Republic of Zambia
THE SENIOR SECONDARY
BUSINESS SUBJECTS
SYLLABUS
Published by the Curriculum Development Centre
P.O. Box 50092
LUSAKA
© Curriculum Development Centre, Lusaka 1998
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means,
electronic, mechanical, photocopying, recording, or otherwise, without the prior permission of the Curriculum Development Centre.
TABLE OF CONTENTS
PAGE
Preface ...........................................................................................................................................................................................................
Acknowledgement ........................................................................................................................................................................................
Introduction ..................................................................................................................................................................................................
General Aims ...............................................................................................................................................................................................
General Objectives .......................................................................................................................................................................................
Features of the Syllabus ...............................................................................................................................................................................
i
ii
iii
iv
v
vi
COMMERCE
GRADE 10
TOPICS
1. Production ...............................................................................................................................................................................................
2. Industry ...................................................................................................................................................................................................
3. Direct Services ........................................................................................................................................................................................
4. Commerce ..............................................................................................................................................................................................
5. Home trade – Retail ...............................................................................................................................................................................
6. Home trade – Wholesale ........................................................................................................................................................................
7. Buying on Credit ....................................................................................................................................................................................
8. Documents used in Home Trade ...........................................................................................................................................................
1
2
2
2
3
3
4
5
GRADE 11
TOPICS
9. Foreign trade ..........................................................................................................................................................................................
10. Organisation of Business Units – Private Sector ...................................................................................................................................
11. Organisation Business Units – Public Sector ........................................................................................................................................
6
7
8
12. Stock Exchange ..................................................................................................................................................................................
13. Lusaka Stock Exchange .....................................................................................................................................................................
14. Regulation of the Securities and Exchange Commission ..................................................................................................................
15. Banking ..............................................................................................................................................................................................
9
9
10
11
GRADE 12
TOPICS
16. Insurance ..............................................................................................................................................................................................
17. Communication ....................................................................................................................................................................................
18. Transport ..............................................................................................................................................................................................
19. Warehousing ........................................................................................................................................................................................
20. Advertising ...........................................................................................................................................................................................
21. Finance of Business Units ....................................................................................................................................................................
13
14
16
17
17
18
PRINCIPLES OF ACCOUNTS
GRADE 10
TOPICS
1. Introduction to Principles of Accounts ................................................................................................................................................
2. Concepts and Principles .......................................................................................................................................................................
3. Balance Sheet .......................................................................................................................................................................................
4. Business Transactions ..........................................................................................................................................................................
5. Double Entry .........................................................................................................................................................................................
6. Ledger ...................................................................................................................................................................................................
7. Trial Balance ........................................................................................................................................................................................
8. Books of Prime or Original Entry or Subsidiary Books ......................................................................................................................
9. Final Accounts .....................................................................................................................................................................................
20
20
21
21
22
22
23
23
24
GRADE 11
TOPICS
10. Adjustment to Final Accounts – Depreciation................................................................................................................................
11. Adjustment to Final Accounts – Accruals and Prepayments ..........................................................................................................
12. Adjustment to Final Accounts – Bad debts, provision for bad and doubtful debts and discount allowed .....................................
13. Limitations of the Trial Balance .....................................................................................................................................................
14. Bank Reconciliations ......................................................................................................................................................................
15. Control Accounts ............................................................................................................................................................................
16. Accounts of Non-profit Making Organisations ...............................................................................................................................
17. Capital and Revenue Expenditure and Income ................................................................................................................................
25
25
26
26
27
28
28
29
GRADE 12
TOPICS
18. Incomplete or Single Entry ..............................................................................................................................................................
19. Partnership Accounts ........................................................................................................................................................................
20. Manufacturing Accounts ..................................................................................................................................................................
21. Accounts of Limited Liability or Joint Stock Companies ...............................................................................................................
22. Departmental Accounts ...................................................................................................................................................................
23. Inter-pretation of Final Accounts and Balance Sheet ......................................................................................................................
30
31
32
32
33
33
PREFACE
The subjects involved are Commerce and Principles of Accounts. The syllabus took into consideration the need to include Topics on the Lusaka
Stock Exchange and Exchange Commission to enable pupils learn about their own stock exchange.
The syllabus emphasizes the importance of Business Subjects in National Development in relation to every day life. The focus however, is on
what the pupil will be able to do after acquiring the knowledge and skills offered in this course of study. The knowledge acquired is vital to the
development and betterment of not only the pupil but the community as well. The course will also assist the pupil acquire the necessary
productive skills in readiness for self employment as well as wage employment. It should also provide a base for further studies in the field of
business studies.
It is hoped that the knowledge acquired from these subjects will go a long way in helping the pupils later in life and also assist them to face the
world with confidence.
It is my sincere hope that this revised syllabus will improve learning and teaching in our schools.
James Mulungushi (Dr.)
PERMANENT SECRETARY
MINISTRY OF EDUCATION
LUSAKA
i
ACKNOWLEDGEMENTS
The review workshop would not have been accomplished without the involvement, participation and commitment of many people. We want to
thank all of them. Most importantly we want to thank the Securities and Exchange Commission and Lusaka Stock Exchange for funding the
workshop.
