CSEC® Principles of Accounts Syllabus Extract

Caribbean Secondary
Education Certificate

SYLLABUS
PRINCIPLES OF ACCOUNTS
CXC 10/G/SYLL 17

Effective for examinations from May June 2019

Correspondence related to the syllabus should be addressed to:

The Pro-Registrar
Caribbean Examinations Council
Caenwood Centre
37 Arnold Road, Kingston 5, Jamaica

Telephone Number: + 1 (876) 630-5200

Facsimile Number: + 1 (876) 967-4972
E-mail Address: [email protected]
Website: www.cxc.org

Copyright ©2017 by Caribbean Examinations Council

Prince Road, Pine Plantation Road, St Michael BB11091

CXC 10/G/SYLL 17
 Content
RATIONALE............................................................................................................................................................ 1

AIMS .................................................................................................................................................... 1

GENERAL OBJECTIVES............................................................................................................................ 2

SKILLS AND ABILITIES TO BE ASSESSED ................................................................................................... 2

ORGANISATION OF THE SYLLABUS ........................................................................................................ 3

RECOMMENDED TEACHING APPROACHES ............................................................................................. 3

SUGGESTED TIMETABLE ALLOCATION .................................................................................................... 4

CERTIFICATION ........................................................................................................................................ 4

DEFINITION OF PROFILE DIMENSIONS .................................................................................................... 4

FORMAT OF THE EXAMINATIONS ........................................................................................................... 5

WEIGHTING OF THE EXAMINATION COMPONENTS ............................................................................... 6

REGULATIONS FOR PRIVATE CANDIDATES ............................................................................................. 6

REGULATIONS FOR RESIT CANDIDATES .................................................................................................. 6

REGULATIONS FOR THE JANUARY SITTING ............................................................................................. 6

SECTION 1: ACCOUNTING AS A PROFESSION ......................................................................................... 7

SECTION 2: ACCOUNTING AS A SYSTEM ................................................................................................. 9

SECTION 3: BOOKS OF ORIGINAL ENTRY .............................................................................................. 12

SECTION 4: LEDGERS AND THE TRIAL BALANCE................................................................................... 15

SECTION 5: THE PREPARATION AND ANALYSIS OF FINANCIAL STATEMENTS OF THE SOLE TRADER ... 17

SECTION 6: ACCOUNTING ADJUSTMENTS ............................................................................................ 19

SECTION 7: CONTROL SYSTEMS ............................................................................................................ 21

SECTION 8: ACCOUNTING FOR PARTNERSHIPS .................................................................................... 23

CXC 10/G/SYLL 17
SECTION 9: ACCOUNTING FOR LIMITED LIABILITY COMPANIES CO-OPERATIVES
AND NON-PROFIT ORGANISATIONS ..................................................................................................... 25

SECTION 10: MANUFACTURING AND INVENTORY CONTROL ............................................................... 27

SECTION 11: ACCOUNTING FOR THE ENTREPRENEUR .......................................................................... 29

GUIDELINES TO TEACHERS FOR THE CONDUCT OF THE SCHOOL-BASED ASSESSMENT

IN BUSINESS STUDIES (PRINCIPLES OF ACCOUNTS, PRINCIPLES OF BUSINESS AND ECONOMICS) ...... 31

GUIDELINES TO TEACHERS FOR THE ALTERNATIVE TO SCHOOL-BASED ASSESSMENT ........................ 36

FORMULAE ............................................................................................................................................ 37

GLOSSARY OF ACCOUNTING TERMS ..................................................................................................... 38

GLOSSARY OF EXAMINATION TERMS ................................................................................................... 48

CXC 10/G/SYLL 17
 The Principles of Accounts Syllabus (CXC 10/G/SYLL 17) was revised in 2016
for first examination in 2019.

Teaching is expected to commence on the revised syllabus in September 2017.

Revised 1990, 1998, 2006 and 2017

Please check the website, www.cxc.org for updates on CXC®

CXC 10/G/SYLL 17
 Principles of Accounts Syllabus

RATIONALE
Accounting is the financial information system that provides relevant information to those who
manage or use economic resources or engage in other economic activity. Principles of Accounts is a
course of study that provides an introduction to the principles and techniques that accountants
employ in measuring, processing, evaluating and communicating information about the financial
performance and position of a business.

This course in Principles of Accounts helps students to develop an understanding of a range of

theoretical and practical techniques used in Accounting. It helps to develop skills that should enable
and technology-based
environment, to improve the management of personal financial activities, such as, budgeting, savings
and investment. In addition, this course prepares students for post-secondary and professional studies
and entry level employment in Accounting.

The syllabus also seeks to instill twenty-first century skills as well as tenets of the Ideal Caribbean
Person as articulated by the CARICOM Caribbean Education Task Force (CTF) and adopted by the
CARICOM Heads of Government at their 18th Summit. To this end, the syllabus contains objectives,
content and teaching, learning and assessment activities
multiple literacy and critical thinking skills, as well as their management, economic and entrepreneurial
skills and positive work ethic. In addition, in keeping with the UNESCO Pillars of Learning, on completion
of this course of study students will learn to know, learn to be, learn to do, and to live together.

AIMS
The syllabus aims to:

1. introduce fundamental concepts, practices and purposes of Accounting;

2. encourage the development of critical thinking and entrepreneurial skills;

3. foster attitudes useful in adapting to a dynamic business environment;

4. provide a foundation for further studies in accounting;

5. foster an awareness of the place of technology in Accounting; and,

6. provide an acceptable level of competence for entry-level employment.

CXC 10/G/SYLL 17 1
GENERAL OBJECTIVES
On completion of the syllabus, students should:

1. identify, utilise and interpret financial data that will facilitate proper decision-making by users
of accounting information;

2. appreciate the use of accounting practices as a tool for efficient business management;

3. develop critical thinking, problem-solving, and entrepreneurial skills;

4. appreciate the importance of ethical behaviour and accountability in both public and private
organisations;

5. develop an awareness of the role and impact of technology in Accounting; and,

6. acquire knowledge and skills appropriate for entry-level employment or further studies.

SKILLS AND ABILITIES TO BE ASSESSED

The assessment will test the following skills and abilities:

1. Literacy and Numeracy/Communication

(a) use jargon of the field, formulae, form and style relevant to the field, English;

(b) recall, select, and use business-related theories, principles, concepts and methods;
and,

(c) develop reasoned expositions on theories and policies used in Accounting.

2. Critical thinking and problem-solving

- identify and analyse problems and formulate solutions.

3. Interpretation

- interpret data and draw logical conclusions.

4. Research and statistics

(a) gathering relevant data; and,

(b) using appropriate strategies to present them.

CXC 10/G/SYLL 17 2
ORGANISATION OF THE SYLLABUS
The syllabus is arranged in 11 Sections, consisting of specific objectives and related content.

SECTION 1 - ACCOUNTING AS A PROFESSION

SECTION 2 - ACCOUNTING AS A SYSTEM

SECTION 3 - BOOKS OF ORIGINAL ENTRY

SECTION 4 - LEDGERS AND THE TRIAL BALANCE

SECTION 5 - THE PREPARATION AND ANALYSIS OF FINANCIAL STATEMENTS OF

THE SOLE TRADER

SECTION 6 - ACCOUNTING ADJUSTMENTS

SECTION 7 - CONTROL SYSTEMS

SECTION 8 - ACCOUNTING FOR PARTNERSHIPS

SECTION 9 - ACCOUNTING FOR LIMITED LIABILITY COMPANIES, COOPERATIVES

AND NON-PROFIT ORGANISATIONS

SECTION 10 - MANUFACTURING AND INVENTORY CONTROL

SECTION 11 - ACCOUNTING FOR THE ENTREPRENEUR

RECOMMENDED TEACHING APPROACHES

teachers are advised to note the
guidelines listed below.

1. The syllabus provides students with a grounding in fundamental concepts, practices and skills
of Accounting. The major focus of the syllabus, however, is on the application of these
concepts, practices and skills to aid the understanding of issues and problems both at the
global and regional levels.

2. Teachers are encouraged to develop lessons using themes that encompass topics from
different sections of the syllabus. Therefore, during the delivery of instruction, teachers should
highlight those topics across the syllabus that are related, in order to indicate the relevance
and relationships.

3. Teachers should use a variety of methodologies, such as role play, case studies, simulations,
field trips, games, and presentations by resource personnel. Practical assignments and
discussions on topical issues should be used where possible. Throughout the syllabus, an
asterisk* is used to highlight specific objectives for which practical activities are imperative.

4. Where tangible and physical examples are not feasible, teachers are advised to utilise the
resources on the internet and other electronic media, such as the Notesmaster learning
content platform where selected resources are housed to support the syllabus.

CXC 10/G/SYLL 17 3
SUGGESTED TIMETABLE ALLOCATION
It is recommended that a minimum of five (5) 40-minute periods per week (over a two-year period)
or the equivalent should be allocated to the syllabus.

