Grade 9
Term 2 - 2015
-
COMPLETE Unit 3 – from term 1
Unit 3: Verification of accounting records
Recommended prior knowledge
Competent book keeping skills. The ability to record transactions in the double entry book-keeping system and to balance off those accounts. An understanding of
the division of the ledger and preparation of cash books.
Context
The balances brought down from the double entry book-keeping system are transferred to a trial balance. This trial balance is used to check the accuracy of the
general ledger and forms the basis for final account preparation. Control accounts are prepared to check the accuracy of the subsidiary ledgers and a bank
reconciliation statement is used to check the accuracy of the cash book.
Outline
Learners will be preparing a trial balance, control accounts and a bank reconciliation statement. During preparation errors will be found, learners must identify these
and take steps to correct them.
Teaching time
Based on a total time allocation of 130 contact hours for this Cambridge IGCSE course, it is recommended that this unit should take 13 hours/ 10% of the course.
Date
Syllabus ref
Learning objectives
Teaching Activities
Resources
Monday 13th
April –
Friday 17th
Correction
of errors
Correct errors by means of
journal entries
In groups learners to prepare a presentation to the
class explaining topics covered so far, choose from
below:
Textbooks:
Accounting for Cambridge IGCSE (Austen,
D) Chp 22 p216–218
Cambridge IGCSE Accounting (Coucom, C)
Chp 15 p229–232
Cambridge IGCSE Accounting workbook
(Coucom, C) Section 5, p67 Q81
Business Accounting 1 (Wood, F) Chp 33
Correct errors by means of
suspense accounts





the trial balance
the elements of accounting
the business entity/accounting equation
duality
division of ledger
This will help with the double entry required to
correct errors. (G)(Challenging)
0452 past/specimen examination papers:
Specimen Paper 2 Q2b, 2c
Nov 13 Paper 13 Q1b
Impress on learners the need for a narrative
following a journal entry.
Nov 13 Paper 21 Q4a, 4b
Nov 13 Paper 23 Q6c
Jun 13 Paper 12 Q5d
Jun 13 Paper 21 Q3a, 3b
Provide trial balances with an imbalance to explain
the suspense account. Give examples of errors that
do affect the agreement of the trial balance and
demonstrate correction. (W)
Adjust the profit and loss for
an accounting period after the
correction of errors
Categorise questions into those that affect the profit
and loss and those that affect the statement of
financial position. (I)(Basic/Challenging)
Understand the effect of
correction of errors on a
statement of financial position
As a final exercise provide a list of errors, learners to
identify whether they will affect the agreement of the
trial balance or not. (W)(Basic)
Textbooks:
Accounting for Cambridge IGCSE (Austen,
D) Chp 22 p219–226
Cambridge IGCSE Accounting (Coucom, C)
Chp 15 p232–242
Cambridge IGCSE Accounting workbook
(Coucom, C) Section 5, p67–68. Q82 and
83
Business Accounting 1 (Wood, F) Chp 33
0452 past/specimen examination papers:
Nov 13 Paper 21 Q2b
Nov 13 Paper 23 Q6a
Jun 13 Paper 21 Q2f, 5a
Jun 13 Paper 22 Q1b
Monday 20th
April –
Friday 24th
April
Bank
reconciliatio
n
Understand the use and
purpose of a bank statement
Teacher-led class discussion about learners’ own
bank statements. Does anyone keep records of their
own? Are they ever the same as the statement?