We are greatly indebted to the people who carried the actual revisions at the workshop and these are:
Mr. D. Choonga
Mrs. E.B. Chisha
Mr. W. Chishi
-
Mrs. M.G. Nyambe
Mrs. M.M.M. Matebele
Mr. O.V. Hamwaala
-
Senior Examination Specialist, Examinations Council of Zambia, Head of Grade 9 Examinations.
Acting Senior Curriculum Specialist, Curriculum Development Centre.
Head of Department, Business and Secretarial Teacher Education, Technical and Vocational Training
College.
Curriculum Development Officer, Curriculum Development Centre.
Head of Department, Business Subjects, Monze Secondary School.
Teacher, Kabulonga Boys Secondary School.
We would like to thank the typesetter Mary Mupeta for typesetting this syllabus.
We wish to acknowledge the support and encouragement given to us by the Permanent Secretary, Ministry of Education Dr. James Mulungushi.
Finally, acknowledge is made to the Business Studies Curriculum Committee for approving the syllabus.
F.M. Mfula (Mrs.)
Director - Standards and Curriculum
MINISTRY OF EDUCATION
ii
INTRODUCTION
This syllabus has been produced against the background of the National Policy on Education Document (1996) Educating Our Future’. In the
National Policy on Education Document, Business Subjects are stressed as essential for starting and running a business, for work and
entrepreneurship. They incorporate the acquisition of both academic and entrepreneurship skills.
The subjects involved are Commerce and principles of Accounts. The syllabus took into consideration the need to include Topics on the Lusaka
Stock Exchange and Securities and Exchange Commission to enable pupils learn about their own stock exchange.
In the study of commerce, the syllabus’ emphasis is on home trade but also includes some knowledge on international activities. The syllabus
also covers topics on the Stock Exchange and Securities and Exchange Commission in Zambia. In addition, it outlines the procedures and
documents in the day to day conduct of the business especially in commercial institutions.
In the study of principles of Accounts, the syllabus outlines subsidiary books, the ledger and final accounts. It also includes accounts of nontrading concerns, manufacturing, incomplete records and partnerships. Information is also outlined on Public Limited companies. The syllabus
aims at presenting Business Subjects as usable skills by emphasizing those aspects of commercial knowledge which are relevant to the
acquisition of business skills. This will assist in developing the pupil’s interest in learning through critical evaluation rather than by just
accepting information as facts. It will also assist in appreciating the importance of Business Subjects in National Development.
The implementers of this syllabus must help the pupils in developing a positive attitude towards Commerce and Principles of Accounts, so that
they know that these subjects can enable them to go out into the world of business.
iii
GENERAL AIMS
The Business Subjects Syllabus aims at developing knowledge and understanding of:
1.
2.
3.
4.
5.
6.
7.
8.
the environment within which commercial activity takes place.
aims and activities of business and non-trading concerns.
the purposes and functions of important commercial activities.
the principles and purposes of accounting.
the language concepts and procedures in commercial activities.
accounting concepts, convention, procedures and terminologies.
skills of numeracy, literacy, communication, enquiry, presentation and interpretation.
the significance of innovation and change within the context of commercial activities.
The Business Subjects Syllabus aims at preparing the pupil for out of school employment. It provides the pupils with skills that will make it
possible for joining the world of business with some basic knowledge of what is expected. In these days of economic liberalisation, the pupil
who is equipped with some basic skills of Commerce and Principles of Accounts is marketable both as a wage earner and self employed person.
These subjects also provided the pupil with the background knowledge and skills required for further studies.
iv
GENERAL OBJECTIVES
COMMERCE
Pupils should be able to (PSBAT)
1. acquire commercial knowledge, skills and attitudes.
2. use the acquired knowledge or skills to pursue a career in business studies.
3. interpret business documents.
4. display an understanding of commercial activities in everyday life taking into account gender issues.
5. distinguish between evidence and opinion so as to make a reasonable judgement.
PRINCIPLES OF ACCOUNTS
Pupils should be able to (PSBAT)
1. acquire knowledge, skills and attitudes in principles of accounts.
2. use the acquired knowledge and skills to pursue a career in business studies.
3. perform accounting duties regardless of gender.
4. apply the knowledge acquired to various accounting situations and problems.
5. analyse economic and social problems and provide solutions.
v
FEATURES OF THE SYLLABUS
The syllabus is divided into two parts, namely Commerce and principles of Accounts. Each of the two subjects is a three year course for Grades
10, 11 and 12. Each subject syllabus consists of aims and objectives.
Each subject is again divided into grades. The grades are then divided into topics. A topic consists of specific objectives and sub-topics.
A topic is a broad theme that describes the main areas within each discipline. Specific objectives state what is expected of the pupils at the end of
each topic and are derived from sub-topics. The sub-topics state what is to be taught.
The syllabus states the specific objectives but not the method of achieving them. The teacher is free to use appropriate methods in the school that
suit the local environment.
