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Table of Contents

2.1 What is Accounting?........1

Weighting of curriculum Topic Financial Accounting (weighting 50% to 60%)........2

Managerial Accounting (weighting 20% to 25%)........2

Managing Resources (weighting 20% to 25%)........2

2.2 The purpose of Accounting........2

2.3 Time allocation for Accounting in the curriculum........3

2.4 Requirements to offer Accounting as a subject........3

GRADE 10........3

Term 1 Topic........3

Term 2 Topic........6

Term 3 Topic........7

Term 4 Topic........8

GRADE 11........9

Term 1 Topic........9

Term 2 Topic........11

Term 3 Topic........12

Term 4 Topic........14

GRADE 12........15

Term 1 Topic........15

Term 2 Topic........20

Term 3 Topic........23

Term 4 Topic........25


  1. 2.1 What is Accounting?

Accounting focuses on measuring performance, and processing and communicating financial information about economic sectors. This discipline ensures that principles such as ethical behaviour, transparency and accountability are adhered to. It deals with the logical, systematic and accurate selection and recording of financial information and transactions, as well as the compilation, analysis, interpretation and communication of financial statements and managerial reports for use by interested parties.


The subject encompasses accounting knowledge, skills and values that focus on the financial accounting, managerial accounting and auditing fields.


These fields cover a broad spectrum of accounting concepts and skills to prepare learners for a variety of career opportunities.


The table below indicates the three main topics and corresponding topics in Accounting curriculum


    1. Weighting of curriculum Topic Financial Accounting (weighting 50% to 60%)
  1. Accounting concepts
  2. GAAP principles
  3. Bookkeeping
  4. Accounting equation
  5. Final accounts and financial statements
  6. Salaries and wages
  7. Value-Added Tax
  8. Reconciliations
    1. Managerial Accounting (weighting 20% to 25%)
  1. Cost accounting
  2. Budgeting
    1. Managing Resources (weighting 20% to 25%)
  1. Indigenous bookkeeping systems
  2. Fixed assets
  3. Inventory
  4. Ethics
  5. Internal control


  1. 2.2 The purpose of Accounting  

Accounting learners will be able to:


  1. 2.3 Time allocation for Accounting in the curriculum

The teaching time for Accounting is 4 hours per week, per grade on the timetable, that is, for Grades 10, 11 and 12.

  1. 2.4 Requirements to offer Accounting as a subject

It is the responsibility of the school to provide the resources to offer Accounting as a subject.

  1. Each learner should have:
  2. The teacher should have:





  1. GRADE 10
    1. Term 1 Topic
  1. Informal or Indigenous bookkeeping

Comparison of the bookkeeping systems of the informal and formal sectors:

  • concepts: capital; fixed assets; stock; cost price; labour cost; selling price; income; expenses and profit.
  • management of resources (capital, fixed assets, stock, etc.)

Process of determining selling prices, cost of sales, labour costs, income and expenses

  1. Ethics (introduction)

Explanation of the code of ethics applicable to all parties in the financial environment:

  • code of ethics
  • basic principles of ethics (leadership, discipline, transparency, accountability, fairness, sustainability, responsible management)

Ethics should be integrated with other topics

  1. GAAP principles

Definition and explanation of Generally Accepted Accounting Practice (GAAP) principles:

  • historical cost
  • prudence
    • materiality
    • business entity rule
    • going concern
    • matching

Apply to all the relevant topics and link to topic 1 and 2

  1. Internal control (introduction)

Definition and explanation of what is meant by internal control

Identification and explanation of basic internal control processes:

  • Control environment;
  • risk assessment;
  • control activity supported by policy and procedures;
  • information system and communication methods and
  • monitoring performance.

Internal control should be integrated with other topics.

  1. Bookkeeping of sole trader: recording of cash transactions (CRJ, CPJ, PCJ); General Ledger, Trial Balance; Accounting equation







Definition and explanation of accounting concepts up to financial statements: sole trader; debit; credit; equity; capital; assets; liabilities; ledger; journal; profit; loss; Value Added Tax (VAT); income/revenue; expenses; final accounts; financial statements; discounts; Accounting Cycle; Financial Accounting; Managerial Accounting; perpetual inventory system.

