ACCOUNTING 6 – The Grammar School

PEARSON EDEXCEL IAL: ACCOUNTING

COURSE PLANNER – CLASS 6 (Unit 1):

Teaching Week	Topic	Key Learning Objectives
1	Year-End Adjustments Capital Expenditure and Revenue Expenditure	Understand how to record owing and prepaid expenses/incomes in ledger accounts. Understand the difference between spending company cash for assets and for regular expenses.
2-4	Irrecoverable Debts and Allowance for Irrecoverable Debts Depreciation of Non-Current Assets Disposal of Non-Current Assets	Understand how to record Bad Debts and a provision for bad debts in ledger accounts. Learn the causes of depreciation, the reasons for charging it and the methods used to calculate it. Understand and prepare ledger accounts for non-current assets and provisions for depreciation. Learn to account for the disposal of non-current assets.
5	Correction of Errors	Understand how to correct errors affecting the Trial Balance and the use of the Suspense Account.
6	Control Accounts	Learn how to prepare the Trade Receivable and Trade Payables Control Accounts.
7	Financial Statements of sole traders	Understand and prepare final accounts and incorporate all year-end adjustments.
8	Departmental Accounts	Understand and prepare one set of final accounts for companies with different departments.
9	Accounting Concepts and Conventions	Learn a number of rules that accountants follow when preparing accounts.
10	Valuation of Inventory	Understand the two different methods of calculating the stock left unsold at the end of the year.
11	Labour Costs	Students will be taught the different methods of remuneration: day work, piece work and bonus schemes.
12	Overhead Costs	Learn to account for the allocation, apportionment and absorption of overheads.
13	Job Costing	Students will be introduced to the characteristics of job costing and understand how to prepare job costings for customer orders.
14-16	Partnerships	Learn how to prepare appropriation accounts, capital and current accounts and accounts for the introductions and retirement of a partner.
17	Ratios	Understand how to calculate ratios for profitability, use of assets and liquidity.
18-19	Incomplete Records	Learn how to prepare final statements from incomplete records.
20-21	Manufacturing Accounts	Understand and prepare the manufacturing account and the allocation and apportion costs between products and functions.
22-24	Clubs and Non-Profit Making Organizations	Students will learn to prepare receipts and payments accounts, an income statement and a statement of financial position for non-profit making organizations.
25-26	Social Accounting and Ethics Revisit topics	Understand the social implications of accounting decisions in the wider social context. Revisit topics.
Plus three tests per term, exam techniques and preparation, revision, past-papers practice, final exams.

Resources: Key textbook – Pearson Edexcel IAL Accounting student book and active book 1 by John Bellwood and Hilary Fortes, Past papers Booklet, Handouts, Microsoft Teams. Assessment: Tests (three per term), participation, homework, classwork, final exams, discussions, extra material/assignments etc.

COURSE PLANNER – CLASS 7 (Unit 2):