Education visit or tours should be encouraged. This means that pupils can be taken to places of interest. For example if they are being taught
about functions of the Central Bank (Bank of Zambia), Communication (Zam Tel), Lusaka Stock Exchange (LuSE), Insurance (Insurance
Companies) etc., visits or tours can be arranged. This will give pupils the opportunity to ask questions on the spot.
Teaching and learning aids should be used where necessary because they are essential. Pupils grasp very quickly what is being taught when a
teaching and learning aid is used..
TIME TABLE
The subjects in the syllabus specify three year courses for Grade 10, 11 and 12. 8 periods of 40 minutes each per week are allocated to Business
Subjects.
This is usually divided between the subjects as follows: Commerce – 4 periods and Principles of Accounts – 4 periods. It is possible for pupils
to take both Commerce and Principles of Accounts.
EXAMINATIONS
The final examination will be conducted at the end of Grade Twelve.
vi
GRADE 10
COMMERCE
TOPIC
1. PRODUCTION
SUB-TOPIC
1.1 Production
- needs
- wants
- goods
- services
SPECIFIC OBJECTIVES - PSBAT
1.1.1 define the term production.
1.2 Factors of Production
- land
- capital
- labour
- enterprise organisation
1.2.1
research or find out the factors of
production.
1.3 Methods of Production
Direct and indirect production
1.3.1
discuss the methods of
production.
1.4 Types of Production
- Primary
- Secondary
- Tertiary
1.4.1
differentiate the types of
production.
1.5 Branches of Production
- Industry
- Direct Services
- Commerce
1.5.1 investigate the branches of
production.
1
1.5.2 draw the diagram of production.
TOPIC
2. INDUSTRY
3. DIRECT SERVICES
4. COMMERCE
SUB-TOPIC
2.1 Industry
SPECIFIC OBJECTIVES - PSBAT
2.1.1 explain the term industry.
2.2 Classes of industry
Extractive
Manufacturing
Constructive
3.1 Direct services
- Medical
- Education
- Legal
- Entertainment
- Accounting and others.
2.2.1 identify classes of industry.
3.2 Division of labour (Specialisation).
3.2.1 explain division of labour.
3.2.2 discuss the advantages and
disadvantages of division of labour.
4.1.1 define the term commerce.
4.1 Commerce
3.1.1 list the direct services.
3.1.2 find out more about the direct
services.
4.2 Trade
- Home: Retail and Wholesale
- Foreign: Import and Export
4.2.1 define trade.
4.3 Aids to trade
- Banking
- Insurance
4.3.1
4.3.2
2
list the aids to trade.
explain the roles of aids to trade.
TOPIC
5. HOME TRADE - RETAIL
SUB-TOPIC
Communication
Transport
Warehousing
Advertising
SPECIFIC OBJECTIVES - PSBAT
5.1
Home trade
4.3.3 draw the diagram of commerce.
5.1.1 define home trade.
5.2
Retail trade
5.2.1
discuss retail trade.
5.2.1 Functions of the retailer
Factors
Type of retail outlets
Characteristics of small and
Large scale retailers.
Advantages and disadvantages of small
and large scale retailers.
5.2.2
5.2.3
state the functions of the retailer.
identify factors necessary for
setting up a retail business.
explain the types of retail outlets.
discuss the characteristics or
features of small and large scale
retailers.
5.2.4
5.2.5
5.2.6
6. HOME TRADE - WHOLESALE
6.1 Wholesale trade
Functions
importance
6.1.1
6.1.2
6.1.3
3
discuss the advantages and
disadvantages of small and large
scale retailers.
discuss wholesale trade.
state the functions of the
wholesaler.
explain the importance of the
wholesaler.
TOPIC
SUB-TOPIC
6.2 Types of wholesalers.
- regional
- cash and carry
- independent
- specialist
- general etc.
SPECIFIC OBJECTIVES - PSBAT
6.2.1 Identify the different types of
wholesalers.
6.3 Elimination of the wholesalers.
6.3.1 discuss reasons for the elimination
of the wholesaler.
6.4.1 discuss reasons for the survival of
the independent wholesaler.
6.5.1 describe the different types of
middlemen in the wholesale trade.
6.4 Survival of the independent wholesaler.
6.5 Types of middlemen.
- factors
- brokers
- distributors
- merchants
7. BUYING ON CREDIT
7.1 Buying on credit.
7.1.1 explain buying on credit.
7.2 Methods of buying on credit
- Hire purchase
- Credit sale agreement
- Deferred payments
7.2.1 describe the methods of buying on
credit.
7.2.2 discuss the advantages and
disadvantages of buying on credit.
4
TOPIC
SUB-TOPIC
7.3 Hire Purchase Finance Company.
7.4 Measures taken to protect the consumer.
8. DOCUMENTS USED IN HOME
TRADE
8.1 Documents used in buying and selling:
-
inquiry
quotation and estimate
catalogue
order
invoice
debit note
credit note
dispatch note
advice note
delivery note
cash sale slip
statement of account
proforma invoice
cheque
receipt
8.2 Cash and trade discounts.
5
SPECIFIC OBJECTIVES - PSBAT
7.3.1 explain the work of Hire Purchase
Finance Company.
7.4.1 discuss the measures taken to
protect the consumer.