  1. Bookkeeping of sole trader: recording of credit: transactions (DJ, DAJ, CJ, CAJ, GJ); Ledgers, Debtors’ and Creditors’ lists, Trial Balance;

Accounting cycle based on perpetual inventory system:

  • revision of Grade 9 content
  • source documents
  • principles of Double Entry System
  • journals
    • Cash Receipts Journal
    • Cash Payments Journal (including loans, fixed deposits, interest income and interest expense, dishonoured cheques, discount allowed and discount received)
    • Debtors’ Journal, Creditors’ Journal, Debtors’ Allowances Journal, Creditors’ Allowances Journal
    • Petty Cash Journal
    • General Journal (including bad debts, cancellations of discount on dishonoured cheques, interest on overdue accounts, corrections of errors)
  • Posting to General, Debtors’ and Creditors’ Ledgers
  • Trial Balance
  • Preparation of debtors’ and creditors’ lists to reconcile with the debtors’ and creditors’ control accounts (including correction of errors and omissions)

Note: The transactions on the acquisition of fixed assets and the fixed assets register for the purpose of internal control are important.

  1. Accounting equation

Analysis and an indication of the effect of transactions on the accounting equation of a sole trader

All transactions affecting a sole trader up to financial statements

This topic needs to be integrated with all the appropriate topics throughout the year.

  1. Bookkeeping of sole trader: recording of cash and credit transactions (combined)


    1. Term 2 Topic
  1. Value Added Tax (VAT)

Explanation of the basic concepts of VAT:

  • need for VAT
  • purpose of VAT
  • principles of VAT
  • zero-rated items
  • VAT-exempted items
  • VAT-able items
  • current VAT rate
  1. Salaries and Wages Journal

Explanation, calculation and recording of salary and/or wage scales and payments in the journals and post to the ledger; this can be done manually or on a computerised spreadsheet.

  • Normal time
  • Overtime
  • Deductions
    • PAYE
    • Pension fund
    • Unemployment Insurance Fund
    • Medical aid
    • Union membership
  • Employer contributions
    • Pension fund
    • Unemployment Insurance Fund
    • Medical aid
    • Skills development levy


Accounting equation


Ethical conduct related to salaries and wages, e.g. contracts, payment in line with responsibilities, role of unions

  1. Financial Accounting of a sole trader  Ledger  

Preparation of final accounts of a sole trader taking into account year-end adjustments






Related concepts

Application of GAAP principles

Accounting equation

Pre-adjustment Trial Balance

Year-end adjustments:  

  • trading stock deficit/surplus  
  • consumable stores on hand
  • depreciation (on cost price/straight line, on diminishing balance methods)
  • bad debts
  • bad debts recovered (Including receipts from solvent estates)
  • correction of errors/omissions
  • accrued income (receivable)
  • income received in advance (deferred)
  • expenses prepaid
  • accrued expenses (payable)
  • Interest on mortgage bond (capitalised)

Post-adjustment Trial Balance

Closing transfers Final accounts:

  • Trading Account
  • Profit and Loss Account

Post-closing Trial Balance

Reversal of certain year-end adjustments at beginning of next financial period, i.e. accruals, income received in advance and prepayments.

  1. Final Accounts Section, Trial Balances


    1. Term 3 Topic

Financial Accounting of a sole trader - preparation of financial statements

Preparation of final accounts of a sole trader taking into account year-end adjustments

Related concepts

Application of GAAP principles

Accounting equation

Pre-adjustment Trial Balance

Year-end adjustments:

  • trading stock deficit/surplus
  • consumable stores on hand
  • depreciation (on cost price/straight line, on diminishing balance methods)
  • bad debts
  • bad debts recovered (Including receipts from solvent estates)
  • correction of errors/omissions
  • accrued income (receivable)
  • income received in advance (deferred)
  • expenses prepaid
  • accrued expenses (payable).

Financial statements and notes:

  • Income Statement
  • Balance Sheet

Financial Accounting of a sole trader - Analysis and interpretation of financial statements and notes

Analysis and interpretation of financial statements and notes:

  • gross profit on sales
  • gross profit on cost of sales
  • net profit on sales
  • operating expenses on sales
  • operating profit on sales
  • current ratio
  • acid test ratio
  • solvency ratio
  • return on equity


    1. Term 4 Topic

Cost accounting: manufacturing concepts

Definition and explanation of basic cost concepts:

  • direct labour
  • indirect labour
  • direct materials (raw materials)
  • indirect materials
  • factory overhead costs
  • Prime cost
  • variable costs
  • fixed costs
  • workinprocess

Application of principles of internal control

Ethical behaviour related to a manufacturing business

Budgeting

Define and explain basic budgeting concepts:

  • cash budget
  • zerobased budget
  • capital budget
  • longterm budget
  • mediumterm budget



  1. GRADE 11
    1. Term 1 Topic
  1. Ethics

Identification and analysis of ethical behaviour applicable to financial environments with reference to accountability, transparency and sustainability

This topic should be integrated with other topics using appropriate scenarios.

