POA Class

Introduction
 Class Objectives
• By the end of this session you will :-
Know the topics to be covered in the course and the exam structure.
Understand the main reasons for keeping accounting records.
Understand the difference between Accounting and Book-keeping.
Know the users of Accounting Information.
Know the major accounting Concepts and Conventions
Types of Jobs/Careers in Accounting/Types of Businesses .
Ethics in Accounting
The Accounting Cycle.
International Accounting Terms
 Topics To Be Covered
Introduction to Accounting
The Balance Sheet
Books of Original Entry
Ledgers & Trial Balance
Financial Statement of a Sole Trader
Adjustments to Financial Statements (Year End Adjustments)
Control Systems (Suspense Accounts, Control Accounts, Bank Recon

Topics To Statement)
Partnership Accounts
Limited Liability Companies/Non Profit Organizations
Be Covered Manufacturing Accounts & Inventory Control
Accounting for the Entrepreneur (Payroll, Cash flow Projections,
Sales and Production Budgets, Simple Business Plans)
Format of Examination
 Some of the reasons for maintaining
accounting records are:
To monitor the progress of the business.
Reasons To be compliant with tax laws.
for To satisfy the needs of Directors and
potential investors.
Keeping It aids in strategic business planning.
Accountin
g Records
Can you think of any?
 Book-keeping vs Accounting

Book-keeping – Concerned mainly with the Recording of daily transactions of the business.

Accounting – The Recording, Selecting, Classifying & Summarizing of financial data in ways which
provides the owners of businesses with useful information to help them to assess the performance of
the business and to assist with strategic planning.

Accounting is based upon principles referred to as:

GAAP (Generally Accepted Accounting Principles)
 Accounting Concepts

 The Business Entity Concept

 The Going Concern Concept
 The Accruals Concept
 The Prudence/Conservatism Concept
 The Dual Aspect Concept
 The Cost Concept
 The Money Measurement Concept
 The Consistency Concept
 The Matching Concept
 The Accounting Period Concept
 Users of Accounting Information

Internal Users
 The Owners of the Business.
 Directors
 Managers
 Employees
External Users
 Potential Investors
 The bank and other lending institutions (Creditors)
 Government and Other regulatory Agencies
 Other Stakeholders
 Careers in Accounting

• Accountant
• Tax Accountant
• Payroll Accountant
• Auditor
• Book-keeper
• Financial Analyst
• Banking
• Insurance
 Types of Business Organizations

Sole Traders
Partnerships
Limited Liability Companies
Non Profit Organizations
Co-operatives
 Ethics in accounting are concerned with how to make good
and moral choices in regard to the preparation, presentation
and disclosure of financial information.

Ethics in  Pressure to manipulate figures (Cook The Books)

Accountin  Omission of Financial Records.

 Misappropriation of Funds.
g  Disclosure violations.
 The
Accountin
g Cycle
 International Term Replacing

Income Statement Trading & Profit & Account

International Statement of Financial Position

Inventory
Loss for the year
Balance Sheet
Stock
Net Loss

Accounting
Non-Current Asset Fixed Assets
Non- Current Liability Long Term Liability
Profit for the Year Net Profit
Revenue Sales

Terms Accounts Receivable

Accounts Payable
Trade Debtors/Debtors
Trade Creditors/Creditors