CERTIFICATION
Candidates who sit the CSEC® Principles of Accounts examinations will be awarded an overall grade
on a six-
letter grade under profile dimensions of Knowledge/Comprehension, Application, Interpretation and
Analysis. These profile dimensions are explained below.

DEFINITION OF PROFILE DIMENSIONS

1. Knowledge/Comprehension

The ability to:

(a) state, list or identify accounting concepts, terms and principles;

(b) define and explain accounting concepts, principles, theories and procedures; and,

(c) demonstrate an understanding of basic accounting concepts, principles, and skills.

2. Application

The ability to:

(a) apply accounting concepts and principles to analyse issues; and,

(b) apply accounting concepts, principles and skills to solve problems in various
situations.

3. Interpretation and Analysis

The ability to:

(a) select, organise and interpret accounting data presented in a variety of forms; and,

(b) organise and present, logically and effectively, accounting ideas and arguments using
verbal, graphical and numerical forms of communication.

CXC 10/G/SYLL 17 4
FORMAT OF THE EXAMINATIONS
The examination consists of Paper 01, Paper 02 and Paper 031 (School-Based Assessment). Paper 032
(alternative to the School-Based Assessment) is offered to private candidates as an alternative to the
School-Based Assessment.

Paper 01 A multiple-choice test of 60 items testing the profile dimensions

(1 hour 30 Minutes) Knowledge/Comprehension, Application, Interpretation and Analysis. The
(60 marks) paper will sample proportionately, all sections of the syllabus as outlined
below.

Paper 02 A problem-solving paper which will test the profile dimensions of

(3 hours) Knowledge/Comprehension, Application (of accounting principles and skills)
(100 marks) and Interpretation of data in the ratio 1:2:1.

Paper 02 consists of five compulsory questions drawn from the entire

syllabus. Each question will be worth 20 marks.

Paper 031 A School-Based Assessment (SBA) component covering the Profile

(SBA) Dimensions of the syllabus. Details are given on pages 32 36.
(40 marks)

Paper 032 A set of compulsory short answer questions based on case studies. Details
(1 hour 30 minutes) are given on pages 37.
(40 marks)

Distribution of Items for Paper 01 (Multiple Choice Test)

Section Title No. of Items

1 Accounting as a Profession 4
2 Accounting as a System 4
3 Books of Original Entry 6
4 Ledgers and the Trial Balance 7
5 The Preparation and Analysis of Financial 6
Statements of the Sole Trader
6 Accounting Adjustments 8
7 Control Systems 4
8 Accounting for Partnerships 5
9 Accounting for Limited Liability Companies, 8
Co-operatives and Non Profit Organisations
10 Manufacturing and Inventory Control 4
11 Accounting for the Entrepreneur 4
TOTAL 60

CXC 10/G/SYLL 17 5
 WEIGHTING OF THE EXAMINATION COMPONENTS
The profile dimensions and examination papers will be weighted as set out below.

PROFILES PAPER 01 PAPER 02 PAPER 031 TOTAL Percentage

(SBA) (%)
Knowledge/
15 25 10 50 (25)
Comprehension

Application 30 50 20 100 (50)

Interpretation
15 25 10 50 (25)
and Analysis
TOTAL 60 100 40 200 (100)

REGULATIONS FOR PRIVATE CANDIDATES

Private candidates must be entered for the examination through the Local Registrar in their respective
territories. They will be required to sit Papers 01, 02, and Paper 032.

Paper 032 is a written examination designed for candidates whose research projects cannot be
monitored by tutors in a recognised educational institution and who have been assigned by the Local
Registrar to write Paper 032 at a designated examination centre.

REGULATIONS FOR RESIT CANDIDATES

Resit candidates who have obtained a MODERATED score of 50 per cent or more of the SBA marks
will not be required to repeat this component of the examination provided that they write the
examination in the academic year immediately following their first sitting of the examination. Resit
candidates who failed to achieve 50 per cent of the total SBA marks must repeat the project during
the academic year in which the examination is repeated. Resit candidates must indicate at registration
that they are resit candidates. See Regulations for the January Sitting.

REGULATIONS FOR THE JANUARY SITTING

1. All candidates for the January sitting who are taking CSEC® Principles of Accounts examination
for the first time MUST write Paper 032.
2. There is no SBA option (Paper 031) available for January for candidates who are writing the
examination for the first time.
3. A resit candidate refers to a candidate who wrote Paper 031 (SBA) in the year immediately
preceding the January examination, and obtained a MODERATED score of 50 per cent or
more. Such a candidate is NOT required to write Paper 032 in January.
4. A candidate who qualifies as a resit candidate, that is, a candidate who obtained a
MODERATED score of 50 per cent or more, but who wishes to try to improve on his/her grade,
may write Paper 032 in January.
5. A candidate who did NOT qualify as a resit candidate, that is, who did not obtain 50 per cent
or more in the SBA and who wishes to write the examination in January MUST write Paper 032.

CXC 10/G/SYLL 17 6
SECTION 1: ACCOUNTING AS A PROFESSION

SPECIFIC OBJECTIVES CONTENT

Students should be able to:

1. explain the concept and purposes of Principles of

Accounting;

Accounting as a business practice the purpose

of Accounting.

2. identify the users of accounting Internal and external users of accounting

information; information and their needs.

3. describe traditional and emerging Careers in areas such as:

careers in the field of Accounting;
and, (a) banking;

(b) management;

(c) insurance; and,

(d) entrepreneurship.

4. discuss ethical issues in the field of (a) Ethical principles of Accounting. For
Accounting. example, Code of Ethics: objectivity,
professional competence, integrity,
professional behaviour, and
confidentiality:

(i) appropriate application of the

ethical principles.

(ii) inappropriate application of the

ethical principles.

(b) Appropriate application of accounting

principles.

(c) Inappropriate application of accounting

principles. For example, fraud, tax-
evasion.

(d) Results of inappropriate application of

accounting principles. For example, law
suits, loss of job, loss of integrity,
imprisonment, and fines.

CXC 10/G/SYLL 17 7
SECTION 1: ACCOUN

Suggested Teaching and Learning Activities

Section, teachers/facilitators are encouraged

to engage students in the teaching and learning activities below.

1. Have students conduct research on the concept and purposes of Accounting, and identify the
users of accounting information to form the basis of class discussions.

2. Have students conduct research on traditional and emerging careers in the field of business to
include accounting specialisations.

3. Have students conduct research on ethical and unethical practices in Accounting and participate
in a debate.

4. Assign students to groups and have each group examine articles and case studies regarding
ethical issues. Each group should present their findings to the class.

RESOURCES

Austen, D. and Ellis, D. et al. Principles of Accounts for CSEC, A Caribbean Examinations Council
Study Guide. Nelson Thornes, 2012.

WEBSITES

http://smallbusiness.chron.com/ethics-accounting-profession-3738.html

https://www.ifac.org/system/files/publications/files/ifac-code-of-ethics-for.pdf

http://allaccountingcareers.com/accounting-careers

http://accounting-simplified.com/financial/users-of-accounting-information.html

CXC 10/G/SYLL 17 8
SECTION 2: ACCOUNTING AS A SYSTEM

SPECIFIC OBJECTIVES CONTENT

Students should be able to:

1. outline the concepts and (a) accounting concepts and conventions;

conventions that guide the and,
accounting process;
(b) principles which guide the accounting
process:

(i) accrual and matching;

(ii) prudence (conservatism);

(iii) consistency; and,

(iv) separate entity.

2. describe the accounting cycle; The accounting cycle with its diagrammatic
representations.

3. appraise the accounting features of Types of business organisations:

various types of business
organisations; (a) Sole Traders;

(b) Partnerships;

(c) Corporations (Limited Liability

companies);

(d) Cooperatives; and,

(e) Non-Profit Organisations.

4. identify the main financial Financial Statements:

statements prepared by various
business organisations; (a) Income Statement (Trading and Profit
and Loss A/C);

(b) Income and Expenditure A/C;

(c) Balance Sheets; and,

(d) Cash Flow Statements.

(Teachers are not expected to teach how to

prepare the financial statements at this stage.
However, the Income and Expenditure A/C
should only be identified and the purpose
stated). See Section 9.

CXC 10/G/SYLL 17 9
SPECIFIC OBJECTIVES CONTENT

Students should be able to:

5. assess the role and impact of (a) accounting processes which could be
technology on the accounting readily performed by the use of the
process; computer, for example, payroll,
inventory control, receivables and
payables schedules;

(b) software currently being used in

Accounting; and,

(c) advantages and disadvantages of

using the computer in Accounting.

6. explain the concept of a Balance (a) Definition and purpose of a Balance

Sheet and the balance sheet Sheet.
equation;
(b) Balance Sheet equation A = C+L.

