.

Higher Secondary School Certificate Examination Syllabus

PRINCIPLES OF ACCOUNTING
CLASSES XI-XII

(based on National Curriculum 2002)

Published by Aga Khan University Examination Board Bungalow # 233 / E.1 Lines, Daudpota Road, Karachi, Pakistan.

September 2008 Last reviewed July 2009

All rights reserved This syllabus is developed by Aga Khan University Examination Board for distribution to all its affiliated schools.

Higher Secondary School Certificate Examination Syllabus

PRINCIPLES OF ACCOUNTING
CLASSES XI-XII

Sr. No. Preface 1. 2. 3. 5. 6. 7. 8.

Table of Contents

Page No. 5 7 7 10 38 42 43 44

Aims/Objectives of the National Curriculum (2002) Rationale of the AKU-EB Examination Syllabuses Topics and Student Learning Outcomes of the Examination Syllabus Scheme of Assessment Teaching-Learning Approaches and Classroom Activities Recommended Texts and Reference Materials Definition of Cognitive Levels and Command Words in the Student Learning Outcomes in Examination Papers Annex : HSSC Scheme of Studies

48

For queries and feedback Address: AKU-Examination Board Bungalow No. 233/ E.1 Lines, Daudpota Road, Karachi-Pakistan. Phone: (92-21) 35224702-09 Fax: (92-21) 35224711 E-mail: [email protected] Website: www.aku.edu/akueb

PREFACE
In pursuance of National Education Policy (1998-2010), the Curriculum Wing of the Federal Ministry of Education has begun a process of curriculum reform to improve the quality of education through curriculum revision and textbook development (Preface, National Curriculum documents 2000 and 2002). AKU-EB was founded in August 2003 with the same aim of improving the quality of education nationwide. As befits an examination board it seeks to reinforce the National Curriculum revision through the development of appropriate examinations for the Secondary School Certificate (SSC) and Higher Secondary School Certificate (HSSC) based on the latest National Curriculum and subject syllabus guidance. AKU-EB has a mandate by Ordinance CXIV of 2002 to offer such examination services to English and Urdu medium Candidates for SSC and HSSC from private schools anywhere in Pakistan or abroad, and from government schools with the relevant permissions. It has been accorded this mandate to introduce a choice of examination and associated educational approach for schools, thus fulfilling a key objective of the National Curriculum of Pakistan: Autonomy will be given to the Examination Boards and Research and Development cells will be established in each Board to improve the system (ibid. para. 6.5.3 (ii)). AKU-EB is committed to creating continuity of educational experience and the best possible opportunities for its students. In consequence it offered HSSC for the first time in September, 2007 to coincide with the arrival of its first SSC students in college or higher secondary school. Needless to say this is not an exclusive offer. Private Candidates and students joining AKU-EB affiliated schools and colleges for HSSC Part 1 are eligible to register as AKU-EB Candidates even though they have not hitherto been associated with AKU-EB. This examination syllabus exemplifies AKU-EBs commitment to national educational goals. It is in large part a reproduction, with some elaboration, of the Class XI and XII National Curriculum of the subject. It makes the National Curriculum freely available to the general public. The syllabus recommends a range of suitable textbooks already in print for student purchase and additional texts for the school library. It identifies areas where teachers should work together to generate classroom activities and materials for their students as a step towards the introduction of multiple textbooks, another of the Ministry of Educations policy provisions for the improvement of higher secondary education (ibid. para. 6.3.4).

This examination syllabus brings together all those cognitive outcomes of the National Curriculum statement which can be reliably and validly assessed. While the focus is on the cognitive domain, particular emphasis is given to the application of knowledge and understanding, a fundamental activity in fostering attitudes befitting useful and peaceful citizens and the skills for and commitment to lifelong learning which is the cornerstone of

national economic development (Preface to National Curriculum documents 2000 and 2002). To achieve this end AKU-EB has brought together university academicians, teacher trainers, writers of learning materials and above all, experienced teachers, in regular workshops and subject panel meetings. AKU-EB provides copies of the examination syllabus to subject teachers in affiliated schools to help them in planning their teaching. It is the syllabus, not the prescribed textbook which is the basis of AKU-EB examinations. In addition, the AKU-EB examination syllabus can be used to identify the training needs of subject teachers and to develop learning support materials for students. Involving classroom teachers in these activities is an important part of the AKU-EB strategy for improving the quality of learning in schools. The Curriculum Wing of the Federal Ministry of Education has recently released new subject specifications and schemes of study to take effect in September, 2008. These documents are a major step forward towards a standards-related curriculum and have been welcomed by AKU-EB. Our current HSSC syllabuses have been revised to ensure conformity with the new National Curriculum 2006. We stand committed to all students who have embarked upon the HSSC courses in facilitating their learning outcomes. Our examination syllabus document ensures all possible support.

Dr. Thomas Christie Director, Aga Khan University Examination Board July 2009

1.

Aims/Objectives of the National Curriculum (2002)1 Objectives The basic objective of teaching Principles of Accounting, is to acquaint the students with the fundamental knowledge of the structure and process of recording, classifying and presenting the accounting data for its application in simple and routine business activities and also to provide them with a sound base for higher and specialized study in the subject. Specific Objectives i. ii. iii. To equip the students with basic knowledge in the field of Accounting. To develop interest for persuing higher knowledge in the field of Accounting. To provide the trained personnel at lower level in various business and commercial organizations

2. 2.1

Rationale of the AKU-EB Examination Syllabus General Rationale 2.1.1 In 2007, the Curriculum Wing of the Federal Ministry of Education (MoE) issued a revised part-wise Scheme of Studies according to which the total marks for the HSSC examination are 1100 from the year 2008 and onwards. All subjects are to be taught and examined in both classes XI and XII. It is therefore important for teachers, students, parents and other stakeholders to know: (a) that the AKU-EB Scheme of Studies for its HSSC examination (Annex A) derives directly from the 2007 Ministry of Education Scheme of Studies; which topics will be examined in Class XI and in Class XII; at which cognitive level or levels (Knowledge, Understanding, Application and other higher order skills) the topics and sub-topics will be taught and examined;

