Principles of Accounts
The aim of the Unified Tertiary Matriculation Examination (UTME) syllabus in Principles of Accounts is to prepare the candidates for the Board's examination. It is designed to test their achievement of the course objectives, which are to:
1.Stimulate and sustain their interest in Principles of Accounts;
2.Use the basic knowledge of and practical stalls in Accounting;
3.Apply the knowledge of interpretation of accounting information to decision making;
4.Determine the relevance of accounting to business and governments;
5.Use information and communication technology for present and future challenges.
DETAILED SYLLABUS
TOPICS/CONTENTS/NOTES
1.Nature and Significance of Accounting
a. Development of accounting (including branches of accounting)
b. Objectives of book keeping and accounting;
c. Principles, concepts and conventions of accounting (nature, significance and application)
d. Role of accounting records and information.
OBJECTIVES
Candidates should be able to:
i. Differentiate between book keeping and accounting.
ii. Use the historical background of bookkeeping and accounting for future development
iii. Apply the right principles, concept and conventions to solving accounting problems;
iv. Examine the role of accounting records and information.
TOPICS/CONTENTS/NOTES
2.Principles Of Double Entry
a.Functions of source documents
b.Books of original entry
c.Accounting equation
d.The ledger and its Classifications
e.Trial balance
f. Types and treatment of errors and the use of suspense account.
OBJECTIVES
Candidates should be able to:
i. relate the various source documents to their use.
ii. relate source documents to the various books of original entry;
iii. determine the effect of changes in elements of accounting equation;
iv. identify the role of double entry and use it to post transactions into various divisions of the ledger.
v. Balance off ledger accounts;
vi. Extract a trial balance from balances and determine its uses;
vii.Identify various types of errors and their necessary corrections.
viii.Create a suspense account.
TOPICS/CONTENTS/NOTES
3. Cash Book
a.Petty cash book and the imprest system.
b.Columnar cash books
c.Discounts
OBJECTIVES
Candidates should be able to:
i. Determine the cash float;
ii. Identify various petty cash expense;
iii. Differentiate between two and three columnar cash books and how transactions are recorded in them;
iv. Differentiate between trade and cash discounts;
v. Examine the effects of trade and cash discounts in the books of
accounts.
TOPICS/CONTENTS/NOTES
4. Bank Transactions and Reconciliation Statements
a.Instrument of bank transactions
b.e-banking system
c.courses of discrepancies between cash book and bank statement
d.bank reconciliation statement.
OBJECTIVES
Candidates should be able to :
i. Relate bank documents cheques paying-in documents, credit and debit cards and their uses;
ii. Assess the impact of automated credit system, credit transfers, interbank transfer and direct debit on cash balances;
iii. Detect errors and omissions in the bank statement and cash book;
iv. Identify timing differences;
v. Calculate the bank balance to be recorded in the final accounts;
vi. Determine the bank statements balances;
TOPICS/CONTENTS/NOTES
5. The Final Accounts of a Sole Trader
a.Trading and profit and loss account
b.Balance sheet
c.Adjustments:
i. Provision for bad and doubtful debt;
i. Provision for discounts
ii. Provision for depreciation using straight-line and reducing balance methods;
iii. Accruals and repayments;
iv. Drawings
OBJECTIVES
Candidates should be able to:
i. Determine the cost of sales, gross profit and net profit of a sole trader,
ii. Identify fixed assets, current assets,long- term liabilities, current liabilities and proprietor's capital;
iii. Compute adjustable items on the related expenditure and income in the profit and loss account;
iv. Relate the adjustable items and their corresponding disclosure in the balance sheet;
v. Differentiate between bad debts and provision for bad and doubtful debts.
TOPICS/CONTENTS/NOTES
6. Stock Valuation
a. Methods of cost determination using FIFO, L1FO and simple average;
b.The advantages and disadvantages of the methods.
c.The importance of stock valuation.
OBJECTIVES
Candidates should be able to:
i. Determine the cost of materials issued to production or cost of goods sold using FIFO, LIFO and simple average;
ii. Calculate the closing stock of materials or finished goods using FIFO, LIFO and Simple Average;
iii. Compare the advantages and limitations of each method of stock valuation.
iv. Determine the effects of stock valuation on trading profits and cost of goods sold.
TOPICS/CONTENTS/NOTES
7. Control Accounts and Self-balancing Ledgers
a.Uses of control accounts
b.Purchases ledger control account
c.Sales ledger control account.
OBJECTIVES
Candidates should be able to:
i. Determine the need and uses of control accounts in a business enterprises; )
ii. Differentiate between sales ledger control account and purchases ledger control account:
iii. Identify the individual elements of control accounts;
TOPICS/CONTENTS/NOTES
8.Incomplete Records and Single Entry
a.Conversion of single entry todouble entry
b.Determination of missing igures
c.Preparation of final accounts from incomplete records.
OBJECTIVES
Candidates should be able to:
i. Determine proprietor's capital using statement of affairs;
ii. Calculate, amounts of sales, purchases, cash balances, debtors, creditors and expenses by converting single entry to double entry;
iii. Use accounting equations and gross profit percentage to determine gross profit or cost of sales.
