1.1 The purpose of accounting - understand and explain the difference between book-keeping and accounting

1.1 The purpose of accounting - state the purposes of measuring business profit and loss

1.1 The purpose of accounting - explain the role of accounting in providing information for monitoring progress and decision-making

1.2 The accounting equation - explain the meaning of assets, liabilities and owner's equity

1.2 The accounting equation - explain and apply the accounting equation

2.1 The double entry system of book-keeping - outline the double entry system of book-keeping

2.1 The double entry system of book-keeping - process accounting data using the double entry system

2.1 The double entry system of book-keeping - prepare ledger accounts

2.1 The double entry system of book-keeping - post transactions to the ledger accounts

2.1 The double entry system of book-keeping - balance ledger accounts as required and make transfers to financial statements

2.1 The double entry system of book-keeping - interpret ledger accounts and their balances

2.1 The double entry system of book-keeping - recognise the division of the ledger into the sales ledger, the purchases ledger and the nominal (general) ledger

2.2 Business documents - recognise and understand the following business documents: invoice, debit note, credit note, statement of account, cheque, receipt

2.2 Business documents - complete pro-forma business documents

2.2 Business documents - understand the use of business documents as sources of information: invoice, credit note, cheque counterfoil, paying-in slip, receipt, bank statement

2.3 Books of prime entry - explain the advantage of using various books of prime entry

2.3 Books of prime entry - explain the use of and process accounting data in the books of prime entry: cash book, petty cash book, sales journal, purchases journal, sales returns journal, purchases returns journal and the general journal

2.3 Books of prime entry - post the ledger entries from the books of prime entry

2.3 Books of prime entry - distinguish between and account for trade discount and cash discounts

2.3 Books of prime entry - explain the dual function of the cash book as a book of prime entry and as a ledger account for bank and cash

2.3 Books of prime entry - explain the use of and record payments and receipts made by bank transfers and other electronic means

2.3 Books of prime entry - explain and apply the imprest system of petty cash

3.1 The trial balance - understand that a trial balance is a statement of ledger balances on a particular date

3.1 The trial balance - outline the uses and limitations of a trial balance

3.1 The trial balance - prepare a trial balance from a given list of balances and amend a trial balance which contains errors

3.1 The trial balance - identify and explain those errors which do not affect the trial balance: commission, compensating, complete reversal, omission, original entry, principle

3.2 Correction of errors - correct errors by means of journal entries

3.2 Correction of errors - explain the use of a suspense account as a temporary measure to balance the trial balance

3.2 Correction of errors - correct errors by means of suspense accounts

3.2 Correction of errors - adjust a profit or loss for an accounting period after the correction of errors

3.2 Correction of errors - understand the effect of correction of errors on a statement of financial position

3.3 Bank reconciliation - understand the use and purpose of a bank statement

3.3 Bank reconciliation - update the cash book for bank charges, bank interest paid and received, correction of errors, credit transfers, direct debits, dividends, and standing orders

3.3 Bank reconciliation - understand the purpose of and prepare a bank reconciliation statement to include bank errors, uncredited deposits and unpresented cheques

3.4 Control accounts - understand the purposes of purchases ledger and sales ledger control accounts

3.4 Control accounts - identify the books of prime entry as sources of information for the control account entries

4.1 Capital and revenue expenditure and receipts - distinguish between and account for capital expenditure and revenue expenditure

4.1 Capital and revenue expenditure and receipts - distinguish between and account for capital receipts and revenue receipts

4.1 Capital and revenue expenditure and receipts - calculate and comment on the effect on profit of incorrect treatment

4.1 Capital and revenue expenditure and receipts - calculate and comment on the effect on asset valuations of incorrect treatment

4.2 Accounting for depreciation and disposal of non-current assets - define depreciation

4.2 Accounting for depreciation and disposal of non-current assets - explain the reasons for accounting for depreciation

4.2 Accounting for depreciation and disposal of non-current assets - name and describe the straight-line, reducing balance and revaluation methods of depreciation

4.2 Accounting for depreciation and disposal of non-current assets - prepare ledger accounts and journal entries for the provision of depreciation

4.2 Accounting for depreciation and disposal of non-current assets - prepare ledger accounts and journal entries to record the sale of non-current assets, including the use of disposal accounts

4.3 Other payables and other receivables - recognise the importance of matching costs and revenues

4.3 Other payables and other receivables - prepare ledger accounts and journal entries to record accrued and prepaid expenses

4.3 Other payables and other receivables - prepare ledger accounts and journal entries to record accrued and prepaid incomes

4.4 Irrecoverable debts and provision for doubtful debts - understand the meaning of irrecoverable debts and recovery of debts written off

4.4 Irrecoverable debts and provision for doubtful debts - prepare ledger accounts and journal entries to record irrecoverable debts

4.4 Irrecoverable debts and provision for doubtful debts - prepare ledger accounts and journal entries to record recovery of debts written off

4.4 Irrecoverable debts and provision for doubtful debts - explain the reasons for maintaining a provision for doubtful debts

4.4 Irrecoverable debts and provision for doubtful debts - prepare ledger accounts and journal entries to record the creation of, and adjustments to, a provision for doubtful debts

4.5 Valuation of inventory - understand the basis of the valuation of inventory at the lower of cost and net realisable value

4.5 Valuation of inventory - prepare simple inventory valuation statements

4.5 Valuation of inventory - recognise the importance of valuation of inventory and the effect of an incorrect valuation of inventory on gross profit, profit for the year, equity and asset valuation