7. identify the components of a Definition and examples of Assets, Liabilities

Balance Sheet; and Capital.

8. give examples of different types of Definition and examples of Non-current Assets,

assets and liabilities; Currents Assets, Current Liabilities,
Non-current Liabilities.

9. *construct Balance Sheets; and, (a) Preparation of Balance Sheets.

(b) Arrangement of Assets and Liabilities

in order of:

(i) permanence; and,

(ii) liquidity.

10. determine which items in a Balance Effect of transactions on Balance

Sheet will change as a result of Sheet items increase or decrease in
various transactions. items while maintaining the Balance
Sheet equation.

CXC 10/G/SYLL 17 10
Suggested Teaching and Learning Activities

Section, teachers/facilitators are encouraged

to engage students in the teaching and learning activities below.

1. Group students and assign each group to research and report on specific concepts and
conventions that guide the accounting process. Encourage them to start individual collections
of different artefacts to create a portfolio which they should develop as the course progresses.

2. Invite guest speakers to speak on the accounting features of various types of business
organisations, or arrange for students to go on field trips which allow them to have first-hand
experiences of various accounting features of organisations.

3. Invite guest speakers to speak on accounting software or arrange for students to go on field
trips which allow them to have first-hand experiences of various accounting software used in
organisations.

4. Engage students in research to identify the main financial statements prepared by various
business organisations. Samples of these should be collected and a portfolio started.

5. Engage students in research and debate to assess the role and impact of technology on the
accounting process.

6. Engage students in the construction of Balance Sheets after discussions, and demonstrations
by the teacher.

RESOURCES

Austen, D. and Ellis, D. et al. Principles of Accounts for CSEC, A Caribbean Examinations Council
Study Guide. Nelson Thornes, 2012.

Wood, F. and Robinson, S. Principles of Accounts for the Caribbean, 5th Edition. Pearson
Education Limited, 2007.

CXC 10/G/SYLL 17 11
SECTION 3: BOOKS OF ORIGINAL ENTRY

SPECIFIC OBJECTIVES CONTENT

Students should be able to:

1. explain the uses of books of original The uses of Books of Original Entry:
entry;
(a) general journal;

(b) purchases book;

(c) sales book;

(d) returns outwards book/purchases

returns;

(e) returns inwards book/sales returns;

(f) cash book; and,

(g) petty cash book.

2. distinguish between cash and credit Cash and credit transactions.

transactions; The use of forms of payment including:

(a) cash;

(b) cheques;

(c) credit cards; and,

(d) debit cards.

3. identify source documents related to Source documents related to the books of original
books of original entry; entry:

(a) sales invoice;

(b) purchases invoice;

(c) credit notes;

(d) debit notes;

(e) petty cash vouchers;

(f) receipts from cash transactions; and,

(g) non-cash transactions.

CXC 10/G/SYLL 17 12
SECTION 3: BOOKS OF ORIGINAL ENTRY

SPECIFIC OBJECTIVES CONTENT

Students should be able to:

4. *prepare source documents for use in Prepare source documents.

transaction descriptions;

5. *translate source documents into Use source documents prepared to create

transaction descriptions; transactions.

6. *use source documents to make entries Identify the book of original entry to which
into books of original entry; transactions will be recorded.

Record transactions using source

documents:

(a) purchases book;

(b) sales book;

(c) returns inwards book/sales returns;

(d) returns outwards book/purchases

returns;

(e) cash book; and,

(f) petty cash book.

7. distinguish between trade and cash Treatment of trade discounts and cash discounts.
discounts;

8. distinguish between discounts allowed Cash discounts discounts allowed and discounts
and discounts received; received.

9. *balance cash books; (a) Balancing of the cash book.

(b) Balancing the petty cash book using

the Imprest System.

10. interpret the balances of the cash books; The significance of the balances brought down on
and, the cash books.

11. *indicate treatment of totals from books Treatment of the totals from the books of original
of original entry. entry (Day Books).

CXC 10/G/SYLL 17 13
SECTION 3: BOOKS OF ORIGINAL ENTRY

Suggested Teaching and Learning Activities

Section, teachers/facilitators are encouraged

to engage students in the teaching and learning activities below.

1. Engage students in activities which require them to collect, prepare and translate source
documents into transaction descriptions. Encourage students to collect artefacts of the
different books of original entry and make individual entries in their portfolio.

2. Engage students in activities which require them to use source documents to make entries into
books of original entry. Discuss the impact of technology (for example in online transactions),
and incorporate the use of related documents as much as possible in the activities.

3. Engage students in activities which require them to balance the cash book and petty cash book.
Discuss the impact of technology (for example in online transactions), and incorporate the use
of related documents as much as possible in the activities.

RESOURCES

Austen, D. and Ellis, D., et al. Principles of Accounts for CSEC, A Caribbean Examinations Council
Study Guide. Nelson Thornes, 2012.

Wood, F. and Robinson, S. Principles of Accounts for the Caribbean, 5th Edition. Pearson
Education Limited, 2007.

Wood, F. and Sangster, A. Business Accounting 1, 12th Edition. Pearson Education Limited,
2012.

CXC 10/G/SYLL 17 14
SECTION 4: LEDGERS AND THE TRIAL BALANCE

SPECIFIC OBJECTIVES CONTENT

Students should be able to:

1. describe the different classes of Classification of accounts:

accounts;
(a) Nominal expenses and revenue;

(b) Real assets; and,

(c) Personal accounts receivable and

accounts payable.

2. identify the different types of Different types of ledgers for recording

ledgers; nominal, real and personal accounts:

(a) general ledger;

(b) sales/accounts receivable ledger; and,

(c) purchases/accounts payable ledger.

3. explain the significance of debit Rules of entry for assets, liabilities, income
and credit in each class of account; (revenue), capital and expenses.

4. *draw up simple account formats, Recording transactions in accounts using the

neatly and accurately; double entry system.

5. *post from books of original entry Posting to general and subsidiary ledgers.
to the general ledger and the
subsidiary ledgers;

6. *balance and close accounts; Balancing accounts: calculation of the

balances carried down (c/d) and bringing down
(b/d) those balances.

7. interpret entries and balances; The significance of the balances brought down
on the accounts.

8. *use the balances brought down to Preparation of the Trial balance.

construct the trial balance; and,

9. outline the uses and limitations of Uses and limitations of the trial balance.
the trial balance.

CXC 10/G/SYLL 17 15
SECTION 4: LEDGERS AND THE TRIAL BALANCE

Suggested Teaching and Learning Activities

Section, teachers/facilitators are encouraged

to engage students in the teaching and learning activities below.

1. Engage students in activities which require them to draw up simple account formats included
in this Section of the syllabus. Attention should be paid to neatness and accuracy.

2. Engage students in activities which require them to prepare the trial balance. Attention should
be paid to neatness and accuracy.

RESOURCES

Austen, D. and Ellis, D. et al. Principles of Accounts for CSEC, A Caribbean Examinations Council
Study Guide. Nelson Thornes, 2012.

Wood, F. and Robinson, S. Principles of Accounts for the Caribbean, 5th Edition. Pearson
Education Limited, 2007.

Wood, F. and Sangster, A. Business Accounting 1, 12th Edition. Pearson Education Limited,
2012.

CXC 10/G/SYLL 17 16
SECTION 5: THE PREPARATION AND ANALYSIS OF FINANCIAL
STATEMENTS OF THE SOLE TRADER

SPECIFIC OBJECTIVES CONTENT

Students should be able to:

1. explain the purpose of preparing The purpose of preparing Financial Statements

financial statements; to satisfy the needs of the users.

2. identify the components of the Trading and Profit and Loss Account and
Financial Statements; Balance Sheet.

3. *draw up the income statement Income statements for sole traders including
for sole traders to determine adjustments for return inwards (sales
gross profit or loss and net profit returns) and return outwards (purchases
or loss; returns), carriage inwards and outwards;
and closing inventory.

4. *prepare classified balance sheet in Definition of working capital (net current

vertical style; assets); calculation of working capital;
preparation of classified Balance Sheet
showing working capital.

5. explain the significance of the Working capital as a basic tool for solvency;
working capital for the operation of working capital formula.
a business;

6. *use ratios to determine the Calculate simple ratios such as inventory

performance (profitability) of the turnover, average inventory, gross profit
business; percentage, net profit percentage.

Use ratios to determine business performance.

(See Section 9, Specific Objective 10)

7. *calculate ratios to demonstrate Calculate ratios such as current ratio; acid

the financial position of a business; test ratio; return on investment.

Use ratios to analyse and interpret the

financial position of a business.

(See Section 9, Specific Objective 10)

8. *show the effect of net profit or Treatment of net profit or loss on the Balance
loss on capital; and, Sheet.

9. make recommendations about a Preparation of simple reports evaluating a

business based on ratio analysis. business based on ratios and making
recommendations.