(b) (c)

2.1.2 This AKU-EB examination syllabus addresses these concerns. Without such guidance teachers and students have little option other than following a single textbook to prepare for an external examination. The result is a culture of rote memorization as the preferred method of examination preparation. The pedagogically desirable objectives of the National Curriculum which encourage observation, creativity and other higher order thinking [skills] are generally ignored. AKU-EB recommends that teachers and students use multiple teaching-learning resources for achieving the specific objectives of the National Curriculum reproduced in the AKU-EB examination syllabuses. 2.1.3
1

The AKU-EB examination syllabuses use a uniform layout for all subjects to make them easier for teachers to follow. Blank sheets are provided in each

Government of Pakistan (2002), National Curriculum; Principles of Accounting Classes XI-XII, Islamabad, Ministry of Education (Curriculum Wing)

syllabus for writing notes on potential lesson plans. It is expected that this arrangement will also be found helpful by teachers in developing classroom assessments as well as by question setters preparing material for the AKU-EB external examinations. The AKU-EB aims to enhance the quality of education through improved classroom practices and improved examinations. 2.1.4 The Student Learning Outcomes (SLOs) in Section 3 start with command words such as list, describe, relate, explain, etc. The purpose of the command words is to direct the attention of teachers and students to specific tasks that Candidates following the AKU-EB examination syllabuses are expected to undertake in the course of their subject studies. The examination questions will be framed using the same command words, but not necessarily the same content, to elicit evidence of these competencies in Candidates responses. The definitions of command words used in this syllabus are given in Section 8. It is hoped that teachers will find these definitions useful in planning their lessons and classroom assessments. The AKU-EB has classified SLOs under the three cognitive levels Knowledge (K), Understanding (U) and Application of knowledge and skills (A) in order to derive multiple choice questions and constructed response questions on a rational basis from the subject syllabuses ensuring that the intentions of the National Curriculum should be met in full. The weighting of marks to the Multiple Choice and Constructed Response Papers is also derived from the SLOs, command words and cognitive levels. In effect the SLOs derived from the National Curriculum determine the structure of the AKU-EB subject examination set out in Section 4 and 5.

2.1.5

2.1.6 Some topics from the National Curriculum have been elaborated and enriched for better understanding of the subject and/or to better meet the needs of students in the twenty-first century. These additional topics have been italicized in Section 3 of this syllabus. 2.2 . The course of Principle of Accounting will help the learner to: be familiar with the theoretical foundations of organizing, managing and handling operations of a business firm and to help students. appreciate the economic and social significance of business activities and the social cost and benefits arising therefrom. be familiar with accounting as an information system. acquaint with the basic concepts of accounting and accounting standards. develop the skills of using accounting equation in processing business transactions. Specific Rationale of the AKU-EB Principles of Accounting Examination Syllabus

develop an understanding about recording of business transactions and preparation of financial statements. be familiar with accounting for reconstitution of partnership firms. enable the students to understand and analyze the financial statements. be familiar with the fundamentals of computerised system of accounting.

3.

Topics and Student Learning Outcomes of the Examination Syllabus Part I (Class XI) Topic Student Learning Outcomes Candidates should be able to: 1.1.1 1.1.2 1.1.3 1.1.4 1.1.5 1.1.6 describe evolution of accounting with reference to expansion of Human Economical Trade & Commerce activities ; define accounting; elaborate needs/of accounting in modern trade and commerce generalize; explain objectives of accounting in business; explain the function of accounting; explain the functions (bases) of accounting system etc; cash basis accounting system merchandise or accrual basis. Accrual system mixed system classify the branches of accounting etc. book keeping/financial accounting/cost accounting and management accounting; describe the elements of accounting (accounting process) etc; (a) origination of transaction (b) recording the transaction in the journal (c) posting to the ledger (d) preparation of trial balance (e) preparation of financial statement * * * * * * Cognitive Level2 K U A

1. Introduction to Accounting 1.1 Introduction to Accounting

1.1.7 1.1.8

* *

K = Knowledge, U = Understanding, A= Application (for explanation see Section 8: Definition of command words used in Student Learning Outcomes and in Examination Questions).

10

NOTES

11

K 1.2 Importance and its scope 1.2.1 1.2.2 describe need, importance and scope of accounting; list down users (parties) of accounting i.e. owner, management, creditor, employees, investors, government, consumers; explain the terms Asset, Liability, Capital, Expense, Income, Expenditure, Revenue, Debtors, Creditors, Goods, Cost, Gain, Stock, Purchase, Sales, Loss, Profit, Voucher, Discount, Transaction, Drawings, prepaid and accrued accounts of assets and expenses; differentiate between the following (a) current asset and fixed asset (b) account receivable and notes receivable (c) account payable and notes payable (d) current and non-current liabilities (short term and long term) conceptualize business entity concept; define business transaction; categorize business transaction into cash and credit transaction; define book keeping; categorize the types of book keeping into single entry and double entry; explain objectives of book keeping; distinction between book keeping and accounting; explain formation of double entry system; describe accounting cycle and accounting period types; define accounting equation and its application; express accounting assumption; analyze business transaction in term of accounting terminologies; express terminologies of debit and credit; interpret the laws of debit and credit; *

U * *

1.3

Formation of a bank

1.3.1

1.3.2

1.4 Business transaction & Record Keeping (Book Keeping)

1.4.1 1.4.2 1.4.3 1.4.4 1.4.5 1.4.6 1.4.7 1.4.8 1.5.1 1.5.2 1.5.3 1.5.4 1.5.5 1.5.6

