PRINCIPLES OF ACCOUNTS

The aim of this 2019 JAMB Accounts Syllabus for Unified Tertiary Matriculation Examination (UTME), is to prepare the candidates for the Board's examination. It is designed to test their achievement of the course objectives, which are to:

1. Stimulate and sustain their interest in Principles of Accounts;

2. Use the basic knowledge of and practical skills in Accounting;

3. Apply the knowledge and interpretation of accounting information to decision making;

4. Determine the relevance of accounting information to business and governments;

5. Use information and communication technology for present and future challenges.

6. Use current accounting principles in financial reporting.

 

1. Nature and Significance of Accounting 

Topics: 
 
a.Development of accounting (including branches of accounting)

b. Objectives of bookkeeping and accounting;

c. Users and characteristics of  Accounting information

d. Principles, concepts and conventions of accounting (nature, significance and application)

e. Role of accounting records and information
 

Objectives:

Candidates should be able to:

i. differentiate between bookkeeping and accounting;

ii. use the historical background of bookkeeping and accounting for future development;

iii. apply the right principles, concepts and conventions to solving accounting problems;

iv. examine the role of accounting records and information in decision making.

v. List the branches of Accounting such as Cost Accounting, Management Accounting, Auditing, Financial Accounting and Taxation.
 

2. Principles of Double Entry 

Topics: 

a. Functions of source documents

b. Books of original entry

c. Accounting equation

d. The ledger and its classifications

e. Trial balance

f. Types and treatment of errors and uses of suspense account
 

Objectives:

Candidates should be able to:

i. relate the various source documents to their uses;

ii. relate source documents to the various books of original entry;

iii. determine the effect of changes in elements of accounting equation;

iv. identify the role of double entry and use it to post transactions into various divisions of the ledger;

v. balance off ledger accounts;

vi. extract a trial balance from balances and determine its uses;

vii. identify various types of errors and their necessary corrections;

viii. create a suspense account.
 

 

3. Ethics in Accounting 

Topics: 

a. Objectives

b. Qualities of an Accountant
 

Objectives:

Candidates should be able to:

i. use ethics in preparing and presenting Accounting Reports;

ii. list qualities of an Accountant such as honesty, integrity, transparency, accountability and fairness.

 

 4. Cashbook 

Topics: 

a. Columnar cashbooks

b. Discountsc. Petty cashbook and the imprest system
 

Objectives:

Candidates should be able to:

i. determine the cash float;

ii. differentiate between two and three columnar cashbooks and how transactions are recorded in them;

iii. differentiate between trade and cash discounts;

iv. examine the effects of trade and cash discounts in the books of accounts.

v. Identify various petty cash expense;
 

 

5. Bank Transactions and Reconciliation Statements 

Topics: 

a. Instrument of bank transactions

b. e-banking system

c. Courses of discrepancies between cashbook and bank statement

d. Bank reconciliation statement
 

Objectives:

Candidates should be able to :

i. identify bank documents such as cheques, pay-in-slips, credit and debit cards and their uses;

ii. assess the impact of automated credit system, credit transfers, interbank transfers and direct debit on cash balances;

iii. list factors that cause discrepancies between balances of cashbook and bank statements

iv. prepare adjusted cashbook balancev. prepare bank reconciliation statements.
 

 

6. The Final Accounts of a Sole TraderTopics:

a. Income statement (Trading and profit and loss account)

b. Statement of financial position (Balance sheet)

c. Adjustments:

i. provision for bad and doubtful debt

ii. provision for discounts

iii. provision for depreciation using straight-line and reducing balance methods

iv. accruals and prepayments
 

Objectives:

Candidates should be able to:

i. determine the cost of sales, gross profit and net profit of a sole trader;

ii. identify fixed assets, current assets, long- term liabilities, current liabilities and proprietor's capital;

iii. compute adjustable items on the related expenditure and income in the profit and loss account;

iv. relate the adjustable items and their corresponding disclosure in the statement of financial position;

v. differentiate between bad debts and provision for bad and doubtful debts.
 

 

7. Stock Valuation 

Topics:

a. Methods of cost determination using FIFO, LIFO and simple average

b. The advantages and disadvantages of the methods

c. The importance of stock valuation
 

Objectives:

Candidates should be able to:

i. determine the cost of materials issued to production or cost of goods sold using FIFO, LIFO and simple average;

ii. calculate the closing stock of materials or finished goods using FIFO, LIFO and simple average;

iii. compare the advantages and disadvantages of each method of stock valuation;

iv. determine the effects of stock valuation on trading, profits and cost of goods sold.