8.1.1 describe the documents used in
buying and selling in home trade.
8.1.2
8.1.3
8.1.4
8.2.1
recognise the documents used in
the process of buying and selling
of goods.
use the documents in the buying
and selling of goods.
maintain the documents used in
buying and selling.
calculate cash and trade discounts.
GRADE 11
COMMERCE
TOPIC
9. FOREIGN TRADE
(INTERNATIONAL TRADE)
SUB-TOPIC
9.1 Foreign trade.
SPECIFIC OBJECTIVES - PSBAT
9.1.1 define foreign trade.
9.2 Reasons for foreign trade.
9.2.1 state the reasons for foreign trade.
9.3 Problems experienced in foreign trade.
9.3.1 explain the problems experienced
in foreign trade.
9.4.1 discuss the advantages and
disadvantages of foreign trade.
9.4 Documents used in foreign trade
- documentary credits
- letter of credit
- bill of lading
- charter party
- consumer invoice
- certificate of origin
- letter of hypothecation
- Zambia Revenue Authority
9.5 Customs authority.
Port authority
9.6 Difference between excise and customs duties.
9.7 Bonded warehouses.
9.8 Middlemen
- functions of middlemen
- forwarding agents
- import brokers
6
9.4.2 explain the documents used in
foreign trade.
9.4.3 use the documents.
9.5.1 explain the functions of the Zambia
Revenue Authority, Customs
Authority and Port Authority.
9.6.1 distinguish between excise and
customs duties.
9.6.2 discuss the requirements of a
harbour or port.
9.7.1 describe bonded warehouses.
9.8.1 identify types of middlemen.
9.8.2 explain the functions of
middlemen.
TOPIC
10. ORGANISATION OF
BUSINESS UNITS
SUB-TOPIC
9.9 Means of payment
- banker’s draft
- letter of credit
- documentary credits
- cable transfer
- letter of hypothecation
- bank transfer
- etc
9.10 Balance of trade and
Balance of payment.
SPECIFIC OBJECTIVES - PSBAT
9.9.1 explain the means of payment.
9.9.2 name different means of payments.
10.1 Private sector
10.1.1 explain the term private sector.
10.2 Business units
- Sole trader
- Partnership
- Private limited company
- Public limited company
10.2.1 identify the different types of
business units.
10.2.2 discuss the advantages of private
sector.
10.3 Characteristics of business units.
10.3.1 explain the characteristics of
business units.
10.4 Formation
10.4.1 discuss the documents for the
formation of different types of
business.
-
Partnership deed or Articles of
partnership.
7
9.10.1 discuss the balances of trade and
payments.
TOPIC
-
11. ORGANISATION OF
BUSINESS UNITS
SUB-TOPIC
Articles of association.
Memorandum of association.
CONTENT
10.4.2 discuss the advantages and
disadvantages of different types of
business units.
10.5 Similarities and differences between private
and public limited companies.
10.5.1 discuss the similarities and
differences between public and
private limited companies.
11.1 Public Sector.
11.1.1 explain the term public sector.
11.2 Different types of state enterprises
- Public Utility Corporations.
- Parastatals or Nationalised Industries.
11.2.1 identify the different types of state
enterprises.
11.2.2 discuss the reasons for the
existence of state enterprises.
11.2.3 outline the advantages and
disadvantages of state enterprises.
11.3 Differences between public utility corporations
and public limited companies.
11.3.1 distinguish between public utility
corporations and public limited
companies.
8
TOPIC
12. STOCK EXCHANGE.
13. LUSAKA STOCK EXCHANGE
(LuSE).
SUB-TOPIC
12.1 Stock Exchange.
- Securities
- Shares
- Stocks
- Bonds
- Debentures
12.2 Purpose and functions of the Stock
Exchange.
SPECIFIC OBJECTIVES - PSBAT
12.1.1 define the Stock Exchange.
12.3 Trading on the Stock Exchange.
12.3.1 discuss the trading on the Stock
Exchange.
13.1.1 outline the reasons for the
establishment of LuSE.
13.1 Establishment of LuSE.
12.2.1 explain the purpose and functions
of the Stock Exchange.
13.2 Purpose, objectives and functions.
13.2.1 state the purpose, objectives and
functions of LuSE.
13.3 Main players on the Lusaka Stock Exchange.
13.3.1 discuss the main players on
LuSE.
-
Brokers
Dealers
Listed companies on LuSE
Quote companies
Institutional Investors
Private Investors
Underwriters
Merchant Banks
9
TOPIC
-
14. REGULATION OF THE
MARKET (SEC)
SUB-TOPIC
Government
Foreign Investors
SPECIFIC OBJECTIVES - PSBAT
13.4 Buying and selling of shares
- Floatation of shares
- Becoming a shareholder
13.4.1 explain the process of buying and
selling of shares.
13.4.2 participate in the buying and
selling of shares.
13.5 Benefits and risks.
13.5.1 discuss the benefits of being a
shareholder and the risks
involved.
14.1.1 explain powers and roles of
Securities and Exchange
Commission.
14.1 Securities and Exchange Commission
14.2 Self regulation
14.2.1 discuss self regulation by Lusaka
Stock Exchange.