CXC 10/G/SYLL 17 17
SECTION 5: THE PREPARATION AND ANALYSIS OF FINANCIAL STATEMEN

Suggested Teaching and Learning Activity

Section, teachers/facilitators are encouraged

to engage students in the teaching and learning activity below.

Engage students in activities which require them to calculate ratios to determine the financial position
of a business. Real figures should be provided from published reports and other authentic sources, for
example, business prospectus and company annual reports which may be found on their websites as
well as in print. Students should use these ratios to determine the performance (profitability) of the
business. They should prepare simple reports evaluating the business based on ratios and make
recommendations.

RESOURCES

Austen, D. and Ellis, D. et al. Principles of Accounts for CSEC, A Caribbean Examinations Council
Study Guide. Nelson Thornes, 2012.

Wood, F. and Robinson, S. Principles of Accounts for the Caribbean, 5th Edition. Pearson
Education Limited, 2007.

Wood, F. and Sangster, A. Business Accounting 1, 12th Edition. Pearson Education Limited,
2012.

CXC 10/G/SYLL 17 18
SECTION 6: ACCOUNTING ADJUSTMENTS

SPECIFIC OBJECTIVES CONTENT

Students should be able to:

1. explain accounting concepts Prudence, accrual, consistency.

that underpin the need for
adjustments;

2. explain why adjustments are The reasons for adjustments; application of

made to financial statements; the matching/accruals concept.

3. prepare journal entries and ledger Pre-payments prepaid expenses and

accounts to reflect adjustments advanced revenues; Accruals accrued
and the treatment in the balance expenses and revenues.
sheet;
(a) Journal entries.

(b) Ledger accounts.

4. explain the reasons for bad debts; Definition of bad and doubtful debts; reasons
for bad debts (aging debtors) and provisions
for doubtful debts.

5. *prepare journal entries and Journal entries and ledger accounts.

ledger accounts to write off bad
debts and create provision for
doubtful debts;

6. indicate the treatment of bad and Accounting entries in the Income Statement
doubtful debts in the Income and Balance Sheet.
Statement and Balance Sheet;

7. discuss the nature of Definition of depreciation.

depreciation; Causes of depreciation.
Factors to be considered when calculating
depreciation (cost, estimated useful life and
scrap value).

8. *calculate annual depreciation Straight line method (using formula) and

expenses using straight line reducing balance method of depreciation.
method and reducing balance
method;

CXC 10/G/SYLL 17 19
SECTION 6: ACCOUNTING ADJUSTMEN

SPECIFIC OBJECTIVES CONTENT

Students should be able to:

9. *prepare journal entries and Journal entries for the provision for
ledger accounts for provision for depreciation; the maintenance of the
depreciation; provision for depreciation account; the
treatment of accumulated depreciation on the
Balance Sheet; the determination of Net Book
Value (NBV).

10. distinguish between capital Capital expenditure; revenue expenditure.

expenditure and revenue
expenditures;

11. determine the amount of Journal entries and Ledger accounts for
expenses or revenues to be expenses and revenues.
transferred to the Income
Statement;

12. *prepare income statements to (a) Pre-payments and accruals.

reflect adjusting entries; and,
(b) Indicate where accruals and
prepayments will appear on the
Balance Sheet.

13. *prepare Financial Statements The preparation of adjusted Financial

after adjustments. Statements.

Suggested Teaching and Learning Activity

Section, teachers/facilitators are encouraged

to engage students in the teaching and learning activity below.

Prepare worksheets with exercises in which students practise all the accounting adjustments included
in this Section of the syllabus.

RESOURCES
Austen, D. and Ellis, D. et al. Principles of Accounts for CSEC. Nelson Thornes, 2011.

Austen, D. and Ellis, D. et al. Principles of Accounts for CSEC, A Caribbean Examinations Council
Study Guide. Nelson Thornes, 2012.

Stephens-James, L. and Principles of Accounts for Caribbean Examinations. Ian Randle

Burrows, L. et al. Publishers, 2011.

Wood, F. and Robinson, S. Principles of Accounts for the Caribbean, 5th Edition. Pearson
Education Limited, 2007.

Wood, F. and Sangster, A. Business Accounting 1, 12th Edition. Pearson Education Limited,
2012.

CXC 10/G/SYLL 17 20
SECTION 7: CONTROL SYSTEMS

SPECIFIC OBJECTIVES CONTENT

Students should be able to:

1. explain the uses of control systems (a) The need for control systems.
in the accounting process;
(b) Uses of control systems.

2. outline the THREE most commonly Common control systems:

used control systems in the
accounting process; (a) Suspense Account;

(b) Control Accounts; and,

(c) Bank Reconciliation Statements.

3. distinguish between those errors Types of errors.

which affect and those which do
not affect the trial balance;

4. *prepare journal entries for the Corrections of errors via journal entries.
correction of errors;

5. explain the need for suspense Uses of the suspense account.

account;

6. *construct a suspense account; Suspense Accounts.

7. *construct a statement of revised The effect of errors on the Income Statement

profit after the correction of errors; and the Balance Sheet.

8. explain the purposes of control Uses of control accounts.

accounts and how they are
prepared;

9. identify the sources of information Sources of information for entries in control

for entries made in control accounts.
accounts;

10. *construct sales and purchases Sales Ledger Control Accounts, Purchases
ledger control accounts; Ledger Control Accounts.

11. explain the significance of the Meaning (significance) of the balances on

balances on control accounts; Control Accounts.

CXC 10/G/SYLL 17 21
SECTION 7: CONTROL SYSTEMS

SPECIFIC OBJECTIVES CONTENT

Students should be able to:

12. identify items that will result in Items that cause the difference between cash
differences between cash book book and Bank statement balances and
and bank statement balances; and, updating of the cash book:

unpresented cheques; standing order; bank

charges; late lodgments; and, dishonoured
cheques.

13. *construct a bank reconciliation Uses and construction of the Bank

statement using the adjusted cash Reconciliation Statement.
book balance.

Suggested Teaching and Learning Activities

Section, teachers/facilitators are

encouraged to engage students in the teaching and learning activities below.

1. Provide exercises in which students practice all the accounting activities included in this Section
of the syllabus.

2. Engage students in activities to examine and comment on items recorded on specimen bank
statements.

RESOURCES

Austen, D. and Ellis, D. et al. Principles of Accounts for CSEC. Nelson Thornes, 2011.

Austen, D. and Ellis, D. et al. Principles of Accounts for CSEC, A Caribbean Examinations Council
Study Guide. Nelson Thornes, 2012.

Stephens-James, L. and Principles of Accounts for Caribbean Examinations. Ian Randle

Burrows, L. et al. Publishers, 2011.

Wood, F. and Robinson, S. Principles of Accounts for the Caribbean, 5th Edition. Pearson
Education Limited, 2007.

Wood, F. and Sangster, A. Business Accounting 1, 12th Edition. Pearson Education Limited,
2012.

CXC 10/G/SYLL 17 22
SECTION 8: ACCOUNTING FOR PARTNERSHIPS

SPECIFIC OBJECTIVES CONTENT

Students should be able to:

1. define a partnership business; Definition of partnership; comparison of a

partnership with sole traders and
corporations; types of partners.

2. state the features of a partnership; Features of partnership voluntary

association, mutual agency, unlimited
liability.

3. give reasons for establishing Reasons for formation of partnership, for

partnerships; example, increased capital, diverse skills.

4. outline the essential components Features of partnership agreement, including

of a partnership agreement; share of profits, interest on capital and
drawings, salaries.

5. *prepare journal entries and ledger The capital account of partners cash and
accounts to record the capital of non-cash resources; types of capital account
partnership; fixed and fluctuating capital accounts and
their implications.

6. *use various methods to share Methods of sharing profit/loss: capital ratio,

profit/loss among partners; fixed percentage, equally.

7. *prepare appropriation account of The preparation of the appropriation

partnerships; account.

8. *prepare current account of The current account prepared with items

partners; posted from the appropriation account;
columnar form and single accounts.

9. explain the significance of the The significance of the debit and credit
brought down balances on balances brought down on the current
and, accounts.

10. *prepare balance sheet of The treatment of current account balances on

partnerships. the balance sheet; (emphasis on capital
section).

CXC 10/G/SYLL 17 23
SECTION 8: ACCOUNTING FOR PARTNERSHIPS

Suggested Teaching and Learning Activity

Section, teachers/facilitators are encouraged

to engage students in the teaching and learning activity below.

Engage students in activities which allow them to practise the accounting concepts and principles
related to partnerships. Ensure that students engage in AT LEAST ONE activity for EACH Specific
Objective indicated with an asterisk.*

RESOURCES

Austen, D. and Ellis, D. et al. Principles of Accounts for CSEC, A Caribbean Examinations Council
Study Guide. Nelson Thornes, 2012.

