Financial Accounting notes – KNEC Diploma

Financial Accounting

Topics covered in this subject as per the KNEC Syllabus are:

Topic 1: Introduction to Accounting
Topic 2: Accounting Concepts, Conventions and Bases
Topic 3: Source Documents
Topic 4: Books of Original Entry
Topic 5: The Ledger and the Trial Balance
Topic 6: Types of Errors and their Correction
Topic 7: Single entry and Incomplete Records
Topic 8: Final Accounts for Sole Proprietorship
Topic 9: Adjustments to Final Accounts
Topic 10: The Cashbook
Topic 11: Petty Cashbook
Topic 12: Bank Reconciliation Statements
Topic 13: Capital and Revenue Expenditure
Topic 14: Control Accounts
Topic 15: Accounting for Fixed Assets
Topic 16: Non-Profit Making Organizations
Topic 17: Emerging Trends and Issues in financial Accounting




Introduction
This unit is intended to equip the trainee with knowledge, skills and attitudes that will enable him/her to record financial information and prepare financial statements for an organisation




General Objectives
At the end of the unit, the trainee should be able to:

  1. apply of accounting principles in business bookkeeping
  2. record financial information of an organisation
  3. detect and correct book keeping errors
  4. prepare final accounts for an organisation




Topic 1: Introduction to Accounting

  • Definition of terms used in accounting
  • Users of accounting information
  • Information needs
  • Qualities of good accounting information
  • Nature of accounting equation
  • Effects of business transactions on balance sheet

Topic 2: Accounting Concepts, Conventions and Bases

  • Definition of accounting Concepts, Conventions and Bases
  • Types of accounting Concepts, Conventions and Bases

Topic 3: Source Documents

  • Meaning of source documents
  • Types of source documents
  • Uses of source documents
  • Relationship between Source documents and Books of Accounts

Topic 4: Books of Original Entry

  • Definition of books of original entry
  • Classification of Books of Original Entries
  • Preparation of Books of Original Entries
  • Posting transactions from the books of original entry to the ledger




Topic 5: The Ledger and the Trial Balance

  • Definition of a Ledger and an Account
  • Importance of a Ledger
  • Relationship between a ledger and an account
  • Classifications of ledgers
  • Nature of double-entry system
  • Definition of a Trial Balance
  • Balancing off of accounts
  • Extracting of a trial balance
  • Importance of a trial balance

Topic 6: Types of Errors and their Correction

  • Types of errors that do not affect the agreement of a trial balance
  • Types of errors that affect the agreement of a trial balance
  • Functions of suspense account
  • Correction of errors using a Suspense Account

Topic 7: Single entry and Incomplete Records

  • Explanation of terms
  • Ascertainment of profits
  • Conversion of single entry to double entry

Topic 8: Final Accounts for Sole-Proprietorship

  • Definitions of final accounts
  • Types of final accounts
  • Preparation of final accounts




Topic 9: Adjustments to Final Accounts

  • Meaning of final accounts
  • Purpose of final accounts adjustments
  • Procedure of making adjustments in final accounts

Topic 10: The Cashbook

  • Definition of Cash book
  • Types Cash book
  • Types of discount
  • Recording transactions in a cash book

Topic 11: Petty Cashbook

  • Definition of petty cashbook
  • Imprest System
  • Purpose of Petty Cash
  • Preparation of Petty Cash

Topic 12: Bank Reconciliation Statements

  • Definition of bank reconciliation statements
  • Purposes of preparing bank reconciliation statements
  • Causes of the differences between bank statements and the cashbook balance
  • Steps/procedure in preparing bank reconciliation statement

Topic 13: Capital and Revenue Expenditure

  • Definition of Capital and Revenue Expenditure
  • Double-entry system for revenue and capital expenditure
  • Classification of Expenditure

Topic 14: Control Accounts

  • Definition of control accounts
  • Uses of control accounts
  • Preparation of Control Account




Topic 15: Accounting for Fixed Assets

  • Definition of depreciation
  • Causes of depreciation
  • Reasons for providing for depreciation
  • Methods for providing for depreciation
  • Double-entry for depreciation
  • Accounting for disposal of fixed assets
  • The fixed asset movement schedule

Topic 16: Non-Profit Making Organizations

  • Definition of Non-profit making organization
  • Differences between Receipts and Payment accounts
  • Relationship between Income and Expenditure accounts
  • Preparation of final accounts of Non-profit making organization

Topic 17: Emerging Issues and Trends in Financial Accounting

  • Emerging issues and trends in financial Accounting
  • Challenges posed by emerging issues and trends in financial Accounting
  • Coping with the challenges posed by emerging issues and trends issues in financial Accounting



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18 Replies to “Financial Accounting notes – KNEC Diploma”

    1. Hi, can i get financial Accounting notes for Diploma in Supply Chain management?
      Regards

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