0452 2010 SW 4 PDF

s
er
ap
eP
e
tr
.X
w
om
.c
IGCSE Accounting 0452

Unit no 4: Accounting procedures
Recommended prior knowledge
Students should be competent in preparing income statements and balance sheets from a trial balance. They should be familiar with either a horizontal or a vertical
balance sheet presentation.
Context
Students should by now acknowledge that through the application of adjustments the most accurate picture of the financial state of the business is being prepared.
Outline
This unit involves the student in preparing adjustments to the accounts. They should practise that adjustments or notes to the accounts require two ticks (one for the
income statement adjustment and one for the balance sheet adjustment).
4.1
Learning outcomes
Suggested teaching activities
Capital and revenue expenditure and

receipts
To distinguish between and account

for capital expenditure and revenue
expenditure
Learning resources
Textbooks
IGCSE & O Level Accounting
Catherine Coucom Chapter 10
IGCSE & O Level Accounting Workbook
Catherine Coucom Questions 50-52
Frank Woods Book-keeping and
Accounts Sheila Robinson & Frank
Wood Chapter 9
Frank Woods Business Accounting 1
Frank Wood and Alan Sangster
Chapter 24
Use items in the classroom to illustrate the difference. (eg. tables chairs,
paper, pens, running costs)
A small project could be to ask students to select a favourite business
and to investigate capital/revenue expenditure and receipts.
Past examination question:

http://teachers.cie.org.uk/login/login_for
m?came_from=http%3A//teachers.cie.or
g.uk/index_html
P2 May 2009 Q1 (g)
P2 May 2008 Q5 (a)
P3 Oct 2008 Q2 (a)
4.1
Learning outcomes
To distinguish and account for capital

receipts and revenue receipts
Visually and verbally demonstrate the difference between capital and

revenue receipts followed with student questions.
To be able to calculate and comment

on the effect on profit of incorrect
treatment
Use questions with the incorrect treatment to demonstrate the effect on

profit.
To be able to calculate and comment

on the effect on asset valuations of
incorrect treatment
Use the same questions with the incorrect treatment to demonstrate the
effect on asset valuation.
Learning resources
4.2
Learning outcomes
Accounting for depreciation and

disposal of non-current assets
Learning resources
Textbooks
Workbook Catherine Coucom
Questions 61-64
Wood Chapters 26 & 27
Chapters 26-27
Online
http://www.bized.co.uk/learn/business/a
ccounting/busaccounts/pizza/jan14.htm
To be able to define depreciation
To be able to explain the reasons for

accounting for depreciation
To be able to describe the straight line
(equal instalment), reducing
(diminishing) balance and revaluation
methods of depreciation
To be able to prepare ledger accounts
and journal entries for the provision of
depreciation
Pose the question I bought a car last year and now it is only worth a
third what I paid for it. Ask students to offer reasons.

m?came_from=http%3A//teachers.cie.o
rg.uk/index_html
P3 May 2009 Q1 (a)(ii)
P2 Oct 2008 Q5 (a), (c), (d),(e)
Demonstrate both straight line and reducing balance methods of

depreciation.
Students should be encouraged to maintain an exemplar of each

method of depreciation.

rg.uk/index_html
P2 Oct 2009 Q4 (b), (c)
P2 May 2008 Q5 (b)
P3 May 2008 Q5 (b)(ii)
4.2
Learning outcomes
Learning resources

and journal entries to record the sale of
non-current assets, including the use of
disposal accounts
Demonstrate the ledger accounts required to record annual deprecation

and the accounting treatment on disposal.
P2 Oct 2008 Q5 (d0, (e)

P3 May 2009 Q1 (c), (d)
P2 Oct 2009 Q4 (e)
P2 May 2008 Q5 (b)(iii)
Quiz 6 Depreciation
Use Quiz 6 in groups or individually.
4.3
Learning outcomes
Other payables (Accruals) and Other

receivables (Prepayments)
Textbooks
Questions 56-60, 65-66
Wood Chapter 29
Chapter 28
To recognise the importance of

matching costs and revenues
Illustrate this by using a time line with costs and revenues.