TOPICS/CONTENTS/NOTES
9.Manufacturing Accounts
a.Cost classification
b.Cost apportionment
c. Preparation of manufacturing account
OBJECTIVES
Candidates should be able to:
i. Calculate prime cost, productionoverhead, production cost and total cost;
iii. Determine the basis of apportionment into production, administration and distribution.
TOPICS/CONTENTS/NOTES
10. Account of Not-For-Profit Making Organizations.
a.Objectives of not-for-profit making organization
b.Receipts and payments account
c.Income and expenditure account
d.Balance sheet
OBJECTIVES
Candidates should be able to:
i. Identify the features of not-for-profit-making organisations.
ii. Determine the subscription income and subscription in arrears and in advance;
iii. Compute the cash balances and accumulated funds, surplus and deficit for the period from all sources
TOPICS/CONTENTS/NOTES
11. Departmental Accounts
a.Objectives
b.Apportionment of expenses
c.Departmental trading and profit and Joss account
OBJECTIVES
Candidates should be abje to:
i. Identify the reasons for departmental accounts;
ii. Determine the expenses associated with individual departments;
iii. Compute departmental and-total profit or losses.
TOPICS/CONTENTS/NOTES
12. Branch Accounts
a.Objectives
b.Branch accounts in the head office books
c.Head office account.
d.Reconciliation of branch and head office books
OBJECTIVES
Candidates should be able to:
i. Determine the reasons for branch accounts;
ii. Calculate profits and losses from branches;
iii. Determine the sources of differences and reconcile them.
TOPICS/CONTENTS/NOTES
13. Partnership Accounts
a.Formation of partnership
b.Profit and loss account
c.Appropriation account
d.Partners current and capital accounts
e.Treatment of goodwill
f. Admission/retirement of a partner
g.Dissolution of partnership
h. Conversion of a partnership to a company.
OBJECTIVES
Candidates should be able to:
i. Determine the instruments of partnership formation;
ii. Categorize all accounts necessary for partnership;
iii. Determine the effects of admission and retirement of a partner;
iv. Identify the accounts required for dissolution and conversion to a company;
v. Compute elements required for partnership accounts.
TOPICS/CONTENTS/NOTES
14.Introduction to Company Acounts
a.Formation and classification of companies
b.Issue of shares and debentures
c.Forms of final accounts of companies
d.Interpretation of accounts using ratios.
e.Distinction between capital and revenue reserves.
OBJECTIVES
Candidates should be able to:
i. Differentiate between types of companies
ii. Identify the processes and procedures of recording the issues of shares and debentures;
iii. Compute elements of final accounts of companies.
iv. Interpret the accounts for decisionmaking using ratios.
TOPICS/CONTENTS/NOTES
15.Public Sector Accounting
a.Comparison of cash and accrual basis of accounting
b.Sources of government revenue
c.Capital and recurrent expenditure
d.Consolidated revenue fund
e.Statement of assets and liabilities
f. Responsibilities and powers of:
i. The Accountant General
ii. The Auditor General
iii. The Minister of Finance
iv. TheTreasurer of Local Government
g.Instruments of Financial Regulation
OBJECTIVES
Candidates should be able to:
i. Differentiate between public sector accounting and commercial accounting;
ii. Identify the sources of government revenue including federation
account sharing between the three tiers of government;
iii. Calculate consolidated revenue fund and determine the values of assets and liabilities;
iv. Analyse the duties of the Accountant General, the Auditor
General, the Minister of Finance and the Treasurer of Local Government;
v. Distinguish between the elements of control in government accounting procedures e.g virement, warrant, votes, Authority to incur expenditure, budget and due process certificate.
Principles of Accounts
RECOMMENDED TEXTS
Adeifa O. Ajileye, J. O and Oluwasanna, R. O (2001) Get your Financial Accounting Right. Book One: Oyq, Tenlad Press International.
Ajileye, J. O. and Adetifa O. (2001); Get your Financial Accounting Right, Book Two: Lagos: De Hadey Printing Services
Akinduko, A. O (2001) Basic Accounting: Akure: Spetins
Anao, A. R (1993); An Introduction to Financial Accounting, Lagos: Longman
Awoyemi, E- O- (1989) A guide to Government Accounting and Internal Audit, Ibadan:
Oniboje Press.
Dodge, R. (2002) Foundation of Business Accounting, (Second Edition), Bershire:
chapman and hall
Ektvere, A. B. (1997) Contemporary Accounting, Abuja: Aflon
Finance (Control and Management) Act 1959
Frank, W. and Omuya, J. O. (1988) Book-keeping and Accounting for Senior Secondary Schools, Vols. 1 & 2 London: Pitman
Hassan M. M (2001), Government Accounting, Lagos: Malthouse Press Limited
Igben, R. O. (2004) Financial Accounting Made- Simple (Vol I) Lagos: Roi "
Publishers
Longe, O. A and Kazeera, R. A (2006) Essential Financial Accounting for Senior-Secondary Schools: Lagos: Tonad Publishers Limited •
Millkhamp, A. H (1989) Foundation Accounting." An Introduction manual for Accounting Students, London: DP Publications
Okwoli, A. A (1995) Financial Accounting, Zaria: Tamaza Publuishers
Oshisami, K. (1997), Government Accounting and Financial Control: Ibadan: Spectrum
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