Compute and comment upon the significance of the
inter-relationship of the balance sheet items
4. Distinguish between Owners equity and capital
employed
5. Identify three methods of stock valuation

Unit 24
Information Technology
and Accounting

Students will be taught the value of the use of IT in the preparation and
interpretation of Accounts

1. Understand the common features of general

computerized accounting package
2. Identify the similarities and difference between manual
accounting system and general computerized
accounting system
3. Determine the specification, evaluate and select an
appropriate general computerized accounting package
4. Understand the impact of technology on the accounting
profession and future