Level 1 Accounting
Teacher in Charge: Mrs P. Beech
• Focus on acquiring and developing business-related accounting skills and theory, learning to process more complex transactions and how to prepare
financial statements manually and by computer
• Investigate and report on accounting subsystems as well as analysing and interpreting sole proprietor statements in more detail than at Level 1
This module introduces the key definitions and concepts used throughout the Accounting course. Features of small entities are described and financial elements are explained.
In this module you will focus on these learning outcomes:
1. explaining and applying accounting concepts
2. describing features of small entities
3. explaining and applying financial elements
4. uses the accounting equation to record transactions, explains the difference between capital and revenue expenditure
5. classifies items in the Balance Sheet, Income Statement and Cash Budget.
This module recognises the importance of source documents generated from transactions that occur for a sole trader. GST is explained and calculations demonstrated. The expanded accounting equation is explained and entering transactions is practised.
You will apply the principle of double entry.
You will learn how to create a chart of accounts, and how to write up cash receipts and cash payments journals.
You will then post totals to the General Ledger and complete a Trial Balance.
Complete a bank reconciliation for a small business
Complete a bank reconciliation for a community organisation.
This module is designed to look at how cash is managed in different entities. The emphasis is on households both receiving and spending various forms of incomes while keeping cash safe.
1. identifying and explaining key information on financial documents
2. explaining how and why key cash control procedures safeguard cash.
In this module you will learn how to prepare an Income Statement for both a service and trading sole proprietorship and also how to prepare a Balance Sheet. You learn the importance of accrual accounting and how to do balance day adjustments. Depreciation is explained and you will learn how to calculate it. Finally you will learn how to prepare a Cash Budget.
1. prepare an Income Statement for a service sole proprietor
2. prepare an Income Statement for a trading sole proprietor
3. prepare a Statement of Financial Position.
4. making balance day adjustments, including depreciation
5. preparing fully classified financial statements including balance day adjustments
6. preparing cash budgets.
This standard gives you an opportunity to gain three credits by making a financial decision based
on financial and non-financial information. You are provided with an example of the steps you need to follow to make a justified decision.
You then need to apply this knowledge to a new situation. You are required to state your decision with clear justification.
In this activity you will be required to make a decision between two options, state the total cost of the chosen option, and present this in a report.
In your report you will also outline the two options, associated budgets, and the reasons for your decision.
The detail you provide and the extent to which you justify your choice of holiday option will determine your overall grade.
Contributions and Equipment/Stationery
- A study guide/workbook approximately $35, if purchased, is for own use, can be written on and kept by students and be of ongoing usefulness. However, workbooks will be available for students not purchasing their own copy so they will not be disadvantaged. They will have access to all the same exercises and necessary content. These will be treated as school text books; text book issue rules will apply and they cannot be written in. Students will be expected to work on their own paper/exercise books when doing activities from these issued workbooks.
- Optional external revision books $15 can be purchased if desired but are not compulsory for the course.
Recommended Prior Learning
Good English and mathematics are advantageous. As indicated above accounting requires students to become good communicators and literacy skills are important.
This course is eligible for subject endorsement.
This course is approved for University Entrance.
Total Credits Available: 20 credits.
Externally Assessed Credits: 8 credits.
Internally Assessed Credits: 12 credits.
Term: 1, Week: 9
Term: 2, Week: 2
Term: 1, Week: 8
Term: 2, Week: 8