* * * * * * * * * * * * * * * *

1.5 Accounting Equation and Accounting Cycle

12

NOTES

13

K 1.5.7 1.5.8 2. Revenue and Capital Expenditure 2.1 Income and Expenses explain the concept of single entry and double entry; drive and apply accounting equation in different transactions;

U *

A *

Candidates should be able to:

2.1.1 2.1.2 2.1.3 2.2.1 2.2.2 2.2.3 2.3.1 2.4.1

define income (revenue) and expenses; describe sources of income; describe kinds of expenditure; define capital expenditure and revenue expenditure; list capital expenditure and revenue expenditure items; differentiate between capital expenditure and revenue expenditure items; define and explain receipt and payment; define profit and loss;

* * * * *

2.2 Capital Expenditure and Revenue Expenditure

* *

2.3 Receipt and Payments 2.4 Profits and Losses 3. Books of Original Entry 3.1 General Journal and General Ledger.

* *

Candidates should be able to: 3.1.1 3.1.2 3.1.3 3.1.4 3.1.5 3.1.6 3.1.7 define general journal entry; explain characteristics of general journal entry; define narration and its importance; illustrate the rules of journalizing; post general journal entries; illustrate the method of posting or rules (features) of Ledgering; post the transactions in a general ledger in all three types A. T-Form B. Standard Form C. Self Balancing; * * * * * * *

14

NOTES

15

K 3.1.8 3.1.9 3.1.10 3.1.11 3.2 Cash Book 3.2.1 3.2.2 3.2.3 3.2.4 3.3 Petty cash Book 3.3.1 3.3.2 3.3.3 3.3.4 3.4.1 3.4.2 3.4.3 3.4.4 explain the method of footing and balancing of ledger accounts and accuracy of ledger; define trial balance; describe the objectives of preparing of general journal; prepare and balance trial balance by extracting the data from general ledger; define cash book; explain different types of cash books etc single column cash book, double column cash book and triple column cash book; prepare cash book and relevant T-Account; interpret steps of verification of cash balances; define petty cash book; prepare petty cash book; explain system of petty cash etc ordinary and imprest system; Post the entries for establishment, replenishment, and recording of expenses; define special journal, sales return and allowance, purchase return and allowance; explain and distinguish between cash discount and trade discount; distinguish between purchase journal and purchase account, sales journal and sales account; prepare a special journal (sales journal, purchase journal, sales return journal, purchase journal);

A *

* * * * * * * * * * * * * * * * *

3.4 Special Journal

4. Banking Transactions 4.1 Types of banking accounts.

Candidates should be able to: 4.1.1 explain and differentiate types of bank accounts etc current account, saving bank account and fixed deposit account; * *

16

NOTES

17

K 4.2 Recording of bank transaction Cheques and its types. 4.2.1 explain the procedure of recording bank transactions;

U *

4.3

4.3.1

explain and differentiate types of cheques etc bearer cheques crossed cheques and order cheques; explain terminologies and their impact on bank reconciliation statement etc unpresented cheques, uncleared cheques, NSF cheques, bank charges, discounting of bill and directly deduction or collection by the bank; describe the key elements of bank statements; prepare a bank reconciliation statement.

4.4

Bank reconciliation statement.

4.4.1

4.4.2 4.4.3 5. Rectification of Error, Adjustment, Financial Statement, reversing, opening and closing entries. 5.1 Rectification of Error and its Kinds

* *

Candidates should be able to:

5.1.1 5.1.2

define an Accounting error; explain the classification of error etc, book keeping error and trial balance error; explain the further classification(types) of bookkeeping error etc a. error of Omission of balance from the trial balance, b. transfer of balance to the wrong column of trail balance, c. the balancing amount wrongly entered in the trail balance d. mistake of addition in trail balance column,

* * *

5.2

Error correction after and before closing of books of accounts

5.2.1

18

NOTES

19

K 5.3 Suspense accounts 5.3.1 5.3.2 5.3.3 5.4 Adjusting entries 5.4.1 5.4.2 5.5.1 5.5.2 5.5.3 5.5.4 5.5.5 5.5.6 5.5.7 5.6 adjusting entries for 5.6.1 Prepaid, accrued of an expense or an asset and 5.6.2 unearned revenue, 5.6.3 illustrate posting for error correction after and before closing of books of accounts; define the suspense accounts; illustrate the working of an suspense account; define adjusting entry and its importance in preparing final accounts; explain the procedure in preparing adjusting entries; conceptualize the concept of inventory, differentiate between inventory (stock) and supply; illustrate the recording of Merchandise inventory ending; conceptualize the concept of depreciation and bad debts(uncollectible / doubtful debts); explain the working of an Allowance accounts; illustrate the recording of Allowance for depreciation and Allowance for bad debts (uncollectable / doubtful debts); describe provision for discount; recall or revise the concept of prepaid and accrued of an expense account or an asset account (SLO 1.3); differentiate accrued and unearned income; illustrate the recording of adjusting entries for a. Prepaid or accrued(payable/outstanding) of an asset b. Prepaid or accrued(payable/outstanding) of an expense c. Unearned or revenue receivable(commission/rent/interest); illustrate the recording of adjusting entries for interest on capital, drawing or withdrawal of merchandise; define prepaid and outstanding expenses; *

U *

A *

* * * * * * * * * * * * * * *

5.5

adjusting entries for merchandise inventory, depreciation of an asset, bad debts (uncollectible / doubtful debts)

5.6.4 5.6.5

* *

20

NOTES

21

5.7

Financial statement (statement of affairs and statement of profit and loss)

5.7.1 5.7.2 5.7.3 5.7.4 5.7.5 5.7.6

define Financial statements; define income statement and its key features; explain posting and handling of profit/loss account or expense and revenue summary account illustrate the procedure for the preparation of income statement; define balance sheet (statement of affairs) and its key features; illustrate the steps for preparing the balance sheet (statement of affairs); define worksheet illustrate the procedure of creating worksheet. define reversing entries; illustrate the procedure of posting reversing entries; define opening entries; illustrate the procedure of posting opening entries; define closing entries; illustrate the procedure of posting closing entries;