  1. Internal control

Demonstration of the knowledge of internal audit processes:

  • definition and explanation of what is meant by an internal audit
  • knowledge of the difference between internal control and an internal audit, the role of the internal auditor, division of duties, documentation and physical controls
  • identification of internal audit procedures relating to:
    • handling of cash
    • buying and selling on credit
    • stock
    • debtors
    • creditors.

This topic should be integrated with other topics.

  1. Reconciliations

Reconciliation of bank statements with cash journals in order to prepare bank reconciliation statements:

  • outstanding deposits
  • cheques not yet presented for payment
  • stop/debit orders
  • direct transfers
  • bank charges
  • interest received or charged
  • correction of errors or omissions
  • cheques R/D or cancelled
  • post-dated cheques received/issued.

Reconciliation of statements received from creditors with accounts in Creditors’ Ledger of a business in order to prepare creditors’ reconciliation statements:

  • outstanding invoices or credit notes
  • outstanding payments
  • discounts not recorded
  • correction of errors or omissions.

Integration of issues of internal control

Integration of ethical issues

  1. Tangible / Fixed assets

Understanding the concept of a tangible/fixed asset register Recording the acquisition of tangible/fixed assets

Calculation and recording of depreciation

  • on cost price (straightline method)
  • diminishing balance method
  • Understanding how tangible/fixed assets are recorded when they are fully depreciated Recording the disposal of tangible/fixed assets (cash, credit, trade-in):
  • at the beginning of a financial year
  • during a financial year
  • at the end of a financial year.

Integration of issues of internal control - control measures over fixed assets

Integration of ethical issues relating to fixed assets - responsible use of fixed assets

  1. Partnerships: adjustments, General Ledger, Accounting equation, final accounts, financial statements


    1. Term 2 Topic
  1. Partnerships: analysis and interpretation

Analysis and interpretation of financial statements and notes

Revision of the following:

  • gross profit on sales
  • gross profit on cost of sales
  • net profit on sales
  • operating expenses on sales
  • operating profit on sales
  • solvency ratio
  • current ratio
  • acid test ratio

Introduction to and covering of the following:

  • stock turnover rate
  • stock holding period
  • average debtors’ collection period
  • average creditors’ payment period
  • debt-equity ratio (gearing)
  • partners’ earnings
  • return on partners’ equity
  1. Clubs: concepts, Ledger, Statement of Receipts and Payments

Definition and explanation of accounting concepts unique to nonprofit organisations (clubs):

  • nonprofit organisations
  • constitution
  • accumulated fund
  • membership fees
  • entrance fees
  • affiliation fees
  • honorarium
  • surplus
  • deficit

Accounting cycle for non-profit organisations (clubs):

  • preparation of Analysis Cash Book
  • posting to the Ledger (particularly accounts unique to non-profit organisations, viz. Accumulated Fund, membership fees, entrance fees, stock accounts, e.g. refreshments, ties, rugby jerseys)
  • drafting of a Trial Balance
  • preparation of Statement of Receipts and Payments
  • understanding of differences between receipts & income and; payments & expenses


    1. Term 3 Topic
  1. Cost Accounting:

Calculation of the following costs in a manufacturing environment:

  • variable and fixed costs
  • the cost of a product using variable and fixed costs
  • unit cost
  • contribution per unit
  • Breakeven point.

Preparation of ledger accounts of a manufacturing business Balance Sheet Section:

  • raw material stock
  • workinprogress stock
  • finished goods stock
  • consumable stores stock (indirect materials).

Nominal Accounts Section:

  • sales
  • cost of sales
  • raw materials issued
  • factory wages
  • factory electricity
  • factory rent
  • depreciation on factory equipment, etc.

Cost Accounts Section:

  • direct (raw) materials cost
  • direct labour cost
  • factory overhead cost
  • administration cost
  • selling and distribution cost.

