2021 PRINCIPLES OF ACCOUNTS P2 TOPICS

Topic  Type  Completed

1. LEDGERS & THE TRIAL BALANCE

a. Describe the different classes of accounts   Theory ☐

(nominal/real/personal)

b. Identify the different types of ledgers (GL/PL/SL)  Theory ☐

c. Rules for double entry (categories of accounts and Theory ☐

whether  they carry debit or credit entries and
whether they are  increased/decreased with
debit/credit entry)

d. Post from journals to ledgers  Practical ☐

e. Balance & close off accounts  Practical ☐

f. Prepare a trial balance  Practical ☐

g. Outline uses/limitations of a trial balance  Theory ☐

2. ACCOUNTING AS A SYSTEM ☐

a. Accounting concepts & conventions  Theory ☐

b. The Accounting Cycle  Theory ☐

c. Accounting features of various legal structures Theory ☐

(sole trader,  including manufacturing,
partnership, company,   cooperatives, non-
profits)

d. Role/impact of technology in accounting  Theory ☐

e. Discuss what a statement of financial position is, Theory ☐

what it  shows etc

3. BOOKS OF ORIGINAL ENTRY

a. Identify and explain the uses of the books of original Theory ☐

entry 

b. Distinguish between cash/credit transactions and Theory ☐

cash/trade  discounts

c. Identify source documents and say which source Theory ☐

document is  used for which book of original entry
d. Complete the books of original entry from a Practical ☐
source document(s) and transfer totals to the various
accounts in the relevant ledgers

e. Prepare various source documents (invoices, Practical ☐

petty cash voucher etc)

4. ACCOUNTING ADJUSTMENTS

a. Double-entry accounts for prepaid & accrued Practical ☐

expenses & prepaid & accrued revenue and
treatment of each in the  Income Statement and
Statement of Financial Position

b. Bad debts & Provision for doubtful debts  Theory/practical ☐

c. Calculation of depreciation under straight line and Theory/practical ☐

reducing  balance method and completion of double
entry accounts for  depreciation, including transfer
to the Income Statement at  the end of a financial
period

d. Capital & Revenue Expenditure  Theory ☐

e. Preparing adjusted financials (to take into Practical

account  prepayments, accruals, depreciation & ☐
provision for bad  debts)

5. CONTROL SYSTEMS

a. Uses of control systems (need for control/uses)  Theory ☐

b. Identify 3 commonly used systems of control Theory ☐

(bank  reconciliation statements, control
accounts & suspense  accounts) 

c. Error correction (those affecting & not affecting trial Theory/Practical ☐

balance agreement, includes suspense)

d. Calculation of revised net profit statements after Practical ☐

errors are corrected

e. Update cash book and prepare bank Practical ☐

reconciliation statements

f. Prepare control accounts and use control accounts Practical ☐

to find  missing figures (for example, to calculate
 purchases for a  period)

Completed

6. PREPARATION AND ANALYSIS OF

FINANCIAL STATEMENTS OF A  SOLE
TRADER

a. Say why financial statements are prepared  Theory ☐

b. Prepare an Income Statement and Statement of Practical ☐

Financial  Position for a Sole Trader

c. Say what is working capital, why it is important and be Theory/practical ☐

able to  identify it on a SOFP & calculate it if given
figures

d. Ratio analysis & interpretation & recommendations  Practical ☐

e. Show the effect of net profit/loss on capital  Practical ☐

7. ACCOUNTING FOR LIMITED

LIABILITIY COMPANIES, 
COOPERATIVES & NON-PROFITS

a. Features/types of each of the above  Theory  ☐

b. Advantages & disadvantages of each of the above  Theory ☐

c. Ways in which each of the above raises capital Theory ☐

(including  shares & debentures)

d. Types of shares  Theory ☐

e. Preparation of journal entries/double entry accounts to Practical ☐

issue  shares & debentures

f. Calculation of dividends for ordinary and Practical ☐

preference  shareholders

g. Appropriate profits based on instructions given  Practical  ☐

h. Prepare the final accounts of limited liability Practical ☐

companies &  cooperatives (exclude non-profit final
accounts – ie no I&E /  Balance Sheet but must
include Receipts & Payments account  for a non-
profit)

i. Ratio analysis & interpretation & recommendations ☐

for these  types of businesses/entities 
 8. ACCOUNTING FOR THE ENTREPRENEUR

a. List methods of payments to employees, supplies and  Theory Completed

purchases of goods/services

b. Payroll – timecard, timebooks, employee earnings record  Theory/practical

c. Calculate gross & net wages  Practical

d. Prepare cash flow projections for a six month period  Practical

e. Budgets  Theory/practical

f. Business plan  Theory

9. ACCOUNTING FOR PARTNERSHIPS

a. Define partnerships & state features  Theory

b. Advantages & disadvantages of partnerships  Theory

c. Partnership agreements  Theory

d. Journal/double entry to record capital  Practical

e. Prepare financial statements of a partnership, including  Practical

appropriation accounts

f. Prepare current accounts of partners (columnar format  Practical

preferred)

g. Interpret balances on current accounts  Theory