5.1 Sole traders - explain the advantages and disadvantages of operating as a sole trader

5.1 Sole traders - explain the importance of preparing income statements and statements of financial position

5.1 Sole traders - explain the difference between a trading business and a service business

5.1 Sole traders - prepare income statements for trading businesses and for service businesses

5.1 Sole traders - understand that statements of financial position record assets and liabilities on a specified date

5.1 Sole traders - recognise and define the content of a statement of financial position: non-current assets, intangible assets, current assets, current liabilities, non-current liabilities and capital

5.1 Sole traders - understand the inter-relationship of items in a statement of financial position

5.1 Sole traders - prepare statements of financial position for trading businesses and service businesses

5.1 Sole traders - make adjustments for provision for depreciation using the straight line, reducing balance and revaluation methods

5.1 Sole traders - make adjustments for accrued and prepaid expenses and accrued and prepaid income

5.1 Sole traders - make adjustments for irrecoverable debts and provisions for doubtful debts

5.1 Sole traders - make adjustments for goods taken by the owner for own use

5.2 Partnerships - explain the advantages and disadvantages of forming a partnership

5.2 Partnerships - outline the importance and contents of a partnership agreement

5.2 Partnerships - explain the purpose of an appropriation account

5.2 Partnerships - prepare income statements, appropriation accounts and statements of financial position

5.2 Partnerships - record interest on partners' loans, interest on capital, interest on drawings, partners' salaries and the division of the balance of profit or loss

5.2 Partnerships - make adjustments to financial statements as detailed in 5.1 (sole traders)

5.2 Partnerships - explain the uses of and differences between capital and current accounts

5.2 Partnerships - draw up partners' capital and current accounts in ledger account form and as part of a statement of financial position

5.3 Limited companies - explain the advantages and disadvantages of operating as a limited company

5.3 Limited companies - understand the meaning of the term limited liability

5.3 Limited companies - understand the meaning of the term equity

5.3 Limited companies - understand the capital structure of a limited company comprising preference share capital, ordinary share capital, general reserve and retained earnings

5.3 Limited companies - understand and distinguish between issued, called-up and paid-up share capital

5.3 Limited companies - understand and distinguish between share capital (preference shares and ordinary shares) and loan capital (debentures)

5.3 Limited companies - prepare income statements, statements of changes in equity and statements of financial position

5.4 Clubs and societies - distinguish between receipts and payments accounts and income and expenditure accounts

5.4 Clubs and societies - prepare receipts and payments accounts

5.4 Clubs and societies - prepare accounts for revenue-generating activities, e.g. refreshments, subscriptions

5.4 Clubs and societies - prepare income and expenditure accounts and statements of financial position

5.4 Clubs and societies - define and calculate the accumulated fund

5.5 Manufacturing accounts - distinguish between direct and indirect costs

5.5 Manufacturing accounts - understand direct material, direct labour, prime cost and factory overheads

5.5 Manufacturing accounts - understand and make adjustments for work in progress

5.5 Manufacturing accounts - calculate factory cost of production

5.5 Manufacturing accounts - prepare manufacturing accounts, income statements and statements of financial position

5.6 Incomplete records - explain the disadvantages of not maintaining a full set of accounting records

5.6 Incomplete records - prepare opening and closing statements of affairs

5.6 Incomplete records - calculate profit or loss for the year from changes in capital over time

5.6 Incomplete records - calculate sales, purchases, gross profit, trade receivables and trade payables and other figures from incomplete information

5.6 Incomplete records - prepare income statements and statements of financial position from incomplete records

5.6 Incomplete records - apply the techniques of mark-up, margin and inventory turnover to arrive at missing figures

6.1 Calculation and understanding of accounting ratios - Gross margin

6.1 Calculation and understanding of accounting ratios - Profit margin

6.1 Calculation and understanding of accounting ratios - Return on capital employed (ROCE)

6.1 Calculation and understanding of accounting ratios - Current ratio

6.1 Calculation and understanding of accounting ratios - Liquid (acid test) ratio

6.1 Calculation and understanding of accounting ratios - Rate of inventory turnover (times)

6.1 Calculation and understanding of accounting ratios - Trade receivables turnover (days)

6.1 Calculation and understanding of accounting ratios - Trade payables turnover (days)

6.2 Interpretation of accounting ratios - prepare and comment on simple statements showing comparison of results for different years

6.2 Interpretation of accounting ratios - make recommendations and suggestions for improving profitability and working capital

6.2 Interpretation of accounting ratios - understand the significance of the difference between the gross margin and the profit margin as an indicator of a business's efficiency

6.2 Interpretation of accounting ratios - explain the relationship of gross profit and profit for the year to the valuation of inventory, rate of inventory turnover, revenue, expenses, and equity

6.3 Inter-firm comparison - understand the problems of inter-firm comparison

6.3 Inter-firm comparison - apply accounting ratios to inter-firm comparison

6.4 Interested parties - owners

6.4 Interested parties - managers

6.4 Interested parties - trade payables

6.4 Interested parties - banks

6.4 Interested parties - investors

6.4 Interested parties - club members

6.4 Interested parties - other interested parties such as governments, tax authorities, etc.

6.5 Limitations of accounting statements - historic cost

6.5 Limitations of accounting statements - difficulties of definition

6.5 Limitations of accounting statements - non-financial aspects

7.1 Accounting principles - matching

7.1 Accounting principles - business entity

7.1 Accounting principles - consistency

7.1 Accounting principles - duality

7.1 Accounting principles - going concern

7.1 Accounting principles - materiality

7.1 Accounting principles - money measurement

7.1 Accounting principles - prudence

7.1 Accounting principles - realisation

7.2 Accounting policies - comparability

7.2 Accounting policies - relevance

7.2 Accounting policies - reliability

7.2 Accounting policies - understandability