Stephens-James, L. and Principles of Accounts for Caribbean Examinations. Ian Randle

Burrows, L. et al. Publishers, 2011.

Wood, F. and Robinson, S. Principles of Accounts for the Caribbean, 5th Edition. Pearson
Education Limited, 2007.

Wood, F. and Sangster, A. Business Accounting 1, 12th Edition. Pearson Education Limited,
2012.

CXC 10/G/SYLL 17 24
SECTION 9: ACCOUNTING FOR LIMITED LIABILITY COMPANIES,
CO-OPERATIVES AND NON-PROFIT ORGANISATIONS

SPECIFIC OBJECTIVES CONTENT

Students should be able to:

1. identify the essential features of (a) Features of limited liability companies,

limited liability companies, co- co-operatives, non-profit, public and
operatives and non-profit private organisations.
organisations;
(b) Principles of limited liability
companies, co-operatives, non-profit,
public and private organisations.

2. identify the types of limited liability Types of limited liability companies, co-
companies, co-operatives and non- operatives (for example, Credit Union,
profit organisations; Agricultural Societies) and non-profit
organisations.

3. outline the advantages and Advantages and disadvantages of limited

disadvantages of a limited liability companies.
liability company;

4. describe the various methods of Methods of raising capital equity (preference

raising capital available to limited and ordinary shares), debt (debentures, bank
liability companies and co- loans).
operatives;
S

capital, reserves.

5. identify the various types of shares Types of shares; rights and privileges of
and the rights of the owners of owners of each type of share.
each type of share;

6. *prepare journal entries to record Journal entries to record capital.

the issue of shares and debentures;

7. *calculate dividend payments for *Calculation of dividend payments.

various types of shares;

8. *appropriate profits between Appropriation of profits (dividends and

dividends and reserves; reserves).

CXC 10/G/SYLL 17 25
SECTION 9: ACCOUNTING FOR LIMITED LIABILITY COMPANIES, CO-OPERATIVES AND
NON-PROFIT ORGANISATIONS

SPECIFIC OBJECTIVES CONTENT

Students should be able to:

9. *prepare the final accounts of (a) Final accounts of limited liability

limited liability companies and companies.
co-operatives;
(b) Preparation of Income Statement
showing distribution of surplus.

(c) Preparation of Balance Sheet.

10. *analyse performance and Calculation and interpretation of accounting

position using ratios; and, ratios (See Section 5, Specific Objectives 6
and 7).

11. *prepare receipts and payment Preparation of receipts and payment accounts
accounts for non-profit only.
organisations.

Suggested Teaching and Learning Activities

Section, teachers/facilitators are encouraged

to engage students in the teaching and learning activities below.

1. Engage students in activities which allow them to practise the accounting concepts and
principles related to limited liability companies, co-operatives and non-profit organisations.
Ensure that students engage in AT LEAST ONE activity for EACH Specific Objective indicated with
an asterisk*.

2. Invite guest speakers to visit and make presentations on limited liability companies, co-
operatives and non-profit organisations or arrange for students to go on field trips which allow
them to have first-hand experiences of the operation of limited liability companies.

RESOURCES

Austen, D. and Ellis, D. et al. Principles of Accounts for CSEC, A Caribbean Examinations Council
Study Guide. Nelson Thornes, 2012.

WEBSITE

http://smallbusiness.chron.com/basic-bookkeeping-principles-56316.html

CXC 10/G/SYLL 17 26
SECTION 10: MANUFACTURING AND INVENTORY CONTROL

SPECIFIC OBJECTIVES CONTENT

Students should be able to:

1. distinguish between direct and Elements of cost: direct materials, direct

indirect costs; labour and factory overheads.

2. *prepare manufacturing accounts; Preparation of manufacturing account

showing:

(a) cost of raw material consumed;

(b) prime cost;

(c) factory overheads;

(d) work in progress; and,

(e) cost of production.

3. *calculate unit cost of items Calculation of unit cost of items produced.

produced;

4. *prepare final accounts for a Preparation of Trading, Profit and Loss

manufacturing concern; Account and Balance Sheet of a
manufacturer.

5. *apply basic costing principles; Basic costing principles, for example, cost-plus
pricing, absorption costing, mark-up pricing.

6. list methods of inventory valuation; Methods of inventory valuation:

and,
(a) First in, First out (FIFO);

(b) Last in, First out (LIFO); and,

(c) Average cost (AVCO).

7. *calculate the value of closing (a) Calculate the value of closing

inventory using either FIFO or LIFO; inventory.
AVCO.
(b) Assess the effect of different methods
of inventory valuation on profit.

CXC 10/G/SYLL 17 27
SECTION 10: MANUFACTURING AND INVENTORY CONTROL

Suggested Teaching and Learning Activity

Section, teachers/facilitators are encouraged

to engage students in the teaching and learning activity below.

Engage students in activities which allow them to practise the accounting concepts and principles
related to manufacturing and inventory control. Ensure that students engage in AT LEAST ONE activity
for EACH Specific Objective indicated with an asterisk*.

RESOURCES

Austen, D. and Ellis, D. et al. Principles of Accounts for CSEC, A Caribbean Examinations Council
Study Guide. Nelson Thornes, 2012.

Stephens-James, L. and Principles of Accounts for Caribbean Examinations. Ian Randle

Burrows, L. et al. Publishers, 2011.

Wood, F. and Robinson, S. Principles of Accounts for the Caribbean, 5th Edition. Pearson
Education Limited, 2007.

Wood, F. and Sangster, A. Business Accounting 1, 12th Edition. Pearson Education Limited,
2012.

WEBSITES

http://accountingrevision.blogspot.com/2012/01/manufacturing-accounts.html

http://www.accountingtools.com/cost-plus-pricing

https://www.boundless.com/marketing/textbooks/boundless-marketing-textbook/pricing-
8/general-pricing-strategies-62/markup-pricing-312-10616/

CXC 10/G/SYLL 17 28
SECTION 11: ACCOUNTING FOR THE ENTREPRENEUR

SPECIFIC OBJECTIVES CONTENT

Students should be able to:

1. list methods of payment; (a) Employees.

(b) Goods and Services.

(c) Suppliers.

Methods of payment, for example, cheques,

standing orders, direct deposits (direct debit),
cash, electronic fund transfer and point of sale
(EFTPOS).

2. identify basic source documents of Use of time cards, time books, electronic
the payroll; clock-in cards, employee earnings records.

3. *prepare spreadsheet to arrive at Preparation of payroll and wage documents

net pay amounts after deductions; from time cards, computer records.

4. identify main accounting software Main accounting software used for payroll, for
used for payroll; example, Quick Books, Peach Tree Accounting.

5. distinguish between voluntary and Statutory and voluntary/non-statutory

statutory deductions; deductions.

6. *calculate employ earnings; (a) calculating gross and net pay (wages);

(b) calculating overtime from employee

records; and,

(c) calculation of statutory deductions

and non-statutory deductions, for
example, income tax, social security
and mortgage.

7. *prepare cash flow projections Preparation of simple cash flow projection and
within a six-month period; outflow.

surplus cash/profit (by month four or five).

Outflows: overhead expenses utilities, wages

and salaries, transportation (and other
expenses that the business may incur).

CXC 10/G/SYLL 17 29
SECTION 11: ACCOUNTING FOR THE ENTREPRENEUR

SPECIFIC OBJECTIVES CONTENT

Students should be able to:

8. *prepare sales and production Preparation of simple sales and production

budgets for a three-month period; budgets (sale targets, production costs,
and, production inputs).

9. *use accounting knowledge and Preparation of a simple business plan for a

skills to prepare a simple business small project, for example, rearing chickens,
plan. farming cash crops, craft.

Suggested Teaching and Learning Activity

Section, teachers/facilitators are encouraged

to engage students in the teaching and learning activities below.

1. Engage students in activities which allow them to practise the accounting concepts and
principles addressed in this Section of the syllabus. Ensure that students engage in AT LEAST
ONE activity for EACH Specific Objective indicated with an asterisk*.

2. Engage students in simple projects that will allow them to maintain a cash flow projection over
a given period. Use cash flow projection to analyse and compare the actual outcome.

RESOURCES

Holdip, G. and Lamorell, C. Principles of Accounts for CSEC Examinations. Macmillan

Publishers, 2010.

Dansby, R. and Burton, K. College Accounting 4th Edition Revised. EMC Paradigm, 2003.
et al.

CXC 10/G/SYLL 17 30
GUIDELINES TO TEACHERS FOR THE CONDUCT OF THE
SCHOOL-BASED ASSESSMENT IN BUSINESS STUDIES (PRINCIPLES OF
ACCOUNTS, PRINCIPLES OF BUSINESS AND ECONOMICS)
School-Based Assessment (SBA) is an integral part of student assessment in the course covered by this
syllabus. It is intended to assist students in acquiring certain knowledge, skills and attitudes that are
associated with the subject. The activities for the School-Based Assessment are based on the syllabus
and should form part of the learning activities to enable the student to achieve the objectives of the
syllabus.