Integration of ethical issues related to a manufacturing environment

Integration of internal audit and internal control issues related to a manufacturing environment

  1. Budgeting:

Preparation and presentation of a cash budget for sole traders:

  • projected receipts and payments
  • projected debtors’ collection
  • projected creditors’ payments
  • Cash Budget.

Preparation and presentation of Projected Income Statement

  • projected revenue and expenditure.

Integration of ethical issues

Integration of internal audit and internal control issues

  1. Cash Budget


  1. Inventory systems

Definition and explanation of the following stock systems:

  • Perpetual stock system
  • Periodic stock system

Knowledge of the advantages and disadvantages of the periodic and perpetual stock systems

Recording of transactions using the periodic stock system in the journals and ledgers, comparing it with the perpetual stock system:

  • purchases account as opposed to Trading Stock account
  • Opening Stock and Closing Stock accounts
  • Trading account
  • carriage on purchases
  • custom and import duties.
    1. Term 4 Topic

Value Added Tax (VAT)

Perform VAT calculations:

  • use current rate
  • add VAT to cost price plus markup amount
  • calculate VAT from VAT-inclusive amount
  • invoice or receipt base.

Understand the effect of bad debts, discounts and goods returned on VAT

Integrate ethics relating to VAT - VAT fraud, etc.

Integrate internal audit and internal control

processes over collection of VAT from customers and payment of VAT to SARS.


  1. GRADE 12


    1. Term 1 Topic
  1. Financial accounting of companies - concepts and unique ledger accounts  

Definition and explanation of accounting concepts unique to companies:

  • companies - public and private
  • Companies Act
  • Registrar of Companies - Registration certificate
  • Memorandum of Incorporation
  • income tax/provisional income tax
  • dividends
  • shares
  • issue price
  • earnings
  • shareholders
  • directors
  • auditors
  • limited liability
  • separation of ownership from control
  • retained income
  • authorised share capital
  • issued share capital
  • Johannesburg Securities Exchange (JSE)
  1. GAAP principles

Definition and explanation of International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Practice (GAAP)

Definition and explanation of the following specific GAAP principles:

  • historical cost
  • prudence
  • materiality
  • business entity rule
  • going concern
  • matching
  1. Bookkeeping of companies

Accounting cycle for a company:

  • journals
  • ledger accounts
  • Trial Balance

Transactions include:

  • issuing of shares at issue price (note that par value and share premium no longer exist in terms of the Companies Act)
  • buying back of shares
  • loans and interest (note: interest on a mortgage loan is capitalised)
  • income tax
  • dividends
  • directors’ fees
  • audit fees.
  1. Financial accounting of companies - preparation of final accounts and financial statements

Preparation of final accounts and detailed financial statements of a company taking into account year-end adjustments.

Year end adjustments:

  • trading stock deficit/surplus
  • consumable stores on hand
  • depreciation (on cost price/straight line, on diminishing balance methods)
  • bad debts
  • bad debts recovered (Including receipts from solvent estates)
  • correction of errors/omissions
  • accrued income (receivable)
  • income received in advance (deferred)
  • expenses prepaid
  • accrued expenses (payable)
  • provision for bad debts
  • adjustments related to income tax
  • adjustments related to the payment and declaration of dividends.

Final accounts:

  • Trading account
  • Profit and Loss account
  • Appropriation account

Reversal of certain adjustments, i.e. accruals, income received in advance, and prepayments

Financial statements and notes:

  • Income Statement
  • Balance Sheet
  • Cash Flow Statement

Analysis and indication of the effect of transactions on the accounting equation of a company; all transactions affecting a company up to financial statements

Integration of reporting and control of fixed assets

Integration of ethical considerations relating to companies - roles of shareholders and directors, manipulation of share prices, corporate governance, etc.

Integration of internal audit and control processes relating to companies

Application of GAAP principles and IFRS


  1. Financial accounting of companies - analysis and interpretation of financial statements  

Analysis and interpretation of Income Statement, Balance Sheet and Notes

Revision of the following financial indicators:

  • gross profit on sales
  • gross profit on cost of sales
  • net profit on sales
  • operating expenses on sales
  • operating profit on sales
  • current ratio
  • acid test ratio
  • stock turnover rate
  • stock holding period
  • average debtors’ collection period
  • average creditors’ payment period
  • solvency ratio.