10
TOPIC
15. BANKING
SUB-TOPIC
15.1 Banking
SPECIFIC OBJECTIVES - PSBAT
15.1.1 define banking.
15.2 Financial Institutions
- Building Societies
- Commercial Banks
- Credit Unions and Savings
- Accounts
- Central Bank
- Insurance Companies
15.2.1 explain financial institution
concerned with banking.
15.3 Functions and Services of Commercial Banks.
15.3.1 discuss the functions and services
of commercial banks.
15.4 Operations of different types of accounts.
- Savings
- Deposit
- Fixed deposit
15.4.1 explain the operations of different
types of accounts.
15.5 Documents for different accounts.
15.5.1 identify the documents for
different accounts.
15.5.2 use the documents.
15.6 Means of Payment
- Cheque
- Standing order
15.6.1 discuss means of payment through
the bank.
11
15.4.2 discuss the advantages and
disadvantages of different types of
accounts.
TOPIC
-
SUB-TOPIC
Credit transfer
Direct debiting
Bankers draft
Cash dispersers
SPECIFIC OBJECTIVES - PSBAT
15.7 Functions of the Central Bank.
15.7.1 discuss the functions of the
Central Bank.
15.8 Cheque clearing system.
15.8.1 describe the cheque clearing
system.
15.9 Rights of a customer.
- Relationship
- Rules of the bank
- Discrimination in services of banks.
15.9.1 discuss the rights of the customer
in banking.
12
GRADE 12
COMMERCE
TOPIC
16. INSURANCE
SUB-TOPIC
16.1
Insurance
CONTENT
16.1.1 define insurance.
16.2
Purpose of insurance.
16.2.1 explain the purpose of insurance.
16.3
Principles of insurance.
- Insurable interest
- Utmost good faith
- Indemnity
16.3.1 explain the principles of
insurance.
16.4
Insurable and non insurable risks.
16.4.1 distinguish between insurable and
non insurable risks.
16.5
Types:
- Life Assurance
- Fire Insurance
- Marine and Aviation
- Accident
- Injury
- Burglary or theft
16.5.1 explain the different types of
insurance.
16.6
Insurable Policies
- Comprehensive
- Third party
16.6.1 describe the different types of
insurance policies.
13
TOPIC
17. COMMUNICATION
SUB-TOPIC
16.7
Procedures
16.8
Insurance Brokers
17.1
Communication
17.2
Postal Services
-
SPECIFIC OBJECTIVES - PSBAT
16.7.1 explain the procedures for
effecting an insurance cover.
16.8.1 explain the work of insurance
brokers.
17.1.1 define communication.
17.2.1 explain the postal services.
17.2.2 use the postal services.
Mail
Circulars
Printed matters
Registered mail, articles and parcels
Reply coupon
Business reply service
Poste restante
Special delivery
Express mail/express post
Data post
Post cards
Cash on delivery (COD)
Post boxes and Private bags
Recorded delivery
14
TOPIC
-
SUB-TOPIC
Free post
Postage forward parcel service
Postal orders
Money orders etc.
17.3 Telecommunication services
Telephone:
Types of telephone calls
- cellular phone
- Telegram
- Telex
- E-mail
- Internet
- Radio paging
- Phonogram
- Radio Message
- Fax
- Telecom Confravision
- local and trunk
- alarm
- emergency
- fixed time
- personal
- transfer charge
- telephone credit calls
- free phone
- Telex
15
SPECIFIC OBJECTIVES - PSBAT
17.3.1 explain the telecommunication
services.
17.3.2 use the telecommunication
services.
TOPIC
18. TRANSPORT
SUB-TOPIC
18.1
Transport
18.2
Importance of transport
18.3
Factors
18.4
Methods of transport
18.5
- Sea
- Road
- Air
- Rail
- Pipeline
Documents used in transportation.
18.6
Port
18.7
Types of ports
18.8
- Sea port
- Air port
- Dry port
Requirements
18.9
containerisation
SPECIFIC OBJECTIVES - PSBAT
18.1.1 define transport.
18.2.1 explain the importance of
transport.
18.3.1 state factors involved in choosing
the type of transport.
18.4.1 discuss different methods of
transport.
18.5.1 explain the documents used in
transportation of goods.
18.6.1 describe a port.
18.7.1 explain the different types of
ports.
18.8.1 discuss the requirements of a good
port.
18.9.1 explain containerisation.
18.9.2 outline the advantages and
disadvantages of containerisation.
16
TOPIC
19. WAREHOUSING
19.1
SUB-TOPIC
Warehousing
SPECIFIC OBJECTIVES - PSBAT
19.1.1 define warehousing.
19.2
Importance
19.2.1 explain the importance of
warehousing.
19.3
Types:
19.3.1 discuss different types of
warehouse.
20. ADVERTISING
20.1
Manufacturer’s
Wholesaler’s
Retailer’s
Public
Bonded
Advertising
20.1.1 define advertising.
Purposes
20.1.2 explain the purposes of
advertising.
Methods
20.1.3 discuss methods of appealing to
the public.