Why not? Write up list of reasons. (W)(Basic)
Textbooks:
Accounting for Cambridge IGCSE (Austen,
D) Chp 23
Cambridge IGCSE Accounting (Coucom, C)
Chp 14
Cambridge IGCSE Accounting workbook
(Coucom, C) Section 5, p63–64. Q74–77
Business Accounting 1 (Wood, F) Chp 30
Update the cash book for bank
charges, bank interest paid
and received, correction of
errors, credit transfers, direct
Using the list ask learners how each missing
transaction can be included in the cash book. Does
it increase or decrease cash? (W)(Basic)
0452 past/specimen examination papers:
Nov 13 Paper 23 Q2c
Jun 13 Paper 21 Q1e, 1f
Jun 13 Paper 22 Q3a, 3b
debits, dividends, and standing
Enter a series of missing items in the cash book.
orders
(I)(Basic). Items such as dishonoured cheques can
be more challenging. (I)(Challenging)
Understand the purpose of,
and prepare, a bank
reconciliation statement to
include bank errors, uncredited
deposits and unpresented
cheques
Which items have not been dealt with from the list?
How will they affect the bank statement balance?
The cash book balance? Demonstrate the format of
the bank reconciliation statement. (W)(Basic)
Provide a number of bank statements with
associated cash books. Learners must update cash
book and then prepare the bank reconciliation
statement. (I)(Basic)
0452 past/specimen examination papers:
Specimen Paper 1 Q3a
Nov 13 Paper 11 Q4e
Nov 13 Paper 13 Q1c
Nov 13 Paper 23 Q2a
Jun 13 Paper 22 Q3c
0452 past/specimen examination papers:
Specimen Paper 1 Q3b, 3c
Nov 13 Paper 11 Q4f
Nov 13 Paper 23 Q2b
Jun 13 Paper 11 Q1c
Jun 13 Paper 22 Q3d
For a more challenging task, provide overdrawn
bank balances and credit balances on cash book.
(I)(Challenging)
Monday 4th
May – Friday
8th May
Control
accounts
Understand the purposes of
purchases ledger and sales
ledger control accounts
Identify the books of prime
(original) entry as sources of
information for the control
account entries
Prepare purchases ledger and
sales ledger control accounts
Have one column labelled ‘customers’ and one
column labelled ‘suppliers’. Learners to provide
fictitious names and amount of sale or purchase to
populate the columns. Total columns to explain the
purpose of control accounts. (W)(Basic)
Transpose two individual balances to now show an
imbalance in the total and individual list.
Textbooks:
Accounting for Cambridge IGCSE (Austen,
D) Chp 24
Cambridge IGCSE Accounting (Coucom, C)
Chp 16
Cambridge IGCSE Accounting workbook
(Coucom, C) Section 5, p69–71. Q84–87
Business Accounting 1 (Wood, F) Chp 31
Recap 6.2.3 ask learners to identify which books of
prime (original) entry they transferred to the control
accounts. Write the name under the correct list.
(W)(Basic)
Online:
CIMA additional preparation questions
www.cimaglobal.com/Documents/Student%
20docs/2011_CBA/C02_controlaccountsex
amples_june2012.pdf
Provide template control accounts and ask learners
in pairs to suggest entries for both sides of each
0452 past/specimen examination papers:
Specimen Paper 1 Q2e
to include credit purchases
and sales, receipts and
payments, cash discounts,
returns, bad debts,
dishonoured cheques, interest
on overdue accounts, contra
entries, refunds, opening and
closing balances (debit and
credit within each account)
account. (P)(Challenging) List any other source
documents required here.
Prepare control accounts from a list of balances.
(I)(Basic/Challenging)
Tasks involving contra, refunds and dishonoured
cheques often prove more challenging and will
require clear explanation with examples.
Specimen Paper 2 Q4a
Nov 13 Paper 11 Q1b, 4d
Nov 13 Paper 21 Q2c
Nov 13 Paper 23 Q4a, 4b, 4c
Jun 13 Paper 11 Q4a
Jun 13 Paper 12 Q1b
Unit 4: Accounting procedures
Recommended prior knowledge
Learners should be competent preparing income statements and statements of financial position. It is recommended that this unit is completed after Unit 5.