K *

A *

* * * * * * * * * * * * * * * *

5.8

Worksheet

5.8.1 5.8.2 5.9.1 5.9.2 5.9.3 5.9.4 5.9.5 5.9.6

5.9

reversing, opening and closing entries

22

NOTES

23

Part II (Class XII) K 6. Bill of Exchange 6.1 Bill of exchange Candidates should be able to: 6.1.1 6.1.2 6.1.3 6.1.4 6.1.5 6.2.1 define a bill of exchange; explain the parties of bill of exchange; explain terminologies and accounts treatment of the bill of exchange; explain the procedure of drawing acceptance and payment of the bills; illustrate the procedure of preparing a bill of exchange; differentiate bill of exchange with cheque and promissory note; * * * * * * U A

6.2

Differentiate bill of exchange with promissory note and cheques

7. Single Entry/Incomplete Records 7.1 Single Entry/ Incomplete Records

Candidates should be able to:

7.1.1 7.1.2 7.1.3 7.1.4 7.1.5 7.1.6 7.1.7 7.1.8

define the concept of accounting systems etc double entry system, single entry system, and cash system practices; differentiate between single entry and double entry; calculate / figure out Capital at the end and at the start; prepare Profit and Loss A/c and statement of Affairs including adjustment; Retrieve missing figures e.g. Cash Bal / Bank Bal, credit sales and purchase. explain mixed entry system(conversion method); compute Net purchases, net sales, total credit purchases, and total credit sales; preparing income statement and statement of affairs by mixed entry system.

* * * * * * * *

24

NOTES

25

K 8. Company Accounts 8.1 Company Accounts. Candidates should be able to: 8.1.1 8.1.2 8.2 Terminologies and A/c used in Accounting treatment. 8.2.1 describe basic concept and characteristics of company according to Companies Ordinance 1984; explain procedure of formation of a Company; explain and describe briefly purpose and background of retained earnings, concepts of securities, shares, debentures, vendor, marketable securities, investments, dividend, types of dividend, share capital, types of capital in companies, share premium, share discount, discount on debenture, loss on debenture, redemption of debenture, stock dividend, business net worth, kinds of companies, preliminary expenditures, underwriting, minimum subscription, under subscription, over subscription; differentiate between share and debenture / share holders and debenture holders; differentiate between public and private company; illustrate the conditions of issuing securities; share and debentures; prepare/ Make set of entries regarding issuance of shares with discount and premium; prepare/ Make set of entries regarding issuance debentures with and without redemption; prepare statement of appropriation of income; prepare financial statements with adjustment; prepare and draft Companys income statement; prepare and draft balance sheet in all three forms; T-form, classified form and report form; prepare cost of goods sold statement; Prepare closing and reversing entry. *

* * *

8.2.2 8.2.3 8.2.4 8.3 General Journal entries and Financial Statement for Companys accounts 8.3.1 8.3.2 8.3.3 8.3.4 8.3.5 8.3.6 8.3.7 8.3.8

* * * * * * * * * * *

26

NOTES

27

K 9. Provisions, Reserves and Sinking Fund/Reserves and funds Candidates should be able to:

9.1.1 9.1.2 9.1.3 9.1.4 9.1.5 9.1.6 9.1.7 9.1.8 9.1.9 9.1.10 9.1.11 9.1.12

9.1.13

define the term reserve; illustrate/list down types of reserves etc general reserve, specific reserve, capital reserve and secret reserve; differentiate between general reserve and specific reserve; explain advantages and disadvantages of secret reserve; generalize the ways of creating a secret reserves; enumerate/itemize the different reserves and funds; define Provisions and its application; differentiate between Provision and reserve; define reserve funds; differentiate between reserves and fund; define sinking funds; prepare / make set of entries for; a. when the net income is transferred to retained earning account b. when stock or cash dividend is declared c. when stock dividend is paid d. when cash dividend is paid e. when any reserve account is to be established or created f. when the purpose of any reserve is a accomplished or fulfilled prepare balance sheet (partial and complete both).

* *

* * * * * * * *

* * *

28

NOTES

29

K 10. Depreciation 10.1 Concept of depreciation 10.2 Capital and revenue expenditures Candidates should be able to: 10.1.1 10.1.2 10.2.1 10.2.2 10.2.3 10.3.1 10.3.2 define the concept of depreciation with respect to IAS-16; differentiate between depreciation and depletion, amortization and depreciation; distinguish between capital and reserve expenditure; express terms and concept used in accounting treatment; enumerate/itemize the different Capital and revenue expenditures; compute the cost price, depreciable cost of fixed tangible assets; calculate depreciation with the help of straight line method, sum of digit (life) method, diminishing balance method, production unit method(unit and hour); post the general entries for purchase and depreciation of the goods; compute and record disposal of fixed assets by sales, by exchange and by discard as well; prepare set of entries from the acquisition of fixed assets to the disposal; prepare partial balance sheet. *

* * * * * *

10.3 Computation and recording of depreciation

10.3.3 10.3.4 10.3.5 10.3.6 11. Consignment A/C 11.1 Concept and terms used consignment A/C

* * * *

Candidates should be able to: 11.1.1 11.1.2 11.1.3 describe the concept of consignment A/c; differentiate between consignment and sale; express basic terminologies and concepts used in consignment A/cs; * * *

30

NOTES

31

K 11.2 Bookkeeping and accounting procedures. 11.2.1 11.2.2 11.2.3 11.2.4 11.2.5 11.2.6 prepare account sales; express book keeping for consignments; book keeping in consignor's book; book keeping in consignee's book; figure out valuation of unsold stock; solve and interpret normal and abnormal loss;