Types
20.1.4 state the different types of
advertising.
20.1.5 explain the dangers of advertising.
20.1.6 discuss the advantages and
disadvantages of advertising.
17
TOPIC
20.2
SUB-TOPIC
Forms of Media.
CONTENT
20.2.1 describe the forms of media used
in advertising.
20.2.2 discuss the rules of the advertising
agents.
21. FINANCE OF BUSINESS
UNITS
20.3
Functions of advertising agencies.
20.3.1 explain the functions of
advertising agencies.
20.4
Consumer protection.
21.1
Finance of business units.
20.4.1 discuss consumer protection
against bad types of advertising.
21.1.1 show the finance of business
units.
21.2
Types of capital:
-
21.2.1 discuss the different types of
capital of business units.
Fixed capital
Loan capital
Capital employed
Liquid capital
Working capital
18
TOPIC
SUB-TOPIC
21.3
Ratios:
- Gross profit
- Net profit
- Working capital
- Liquid capital
- Rate of turn over
- Acid Test ratio
- Current ratio
- Debtor ratio
- Creditor ratio
19
SPECIFIC OBJECTIVES - PSBAT
21.3.1 calculate the different ratios.
21.3.2 Interpret the ratios.
21.3.3 Use the ratios to make decisions.
GRADE 10
PRINCIPLES OF ACCOUNTS
TOPIC
1. INTRODUCTION TO
PRINCIPLES OF ACCOUNTS
2. ACCOUNTING CONCEPTS
AND PRINCIPLES
SUB-TOPIC
1.1
Accounting
SPECIFIC OBJECTIVES - PSBAT
1.1.1 define accounting.
1.2
Importance of accounting
1.2.1
1.3
Job opportunities
1.3.1
2.1
Accounting concepts:
- Cost
- Prudence
- Going concern
- Business entity
- Realisation
- Objectivity
- Dual aspect
- Consistence
- Accrual
- Materiality
- Periodical
Statement of Standard Accounting:
- Practice (SSAP)
- Financial reporting standards
2.2
20
explain the importance of
accounting.
identify career prospects taking
into account gender issues.
2.1.1 explain accounting concepts.
2.2.1 explain statement of standard
accounting practice (SSAP).
2.2.2 relate accounting concepts to
business situation.
2.2.3 explain the final reporting
standards.
TOPIC
3. BALANCE SHEET
4. BUSINESS TRANSACTIONS
SUB-TOPIC
Balance sheet
- Accounting equation.
- Assets, liabilities and capital.
- Order of liquidity and permanence.
- Preparation of balance sheet.
- Working capital.
SPECIFIC OBJECTIVES - PSBAT
3.1.1 define the balance sheet.
3.1.2 state the accounting equation.
3.1.3 use the accounting equation.
3.1.4 identify assets, liabilities and
capital.
3.1.5 find out relationships between
assets, liabilities and capital.
3.1.6 prepare balance sheet.
3.1.7 explain the importance of working
capital.
3.2
Transactions.
4.1
Business transaction.
3.2.1 show the effect of transactions on
an accounting equation.
4.1.1 explain a business transaction.
4.2.
Types:
- cash or bank
- credit
- barter
3.1
4.2.1 identify types of transactions.
21
TOPIC
5. DOUBLE ENTRY
6. LEDGER
SUB-TOPIC
Principle of double entry:
- debit
- credit
SPECIFIC OBJECTIVES - PSBAT
5.1.1 explain the principle of double
entry.
5.2
Account
5.2.1 define an account.
5.2.2 record transactions in an account.
5.3
Classes of accounts
- real
- personal
- nominal
The ledger
5.3.1 identify the classes of accounts.
Divisions of the ledger:
- General ledger (nominal)
- Debtors ledger (sales)
- Creditors ledger (purchases)
- Business transactions.
6.2.1
6.2.2
5.1
6.1
6.2
22
6.1.1 describe the ledger.
6.2.3
show the divisions of the ledger.
record business transaction in the
ledger.
balance and close off the
accounts.
TOPIC
7. TRIAL BALANCE
SUB-TOPIC
7.1
Trial balance.
7.1.1
7.2
Purpose
7.2.1
7.2.2
8. BOOKS OF PRIME OR
ORIGINAL ENTRY OR
SUBSIDIARY BOOKS
CONTENT
define trial balance.
explain the purpose of preparing
the trial balance.
identify information required to
prepare a trial balance.
7.3
8.1
Preparation of a trial balance.
Books of prime entry:
- Purchases day book
- Sales day book
- Cash book
- Purchases returns book
- Sales returns book
- General journal
- Petty cash book
7.3.1
8.2.1
prepare a trial balance.
identify books of prime entry or
subsidiary books.
8.2
Source documents:
- Receipts
- Cash sale slips
- Bank paying in slips
- Cheque and cheque counterfoils
- Tickets
- Invoices
- Credit notes
- Petty cash vouchers etc.
8.2.1
explain the source documents
used to record in the books of
prime entry.
23
TOPIC
9. FINAL ACCOUNTS
8.3
SUB-TOPIC
Trade and cash discounts.
