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



0 Replies to “Financial Accounting notes – KNEC Diploma”

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

  1. Its so nice.
    Kindly send me full notes for diploma in supply chain management as from module to module three

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