During this course of study, students obtain marks for the competencies they develop and
demonstrate in undertaking their SBA assignments. These marks contribute to the final marks and
grades that are awarded to students for their performance in the examination.

The guidelines provided in this syllabus for selecting appropriate tasks are intended to assist teachers
and students in the selection of assignments that are valid for the purpose of School-Based
Assessment. The guidelines provided for the assessment of these assignments are intended to assist
teachers in awarding marks that are reliable estimates of the achievement of students in the School-
Based Assessment component of the course. In order to ensure that the scores awarded by the

the moderation of a sample of the SBA assignments submitted by the school.

School-Based Assessment provides an opportunity to individualise a part of the curriculum to meet

the needs and interests of students. It facilitates feedback to the student at various stages of the
experience. This helps to build the self-confidence of students as they proceed with their studies. The
SBA also facilitates the development of research and analytical skills, and critical skills and abilities,
emphasised by the subject and enhances the validity of the examination scores.

RESEARCH PROJECT

The School-Based Assessment component of the syllabuses in Business Studies is a single guided
research project for school candidates. The project should involve the manipulation of research data
including data collection, analysis and interpretation. All activities selected must be within the law and
must lend themselves to the collection of business data and application of business principles
identified in the mark scheme.

Students are required to investigate a topic, issue or problem in a business related area of study
(Principles of Accounts, Principles of Business and Economics). Students should:

1. identify the issue, topic or problem to be investigated;

2. discuss the background to the issue, topic or problem;

3. state the objective of the investigation;

4. describe methodology and instruments used to collect data;

5. present and analyse the data;

CXC 10/G/SYLL 17 31
6. state the conclusion based on findings;

7. make recommendations (at least two) based on the findings;

8. acknowledge sources (bibliography); and,

9. include appendices: questionnaire, source documents, diagrams, charts, interview questions

and statistical data.

Examples of possible organisations and areas for research:

1.

2. snack shop at school events;

3. school projects (for Agriculture Science, Home Economics, TVET and Junior Achievement
programmes);

4. income and expenditure statements;

5. business plans;

6. published financial reports such as those found in the business section of local newspapers,
statistical reports including national income statistics, balance of payments statistics, survey
of living conditions, household budgetary surveys, annual economic reports of Central Banks,
Ministries of Finance and Planning Units, annual reports of firms in the region, budget
speeches of ministers of Finance or reviews of estimates of income and expenditure for
ministries of Finance;

7. economic information available on the internet (for example, e-commerce);

8. events coordinated by students such as concerts and fashion shows; and,

9. sporting and other cultural clubs at school or in the community.

SBA REQUIREMENTS

Every candidate who enters for the CSEC® Principles of Accounts examination must submit a report on
a project. Students may work individually or in groups to gather the data. Each candidate must be
identified on the report. The report should not exceed 1,000 words, (not including appendices).
Wherever a report exceeds the maximum length for the project by more than 10 per cent, the teacher
must impose a penalty of 10 per cent of the score achieved on the project. On the report, the teacher
should clearly indicate the original score that is, the score before the deduction is made the marks
which are to be deducted, and the final score awarded after the deduction has been made.

Only the final score is to be indicated on the record sheets which are submitted to CXC® electronically
via the SBA data capture

CXC 10/G/SYLL 17 32
Students doing more than one subject in the Business cognate group (Principles of Accounts,
Principles of Business, and Economics) should submit one SBA report based on a topic relevant to
the subjects being taken by the student and which allows the student to utilise skills that are
common and relevant to the field of Business.

PROJECT REPORTS

and should comprise the following in the order

prescribed below.

1. Table of Contents

2. Topic, Issue or Problem

3. Objective of the Project (The objective should be related to the issue and NOT the SBA)

4. Background to OR Overview of the Topic, Issue or Problem

5. Methodology (Data collection and instrumentation)

6. Presentation and Analysis of Data

7. Conclusion

8. Recommendations

9. Bibliography

10. Appendices

MARK SCHEME FOR RESEARCH PROJECTS

The project should be marked out of 40, weighted as follows:

Knowledge and Comprehension (KC) - 10 marks

Application (A) - 20 marks

Interpretation and Analysis (IA) - 10 marks

CXC 10/G/SYLL 17 33
 MARK SCHEME FOR SCHOOL-BASED ASSESSMENT

PROJECT AREAS PROFILE DISTRIBUTION TOTAL

Knowledge and Application Interpretation
Comprehension and Analysis
Table of Contents 1 1
Table of contents accurately links
pages to content 1 mark (KC)

Topic/Issue/Problem 2 2
Topic/issue/problem is clearly stated
1 mark (KC)
Topic/issue/problem accurately
describes the project 1 mark (KC)

Objectives 2 2
Objectives are clearly stated and linked
to the topic/issue/problem
1 mark (A)
Objectives are realistic 1 mark (A)

Background/Overview 2 2 4
Includes a description of the
topic/issue/problem
- Description includes the history
1 mark (KC)
- Description includes the
development 1 mark (KC)

Establishes the need for research

- Why/how is the
topic/issue/problem important to
student 1 mark (A)
- Impact of topic/issue/problem on
society 1 mark (A)

Methodology 2 6 2 10
Data collection instrument clearly
described 1 2 marks (KC)
Data collection instrument appropriate
for type of data 1 mark ( )
Included at least two instruments of
data collection 1 mark (A)
Method of data collection clearly
described 1 2 marks (A)
Method of data collection adequately
justified 1 2 marks (IA)
Limitations of data collection method
clearly stated 1 2 marks (A)

Presentation and Analysis of Data 2 4 4 10

CXC 10/G/SYLL 17 34
PROJECT AREAS PROFILE DISTRIBUTION TOTAL
Knowledge and Application Interpretation
Comprehension and Analysis
Data is presented an appropriate form
using tables, charts, graphs
1 2 marks (KC)
Data presented are relevant to the
objectives of the project 1 2 marks
(KC)
Data is adequately analysed
1 2 marks (A)
Data is analysed using appropriate
statistics mean, median, mode
1 2 marks (IA)
Findings are consistent with analyses
1 2 marks (IA)

Conclusion 4 4
Conclusion succinctly summarises the
project 1 2 marks (A)
Conclusion is logical and based on
findings 1 2 marks (A)

Recommendation 4 4
Recommendations are realistic and
informed by findings 1 2 marks (IA)
Recommendations contribute to a
better understanding of the
topic/issue/problem 1 2 marks (IA)

Bibliography 1 1
Bibliography contains names of authors,
name of publisher(s), names and dates of
publication, and are written in alphabetical
order 1 mark (KC)

Overall presentation 2 2
Consistently uses correct spelling and
grammar 1 mark (A)
Expression of ideas logical and
unambiguous 1 mark (A)

TOTAL 10 20 10 40

MANAGEMENT OF THE PROJECT

School-Based Assessment tasks should be completed in the course of normal teaching time and
supervised and marked by the teacher. Although some of the data collection and research work must
be undertaken outside of normal school time, the teacher must be satisfied that the work submitted

The teacher must:

CXC 10/G/SYLL 17 35
1. provide assistance to students in the selection of projects;

2. advise students of the nature of the task, the scope and depth required to fulfill the
requirements of the SBA;

3. advise on the availability of resource materials;

4.
recommending ways to improve the quality of the project;

5.

6.
requested by CXC®; and,

7. ensure that the SBA guidelines are closely followed and the marking criteria are adequately
met.

GUIDELINES TO TEACHERS FOR THE ALTERNATIVE TO SCHOOL-

BASED ASSESSMENT
The Alternative to the School-Based Assessment in CSEC® Principles of Accounts (Paper 032), is
offered to private candidates and takes the form of a written examination in lieu of the School-Based
Assessment for school candidates. Private candidates are required to write Paper 032 in addition to
Paper 01 and Paper 02.

Paper 032 will consist of a case study and candidates will be required to answer questions based on
the case study. It is weighted in the same way as the Paper 031 (SBA) for school candidates, as
shown in the table below.

WEIGHTING OF PAPER (032)

Knowledge/ Application Interpretation Total Marks % of Total
Comprehension and Analysis Exam
10 20 10 40 20

Candidates are advised to familiarise themselves with the syllabus in order to prepare adequately for
Paper 032. Please note that candidates taking Paper 032 are NOT required to submit a project.

