Year 12 Accounting

Subject Overview

Term 1
Teaching and Learning for Accounting 3.2 and 2.2 internally assessed standards
Accounting 3.2
For students to justify the application of partnership accounting elements to enable the partnership to continue operations.
This involves:
• entries for the formation of a partnership using agreed values of assets, liabilities and capital contributions
• Partnership Agreement
• Partnership Act 1908
• entries for partners’ capital and current accounts
• Profit Distribution Statement
• Equity section and note to financial statements.

Accounting 2.2
Purpose
Demonstrate understanding of accounting processing using accounting software.
This involves:
• using an appropriate chart of accounts to set-up inventory, cost of goods sold and sales accounts for each item of inventory and classifying new accounts for each financial element except equity
• processing frequent, infrequent, and complex transactions, and using the banking function or equivalent to split one total (eg banking total or payment total) into more than one account.
Frequent transactions relate to entries for:
• cash receipts
• cash payments
• cash and/or credit sales of three different items of inventory
• cash and/or credit purchases for each item of inventory.
Infrequent transactions relate to entries for:
• inventory returns
• sundry charges
• drawing of goods
• inventory shortage and/or losses
• purchase of an item of plant or equipment on credit
• correction of errors.
Complex transactions relate to entries for:
• straight line depreciation of an item of plant or equipment from end of last reporting period to date of disposal
• disposal of an item of plant or equipment for more or less than carrying amount
• correcting a complex error, where three accounts are affected such as:
 a GST expense incorrectly entered in a non-GST expense account or vice versa
 cash drawings incorrectly entered as a GST expense.

Term 2
Teaching and Learning for Accounting 2.3 externally assessed standard.
Accounting 2.3
Purpose
Prepare financial information for an entity that operates accounting subsystems.
This involves:
Processing and reporting financial information incorporating additional information ( detailed and complex in nature)
Additional information is selected from:
• adjustments where the figure is provided
• distinguishing cash information in the cash flow statement.
Detailed additional information is selected from:
• adjustments where the figure requires a calculation
• determining cash from customers and cash paid to suppliers.
Complex additional information is selected from:
• adjustments where the figure requires a multi-step calculation
• determining cash from customers and cash paid to suppliers including additional information such as discounts and/or bad debts and/or returns.
Processing financial information involves preparing accounting entries in the general journal and/or general ledger for adjustments and closing entries.
Reporting financial information involves preparing complete financial statements, and/or notes to the financial statements, and/or extracts from financial statements for the owner of the entity.
Financial statements are selected from:
• Income Statement
• Statement of Financial Position and notes to this limited to: accounts receivable; investments; property, plant and equipment; non-current liabilities
• Statement of Cash Flows.
Adjustments are selected from:
• income and/or expense adjustments including invoices on hand
• depreciation, selected from:
– straight-line depreciation
– diminishing value
– units of use
• bad debts and/or doubtful debts
• valuation of inventory to net realisable value (limited to debit cost of goods sold, credit inventory)
• cash component of a transaction or event.

Term 3
Teaching and Learning for Accounting 2.6 internally assessed and revision for Accounting 2.5 externally assessed standard.

Accounting 2.6
Purpose
Demonstrate understanding of an accounts receivable subsystem for an entity.
This involves:
• processing financial information (of a detailed and complex nature) for the entity’s accounts receivable
• describing, explaining and justifying elements of the entity’s accounts receivable subsystem.
Processing financial information includes: accounts receivable subsidiary ledger; schedule of accounts receivable; aged debtors report. Processing includes entries for bad debts; sundry charges to debtors; discount allowed and/or a transposition error between debtors.
Elements of the entity’s accounts receivable subsystem may include, but are not limited to:
• credit checking of potential customers
• authorisation of transactions
• internal control of documents
• accounts receivable subsidiary ledger
• statements to debtors
• aged debtors report
• reconciling the accounts receivable subsidiary ledger with the accounts receivable control account.

Accounting 2.5
Purpose
Demonstrate understanding of a contemporary accounting issue for decision-making.
This involves:
• describe, explain and justify the issue, incorporating financial and non-financial information
• describe, explain and justify how the issue affects decision-making by the entity
• drawing a conclusion explains and justifies the importance of the issue to the entity’s decision-making.
A contemporary accounting issue is any accounting issue that impacts on the decision-making of an entity and may include:
• an ethical dilemma
• a capital investment project
• managing sustainability
• interest rate management
• managing foreign exchange
• the use of cloud computing
• student loans
• stakeholder interests such as – environment, community, employees, customers.

Term 4
Revision for Accounting 2.3 externally assessed standard.