Context
It is inevitable that on completion of a trial balance there will be several adjustments that may need to be made to the figures before the final accounts can be
prepared. Items such as the valuation of inventory following a stock take, the allowance for the wear and tear on assets or the understanding that some credit
customers may not pay. These adjustments must be made to the trial balance figures before the income statement and statement of financial position are
prepared.
Outline
This unit covers the adjustments required at the end of an accounting year for depreciation, accruals and prepayments, bad debts and provisions and the
valuation of closing inventory. Learners will be required to make these adjustments, from a list of additional information, in the ledgers and adjust the figures
provided in the trial balance in preparation for the final accounts. They must be able to identify whether an adjustment will affect the income statement of the
statement of financial position.
Teaching time
Based on a total time allocation of 130 contact hours for this Cambridge IGCSE course, it is recommended that this unit should take 13 hours/ 10% of the
course.
Date
Monday 18th
May – Friday
22nd May
Syllabus ref
Learning objectives
Topic
Candidates should be able to:
Capital and
revenue
expenditure
and receipts
Distinguish between and account
for capital expenditure and
revenue expenditure
Distinguish between and account
for capital receipts and revenue
receipts
Suggested teaching activities
Learning resources
Past and specimen examination papers are
available from http://teachers.cie.org.uk
Have two columns, one labelled ‘capital’ and one labelled
‘revenue’. Ask learners to suggest one local business. In
pairs learners should make a list of the inflows and
outflows of the business. (P)(Basic)
Teacher to put the first five suggestions under the
appropriate heading, clarify meanings.
Learners continue to provide suggestions but this time
entering them on the board themselves under the correct
heading. (I)(Challenging)
Textbooks:
Accounting for Cambridge IGCSE (Austen, D)
Chp 17
Cambridge IGCSE Accounting (Coucom, C)
P134–136
Cambridge IGCSE Accounting workbook
(Coucom, C) Section 5, p52. Q50 and 51
Business Accounting 1 (Wood, F) Chp 24
0452 past/specimen examination papers:
Specimen Paper 1 Q2d
Date
Syllabus ref
Learning objectives
Suggested teaching activities
Calculate and comment on the
effect on profit of incorrect
treatment
Provide learners with a table listing twenty different
transactions and four columns labelled, capital receipt,
revenue receipt, capital expenditure, revenue
expenditure. Learners to tick the correct column.
(I)(Basic)
Calculate and comment on the
effect on asset valuations of
incorrect treatment
Learning resources
Nov 13 Paper 11 Q6a
Nov 13 Paper 13 Q6d, 6e
Jun 13 Paper 11 Q2a
Exchange answers for marking. Learners asked to read
out any incorrect answers one at a time. (I)(Basic)
Each learner must then hold up one of four pre-prepared
cards, increase profit, reduce profit, increase asset
values, decrease asset values. (I)(Challenging)
Monday 25th
May – Friday
29th May
Valuation of
inventory
Understand the basis of the
valuation of inventory at the lower
of cost and net realisable value
Learners to recount the inventory valuation rule to their
associated pair. (P)(Basic)
Teacher to use damaged table to explain net realisable
value. (W)(Basic)
Teacher-led discussion regarding stock takes, have the
learners been part of one? This is the value of closing
inventory in the statement of financial position (SFP)
Asset or Liability? Where is the other entry? (W)(Basic)
Prepare simple inventory
valuation statements
Learners to complete valuation tasks given cost, selling
price and amendment costs. Clearly stating the double
entry required. (I)(Basic)
Textbooks:
Cambridge IGCSE Accounting (Coucom, C) Chp
10 p136–137
Cambridge IGCSE Accounting workbook
(Coucom, C) Section 5, p52–53. Q53–55
0452 past/specimen examination papers:
Specimen paper 1 Q5a
Nov 13 Paper 11 Q1e
Nov 13 Paper 13 Q1e
Nov 13 Paper 23 Q4d, 4e
Jun 13 Paper 11 Q2b, 2c
Jun 13 Paper 12 Q1e
Jun 13 Paper 22 Q4d, 4e