The aim of this module is to introduce the student to the subject of Accounting and provide an understanding of the role of the discipline in the running of the organization.



At the conclusion of this module the candidate will be able to.

  • Understand the basic Financial Accounting principles and their applications.
  • Prepare simple books of accounts for sole traders and non-profit making organizations.
  • Make necessary correction of errors and prepare financial statements from incomplete records.
  • Prepare financial statements for sole traders and non trading requirements.


Evidence of assessed pre-requisite knowledge and understanding at ‘A’ Level, or those of equivalent qualifications which have been approved as meeting the Institute’s qualifications.


Double Entry System

Accounting theory.

Concepts and accounting for capital, assets, liabilities, expenses and income including the accounting (balance sheet) equation.

Approaches to double entry principle.

Books of Original Entry

Writing up and construction of Journals, sales day books, purchase journals, bills books, returns inwards and returns outwards books suitable for various business enterprises, and the journal proper from primary documents e.g. invoices and receipts.

Transferring of the relevant amounts to the ledger.

The Ledger

The ledger as a summary of all transactions undertaken by a business during a particular period, including balances from previous periods.

Direct entries to the ledger, and entries using books of original entry.  Use of folio numbers to cross-reference accounts.  Balancing of ledger accounts including the cash book.

The trial balance and suspense accounts.

Cash Accounting

Writing up and adjustment of cash books (including petty cash book).

Trade discount and cash discount.

Bank reconciliation statements, including treatment of unpaid cheques, post-dated cheques, bank charges, transfers and contra entries and errors.

Matching concept

Matching revenue and expenditure – accruals and prepayments of income and expenses.

Accounting for assets, liabilities, revenue and expenses in proper accounting period.

Year-end adjustment including stocks shortages.

Various methods of providing for and calculating provision for depreciation on fixed assets – straight-line, reducing balance, revaluation, and sum-of-digits.  Provision for bad debts and discounts.

Valuation of Assets

Inventory valuation, First-In-First-Out (FIFO) Last-In-Fist-Out (LIFO).

Simple and weighted average methods of inventory valuation.  Article and Category methods.  Lower of cost and net realizable value rule.

Valuation of imported goods rules:  “in bonds” sales at reduced mark-ups.  Goods on sale or return.  Cut-off dates for stocktaking.


Simple partnership accounts

Preparation of Capital and Current Accounts, Profit and Loss Appropriation Account and Balance Sheet.

Preparation and Presentation of Financial Statements

Preparation and presentation of Manufacturing, Trading, Profit and Loss Accounts and Balance Sheets of sole traders in acceptable presentation form in accordance with the Relevant Accounting Standards.

Financial statements for non-trading organizations including the Receipts and Payments, income statement and balance sheet.

Treatment of post Trial Balance adjustments including asset disposal accounts.

Control Accounts

Purpose of control accounts.

Writing up and reconciliation of debtors and creditors control accounts and agreement with debtors and creditors ledger balance.

Correction of Errors

Identification of and treatment of errors which are not reflected in the trial balance.

Errors which result in a difference in the trial balance.

Use of suspense accounts at elementary level, to account for differences in the trial balance.


Debtors and creditors statements.

Remittance advices.

Bank Reconciliation Statements.

Departmental Accounts

Presentation of departmental financial statements (Manufacturing, Trading and Profit and Loss Accounts); inter-departmental transfers, allocation and apportionment of expenses.

New Developments in Accounting Systems

Extended (multi-column) cash books and specialized journal.

Computerized accounts.


Three hour examination paper.


Wood F (2005) Business Accounting I (10th Edition) Pitman Publishing London
Musamba J F (2005) Introductory Accounting (3rd Edition) Vision Publications Harare

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