The purpose of accounting, the difference between bookkeeping and accounting, business entities, and the accounting equation linking assets, liabilities and capital.
The principle of double entry, debit and credit rules, recording transactions in ledger accounts and balancing them.
The books of prime entry, the two- and three-column cash book, discounts, the petty cash book and the imprest system.
Preparing a trial balance, what it does and does not prove, and the errors not revealed by it.
Preparing the income statement, calculating cost of sales, gross profit and profit for the year, and the effect of inventory.
Preparing the statement of financial position, the classification of assets and liabilities, and the link with capital, profit and drawings.
Why and how non-current assets are depreciated, the straight-line and reducing-balance methods, and recording depreciation in the accounts.
Adjusting expenses and income for accruals and prepayments, irrecoverable debts and the provision for doubtful debts.
Why the cash book and bank statement differ, updating the cash book, and preparing a bank reconciliation statement.
Sales and purchases ledger control accounts, the use of the journal to correct errors, and the suspense account.
Partnership appropriation accounts and capital/current accounts, and the features of limited companies including share capital and reserves.
Profitability and liquidity ratios, how to calculate and interpret them, and the limitations of ratio analysis.