A * * * * * *

12. Partnership 12.1 Partnership

Candidates should be able to: 12.1.1 12.1.2 12.1.3 12.2.1 12.2.2 12.2.3 12.2.4 define the concept of partnership; express need and importance; describe kinds of partnership and partnership deed; describe concept of formation and merger of two running businesses of sole proprietorship; calculate business net worth; record set of entries; prepare balance sheet; prepare profit and loss distribution summary; record with draw's of funds; record set of entries regarding distribution; prepare current/fixed capital A/c and balance sheet; express conditions under which a new partner is admitted; differentiate between capital and investment; compute and record general entries; prepare balance sheet after admission; compute the capital of new partners under various conditions; bonus, goodwill, direct purchase; * * * * * * * * * * * * * * * *

12.2 Formation

12.3 Distribution of Profit and Loss

12.3.1 12.3.2 12.3.3 12.3.4 12.4.1 12.4.2 12.4.3 12.4.4 12.4.5

12.4 Admission

32

NOTES

33

K 12.4.6 12.4.7 12.5 Retirement 12.5.1 12.5.2 12.5.3 12.5.4 12.5.5 12.6 Liquidation 12.6.1 12.6.2 12.6.3 12.6.4 12.6.5 compute revaluation; prepare financial position of business after valuation; explain the concept and condition of a partner; record the general entries to record the retirement of a partner eg at par, bonus, goodwill, direct sale of share of retiring partner; computing and recording revaluation; prepare revised balance sheet; prepare set of entries in a case of death; define concepts and terminologies; explain the condition under which a firm dissolved; explain the basic concept of realization; prepare realization A/c and liquidation; record the general entries. *

A * *

* * * * * * * * * *

13. Accounting for non Profit Organization (N.P.O) 13.1 Concept of Non-profit organization

Candidates should be able to:

13.1.1 13.1.2 13.1.3 13.1.4 13.1.5 13.1.6 13.1.7

define concept of non-trading/profit concern/organization; list down forms of N.P.O; express terms and concepts used in N.P.O and final A/c prepared in N.P.O and define receipt and payment A/c; make a list of sources of funds/income in N.P.O; describe concept of accumulated fund; treat special procedure of subscription; solve adjustment of income and expenditure;

* * * * * * *

34

NOTES

35

13.2 Income and Expenditure A/c

13.2.1 13.2.2 13.2.3 13.2.4

explain income and expenditure A/c; differentiate between receipts and payment of income and expenditure; prepare income and expenditure A/c; Prepare balance sheet.

K *

U *

* *

36

NOTES

37

4.

Scheme of Assessment Class XI Table 1: Number of Student Learning Outcomes by Cognitive level

Topic No 1 2 3 4 5 6

Topic Introduction to Accounting Revenue and Capital Expenditure Books of Original Banking Transactions Adjustment, Rectification of Error and Income Statement Bill of Exchange Total Percentage

No. of Sub Topic 5 4 4 4 9 2 28

SLOs K 8 5 5 0 9 1 28 22 U 18 3 5 5 24 5 60 48 A 6 1 12 4 14 1 38 30

Total 32 9 22 9 47 7 126 100

Table 2: Allocation of Marks for the Objective Test, Constructed Response Paper and Extended Response Questions Marks Constructed Response Paper 8 5 5 7 10 5 40

Topic No 1 2 3 4 5 6

Topic Introduction to Accounting Revenue and Capital Expenditure Books of Original Banking Transactions Adjustment, Rectification of Error and Income Statement Bill of Exchange Total

No. of Sub Topic 5 4 4 4 9 2 28

Objective Test 7 3 5 3 8 4 30

ERQ 15 15 30

Total 15 8 25 10 33 9 100

38

Table 3: Paper Specifications Topic No. 1 2 Topic Introduction to Accounting. Revenue and Capital Expenditure Marks Distribution MCQs 7 @ 1 Mark CRQs 2 @ 4 Marks Each MCQs 3 @ 1 Mark CRQ 1 @ 5 Marks MCQs 5 @ 1 Mark CRQs 2 @ 4 Marks Each **ERQs 2 @ 6 Marks Each Choose any TWO from THREE MCQs 3 @ 1 Mark Each CRQ 1 @ 7 Marks MCQs 4 @ 1 Mark CRQ 1 @ 5 Marks MCQs 8 @ 1 Mark CRQs 3 @ 3 Marks Each CRQs 2 @ 4 Marks Each *ERQ 1 @ 8 Marks Choose any ONE from TWO MCQs CRQs ERQs 30 50 20 Total Marks 15 8

Books of Original Entry

25

4 5

Banking Transaction Accounting of Bill of Exchange

10 9

Adjustments and Final Account

33

Total

100

Extended response questions (ERQs) will require answers in more descriptive form. The answers will be in a paragraph rather than a word or a single sentence. There will be TWO questions and the candidates will be required to attempt any ONE by making a choice out of the TWO.

** There will be THREE questions and the candidates will be required to attempt any TWO by making a choice out of the THREE.

39

Class XII Table 3: Number of Student Learning Outcomes by Cognitive level Topic No 7. 8. 9. 10. 11. 12. 13. Topic Single Entry Companies Accounting Reserve and Fund Depreciation Consignment Accounts Partnership Accounts Accounting for Non profit Organization Total Percentage No. of Sub Topic 1 3 1 3 2 6 2 18 SLOs U 2 4 8 2 2 8 5 31 31 Total 8 15 15 11 10 29 11 99 100

K 1 1 5 2 2 4 2 17 17

A 5 10 2 7 6 17 4 51 52

Table 4: Allocation of Marks for the Objective Test, Constructed Response Paper and Extended Response Questions Marks Constructed Response Paper 4 5 6 5 6 8 8 40

Topic No 7.