CXC 10/G/SYLL 17 36
FORMULAE

1. Assets = Capital + Liabilities

2. Net Current Assets (Working Capital) = Current Assets Current Liabilities

3. Current (Working Capital) Ratio = Current Assets

Current Liabilities

4. Return on Capital Employed = Profit before Interest x 100

(ROCE) Capital Employed

5. Net Profit Percentage = Net Profit __ x 100

Sales (Revenue)

6. Gross Profit Percentage = Gross Profit x 100

Sales (Revenue)

7. Stock/Inventory Turnover = Cost of Sales (Cost of Goods Sold)

Average Inventory

8. Acid Test Ratio = Current Assets Inventory

Current Liabilities

9. Current (working capital) Ratio = Current Assets

Current Liabilities

10. Trade Receivables to Sales = Accounts Receivables x 365

Credit Sales for the year

11. Trade Payables to Purchases = Trade Payables x 365

Credit Purchases for the year

12. Average Inventory = Opening Inventory + Closing Inventory

2

13. Rate of Inventory Turnover (Inventory Turnover) =

Cost of Goods Sold (Cost of Sales)

Average Inventory

14. Straight line method of calculating depreciation =

Cost Disposal Value

Number of years

CXC 10/G/SYLL 17 37
GLOSSARY OF ACCOUNTING TERMS

WORD/TERM DEFINITION/MEANING

Accounting The process of recording, summarising, analysing and

interpreting of financial data to make informed judgments and
decisions.

Accounting Adjustments A business transaction which has not yet been included in the
accounting records of a business on a specific date.

Accounting Cycle A series of steps for the recording and the use of information for
decision-making.

Accounts Payable A person to whom money is owed for goods or services. (Formerly
known as creditors).

Accounts Receivables A person who owes money to the business for goods or services
supplied. (Formerly known as debtors).

Accrual and Matching When calculating profit or loss for a period, all revenues and
Concept expenses must be taken into account whether or not cash was
actually paid or received.

Accrued Expenses An expense for which the benefit has been received but which has
not been paid for by the end of the period.

Accrued Revenues Revenues from a source other than the main source of business
revenue that were due to be received by the end of the period but
which have not been received by that date.

Accumulated Depreciation The account where depreciation is accumulated for the balance
sheet purposes.

Acid Test Ratio Financial ratio that measures the

current assets to pay short-term debts.

Adjusting Entries Journal entries recorded at the end of an accounting period to

alter the ending balances in various general ledger accounts.

Advanced Revenues Revenues that have not yet been earned, but represent products
or services that are owed to a customer.

Average Stock The average value of stock during a financial year, calculated by
adding together the values of the stock at the beginning of the
year and end of the year and dividing by two.

Bad Debts A debt that a business will not be able to collect.

Balance Sheet A statement showing assets, liabilities and capital of a business.

CXC 10/G/SYLL 17 38
WORD/TERM DEFINITION/MEANING

Bank Charge Charges and fees made by a bank to their customers.

Bank Reconciliation A calculation showing that the cash book bank column balance
Statement agrees with the bank statement balance.

Budget An estimate of income and expenditure for a set period of time.

Business Plan
achieving them.

Business Technology Refers to applications of science, data, engineering, and

information for business purposes, such as the achievement of
economic and organisational goals. The main element of
technology is the idea of change, and how it can affect business
and society.

Capital The total resources invested and left in a business by its owner.

Capital Expenditure When a business spends money to buy or add value to a fixed
asset.

Capital Ratio The extent to which a financial institution finances its operations
by issuing shares and retaining profits expressed as a percentage
of its assets.

Carriage Cost of transportation of goods. Cost of transportation of goods

purchased by a business is known as carriage inwards while the
cost of transportation of goods to the customers is known as
carriage outwards.

Cash Book Book of original entry for cash and bank receipts and payments.

Cash Discounts An allowance given for quick payment of an account owing.

Cash Flow Total money being transferred into and out of a business,
especially as affecting liquidity.

Cash Flow Projection A projection showing how cash will be generated and disposed of
by an organisation.

Cash Resources Money available to a business for spending in the form of cash,
liquid securities and credit lines.

Closing Inventory The amount of inventory a company has in stock at the end of its
financial year.

CXC 10/G/SYLL 17 39
WORD/TERM DEFINITION/MEANING

Columnar Accounts Accounts making use of multiple columns in order to better

display their information. Where there are several accounts of
similar format such as partnership current accounts, they may be
in columnar form.

Consistency Concept Keeping the same method of recording and processing

transactions.

Control Accounts An account which checks the arithmetical accuracy of the

subsidiary ledgers.

Control Systems Ensuring compliance with accounting policies and procedures,

assets, and preparing reliable and
timely financial reports.

Co-operatives A business entity formed to further the economic welfare of its

members by providing them with goods and services.

Corporations See limited liability company.

Ltd Liability Companies
Credit Notes A document sent to a customer showing allowance given by a
supplier in respect to unsatisfactory goods.

Current Ratio A ratio comparing current assets with current liabilities.

Debenture Loan to a company.

Debit Notes A document sent to a supplier showing allowance to be given for

unsatisfactory goods.

Depreciation The part of the cost of a fixed asset consumed during its period of
use by the firm.

Discounts Allowed A reduction from the amount due given to customers who pay
their accounts within the time allowed.

Discounts Received A deduction from the amount due given to a business by a

supplier when their account is paid before the time allowed has
elapsed.

Dishonoured Cheque A cheque which the writer s bank has refused to make payment
upon.

Dividends The amount given to shareholders as their share of the profits of

a company.

Doubtful Debts Debts which a business is unlikely to be able to collect.

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WORD/TERM DEFINITION/MEANING

Drawings Money or goods taken out of the business by the owner for their
private use.

Earnings Money obtained in return for goods or services provided.

E-Business The concept is broader than e-commerce, and includes the

transaction based e-commerce businesses and those who run
traditionally but cater to online activities as well. An e-business
can run any portion of its internal processes online, including
inventory management, risk management, finance, human
resources. For a business to be e-commerce and e-business, it
must both sell products online and handle other company
activities or additional sales offline.

E-Commerce Any transaction completed over a computer-mediated network

that involves the transfer of ownership or rights to use goods and
services. Transactions are not required to have a price and
include both sales and items like free downloads. E-commerce
includes transactions made on the internet, Intranet, Extranet,
World Wide Web, by email and even by fax.

Employee Earnings Record history.

Equity Another name for capital.

Error A non-fraudulent discrepancy in financial documentation.

Estimated Useful Life Lifespan of a depreciable non-current asset, during which it can
be expected to contribute to business operations.

Final Accounts Statements produced at the end of an accounting period.

Financial Institution An establishment that conducts financial transactions such as

investments, loans and deposits. Everything from depositing
money to taking out loans and exchanging currencies must be
done through financial institutions (www.investopedia.com).

Financial Statement Statement produced at the end of an accounting period.

Fixed Assets Assets which have a long life and which were bought with the
intention to use them in the business.

Fixed Capital Assets The portion of the total capital that is invested in fixed assets, that
stay in the business almost permanently.

Fixed Percentage The same amount of depreciation is recognised each year.

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WORD/TERM DEFINITION/MEANING

Fluctuating Capital Assets When the capitals of partners are fluctuating, all adjustments
with regards to the interest on capitals, interest on drawings,
partners salaries and the like, are passed through the capital
accounts of the partners.

General Journal A book of original entry for all items not included in the other
books of original entry.

General Ledgers A ledger for all accounts other than those for customers and
suppliers.

Gross Loss Where the cost of goods sold exceeds the sales revenue.

Gross Pay The amount of wages or salary before deductions are made.

Gross Profit Where the sales revenue exceeds the cost of goods sold.

Gross Profit Percent Calculation that shows the proportion of sales comprised of those
costs directly related to either goods sold or services rendered in
order to generate sales.

Imprest System A system where a refund is made of the total paid out in a period
in order to restore the float to it agreed level.

Income Statement Financial report

specific period of time.

Information ICT covers any product that will store, retrieve, manipulate,
Communication transmit or receive information electronically in a digital form.
Technology (ICT) For example, personal computers, digital television, email,
robots. In business, ICT is often categorised into two broad types
of product:

1. Traditional computer-based technologies (things you can

typically do on a personal computer or using computers
at home or at work).

2. Digital communication technologies (which allow people

and organisations to communicate and share
information digitally).

Inventory Goods in which the business normally deals that are held with the
intention of resale. (Formerly known as stock).

Inventory Control The process employed to maximis

Inventory Valuation Provide monetary value for items that make up inventory.

Late Lodgment A receipt recorded in the cash book but which was paid late to the
bank after the bank statement was prepared.

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WORD/TERM DEFINITION/MEANING

Ledger (Sales/Debtor, Collection of an entire group of similar accounts in completing the

purchases, general) double entry in accounting.

Limited Liability Company An organisation owned by its shareholders, whose liability if

limited to their share capital.

Liquidity The ability of a business to pay its debts as they fall due and to
meet unexpected expenses within a reasonable settlement
period.

Manufacturing Accounts An account in which production cost is calculated.