SPECIFIC OBJECTIVES - PSBAT
8.3.1 explain trade and cash discounts.
8.3.2 calculate trade and cash discounts.
8.4
Recording transactions.
8.4.1 record the transactions in the books
of prime entry.
8.5
Posting to the ledger.
8.5.1 post totals of prime or original
entry to the ledger.
8.6
9.1
Trial balance.
Final accounts:
- Trading account
- Profit and loss account
Purpose of final accounts.
8.6.1 extract a trial balance.
9.1.1 identify final accounts.
9.2
9.3
9.4
Preparation of trading and profit and loss
account.
Gross profit or loss and net profit or loss.
9.5
Balance sheet.
24
9.2.1 explain the purpose of final
accounts.
9.3.1 prepare trading and profit loss
accounts.
9.4.1 calculate gross profit or loss and
net profit or loss.
9.5.1 prepare the balance sheet.
GRADE 11
PRINCIPLES OF ACCOUNTS
TOPIC
10. ADJUSTMENTS TO FINAL
ACCOUNTS – DEPRECIATION
10.1
SUB-TOPIC
Adjustments.
SPECIFIC OBJECTIVES - PSBAT
10.1.1 explain the term adjustment to
final accounts.
10.2
Depreciation of fixed assets.
10.2.1 define depreciation.
10.3
Methods of depreciation:
- Straight line or equal instalments
- Diminishing balance
- Revaluation.
10.3.1 describe methods of depreciation
of fixed assets.
10.4
Calculation of the amount of depreciation.
10.4.1 calculate the amount of
depreciation.
10.5
Recording of depreciation.
10.6
Disposal of fixed assets.
10.7
Recording disposal of fixed assets and
adjustments in the provision for depreciation
account.
10.5.1 record depreciation in the
provision for depreciation
account.
10.6.1 explain the disposal of fixed
assets.
10.7.1 record the disposal of fixed assets
and the adjustments needed in the
provision for depreciation
account.
11.1.1 explain the terms accruals and
pre-payments.
11.1.2 state the other names for accruals
and pre-payments.
11.1.3 give examples of accruals and
pre-payments.
11.1
11. ADJUSTMENTS TO FINAL
ACCOUNTS – ACCRUALS AND
PRE-PAYMENTS
Accruals and pre-payments.
25
TOPIC
SUB-TOPIC
12. ADJUSTMENTS TO FINAL
ACCOUNTS
- BAD DEBTS
- PROVISION FOR
BAD AND DOUBTFUL DEBTS
AND DISCOUNT ALLOWED.
12.1
13. LIMITATIONS OF THE TRIAL
BALANCE
13.1
12.2
12.3
13.2
SPECIFIC OBJECTIVES - PSBAT
11.1.4 calculate the amount of accrued
expenses and income and prepaid
expenses and income.
11.1.5 record accruals and prepayments.
Bad debts and provisions for bad and doubtful 12.1.1 explain bad debts and provision
debts.
for bad and doubtful debts.
increase and decrease for bad and doubtful
12.2.1 discuss the increase and decrease
debts.
for bad and doubtful debts.
provision for discount on debtors.
12.3.1 explain the provision for discount
on debtors.
12.3.2 calculate the amount of provision
for bad debts and discounts.
12.3.3 record bad debts, provision for
bad debts and discounts.
Limitations of the trial balance.
13.1.1 state the limitation of a trial
balance.
Errors not disclosed by trial balance:
13.2.1 explain the errors not disclosed by
- Omission
the trial balance.
26
TOPIC
13.3
13.4
14. BANK RECONCILIATION
SUB-TOPIC
- Original entry
- Commission
- Principle
- Complete reversal
- Compensation
Suspense account.
Errors disclosed by the trial balance.
- Single
- Transposition
- Wrong addition
SPECIFIC OBJECTIVES - PSBAT
13.2.2 detect errors not disclosed by the
trial balance.
13.2.3 correct the errors not disclosed
by the trial balance through the
journal
13.3.1 explain the suspense account.
13.4.1 identify errors disclosed by the
trial balance.
13.4.2 correct errors disclosed by the
trial balance using suspense
account.
13.4.3 calculate profits or loss after
correction of errors in the trial
balance.
14.1.1 define the term bank
reconciliation.
14.2.1 explain the bank statement.
14.1
Bank reconciliation.
14.2
Bank statement
14.3
Differences.
14.3.1 explain the reasons for the
difference between cash book
balance and bank statement.
14.4
Preparation of:
- Revised cash book and
- Bank reconciliation.
14.4.1 prepare the revised cash book.
14.4.2 Prepare the bank reconciliation
statement.
14.4.3 Prepare bank reconciliation after
revising cash book balance.
27
TOPIC
15. CONTROL ACCOUNTS
16. ACCOUNTS OF NON PROFIT
MAKING ORGANISATIONS
15.1
SUB-TOPIC
Control accounts
CONTENT
15.1.1 describe control accounts.
15.2
Purpose
15.2.1 explain the purpose of control
accounts.
15.3
Forms
- Creditor’s ledger
- Debtor’s ledger
15.3.1 identify forms of control accounts.