Topic

No. of Sub Topic

Objective Test 5 5 4 5 2 6 3 30

ERQ

Total

Single Entry 8. Companies Accounting 9. Reserve and Fund 10. Depreciation 11. Consignment Accounts 12. 13. Partnership Accounts Accounting for Non profit Organization Total

1 3 1 3 2 6 2 18

8 5 5 10 30

17 15 10 15 8 24 11 100

40

Table 6: Paper Specifications Topic No 1 Single Entry Topic Marks Distribution MCQs 5 @ 1 Mark CRQ 1 @ 4 Marks *ERQ 1 @ 8 Marks Choose any ONE from TWO MCQs 5 @ 1 Mark CRQ 1 @ 5 Marks *ERQ 1 @ 5 Marks Choose any ONE from TWO MCQs 4 @ 1 Mark CRQs 2 @ 3 Marks Each MCQs 5 @ 1 Mark CRQ 1 @ 5 Marks *ERQ 1 @ 5 Marks Choose any ONE from TWO MCQs 2 @ 1 Mark CRQs 2 @ 3 Marks each MCQs 6 @ 1 Mark CRQs 2 @ 4 Marks Each **ERQs 2 @ 5 Marks Each Choose any TWO from THREE MCQs 3 @ 1 Mark CRQs 2 @ 4 Marks Each MCQs 30 CRQs 42 ERQs 28 Total Marks 17

Companies Accounting

15

Reserve and Fund

10

Depreciation

15

Consignment Accounts

Partnership Accounts Accounting for Non Profit Organization Total

24

11 100

Extended response questions (ERQs) will require answers in more descriptive form. The answers will be in a paragraph rather than a word or a single sentence. There will be TWO questions and the candidates will be required to attempt any ONE by making a choice out of the TWO.

** There will be THREE questions and the candidates will be required to attempt any TWO by making a choice out of the THREE. 4.1 Tables 1 and 4 summarize the number and nature of SLOs in each topic in classes XI and XII. This will serve as a guide in the construction of the examination paper. It also indicates that more emphasis has been given to Understanding (46% and 30%), Application and higher order skills (27% and 51%) to discourage rote memorization. Tables 1 and 4 however do not translate directly into marks. There will be two examinations, one at the end of Class XI and one at the end of Class XII. In each class, the theory paper will be in two parts: paper I and paper II. Both papers will be administrated within 3 hours.

4.2

4.3

41

4.4

Paper I theory will consist of 30 compulsory, multiple choice items. These questions will involve four response options. Paper II theory will carry 70 marks and consist of a number of compulsory, structured questions and a number of extended response questions. Each extended response question will be presented in an either/or form. All constructed response questions will be in a booklet which will also serve as an answer script. TeachingLearning Approaches and Classroom Activities As AKU-EB syllabuses focus on Understanding and higher order thinking skills, teachers need to encourage activity and problem-based classroom practices. The following strategies are recommended: 5.2.1 Before starting any topic, teachers should give the relevant information from that topic to build up and recall their previous knowledge if any. Lecture should be well organised and completed within limited time period with current and practical examples. To understand the cognitive level of ongoing topics, teacher(s) should provide hard copies of the syllabus to the students. During lecture, teacher(s) should ask question randomly from the students to assess whether the are understanding or not. If a teacher feels that a student does not understand, the student should be called to the board to clarify the concept. This will facilitate the student to comprehend more accurately. Encourage students to present selected and applied topics of the syllabus Arrange educational trips to different organisations and institutes, i.e. banks and financial institutions. Assign tasks to the students to search relevant material from other sources, i.e. library, internet and news papers etc. Organise group discussions among students to share their views about current topics. Plan to organise meeting of students with different professionals and intellectuals. This will broaden their horizons and boost their confidence levels.

4.5

4.6

5. 5.1

5.2

5.2.2

5.2.3

5.2.4

5.2.5

5.2.6 5.2.7

5.2.8

5.2.9

5.2.10

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6.

Recommended Texts and Reference Materials Recommended Books 1. Punjab Textbook Board. (2005-06). Part I and Part II for Intermediate: Financial Accounting. Lahore: Punjab Textbook Board 2. M. A. Ghani. (2007-08). Part I and Part II for Intermediate: Principles of Accounting. Lahore: Pak Imperial Book. 3. Syed Ifthikhar Ahmed and Sardar M. Shafique Khan. (2005-06). Part I and Part II for Intermediate: Principles of Basic of Financial Accounting. Karachi: Petiwala Publications. 4. Naveed Nawab and Syed Majid Ali (2006). Accounting. Karachi: Iqra publishers Urdu bazaar, Karachi. 5. Frank Wood. (2007-08) Ninth Edition. Part I Business Accounting 1 and 2. Karachi: LPE Publishers Pearson Education (Singapore) Pte. Ltd. Reference Books 1. Ian Harrison. (2007-2008). Introducing Accounting for AS l and 2. London Hodder and Stoughton. 2. Harold Randol. (2007). Accounting. UK: Cambridge University Press. 3. Jawahar lal and seema srivastava (2003). Financial Accounting principles and practices. India: S.Chand & Company 7361,ramnagar,New delhi. Reference Materials 1. Newspaper and magazine articles. 2. Booklets from banks, insurance companies, and other commercial institutions. 3. Business documents from commercial organizations such as retailers, wholesalers, banks, insurance companies. 4. Commercial information published by government and other public bodies such as the Department for Business Enterprise and Regulators Reform and the Offices of Trading. Websites
The internet provides a vast amount of information from a wide range of sources including businesses, trade associations and government. Search engines such as Google (www.google.com), Yahoo (www.yahoo.com), and Ask Jeeves (www.ask.com) provide good search facilities.