Mutual Agency A legal relationship between partners in a partnership where

each partner has authorisation powers and the ability enter the
partnership into business contracts.

Net Book Value (Nbv) The cost of a fixed asset with depreciation deducted.

Net Current Assets Current assets minus current liabilities. Same as working capital.

Net Loss Where the cost of goods sold plus expenses are greater than the
revenue.

Net Pay The amount of wage or salary after deductions are made.

Net Profit Where sales revenue plus other income exceeds the sum of cost
of goods sold plus other expenses.

Net Profit Per cent Per cent of revenue left after all expenses have been deducted
from sales.

Nominal Accounts Accounts in which expenses, revenues and capital are recorded.

Non-Cash Resources Resources correlating to expenses that are essentially just

accounting entries rather than actual movements of cash.

Non-Current Assets Assets bought which have along life and are to be used in the
business.

Non-Current Liabilities Liabilities that will be settled in the longer term, which is usually
more than one year.

Non-Profit Organisations A form of business owned by a group of people called members.

The common interest or aim of the members is to fulfill the needs
of members rather than making a profit.

Non-Statutory Deductions Deductions

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WORD/TERM DEFINITION/MEANING

Ordinary Shares Shares entitled to dividends after the preference shareholders

have been paid their dividends.

Overheads Refers to indirect manufacturing costs.

Overtime Hours worked in excess of eight consecutive hours.

Partnerships A firm in which two or more people are working together as

owners with a view to making profits.

Payroll A list of employees employed by a business to whom a wage or

salary is paid.

Permanence Arrangement of assets in order of how everlasting they are, with

the items likely to be used by the business for the longest period,
listed first.

Personal Accounts Accounts for accounts receivables and payables.

Petty Cash Book A cash book for small payments.

Petty Cash Vouchers A form used by someone requesting payment for a small item of
expenditure incurred on behalf of the business.

Preference Shares Shares that are entitled to an agreed rate of dividends before the
ordinary shareholders receive anything.

Pre-Payments An expense or revenue that has been paid or earned in advance.

Prime Cost Direct materials plus direct labour plus direct expenses.

Principles of Accounts Refers to the basic or fundamental principles in Accounting.

Private Organisations A limited company that must issue its shares privately.

Production Budget Calculates the number of units of products that must be

manufactured and is derived from a combination of sales forecast
and the planned amount of finished goods inventory to have on
hand.

Profitability Measures the firm s potential to obtain and maintain revenues

that exceed expenses.

Prudence Ensuring that profit is not shown as being too high, or that assets
are shown as too high a value and that the financial statements
are neutral.

Public Organisations A company that can issue its shares publicly, and for which there
is no maximum number of shareholders.

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WORD/TERM DEFINITION/MEANING

Purchase Book Book of original entry for credit purchases.

Purchase Invoice A source document received by a purchaser showing details of

goods bought and their prices.

Purchase Ledger Control This ledger segregates into one location a record of the amounts
Account a company spends with its suppliers.

Purchases Returns Goods returned to supplier. Also known as returns outwards.

Ratios Measures the relative efficiency of a firm based on its use of its
assets leverage or other such balance sheet items and are

doing a good enough job of generating revenues and cash from

its resources.

Raw Material Basic materials from which goods and products are made.

Real Accounts Accounts in which property of all kinds are recorded.

Receipts A form acknowledging receipt of money for goods or services

rendered.

Reducing Balance Method A method of calculating depreciation based on principle that

annual depreciation is calculated as a percentage of the net-of-
depreciation-to-date balance brought forward at the start of the
period on the fixed asset.

Reserves The transfer of apportioned profits to accounts for use in future

years.

Returns Goods returned by a business to its suppliers or by a customer to

a business.

Returns Inwards Goods returned by customers. Also known as sales returns.

Returns Outwards Goods returned to suppliers. Also known as purchases returns.

Revenue Expenditure Expenses needed for the day-to-day running of the business.

Salary A fixed sum of money paid out on a monthly basis for an

employee.

Sales Book Book of original entry for credit sales.

Sales Budget An itemis

period, in both units and dollars.

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WORD/TERM DEFINITION/MEANING

Sales Invoice Source document showing details of goods sold and the prices of
those goods.

Sales Ledger Control Part of the balance sheet that shows at any given time how much
Account your customers owe you/your business.

Sales Returns Goods returned by customers. Also known as returns inwards.

Scrap Value The expected or estimated value of the asset at the end of its
useful life.

Separate Entity Basic accounting concept that we should always separately

record the transactions of a business and its owners.

Share Capital Money invested in a company by the shareholders.

Shareholder (Equity) Owners of shares in a limited liability company.

Sole Traders Where one person or a single family operates a firm.

Solvency
debt.

Source Documents Written evidence of a business transaction.

Spreadsheet A worksheet that is arranged in rows and columns of a grid and

can be manipulated and used in calculations.

Standing Order A medium used to enable payments to be made automatically at

given dates into a bank account for an amount agreed by the
payer.

Statutory Deductions Compulsory deductions required by law to be taken out by the

employer from each employee pay.

Stock Turnover The number of times stock is sold in an accounting period.

Straight Line Method A method of calculating depreciation that involved deducting the
same amount every accounting period from the original cost of
the fixed asset.

Subsidiary Ledgers Contains accounts that do not appear in the general ledger.

Suspense Accounts An account in which you can enter the amount equal to the
difference in the trial balance while you try to find the cause of
the error(s) that resulted in the failure of the trial balance to
balance.

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Trade Discounts A deduction in price given to a trade customer when calculating

the price to be charged to that customer for some goods.

Transactions An event that is recorded in the accounting system.

(Cash/Non-Cash)
Trial Balance A list of account titles and their balances in the ledgers on a
specific date, shown in debit and credit columns.

Unlimited Liability Should a business fail, the owner stands to lose not only what
he/she invested but also their personal assets.

Unrepresented Cheque A cheque which has been given to a creditor but which has not

Vertical Style A style in formatting where the columns are one above the other.
It shows the flow of fund in a given period.

Voluntary Association Group of individuals joined together on the basis of mutual

interest or common objectives, especially a business group that is
not organised or constituted as a legal entity.

Voluntary Deductions Deductions that are made at an emplo

Wages Payment made to a worker in return for services rendered and

usually paid weekly.

Work In Progress Items not completed at the end of a period.

Working Capital Current assets minus current liabilities.

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GLOSSARY OF EXAMINATION TERMS
WORDS/TERMS DEFINITIONS/MEANINGS

account for present reason for action or event

annotate add a brief note to a label

apply use knowledge of principles to solve problems

assess present reasons for the importance of particular structures, relationships or process

calculate arrive at the solution to a numerical problem

classify divide into groups according to observable characteristics

comment state opinion or view with supporting reasons

compare state similarities and differences

construct use a specific format to make and draw a graph, histogram, pie chart or other
representation using data or material provided or drawn from practical
investigations, build (for example, a model), draw scale diagram

deduce make a logical connection between two or more pieces of information; use data to
arrive at a conclusion

define state concisely the meaning of a word or term

demonstrate show; direct attention to...

describe provide detailed factual information of the appearance or arrangement of a specific

structure or a sequence of a specific process
determine find the value of a physical quantity

design plan and present with appropriate practical detail

develop expand or elaborate an idea or argument with supporting reasons

diagram simplified representation showing the relationship between components.

differentiate state or explain briefly those differences between or among items which can be used
to define the items or place them into separate categories.

discuss present reasoned argument; consider points both for and against; explain the
relative merits of a case

draw make a line representation from specimens or apparatus which shows an accurate
relation between the parts

estimate make an approximate quantitative judgement

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WORDS/TERMS DEFINITIONS/MEANINGS

evaluate weigh evidence and make judgements based on given criteria

explain give reasons based on recall; account for

find locate a feature or obtain as from a graph

formulate devise a hypothesis

identify name or point out specific components or features

illustrate show clearly by using appropriate examples or diagrams, sketches

investigate use simple systematic procedures to observe, record data and draw logical
conclusions

label add names to identify structures or parts indicated by pointers

list itemise without detail

measure take accurate quantitative readings using appropriate instruments

name give only the name of

note write down observations

observe pay attention to details which characterise a specimen, reaction or change taking
place; to examine and note scientifically

outline give basic steps only

plan prepare to conduct an investigation

predict use information provided to arrive at a likely conclusion or suggest a possible

outcome

record write an accurate description of the full range of observations made during a given
procedure

relate show connections between; explain how one set of facts or data depend on others
or are determined by them

sketch make a simple freehand diagram showing relevant proportions and any important
details

state provide factual information in concise terms outlining explanations

suggest offer an explanation deduced from information provided or previous knowledge (...
a hypothesis; provide a generalisation which offers a likely explanation for a set of
data or observations.)
test to find out, following set procedures

Western Zone Office

31 March 2017

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