15.4
Sources of information.
15.4.1 explain sources of information for
control accounts.
16.1
Accounts of non-profit making organisations.
16.2
Accounts of non-profit making organisations.
(a) Receipts and payments
(b) Income and expenditure.
16.1.1 describe accounts of non-profit
making organisations.
16.1.2 give examples of non-profit
making organisations.
16.1.3 prepare control accounts.
16.1.4 distinguish between non-profit
making and profit making
organisations.
16.2.1 identify accounts of non-profit
making organisations.
16.2.2 Prepare accounts of non-profit
making organisations and a
balance sheet.
28
TOPIC
17. CAPITAL AND REVENUE
EXPENDITURE AND
RECEIPTS
17.1
SUB-TOPIC
Capital and revenue expenditure and receipts.
SPECIFIC OBJECTIVES - PSBAT
17.1.1 explain the terms capital
expenditure, revenue expenditure,
capital receipts, and revenue
expenditure.
17.1.2 distinguish between revenue and
capital expenditure and revenue
and capital receipts.
29
GRADE 12
PRINCIPLES OF ACCOUNTS
TOPIC
18. INCOMPLETE RECORDS OR
SINGLE ENTRY
SUB-TOPIC
18.1 Single entry and incomplete records.
SPECIFIC OBJECTIVES - PSBAT
18.1.1 explain the terms single entry and
incomplete records.
18.1.2 distinguish between double entry
and single entry.
18.2 Increase and decrease in net worth.
18.2.1 discuss the increase and decrease
in net worth.
18.2.2 calculate the increase and
decreases in net worth.
18.3 Statements of profit and affairs.
18.3.1 explain statement of profit and
statement of affairs.
18.3.2 prepare the statements of profit
and affairs.
18.4 Converting incomplete records into double
entry.
18.4.1 convert incomplete records into
double entry.
18.5 Calculating purchases and sales.
18.5.1 calculate the amounts of
purchases and sales.
18.6 Final accounts and balance sheet.
18.6.1 prepare final accounts and balance
sheet.
30
TOPIC
19. PARTNERSHIP
SUB-TOPIC
19.1 Partnerships.
SPECIFIC OBJECTIVES - PSBAT
19.1.1 define partnerships.
19.2 Partnership Accounts:
- Capital
- Current
- Appropriation
19.2.1 discuss partnership accounts.
19.2.2 prepare partnership accounts.
19.3 Interest on drawings and capital.
19.3.1 calculate interest on drawings and
capital.
19.3.2 record the interest on drawings
and capital in the partnership
accounts.
19.4 Final accounts and balance sheet.
19.4.1 prepare final accounts and balance
sheet.
19.5 Premium and Good will.
19.5.1 explain the accounts of premium
and good will.
19.5.2 calculate good will.
19.6 Accounts on admission of new partner.
19.6.1 state reasons for admitting a new
partner.
19.6.2 prepare the necessary accounts on
admission of new partner.
19.6.3 state reasons for dissolving a
partnership.
19.6.4 prepare realisation accounts.
31
TOPIC
20. MANUFACTURING
ACCOUNTS
21. ACCOUNTS OF LIMITED
LIABILITY OR JOINT STOCK
COMPANIES
SUB-TOPIC
20.1 Manufacturing accounts.
SPECIFIC OBJECTIVES - PSBAT
20.1.1 explain manufacturing accounts.
20.2 Types of costs:
- Direct cost.
- Indirect costs.
20.2.1 discuss the different types of costs
in manufacturing.
20.3 Types of stocks:
- raw materials
- finished goods
- work in progress
20.3.1 identify types of stocks in
manufacturing.
20.3.2 prepare the manufacturing
account, trading and profit and
loss account and balance sheet.
20.4 Manufacturing profit.
20.4.1 calculate the manufacturing profit.
21.1 Limited liability company.
21.1.1 discuss limited liability company.
21.2 Classification of capital:
- Nominal or Registered
- Issued
- Subscribed
- Fully paid
21.2.1 classify the capital of a limited
company.
21.3 Types of shares:
- Ordinary
- Preference
21.3.1 explain the different types of
shares.
32
TOPIC
22. DEPARTMENTAL
ACCOUNTS
23. INTERPRETATION OF FINAL
ACCOUNTS AND BALANCE
SHEET
SUB-TOPIC
21.4 Profit and loss appropriation account and
balance sheet.
22.1 Departmental accounts.
CONTENT
21.4.1 prepare profit and loss and
appropriation account and balance
sheet.
22.1.1 explain departmental accounts.
22.2 Apportionment of expenses.
22.2.1 discuss apportionment of
expenses to departments.
22.3 Department accounts and balance sheet.
22.3.1 prepare departmental accounts
and balance sheet.
23.1 Accounting ratios:
- Gross profit
- Net profit
- Rate of turnover or stock turn
- Debtors/sales
- Creditors/purchases
- Working capital
- Liquidity
- Acid test
- Return On Capital Employed (ROCE)
23.1.1 explain the importance of
accounting ratios.
33
23.1.2 calculate the accounting ratio.
23.1.3 Interpret the accounting ratios to
make decisions.