Provide candidates with a roadmap of topics to cover for the WAEC Financial Accounting exam
Ensure candidates know the topics to focus on and don't miss important areas
1. INTRODUCTION TO FINANCIAL ACCOUNTING
History, nature and functions of Accounting
Learning Objectives:
1.1 History, nature and functions of Accounting.
Users of Accounting information
Learning Objectives:
1.2 Users of Accounting information.
Stages in the Accounting process
Learning Objectives:
1.3 Stages in the Accounting process.
Characteristics of Accounting information
Learning Objectives:
1.4 Characteristics of Accounting information.
2. THE ACCOUNTING EQUATION AND DOUBLE ENTRY PRINCIPLES
Accounting Equation
Learning Objectives:
2.1 Accounting Equation.
Purpose and functions of source documents
Learning Objectives:
2.2 Purpose and functions of source documents.
Subsidiary books
Learning Objectives:
2.3 Subsidiary books.
The ledger: classification of Accounts
Learning Objectives:
2.4 The ledger: classification of Accounts.
Cash Book
Content:
•Analytical cash book
•Petty cash book
Learning Objectives:
2.5 Cash Book: analytical cash book, including petty cash book.
Preparation of Trial Balance
Learning Objectives:
2.6 Preparation of Trial Balance.
Bank Reconciliation Statements
Learning Objectives:
2.7 Bank Reconciliation Statements.
Correction of errors and Suspense Account
Learning Objectives:
2.8 Correction of errors and Suspense Account.
3. ACCOUNTING CONCEPTS
Meaning
Learning Objectives:
3.1 Meaning.
Types
Learning Objectives:
3.2 Types.
Significance
Learning Objectives:
3.3 Significance.
Limitations
Learning Objectives:
3.4 Limitations.
4. THE FINAL ACCOUNTS OF A SOLE TRADER/PROPRIETORSHIP
Trading, profit and loss accounts/Income statement
Learning Objectives:
4.1 Trading, profit and loss accounts/Income statement.
Balance sheet/statement of financial position
Learning Objectives:
4.2 Balance sheet/statement of financial position.
Adjustments to final accounts
Learning Objectives:
4.3 Adjustments to final accounts.
5. PROVISIONS AND RESERVES
Provision for doubtful debts/Allowance for doubtful debts
Learning Objectives:
5.1 Provision for doubtful debts/Allowance for doubtful debts.
Provision for discounts
Learning Objectives:
5.2 Provision for discounts.
Depreciation
Content:
•Concepts
•Reasons for recording
•Methods: straight line
•Methods: reducing balance
•Methods: sum of the years digits
•Methods: revaluation
Learning Objectives:
5.3 Depreciation – concepts, reasons for recording and methods: (i) straight line; (ii) reducing balance; (iii) sum of the years digits; (iv) revaluation.
Accounting for depreciation
Learning Objectives:
5.4 Accounting for depreciation.
Reserves
Content:
•Revenue reserves
•Capital reserves
Learning Objectives:
5.5 Reserves – revenue and capital reserves.
6. MANUFACTURING ACCOUNTS
Purpose of Manufacturing Accounts
Learning Objectives:
6.1 Purpose of Manufacturing Accounts.
Cost classification in Manufacturing Accounts
Learning Objectives:
6.2 Cost classification in Manufacturing Accounts.
Preparation of final Accounts of Manufacturing concern
Learning Objectives:
6.3 Preparation of final Accounts of Manufacturing concern.
7. CONTROL ACCOUNTS AND SELF-BALANCING LEDGERS
Meaning and uses of control accounts
Learning Objectives:
7.1 Meaning and uses of control accounts
Types of control accounts
Content:
•Sales ledger control
•Purchases ledger control
Learning Objectives:
7.2 Types: (i) sales ledger control (ii) purchases ledger control
Preparation of Control Accounts
Learning Objectives:
7.3 Preparation of Control Accounts
Reconciliation of Control Accounts
Learning Objectives:
7.4 Reconciliation of Control Accounts
8. SINGLE ENTRY AND INCOMPLETE RECORDS
Meaning and limitations
Learning Objectives:
8.1 Meaning and limitations
Computation of profit or loss from opening and closing balance sheets
Learning Objectives:
8.2 Computation of profit or loss from opening and closing balance sheets.
Conversion of single entry to double entry
Learning Objectives:
8.3 Conversion of single entry to double entry.
Preparation of final accounts from a set of incomplete records
Learning Objectives:
8.4 Preparation of final accounts from a set of incomplete records.
Mark up and Margin
Learning Objectives:
8.5 Mark up and Margin
9. ACCOUNTS OF NOT-FOR-PROFIT MAKING ORGANIZATIONS
Meaning and terminologies
Learning Objectives:
9.1 Meaning and terminologies.
Receipts and payments accounts
Learning Objectives:
9.2 Receipts and payments accounts.
Subscriptions Account
Learning Objectives:
9.3 Subscriptions Account
Income and expenditure accounts
Learning Objectives:
9.4 Income and expenditure accounts.
Accumulated fund
Learning Objectives:
9.5 Accumulated fund.
Balance sheet
Learning Objectives:
9.6 Balance sheet.
Profit or loss from income generating activities
Learning Objectives:
9.7 Profit or loss from income generating activities.
10. PARTNERSHIP ACCOUNTS
Nature and formation of partnership
Learning Objectives:
10.1 Nature and formation of partnership.
Partnership agreements/Deed
Learning Objectives:
10.2 Partnership agreements/Deed.
Profit and loss appropriation accounts
Learning Objectives:
10.3 Profit and loss appropriation accounts.
Partners capital account and balance sheet
Learning Objectives:
10.4 Partners capital account and balance sheet
Admission of a new partner
Learning Objectives:
10.5 Admission of a new partner.
Treatment of goodwill and revaluation of assets
Learning Objectives:
10.6 Treatment of goodwill and revaluation of assets
Dissolution of partnership
Content:
•Questions will not be set on Garner V. Murray and piecemeal realization
Learning Objectives:
10.7 Dissolution of partnership (Questions will not be set on Garner V. Murray and piecemeal realization)
11. COMPANY ACCOUNTS
Nature and formation of a company
Learning Objectives:
11.1 Nature and formation of a company.
Types of companies and shares
Learning Objectives:
11.2 Types of companies and shares.
Issue of shares
Learning Objectives:
11.3 Issue of shares.
Loan capital, debentures/loan notes and mortgages
Learning Objectives:
11.4 Loan capital, debentures/loan notes and mortgages.
Final accounts of company for internal use only
Learning Objectives:
11.5 Final accounts of company for internal use only.
Interpretation of accounts using simple ratios
Learning Objectives:
11.6 Interpretation of accounts using simple ratios.
Purchase of business account
Learning Objectives:
11.7 Purchase of business account.
Statement of Cash Flow
Content:
•Using direct methods
•Using indirect methods
Learning Objectives:
11.8 Statement of Cash Flow (using direct and indirect methods).
Statutory requirements
Content:
•Separate questions may be set to meet statutory requirements of individual countries
•Candidates' answers must meet statutory requirements of individual countries
Learning Objectives:
NOTE: Separate questions may be set to meet statutory requirements of individual countries. Candidates' answers must meet statutory requirements of individual countries.
12. ACCOUNTING FOR VALUE ADDED TAX
Purpose of VAT
Learning Objectives:
12.1 Purpose of VAT.
Characteristics of VAT
Learning Objectives:
12.2 Characteristics of VAT.
Bases of computing input/output VAT
Learning Objectives:
12.3 Bases of computing input/output VAT.
Preparation of VAT returns
Learning Objectives:
12.4 Preparation of VAT returns.
Exempt goods and services
Learning Objectives:
12.5 Exempt goods and services.
13. DEPARTMENTAL AND BRANCH ACCOUNTS
Meaning and importance
Learning Objectives:
13.1 Meaning and importance
Differences between a department and branch
Learning Objectives:
13.2 Differences between a department and branch.
Preparation of departmental account
Learning Objectives:
13.3 Preparation of departmental account.
Preparation of Branch Account
Content:
•Excluding foreign branches
Learning Objectives:
13.4 Preparation of Branch Account excluding foreign branches.
Inter branch transactions
Learning Objectives:
13.5 Inter branch transactions.
14. PUBLIC SECTOR ACCOUNTING
Meaning and difference between Public Sector and Private Sector Accounts
Learning Objectives:
14.1 Meaning and difference between Public Sector and Private Sector Accounts.
Sources of public revenue
Learning Objectives:
14.2 Sources of public revenue.
Capital and recurrent expenditures
Learning Objectives:
14.3 Capital and recurrent expenditures.
Preparation of simple government accounts
Learning Objectives:
14.4 Preparation of simple government accounts.
15. INFORMATION TECHNOLOGY IN ACCOUNTING
Manual and computerized Accounting Processing Systems
Learning Objectives:
15.1 Manual and computerized Accounting Processing Systems.
Processes involved in data processing
Learning Objectives:
15.2 Processes involved in data processing.
Computer Hardware and Software
Learning Objectives:
15.3 Computer Hardware and Software.
Merits and demerits of manual and computerized accounting processing systems
Learning Objectives:
15.4 Merits and demerits of manual and computerized accounting processing systems.
16. MISCELLANEOUS ACCOUNTS
Joint Venture Accounts
Learning Objectives:
16.1 Meaning, introduction, terminologies and preparation of simple: (i) Joint Venture Accounts
Consignment Accounts
Learning Objectives:
16.1 Meaning, introduction, terminologies and preparation of simple: (ii) Consignment Accounts
Contract Accounts
Learning Objectives:
16.1 Meaning, introduction, terminologies and preparation of simple: (iii) Contract Accounts
Hire Purchase Accounts
Learning Objectives:
16.1 Meaning, introduction, terminologies and preparation of simple: (iv) Hire Purchase Accounts
17. FINANCIAL SYSTEM
Meaning and components
Learning Objectives:
17.1 Meaning and components.
Money market
Content:
•Meaning, functions and features
Learning Objectives:
17.2 Meaning, functions and features of: (i) money market;
Capital market
Content:
•Meaning, functions and features
•Methods of raising funds: offer for sale
•Methods of raising funds: offer for subscription
•Methods of raising funds: rights issue
•Methods of raising funds: private placement
•Requirements for accessing the capital market
•Benefits to investors
•Benefits to government
•Benefits to economy
•Benefits to individual company
Learning Objectives:
17.2 Meaning, functions and features of: (ii) capital market;
17.3 Methods of raising funds from the capital market: (i) offer for sale; (ii) offer for subscription; (iii) rights issue; (iv) private placement;
17.4 Requirements for accessing the capital market.
17.5 Benefits of capital market to: (i) investors; (ii) government; (iii) economy; (iv) individual company;
Insurance market
Content:
•Meaning, functions and features
Learning Objectives:
17.2 Meaning, functions and features of: (iii) insurance market.
Types, features and reasons for regulation
Learning Objectives:
17.6 Types, features and reasons for regulation.
Recommended Textbooks
Business Accounting Volume 1 – West African Edition by Frank Wood and Omunya
Business Accounting Volume 2 – Frank Wood
Accounting and Finance – Frank Wood
Foundation Accounting – A. H. Millchamp
Basic Accounting – J. D. Magee
Accounting for Senior Secondary School – S. C. Malhorta, P. K. Botchweyand, P. A. Amankwah