Introduction and coverage of the following financial indicators:

  • debt-equity ratio (gearing)
  • return on shareholders’ equity
  • return on total capital employed
  • net asset value per share
  • dividends per share
  • earnings per share
  1. Financial accounting of companies - analysis of published financial statements

Analysis of a company’s published financial statements and annual reports comprising Directors’ Report, Independent Auditors’ Report, Abridged Income Statement, Balance Sheet and Cash Flow Statement, together with additional information relating to governance and the company’s activities.





    1. Term 2 Topic
  1. Ethics
  • Understanding the role of professional bodies, e.g. South African Institute of Chartered accountants (SAICA) and South African Institute of Professional Accountants (SAIPA)
  • Discussion of disciplinary and punitive measures that are applied for non-compliance with the Code of Professional Conduct
  • Understanding the policies governing ethical behaviour in the financial environment, viz. King Code III
  • Understanding the legislation governing companies:
    • Basic principles in Companies Act, i.e. directors’ performance evaluation, remuneration policies, dispute resolution, business rescue, conflict of interests, responsibilities of directors

This topic should be consolidated, having been integrated with other topics

  1. Tangible / fixed assets

Interpretation and reporting on the movements of fixed assets:

  • age of assets
  • replacement rate
  • life span of assets.

Integration of GAAP principles relating to fixed assets

Integration of ethical issues relating to fixed assets

Integration of internal audit and control processes relating to fixed assets

  1. Financial accounting of close corporations

Definition and explanation of accounting concepts unique to close corporations:

  • close corporation
  • founding statement
  • members
  • loans to members
  • loans from members
  • distribution to members.

Identify differences in the financial statements of companies and close corporations, particularly with regard to terminology

  1. Internal control

Application of internal control and internal audit processes in a business environment:

  • means of gathering audit evidence
  • basis for gathering audit samples
  • basic sampling techniques
  • internal audit reports
  • accountable management of resources.

Understanding the difference between the roles of internal and external auditors

This topic should be consolidated, having been integrated with other topics

  1. Inventory systems

Validation, valuation and calculation of inventories of businesses using the perpetual and periodic inventory systems:

  • specific identification (of cost price per unit)
  • first in, first out (FIFO)
  • weighted average

Integration of GAAP principles relating to inventories

Integration of ethical issues relating to inventories

Integration of internal audit and control processes relating to inventories

  1. Reconciliations

Analysis and interpretation of bank, debtors’ and creditors’ reconciliations:

  • reconcile creditors’ statements with their personal accounts
  • reconcile debtors lists and creditors lists with control accounts
  • analyze and interpret debtors’ age analysis
  • analyze and interpret bank statements and bank reconciliation statements.

Integration of ethical issues relating to cash, debtors and creditors: payment periods, interest, credit ratings, fraud, etc.

Integrate internal audit and internal control issues relating to cash, debtors and creditors

  1. Value Added Tax (VAT)

Calculate the amount payable to or receivable from the South African Revenue Services (SARS)

Completion of the VAT control ledger account from given information

Integration of ethical issues relating to VAT

Integration of internal audit and control processes


    1. Term 3 Topic


  1. Cost Accounting

Definition and explanation of accounting concepts unique to a manufacturing business

Preparation, presentation, analysis, interpretation and reporting on cost information for manufacturing enterprises:

  • preparation of a production cost statement with notes for manufacturing costs
  • preparation of a short-form Income Statement with notes for administration cost and selling & distribution cost
  • calculation of gross profit on finished goods sold
  • calculation of variable and fixed costs
  • calculation of the cost of a product using variable and fixed costs
  • calculation of cost per unit
  • calculation of contribution per unit
  • calculation of breakeven point
  • calculation of total cost of production.

Integration of ethical issues relating to manufacturing: product quality, product age, raw materials, support for local products, pricefixing, theft, fraud, etc.

Integration of internal audit and control processes relating to manufacturing

  1. Trading and Profit and Loss Statement, unit costs, break-even


  1. Budgeting

Analysis, interpretation and comparison of projected income statements for sole traders or companies.

Projected Income Statement

  • sales
  • cost of sales
  • expenses
  • income
  • profits

Analysis, interpretation and comparison of cash budgets for sole traders or companies.

Cash Budget

  • receipts
  • payments
  • debtors’ collection
  • creditors’ payment
  • cash balances

Integration of ethical issues relating to budgeting and projections

Integration of internal audit and control processes relating to budgets and projections by comparing budget to actual figures

    1. Term 4 Topic

Revision and examination preparation

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