www.wikipedia.com www.elsevier.com www.bis.org www.finance.gov.pk 43

http://www.businessbookmall.com/Free%20Business%20Books.htm#Accounting www.sbp.org.pk http://www.simplestudies.com/ www.accountingcoach.com/ http://www.wannalearn.com/Business_and_Careers/Accounting/ http://www.freebooksclub.net/accounting www.cpecredit.org/ www.smartpros.com/accountingstudents.xml http://www.pdfoo.com/pdf-309/accounting.html http://www.reallifeaccounting.com/dictionary.asp http://www.ventureline.com http://www.accountingcoach.com/terms/accounting-dictionary.html http://www.alphadictionary.com/directory/Specialty_Dictionaries/Accounting/ http://www.accountancy.com.pk/accounting-dictionary.asp 7. Definition of Cognitive Levels and Command Words in the Student Learning Outcomes in Examination Papers Definitions of Cognitive Levels (Knowledge, Understanding and Application) Knowledge: This requires knowing and remembering facts and figures, vocabulary and contexts, and the ability to recall key ideas, concepts, trends, sequences, categories, etc. It can be taught and evaluated through questions based on: who, when, where, what, list, define, describe, identify, label, tabulate, quote, name, state, etc. Understanding: This requires understanding information, grasping meaning, interpreting facts, comparing, contrasting, grouping, inferring causes/reasons, seeing patterns, organizing parts, making links, summarizing, solving, identifying motives, finding evidence, etc. It can be taught and evaluated through questions based on: why, how, show, demonstrate, paraphrase, interpret, summarise, explain, prove, identify the main idea/theme, predict, compare, differentiate, discuss, chart the course/direction, report, solve, etc. Application: This requires using information or concepts in new situations, solving problems, organizing information and ideas, using old ideas to create new ones, generalizing from given facts, analyzing relationships, relating knowledge from several areas, drawing conclusions, evaluating worth, etc. It can be taught and evaluated through questions based on: distinguish, analyse, show relationship, propose an alternative, prioritize, give reasons for, categorize, illustrate, corroborate, compare and contrast, create, design, formulate, integrate, re-arrange, reconstruct/recreate, re-organize, predict consequences etc.

7.1.

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7.2

Definition of Command Words:

Knowledge
Define (the term or terms): Only a formal statement or equivalent paraphrase is required. No examples need to be given. Specify meaning e.g. define the term: capital reserve. Name item-by-item, usually in one or two words, precise information such as dates, characteristics, places, names. Implies making a list of desired entities or data. Name an item e.g. identify two users of published accounts.

List:

Write: Identify

Understanding
State Name an item or amount e.g. State three benefits of preparing control accounts. List the main characteristics of two entities clearly identifying similarities (and differences). Identify similarities and differences e.g. Compare the ratios for two business Requires Candidates to state in words (using diagrams where appropriate) the main points of the topic. It is often used with reference either to particular phenomena or to particular experiments. In the former instance, the term usually implies that the answer should include reference to (visual) observations associated with the phenomena. Identify those characteristics which always or some times distinguish two categories. Implies a simple free hand sketch or diagram. Care should be taken with proportions and the clear labelling of parts. May imply reasoning or some reference to theory, depending on the context. Set out purpose or reasons e.g. explain how the concept of prudence is applied to the valuation of stock Select the most appropriate from many possibilities on the basis of relevant characteristics. It will not normally be expected that the Candidates justifies the choice unless specifically asked to do so.

Compare:

Describe:

Differentiate:

Draw:

Explain:

Identify:

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Make a relationship: Put different items together to develop a set of related data. Prove: Point out: Propose a base to support the outcome. Pick out and recognise specific information from a given content and/or situation. Implies a concise answer with little or no supporting argument, e.g. a numerical answer that can be obtained by inspection. Write a shorter version of a given text capturing the main points and eliminating detail. The writing must be grammatical and the referent of each statement must be clear. Present an informed opinion e.g. Comment on the ratios calculated Present advantages and disadvantages or strengths and weakness and give a conclusion. e.g. discuss the advantages and disadvantages of the FIFO and AVCO methods of stock valuation. Set out the main characteristics e.g. outline how accounting standards are use din the preparation of final accounts.

State:

Summarise:

Comment

Discuss

Outline

Application
Analyse: Use information to relate different features of the components of specified material so as to draw conclusions about common characteristics. Break information into component parts and identify characteristics. e.g. analyse the cash flow statement. Implies further explanation of any given information that elaborates the key components. State a basis for categorization of a set of related entities and assign examples to categories. Suggest solutions, with justification, to problems e.g. advise which machine should be purchased. Make an informed judgement e.g. assess the performance of X Ltd.

Clarify:

Classify:

Advise:

Assess:

46

Evaluate:

Make a judgement based on evidence e.g. evaluate the two methods of finance being considered by the directors. Show workings to arrive at a numerical answer e.g. calculate the return on capital employed. Construct an account e.g. prepare a profit and loss account. Make entries to correct errors e.g. correct the sales ledger control account. Record transaction in ledger accounts e.g. Post the discounts to the general ledger accounts.

Calculate:

Prepare:

Correct:

Enter/Make entries/Post Complete: Balance:

Finalise the ledger account or day book e.g. balance the cash book at the end of the month

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Annex HSSC Scheme of Studies3 AKU-EB as a national board offers SSC and HSSC qualifications for both English medium and Urdu medium schools. The revised HSSC Scheme of Studies issued by the Curriculum Wing was implemented from September 2007. At the HSSC level the marks allocated to subjects are based on the revised National Scheme of Studies of 2006. The first HSSC-I part wise (Class XI) examination based on 2006 national curriculum was held in 2009 and HSSC-II (Class XII) will be held in 2010. HSSC I-II (Classes XI-XII) subjects on offer for the examination HSSC Part-I (Class XI) Science Group (Pre-Medical) Subjects English Compulsory-I Urdu Compulsory-I OR Pakistan Culture-I a Physics-I Chemistry-I Biology-I Total: HSSC Part-II (Class XII) Science Group (Pre-Medical) Subjects English Compulsory-II Urdu Compulsory-II OR Pakistan Culture-II a Islamiyat OR Ethics b Pakistan Studies Physics-II Chemistry-II Biology-II Total: a Marks Practical 15 15 15 45 Marks Practical 15 15 15 45

Theory 100 100 85 85 85 455

Total 100 100 100 100 100 500

Theory 100 100 50 50 85 85 85 555

Total 100 100 50 50 100 100 100 600

Foreign students may opt Pakistan Culture in lieu of Urdu Compulsory, subject to the boards approval. b For non-Muslim Candidates in lieu of Islamiyat. Note: Pakistan Studies, Islamiyat / Ethics will be taught in both Classes XI and XII, but the examination will be conducted at the end of Class XII.