Teaching Week	Topic	Key Learning Objectives
1	Limited companies – introduction. Capital reserves and revenue reserves. Authorized, issued and called up share capital. The features of shares and debentures. Articles of association and memorandum of association. The importance of disclosing continuing and discontinued activities and the significance of exceptional items.	Understand how limited companies differ from other forms of organizations. Understand the difference between shares and debentures. Understand the requirements of the Companies Act. Examine how a company’s reserves are created and utilized.
2-4	Financial statements in accordance with International Accounting Standard (IAS) 1.	Understand the role of IAS1 and prepare statements of profit and loss and other comprehensive income, statements of changes in equity and statements of financial position. Examine the role of the auditor and the importance of the Auditors’ Report and the Directors’ Report.
5-6	Capital structure: issue of shares to the public, rights and bonus issues. Capital gearing and its implications. Redemption of shares and debentures.	Understand the process of issuing shares. Prepare ledger accounts and journal entries to record the issue of new shares, bonus issues and rights issues. Examine the accounting treatment of issuing shares at a premium. Examine the process of redeeming shares or debentures. Evaluate the different types of finance.
7-8	Statement of cash flows (IAS7)	Understand the importance of liquidity. Understand the basic outline of International Accounting Standard (IAS) 7 and the format it prescribes for the statement of cash flow. Be able to draw up a statement of cash flow.
9-10	Merger or purchase of limited companies	Understand the reasons and the process of a purchase of a limited company or the merger of two companies. Prepare ledger accounts and journal entries. Be able to calculate the purchase price of a company. Be able to calculate the goodwill and understand its correct treatment. Evaluate the merger of two companies.
11-12	Investment ratios	Understand, calculate and interpret investment ratios.
13-14	Investment appraisal	Understand and apply different methods of a project’s appraisal. Discuss the relative merits of the four techniques (payback, net present value, accounting rate of return and internal rate of return). Calculate the weighted average cost of capital.
15-16	Budgeting	Understand the role of budgeting as a management tool for planning, forecasting and control. Understand the process of budget preparation. Prepare budgets for revenue, production, purchases, inventory, trade receivables, trade payables, capital and cash. Prepare flexible budgets.
17-18	Standard costing and variance analysis	Understand the purpose of standard costing. Examine the stages in establishing a standard costing system. Analyze material, labour, and overhead variances. Examine the possible reasons for variances.
19	Information and communication technology (ICT) in Accounting	Understand the uses of ICT in accounting in relation to costing products or services and the provision of management information for: spreadsheets (e.g. budgeting), software packages (e.g. invoices), electronic point of sale (e.g. stock control system). Advantages and disadvantages of using ICT in accounting.
20-21	Marginal costing and absorption costing	Understand the concepts of marginal costing and absorption costing. Calculate the value of inventory using both methods. Prepare profit and loss statements using the two methods. Advantages and disadvantages. Examine marginal costing in decision making. Calculate contribution.
22-23	Break even analysis	Calculation of fixed, semi-fixed, semi variable, variable costs, selling price and profit. Break-even point, margin of safety, angle of incidence. Graphical representation of break-even analysis.
24-26	Revisit topics	Revisit topics and work on extra papers.
Plus three tests per term, exam techniques and preparation, revision, past-papers practice, final exams.

Resources: Key textbook – Pearson Edexcel IAL Accounting student book and active book 2 by John Bellwood and Hilary Fortes, Past papers Booklet, Handouts, Microsoft Teams. Assessment: Tests (three per term), participation, homework, classwork, final exams, discussions, extra material/assignments etc.

Appendix (adapted from material supplied by Pearson):

Some examples of transferable skills	Interpretation in this subject	Examples of where the skill is covered and developed throughout the subject course
Problem-solving	Selecting and deploying relevant material in order to construct a response to an accounting problem or issue posed as a matter for judgment.	Financial statement of organizations: draw up a list of possible changes to the financial statements for example prepayments, accruals, depreciation, provision for irrecoverable debts.
Analysis Interpretation	Analysing the text material found in the Resource Booklet given in the exam and making choices as to the relevance of that data when answering the questions. Identifying and interpreting data to draw conclusions as well as identifying explicit and implicit meaning from data.	Calculate, analyze and interpret investment ratios.
Reasoning/Argumentation Evaluation	Constructing a reasoned argument to support a considered judgment about an accounting issue or about advising on an accounting problem.	Look at the different sources of finance for a company and select which source of finance is appropriate for that company. Analyze and evaluate each source of finance.
Decision making	Making a choice or a decision in terms of an essay or selecting the correct information to use to answer the question.	Use marginal costing and contribution to decide which product or products is most profitable to produce and sell.
Adaptive learning Executive function	Responding to material provided in the exam (no pre-release data is given) and adapting their knowledge to the needs of the question. Carry out a full set of accounts for a chosen business, being able to plan the workings out for that business and complete the examined question.	Practice accounting layouts for the preparation of financial statements for example prepare statements of cash flow according to IAS 7.
Continuous learning Direction and Productivity	Planning, setting goals and meeting them regularly, including time management, fluency in economic terms etc.	Through the learning outcomes of this subject students will be equipped with the skills to interpret real-world applications in business and finance.

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