Chartered Institute of Certified Tax Accountants
Strategic Affiliations in UK, Canada and USA
An Association of Certified Tax Accountants at your Service.

News and Events
Syllabus: CICTA 103

12.1 Course Objective:

The core aim of the course is to help students appreciate the nature and purpose of accounting and the principles of accounting.

12.2 Course Description:

This course is structured to assist students understand the essence and the principles of Financial Accounting. The key principles of financial accounting are explored, including identification of source documents: primary books of accounting and the ledgers for the preparation of accounts are included in the highlights.


12.3.1 Nature and Functions of Accounting
* Definition and Meaning of Accounting.

* Functions of Accounting.

* Objectives of Accounting.

* Accounting Terms / Definitions.

* The Concept of Booking -Historical Antecedents

* The Distinction between Book-Keeping and Accounting.

* The Importance of Book-Keeping.

* Characteristics of Useful Accounting Information System/Information Quality Metrics.

* The Different Functions of Financial Accounting, Cost Accounting, Management, Tax Accounting and Public Sector/Governmental Accounting.

12.3.2 The Accounting Equation
* Nature of Accounting Equation.

* Usefulness of the Accounting Equation to Non-finance practicing managers.

12.3.3 The Principles of Double Entry Book-Keeping System and the Concept of Trial Balance

* Definition and meaning of Double Entry Book-Keeping.

* The meaning and Types of Ledgers.

* The meaning and uses of the Trial Balance.

12.3.4 The Accounting Concepts, Conventions and Policies

* Accounting concepts and conventions. E.g. the Going Concern Concept, the Prudence Concept, the Materiality Concept, the Business Entity Concept, the Accrual Concept etc.

12.3.5 The Day Books
* Meaning of Day Books.

* Source Documents for Day Books.

* The Day Books / Subsidiary Books / Prime Books.

* The Ledgers - Purchases, Sales, Returns Outwards, Returns Inwards, Cash Book, including the Imprest System and the Petty Cash Book.

* The Meaning and Functions of the Journal or General Journal.

* The Nature and Types of Cash Book.

* The Imprest System and Petty Cash Book.

* Introductory Control Accounts for Credit Purchases and Credit Sales.

12.3.6 Introduction to Final Accounts of Sole Trader
* The sole proprietor and their contribution to economy.

* Comparison of the sole trader to other business units e.g. partnership, Joint Stock Companies, Co-operative Societies and the Public Corporations.
* The Trading Account.

* The Profit and Loss Account.

* The final accounts of service organizations.

* Introductory to final accounts for manufacturing concerns.

12.3.7 Depreciation of Non-Current Assets (Fixed Assets)
* Capital and Revenue Expenditure.

* The Nature and Meaning of Depreciation and computations

* Depletion.

* Amortisation and Appreciation.

* Impairment of non-current assets.

* Accounting Treating of Depreciation in Accounts.

12.3.8 Bad Debts, Provision for Bad Debts, Provision for Discounts.
* Nature of Bad debts.

* Nature and Meaning of Provisions and Reserves.

* Provision for Bad and Doubtful Debts.

* Bad Debts Recovered and Tax Implications.

* Provision for Discount on Debtors on Creditors

* Accounting Entries and Treatment of Provisions and the tax effect on profitability.

12.3.9 Adjustments and Final Accounts
* Accruals / Outstanding Bills / Amount Due / Amount Owing

* Nature of Prepaid Expenses / Advance payments.

* Meaning of Revenue and other adjustments.

* Expense and Revenue Accounts covering more than one accounting year.

* Tax Implications of Prepayments and accruals.

* The Effects of Prepayments and Accruals on the Income Statement and the Balance Sheet.

12.3.10 Bank Reconciliation Statement
* The concept of the customer and the Bank.

* The meaning of Bank Reconciliation Statement and illustrations

12.3.11 Control Accounts / Self Balancing Ledgers
* The meaning and Nature of Credit Transactions.

* The meaning of Control Accounts / Total Accounts.

* Advantages of the Control Accounts.

* Weakness in the Use of Control Accounts.

* The Sales Ledger Control Account / Total Debtors Account.

* The Purchases Ledger Control / Total Creditors Account.

12.3.12 Introduction to Suspense Accounts
* Introduction of Errors and the Suspense Account.

* Errors that do not affect the agreement of Trial Balance.

* Errors that affect the agreement of the Trial Balance.
Contact the Accra Registry on Spintex Road, Accra for Available job opportunities in Africa.

Visit the Registry on Spintex Road, Accra on current issues particularly on Continuous Development Programmes and Graduation Dates.