Government of Pakistan September 2007 and May 2003. Scheme of Studies for SSC and HSSC (Classes IXXII), Islamabad: Ministry of Education, Curriculum Wing.

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HSSC Part-I (Class XI) Science Group (Pre-Engineering) Subjects English Compulsory-I Urdu Compulsory-I OR Pakistan Culture-I a Physics-I Chemistry-I Mathematics-I Total: Marks Practical 15 15 30

Theory 100 100 85 85 100 470

Total 100 100 100 100 100 500

HSSC Part-II (Class XII) Science Group (Pre-Engineering) Subjects English Compulsory-II Urdu Compulsory-II OR Pakistan Culture-II a Islamiyat OR Ethics b Pakistan Studies Physics-II Chemistry-II Mathematics II Total: a Marks Practical 15 15 30

Theory 100 100 50 50 85 85 100 570

Total 100 100 50 50 100 100 100 600

Foreign students may opt Pakistan Culture in lieu of Urdu Compulsory, subject to the boards approval. b For non-Muslim Candidates in lieu of Islamiyat. Note: Pakistan Studies, Islamiyat / Ethics will be taught in both Classes XI and XII, but the examination will be conducted at the end of Class XII.

49

HSSC Part-I (Class XI) Science Group (Science General) Theory English Compulsory-I 100 a Urdu Compulsory-I OR Pakistan Culture-I 100 Any one subject combinations of the following: Physics-I 85 Mathematics-I 100 Statistics-I 85 Economics-I 100 Mathematics-I 100 Statistics-I 85 Economics-I 100 Mathematics-I 100 Computer Science-I 75 Physics-I 85 Mathematics-I 100 Computer Science-I 75 Mathematics-I 100 Statistics-I 85 Computer Science-I 75 Total: HSSC Part-II (Class XII) Science Group (Science General) Subjects Theory 100 100 50 50 Subjects Marks Practical 15 15 15 25 15 25 15 25 Total 100 100

300/

300/

300/

300/

300 500

English Compulsory-II Urdu Compulsory-II OR Pakistan Culture-II a Islamiyat OR Ethics b Pakistan Studies Any one subject combinations of the following: Physics-II 85 15 Mathematics-II 100 300/ Statistics-II 85 15 Economics-II 100 300/ Mathematics-II 100 Statistics-II 85 15 Economics-II 100 300/ Mathematics-II 100 Computer Science-II 75 25 Physics-II 85 15 300/ Mathematics-II 100 Computer Science-II 75 25 Mathematics-II 100 300 Statistics-II 85 15 Computer Science-II 75 25 Total: 600 a Foreign students may opt Pakistan Culture in lieu of Urdu Compulsory, subject to the boards approval. b For non-Muslim Candidates in lieu of Islamiyat. Note: Pakistan Studies, Islamiyat / Ethics will be taught in both Classes XI and XII, but the examination will be conducted at the end of Class XII. 50

Marks Practical -

Total 100 100 50 50

HSSC Part-I (Class XI) Commerce Group Subjects English Compulsory-I Urdu Compulsory-I OR Pakistan Culture-I a Principles of Accounting-I Principles of Economics Principles of Commerce Business Mathematics Total: HSSC Part-II (Class XII) Commerce Group Subjects English Compulsory-II Urdu Compulsory-II OR Pakistan Culture-II a Islamiyat OR Ethics b Pakistan Studies Principles of Accounting-II Commercial Geography Computer Studies OR Banking Business Statistics Total: a Marks Practical 15 75 75 50 600 50 600 Marks Practical -

Theory 100 100 100 75 75 50 500

Total 100 100 100 75 75 50 500

Theory 100 100 50 50 100 75 60/

Total 100 100 50 50 100 75

Foreign students may opt Pakistan Culture in lieu of Urdu Compulsory, subject to the boards approval. b For non-Muslim Candidates in lieu of Islamiyat. Note: Pakistan Studies, Islamiyat / Ethics will be taught in both Classes XI and XII, but the examination will be conducted at the end of Class XII.

51

HSSC Part-I (Class XI) Humanities Group Subjects English Compulsory-I Urdu Compulsory-I OR Pakistan Culture-I a Any three of the following Elective Subjects 1. Civics Elective-I 2. Computer Science-I (75+25 practical) 3. Economics-I 4. Education-I 5. History of Muslim India-I 6. Islamic Studies-I 7. Mathematics-I 8. Statistics-I (85+15 practical) 9. Psychology-I (85+15 practical) 10. Sociology-I 11. English Literature-I 12. Urdu Literature-I Total: HSSC Part-II (Class XII) Humanities Group Subjects English Compulsory-II Urdu Compulsory-II OR Pakistan Culture-II a Islamiyat OR Ethics b Pakistan Studies Any three of the following Elective Subjects 1. Civics Elective-II 2. Computer Science-II (75+25 practical) 3. Economics-II 4. Education-II 5. History of Muslim India-II 6. Islamic Studies-II 7. Mathematics-II 8. Statistics-II (85+15 practical) 9. Psychology-II (85+15 practical) 10. Sociology-II 11. English Literature-II 12. Urdu Literature-II Total: a Marks 100 100 50 50 300 (100 each) Marks 100 100 300 (100 each)

500

600

Foreign students may opt Pakistan Culture in lieu of Urdu Compulsory, subject to the boards approval. b For non-Muslim Candidates in lieu of Islamiyat. Note: Pakistan Studies, Islamiyat / Ethics will be taught in both Classes XI and XII, but the examination will be conducted at the end of Class XII.

52