Financial Accounting

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GRADE 12 - Financial Accounting - Companies

GRADE 12 - Financial Accounting - Close Corporations

GRADE 11 - Financial Accounting - Non-Profit Organisations

GRADE 11 - Financial Accounting - Partnerships

GRADE 10 - Financial Accounting - Sole Proprietors

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

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

Definition and explanation of accounting concepts unique to partnerships:

  • Partnership
  • capital accounts
  • current accounts
  • interest on capital
  • salaries to partners
  • bonus to partners
  • division of profits/losses.

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.

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