OVERALL
TOPIC
Ethics and
Internal control
Reconciliations
DURBAN NORTH COLLEGE
GRADE 11 ACCOUNTING – SCOPE FOR JUNE 2015 EXAMINATION
IMPORTANT ISSUES TO COVER
SUB-PARTS
Pages 3-62
Ethics and Internal Control needs to be done throughout all sub-parts
Bank Reconciliation.
Pages 64 - 89
As so much of banking is covered by internet today, these concepts
including EFT’s must be covered.
Very important to cover internal control – Bank Reconciliation is an
important internal control tool.
Errors.
Post-dated cheques received and issued.
Stale cheques.
Previous month’s reconciliation.
Draw on the knowledge learnt under Bank Reconciliation to show that
the Creditors’ Reconciliation follows the same principle.
Very important to cover internal control.
Learners often experience difficulties with this section. Draw on their
knowledge that when trading stock was sold the account was credited.
Similarly the asset account must be credited. However, the
complication is the accumulated depreciation account which must also
be cancelled. Use the diagram on page 129 to explain.
Learners need to understand the concept of the book value and as the
asset is being sold after the beginning of the year they need to
depreciate for the relevant period of time. Make use of time lines to
calculate the number of extra months.
Learners need to learn and follow the 5 steps involved in the asset
disposal process.
The Fixed Asset note was taught in Grade 10 but now learners need to
record the disposal as well. Make sure learners realise that the disposal
is recorded at book value.
The need for internal control and ethics when staff is using the
assets for private use is to be discussed throughout this section.
Learners covered sole traders in Grade 10, now they just need to adjust
to having more than one owner and the fair distribution of the profit.
Bank Reconciliation.
Pages 89 - 108
Creditors Reconciliation.
Pages 108 - 120
Fixed assets
Depreciation and General
Ledger accounts.
Sale of an asset at the
beginning of the year.
Pages 121 – 134
Sale of an asset during or at
the end of the year.
Pages 134 - 139
Asset disposal and the Fixed
Asset note to the financial
statements.
Pages 140 - 148
Partnerships
Partnership ledger accounts
with particular emphasis on
the current accounts and
the appropriation of the
profit.
Pages 149 - 180
Final accounts.
Pages 181 - 193
Financial statements.
Pages 194 - 230
Financial statements.
Page 231 – 262.
Choose appropriate Tasks.
Analysis and interpretation.
Profitability.
Pages 263 - 273
Learners have covered the Trading and Profit and Loss accounts in
Grade 10. They need to revise these accounts now and add the
Appropriation account.
Ethics and internal control to be discussed continuously.
Learners must understand and read the information that is included in
the financial statements.
This was taught in Grade 10 so the emphasis must be on the change to
Owners’ Equity.
Make sure learners understand their GAAP principles and how they
inform the process of recording transactions.
Learners need constant re-enforcement of financial statements and the
accompanying adjustments. Challenging Tasks are included but should
be done by learners who want extension and who are capable of taking
the challenge otherwise learners will get disillusioned.
Ethics and internal control to be discussed continuously.
This topic was already introduced in Grade 10 so you will need to revise
the old ratios and then introduce the new ratios – in particular the
return on owners’ equity.
Analysis and interpretation.
Return and liquidity.
Pages 273 – 284
Clubs
Analysis and interpretation.
Solvency.
Debt : equity.
Consolidation.
Pages 285 – 316
Difference between a nonprofit making concern and a
profit making concern.
Subscriptions or
Membership Fees account.
Pages 317 – 327
Membership fees and other
ledger accounts
Pages 328 - 335
Receipts and Payments
Statement.
Pages 335 - 351
Revision.
Continuation of the above.
There are more Tasks in the
Module 13.
Cash budget or a business
that buys and sells for cash
and on credit.
Pages 418 - 435
Projected Income
Statement.
Pages 435 – 444
Invoice or receipt base.
Bad debts.
Fraud.
Pages 497 – 503
Revision and
exams
Try to get learners to understand what the ratios mean so that they do
not just have to learn a lot of formulae. This understanding will go a
long way to helping them when they have to comment on the ratios.
The return ratio must be compared to alternative investments. These
rates do differ from bank to bank but also very importantly they are
controlled by the monetary council.
Liquidity is an extremely important concept for the learners to
understand. However, it is too simplistic just to focus on the current
ratio and the acid test ratio. Learners need to understand the flow of
money by buying goods, selling the goods, collecting the money from
the debtors and then paying their creditors.
Learners need to make the necessary calculations but also be able to
comment on the ratios and use them to make meaningful decisions in
the business.
Take note that learners only have to cover the ledger accounts and the
Receipts and Payments Statement for clubs. However, they need to
understand the difference between the different forms of operation.
Use the learners’ experiences from their communities of sports clubs or
other non-profit making concerns.
This works overlaps with the periodic stock system. You can integrate
that Module now if you wish. In view of stock valuation in Grade 12 it is
vital that learners understand the principles of this stock system.
Learners generally do not battle with this statement as they draw on
their knowledge of a Cash Receipts and Cash Payments Journal.
However, re-enforce the concept of what entries go in and what does
not as this will help with teaching Cash Flow in Grade 12.
Ethics and internal control must be integrated into the club work.
Introduce the Debtors’ Collection Schedule. Make sure the learners
understand the function of the Debtors’ Collection Schedule and how
important it is in making internal control decisions.
Make sure learners understand the link between the Creditors’ Payment
Schedule and the Debtors’ Collection Schedule.
It is important that learners can draw up the Cash Budget and Projected
Income Statement simultaneously. This requires a thorough
understanding of the function of each.
Internal control and ethics is to be covered throughout.
It is essential that learners understand the workings of VAT and how
returns or bad debts will affect the amounts.
Ethics is to be integrated into this topic.
Make use of extra Tasks in the different Modules.
Use Modules 13 and 14 for extra Tasks.