Grade 11 Accounting

Reconciliation

Reconcile bank statements with cash journals to prepare bank reconciliation statements, including entries on the bank statement not in journals (stop/debit orders, EFTs paid out/received, bank charges, interest received/paid, correction of errors/omissions) and entries in journals not on the statement (outstanding deposits and EFTs). Integrate ethical and internal control issues and apply GAAP. Reconcile individual creditors monthly statements with accounts in the creditors ledger, identify differences (outstanding invoices/credit notes, outstanding payments, discounts not recorded, errors/omissions) and rectify, integrating ethics/internal control and applying GAAP.

Fixed assets

Understand the need for a tangible/fixed asset register and how it is compiled. Record acquisition of tangible/fixed assets, calculate and record depreciation (straight-line and/or diminishing balance), understand how fully depreciated assets are recorded, and record disposal of fixed assets (cash, credit, trade-in, donated, drawings by owner) at the beginning/during/end of a financial year. Integrate ethical and internal control issues and apply GAAP.

Financial accounting of partnerships: Adjustments, ledger, accounting equation, final accounts

Define and explain partnership concepts (capital accounts, current accounts, interest on capital, salaries to partners, bonus to partners, primary/final distribution of profits or losses). Define and explain IFRS and GAAP principles (historical cost, prudence, materiality, business entity rule, going concern, matching). Use the accounting cycle for partnerships (documents, journals, ledgers, trial balance, final accounts), analyse transactions using the accounting equation, and prepare final accounts taking year-end adjustments into account (including provision for bad debts and interest on loan capitalised, plus partnership agreement adjustments such as salaries, bonus, interest on capital and profit/loss sharing). Prepare trading account, profit and loss account and appropriation account, and understand reversal of certain year-end adjustments at the start of the next period. Integrate ethical/internal control issues and apply GAAP.

Revision, control test and remediation

Revision, control test and remediation as scheduled for Term 1.

Partnerships: Financial statements and notes

Prepare financial statements and notes, including statement of comprehensive income, statement of financial position, and notes to the financial statements. Apply IFRS and GAAP principles.

Partnerships: Analysis and interpretation of financial statements

Analyse and interpret financial statements and notes. Revise financial indicators (profitability, liquidity and solvency) and introduce stock turnover rate, stock holding period, average debtors collection period, average creditors payment period, debt-equity ratio, and returns on each partner's equity and on average partners equity.

Revision, control test and remediation

Revision, control test and remediation as scheduled for Term 2.

Budgeting: Basic concepts, cash budgets (debtors collection and creditors payments) and projected statement of comprehensive income (income statement)

Differentiate between a cash budget and a projected income statement. Prepare and present a projected income statement (statement of comprehensive income) including projected revenue and expenditure. Prepare and present a cash budget for sole traders, including projected cash receipts and payments and projected debtors collection and creditors payments (schedules where required). Integrate ethical, internal control and internal audit issues and apply GAAP.

Inventory systems

Define, explain and discuss differences, advantages and disadvantages of the perpetual and periodic stock systems. Focus on calculating cost of sales and gross profit (including using trading stock account, opening stock, purchases, returns/allowances, carriage on purchases/custom duties, closing stock and mark-up where applicable). Integrate ethical/internal control and internal audit issues relating to stock.

Cost accounting (manufacturing): Ledger accounts and calculations

Calculate costs, unit costs and break-even point in the manufacturing environment. Work with variable costs (direct material cost, direct labour cost, selling and distribution cost), fixed costs (factory overhead cost, administration cost), total cost of production and contribution per unit for break-even. Record stock and cost items in ledger accounts, including stock accounts (raw material, work-in-progress, finished goods, consumable stores/indirect materials) and cost accounts (DMC, DLC, FOHC, AC, SDC) and other relevant nominal accounts. Integrate ethical/internal control and internal audit issues in a manufacturing environment.

Revision, control test and remediation

Revision, control test and remediation as scheduled for Term 3.

Value Added Tax (VAT)

Explain and discuss the need for VAT, purpose of VAT, principles of VAT and invoice or receipt base. Work with VAT-able items, the current standard VAT rate, zero-rated items and VAT-exempted items. Perform VAT calculations (add VAT to cost price plus mark-up, calculate VAT from VAT-inclusive, VAT-exclusive amounts) and understand the effect of bad debts, discounts and goods returned on VAT. Integrate ethics (VAT fraud) and internal audit/internal control processes over VAT collection and payment to SARS.

Revision and examination preparation

Exam relevance: Exam guidance includes cognitive levels (30% basic thinking skills, 40% basic thinking skills, 30% moderately high thinking skills, with higher-order problem solving questions) and difficulty levels (30% easy, 40% moderate, 30% difficult).

Revision and examination preparation, including answer book templates for financial statements and Grade 11 formula sheets. Exam topics are grouped as Discipline 1: Financial reporting and evaluation and Discipline 2: Managerial accounting, internal auditing and control.