F.4BAFSSyllabus/2016-2017/p.

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SING YIN SECONDARY SCHOOL

BUSINESS, ACCOUNTING AND FINANCIAL STUDIES
NSS FORM FOUR SYLLABUS
September 2016 - June 2017

Aims: 1. To stimulate students’ interest in business, accounting and management.

2. To help students understand the real business environment.
3. To promote values and attitudes of honesty, fairness and social responsibility.
4. To develop generic skills in research, analysis, problem-solving, critical thinking, creativity and communication.

Textbooks: 1. Frank Wood’s Introduction to Accounting (Second edition); Frank Wood & Eric Lo Chi Chung; Pearson
2. Frank Wood’s Financial Accounting 1(Second edition); Frank Wood & Eric Lo Chi Chung; Pearson
3. Frank Wood’s Financial Accounting 2(Second Revised edition); Frank Wood & Eric Lo Chi Chung; Pearson

Learning Objectives: Number of

Topics Remarks
Students are expected to be able to periods
1(c) Introduction to Accounting

Purposes and the Role (a) appreciate the importance of accounting and its relevance to decision-making 2
of Accounting (b) describe the functions of accounting - Functions: recording, classifying,
(c) describe the flow of the accounting cycle summarizing and communicating

Uses of financial (a) explain how information in financial statements can assist decision-making 2
statements (b) explain the uses and limitations of financial statements

The Accounting Cycle 12

- Double entry (a) explain the accounting equation and demonstrate how transactions affect it - Accounting equation: C = A – L + (R - E)
systems (b) apply the principles of double entry to the recording of business transactions in ledgers

- Trial Balance (a) explain the functions and limitations of a trial balance
(b) balance off the accounts and prepare a trial balance

- Financial (a) prepare properly presented income statements and statement of financial position - both horizontal and vertical forms
statements (balance sheet) for sole proprietorship - differentiate between non-current and current
assets, current and non-current liabilities
- explain the nature of working capital
- balance off the capital account
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2(a) Financial Accounting

Books of original entry (a) explain the functions of books of original entry and ledgers - business documents: invoices, credit notes, 15
and Types of Ledgers (b) record transactions in books of original entry and post to ledger accounts debit notes, receipts/payment vouchers
 purchases journal - comparison between cash and credit
 sales journal transactions for purchases and sales, trade
 returns outwards journal discount and cash discount, discounts
 returns inwards journal allowed, bank loans and bank overdraft
 cash book - petty cash book is not required
 the journal - typical uses of the journals
(c) identify the major classifications in ledgers - accounts receivable ledger, accounts payable
ledger and general ledger
- personal, real accounts and nominal accounts

Period-end DEPRECIATION 16
Adjustments relating to (a) state the meaning and objectives of providing depreciation in accounting
the Preparation of (b) distinguish between capital and revenue expenditures
Financial statements (c) compare the commonly used methods of depreciation and explain the effect of  methods of calculation:
depreciation charge (including disposal) on profits  Straight-line
(d) prepare journal and ledger entries at the close of accounting period and show the effect  Reducing balance
on income statement and statement of financial position (balance sheet)  Usage-based method
(e) prepare simple accounting entries for disposal of non-current assets  Disposal of non-current assets including
trade-in
BAD DEBTS 6
(a) distinguish between bad debts and allowance for doubtful accounts  interpretation of an ageing schedule
(b) prepare journal and ledger entries at the close of accounting period and show the effect  allowance for discounts allowed is not
on income statement and statement of financial position (balance sheet) required

ACCRUALS & PREPAYMENTS 6

(a) differentiate between cash accounting and accrual accounting
(b) prepare journal and ledger entries at the close of accounting period and show the effect
on income statement and statement of financial position (balance sheet)

VALUATION OF INVENTORY 6
(a) apply the following to determine the value of inventory:
 lower of cost and net realisable value
 sale or return
 weighted average cost
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Bank reconciliation (a) identify reasons for discrepancies between cash book and bank statement balances and  interpretation of a bank statement and its 8
statement prepare a bank reconciliation statement relationship with the cash book entries
(b) explain the functions of a bank reconciliation statement  bank reconciliation statement commencing
with either cash book or bank statement
balance

Correction of errors (a) identify the types of accounting errors and their effects on accounting records  identify errors affecting and not affecting the 15
(b) prepare correcting entries agreement of trial balance
(c) write up a suspense account  identify errors which affect the reported
profit and calculate the correct net profit
 re-draft a corrected balance sheet
Introduction to (a) state the nature of a partnership as a business entity 6
partnership accounts (b) calculate and show interest on partners’ capital, interest on drawings and share of
remaining profits or losses
(c) differentiate accounting treatment of employees’ salaries and partners’ salaries
(d) prepare appropriation accounts and current accounts for partnership  columnar presentation of partners’ fixed
(e) prepare properly presented income statement and statement of financial position capital and current accounts
(balance sheet) for partnership  debit balances in partners’ current accounts

Partnership goodwill (a) define goodwill and explain the factors affecting its valuation  valuation of goodwill is not required 8
(b) prepare the necessary adjustments of goodwill to partners’ capital arising from the  record goodwill with or without opening a
following changes at the beginning or end of a financial period: goodwill account
 admission of new partner
 retirement/death of partner
 changes in profit-sharing ratio

Partnership revaluation (a) prepare the necessary adjustments to net assets arising from the changes of the  prepare the revaluation account 8
partnership  apportion surplus or deficit of revaluation
among partner

Total no. of periods: 110

Prepared by: Checked by:

_________________________________ (SY) _________________________________(TM)

Miss Choi Suk Yan Miss Tam Mei Ling