and journal entries to record accrued
and prepaid expenses
and journal entries to record accrued
and prepaid income
Demonstrate the entries in the ledger accounts for accruals and

prepayments.
Learning resources
Use pre-prepared student exercises.
4.4
Learning outcomes
Bad debts and provision for doubtful debts
To understand the meaning of bad debts

and bad debts recovered
Learning resources
Textbooks
Questions 67-72
Wood Chapter 28
Chapter 25
Work through an example of writing off a debt and reinstating it.

Explain how historical cost and the principle of prudence are involved.

rg.uk/index_html
P3 Oct 2009 Q1 (c), (d)
P2 May 2008 Q1 (f)

and journal entries to record bad debts
written off
Use examples for writing off a bad debt.

and journal entries to record bad debts
recovered
Visually and verbally demonstrate the writing off of a bad debt. Followed
with student questions, and past examination questions.
P2 Oct 2008 Q2 (c)
To be able to explain the reasons for

maintaining a provision for doubtful debts
Work through examples where there is an increase/decrease in the

provision for doubtful debts.
P3 May 2008 Q2 (a), (b)

and journal entries to record the creation
of, and adjustments to, a provision for
doubtful debts
Use Quiz 7 either in groups or individually.
Quiz 7 Depreciation and bad and

doubtful debts
4.5
Learning outcomes
Valuation of inventory
To understand the basis of the valuation

of inventory at the lower of cost and the
net realisable value
Learning resources
Textbooks
Questions 53-55
Wood Chapter 31
Chapter 29
Use examples to demonstrate the inventory valuation principle.
To be able to prepare simple inventory

valuation statements

rg.uk/index_html
P2 May 2009 Q1(d)
P2 May 2008 Q3 (a), (c)
P3 May 2008 Q4 (a)

0452 2010 SW 4 PDF

Uploaded by

Copyright:

Available Formats

0452 2010 SW 4 PDF

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

0452 2010 SW 4 PDF

Uploaded by

Copyright:

Available Formats

s

IGCSE Accounting 0452

Suggested teaching activities

Capital and revenue expenditure and

To distinguish between and account

Past examination question:

Suggested teaching activities

To distinguish and account for capital

Visually and verbally demonstrate the difference between capital and

To be able to calculate and comment

Use questions with the incorrect treatment to demonstrate the effect on

To be able to calculate and comment

Suggested teaching activities

Accounting for depreciation and

To be able to define depreciation

To be able to explain the reasons for

Past examination question:

Demonstrate both straight line and reducing balance methods of

Students should be encouraged to maintain an exemplar of each

Past examination question:

Suggested teaching activities

To be able to prepare ledger accounts

Demonstrate the ledger accounts required to record annual deprecation

P2 Oct 2008 Q5 (d0, (e)

Use Quiz 6 in groups or individually.

Suggested teaching activities

Other payables (Accruals) and Other

To recognise the importance of

Illustrate this by using a time line with costs and revenues.

To be able to prepare ledger accounts

Demonstrate the entries in the ledger accounts for accruals and

Use pre-prepared student exercises.

Suggested teaching activities

Bad debts and provision for doubtful debts

To understand the meaning of bad debts

Work through an example of writing off a debt and reinstating it.

Past examination question:

To be able to prepare ledger accounts

Use examples for writing off a bad debt.

To be able to prepare ledger accounts

P2 Oct 2008 Q2 (c)

To be able to explain the reasons for

Work through examples where there is an increase/decrease in the

P3 May 2008 Q2 (a), (b)

To be able to prepare ledger accounts

Use Quiz 7 either in groups or individually.

Quiz 7 Depreciation and bad and

Suggested teaching activities

To understand the basis of the valuation

Use examples to demonstrate the inventory valuation principle.

To be able to prepare simple inventory

Past examination question:

You might also like