WAEC Financial Accounting Syllabus

Introduction to Financial Accounting

• History, nature and functions of Accounting.
• Users of Accounting information.
• Stages in the Accounting process.
• Characteristics of Accounting information.

The Accounting Equation and  Double Entry Principles

• Accounting Equation.
• Purpose and functions of source documents.
• Subsidiary books.
• The ledger: classification of Accounts.
• Cash Book: analytical cash book, including petty cash book.
• Preparation of Trial Balance.
• Bank Reconciliation Statements.
• Correction of errors and Suspense Account.

Accounting Concepts

• Meaning.
• Types.
• Significance.
• Limitations.

The Final Accounts of a Sole Trader/proprietorship

• Trading, profit and loss accounts/Income statement.
• Balance sheet/statement of financial position.
• Adjustments to final accounts.

Provisions and Reserves

• Provision for doubtful debts/Allowance for doubtful debts.
• Provision for discounts.
• Depreciation – concepts, reasons for recording and methods:
  • straight line
  • reducing balance
  • sum of the years digits
  • revaluation.
• Accounting for depreciation.
• Reserves – revenue and capital reserves.

Manufacturing Accounts

• Purpose of Manufacturing Accounts.
• Cost classification in Manufacturing Accounts.
• Preparation of final Accounts of Manufacturing concern.

Control Accounts and Self-balancing Ledgers

• Meaning and uses of control accounts
• Types:
  • sales ledger control
  • purchases ledger control
• Preparation of Control Accounts
• Reconciliation of Control Accounts

Single Entry and Incomplete Records

• Meaning and limitations
• Computation of profit or loss from opening and closing balance sheets.
• Conversion of singe entry to double entry.
• Preparation of final accounts from a set of incomplete records.
• Mark up and Margin

Accounts of Not-for-Profit Making Organizations

• Meaning and terminologies.
• Receipts and payments accounts.
• Subscriptions Account
• Income and expenditure accounts.
• Accumulated fund.
• Balance sheet.
• Profit or loss from income generating activities.

Partnership Accounts

• Nature and formation of partnership.
• Partnership agreements/Deed.
• Profit and loss appropriation accounts.
• Partners capital account and balance sheet
• Admission of a new partner.
• Treatment of goodwill and revaluation of assets
• Dissolution of partnership (Questions will not be set on Garner V. Murray and piecemeal realization)

Company Accounts

• Nature and formation of a company.
• Types of companies and shares.
• Issue of shares.
• Loan capital, debentures/loan notes and mortgages.
• Final accounts of company for internal use only.
• Interpretation of accounts using simple ratios.
• Purchase of business account.
• *Statement of Cash Flow (using direct and indirect methods).

NOTE:  Separate questions may be set to meet statutory requirements of individual countries.  Candidates’ answers must meet statutory requirements of individual countries.

*Accounting for Value Added Tax

• Purpose of VAT.
• Characteristics of VAT.
• Bases of computing input/output VAT.
• Preparation of VAT returns.
• Exempt goods and services.

Departmental and Branch Accounts

• Meaning and importance
• Differences between a department and branch.
• Preparation of departmental account.
• Preparation of Branch Account excluding foreign branches.
• Inter branch transactions.

Public Sector Accounting

• Meaning and difference between Public Sector and Private Sector Accounts.
• Sources of public revenue.
• Capital and recurrent expenditures.
• Preparation of simple government accounts.

*Information Technology in Accounting

• Manual and computerized Accounting Processing Systems.
• Processes involved in data processing.
• Computer Hardware and Software.
• Merits and demerits of manual and computerized accounting processing systems.

**Miscellaneous Accounts

• Meaning, introduction, terminologies and preparation of simple:
• Joint Venture Accounts
• Consignment Accounts
• Contract Accounts
• Hire Purchase Accounts

**Financial system

• Meaning and components.
• Meaning, functions and features of:
  • money market;capital market;insurance market.
• Methods of raising funds from the capital market:
  • offer for sale;
  • offer for subscription;
  • rights issue;
  • private placement;
• Requirements for accessing the capital market
• Benefits of the capital market to:
  • investors;
  • government;
  • economy;
  • individual company;
• Types, features and reasons for regulation.

RECOMMENDED TEXT BOOKS

 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.

Accounting in Business - R. J. Bull.

Company Accounts - J. N. Amorin.

Principles of Accounting - K. B. Appiah Mensah

Incorporated private Partnership Act 1962, Act 152.