Accounting

O Level Principles of Accounts (7110)

Unit 2: The Ledger and Trial Balance

Recommended Prior Knowledge

No prior knowledge is needed other than students’ personal experiences as consumers and possibly workers for and observers of organisations.

Context

This unit covers fundamental aspects of bookkeeping. It can be studied on its own or in conjunction with Unit 1. Later units are based on knowledge gained in this unit so it is important to study this unit early in a course of study. Students may find it useful to refer to a glossary of accounting terms as they study.

Outline

This unit focuses on double entry bookkeeping which underlies all bookkeeping and accounting in examinations. It also covers reconciling the cash book and the bank statement.

AO

1.1

Learning outcomes

Candidates should be able to: • explain the difference between bookkeeping and accounting in providing information for monitoring progress and decision making

Suggested Teaching activities

Some examples of bookkeeping as the routine day-to-day recordkeeping as compared with final accounts, management accounts and other aspects of accounting should help students appreciate the breadth of the subject. It is important to stress that accuracy of bookkeeping is very important because this provides the basis on which decisions are made.

Learning resources

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state the benefits of ICT (Information and Communications Technology) in bookkeeping and accounting: • accuracy • speed of processing information • performing reconciliations • ease and capacity of information storage • security

Students do not need to have access to or be familiar with a computer. However, seeing how a computer deals with numerous bookkeeping transactions would clarify the topic. A visit to a local business is one option. Or groups of students could be asked to identify benefits for an organisation of using computers.

http://www.voluntaryarts.org/uploaded/ map2795.pdf#search=%22computerise...