 

 8. Control Accounts and Self-balancing Ledgers 

Topics: 

a. Importance of control accountsb. Purchases ledger control accountc. Sales ledger control account
 

Objectives:

Candidates should be able to:

i. determine the importance of control accounts in a business enterprise;

ii. differentiate between sales ledger control account and purchases ledger control account;

iii. identify the individual elements of control accounts;iv. prepare the control accounts

 

 9. Incomplete Records and Single Entry 

Topics:

a. Conversion of single entry to double entry

b. Determination of missing figuresc. Preparation of final accounts from incomplete records
 

 

Objectives:

Candidates should be able to:

i. determine proprietor's capital using statement of affairs;

ii. determine the amount of sales, purchases, cash balances, debtors, creditors and expenses by converting single entry to double entry;

iii. use accounting equations and gross profit percentage to determine gross profit or cost of sales.

 

10. Manufacturing Accounts 

Topics: 

a. Cost classificationb. Cost apportionmentc. Preparation of manufacturing account
 

Objectives:

Candidates should be able to:

i. calculate prime cost, production overhead, production cost and total cost;

ii. determine the basis of apportionment into production, administration, selling and distribution.
 

 

11. Accounts of Not-For-Profit-Making Organizations. 

Topics:

a. Objectives of Not-For-Profit-Making organizations

b. Receipts and payments account

c. Income and expenditure account

d. Statement of financial position (Balance sheet)
 

Objectives:

Candidates should be able to:

i. distinguish between the features of Not-for-profit-making organizations;

ii. determine the subscription income, subscription in arrears and in advance;

iii. compute the cash balances and accumulated funds, surplus and deficit for the period from all sources.

iv. Prepare:a. receipts and payments account

 

12. Departmental AccountsTopics: 

a. Objectives

b. Apportionment of expenses

c. Departmental trading and profit and loss account
 

Objectives:

Candidates should be able to:

i. identify the reasons for departmental accounts;

ii. determine the expenses associated with individual departments;

iii. compute departmental profits or losses.

 

 13. Branch Accounts 

Topics:

a. Objectives

b. Branch accounts in the head office books

c. Head office account

d. Reconciliation of branch and head office books
 

Objectives:

Candidates should be able to:

i. determine the reasons for branch accounts;

ii. calculate profits and losses from branches;

iii.determine the sources of differences and reconcile them.

 

 14. Joint Venture Accounts 

Topics: 

a. Objectives

b. Personal accounts of venturersc. Memorandum Joint venture accounts
 

Objectives:

Candidates should be able to:

i. identify the objectives of Joint Venture;

ii. determine the profit or loss of the Joint Venture;

iii.determine the profit or loss of each venture.

 

15. Partnership Accounts 

Topics:

a. Formation of partnership

b. Profit and loss account

c. Appropriation account

d. Partners current and capital accountse. Treatment of goodwill

f. Admission/retirement of a partner

g. Dissolution of partnershiph. Conversion of a partnership to a company
 

Objectives:

Candidates should be able to:

i. determine the instruments of partnership formation;

ii. categorize all accounts necessary for partnership;

iii. determine the effects of admission and retirement of a partner;

iv. prepare revaluation account

v. identify the accounts required for dissolution and conversion to a company;

vi. determine the partners share of profits or losses

 

 16. Introduction to Company Accounts 

Topcs:

a. Formation and classification of companies

b. Issue of shares and debentures

c. Final accounts of companies

d. Interpretation of accounts using ratios.

e. Distinction between capital and revenue reserves
 

Objectives:

Candidates should be able to:

i. differentiate between types of companies;

ii. identify the processes and procedures of recording the issue of shares and debentures;

iii. compute elements of final accounts of companies;

iv. Interprete the accounts for decision making using ratios such as current, acid test and stock turnover.

 

 17. Public Sector Accounting 

Topics:

a. Comparison of cash and accrual basis of accounting

b. Sources of government revenue

c. Capital and recurrent expenditure

d. Consolidated revenue fund

e. Statement of assets and liabilities

 

f. Responsibilities and powers of:

i. The Accountant General

ii. The Auditor General

iii. The Minister of Finance

iv. The Treasurer of local government

 

g. Instruments of financial regulation

 
Objectives: 

Candidates should be able to:

i. differentiate between public sector accounting and private sector accounting;

ii. identify the sources of government revenue;

iii. differentiate between capital and recurrent expenditure;

iv. calculate consolidated revenue fund and determine the values of assets and liabilities;

v. analyse the duties of the Accountant General, the Auditor General, the Minister of Finance and the Treasurer of local government;

vi. distinguish between the elements of control in government accounting procedures e.g. virement, warrant, votes, authority to incur expenditure, budget and due process certificate.

 

18. Information Technology in Accounting 

Topics:

a. Manual and computerized accounting processing system

b. Processes involved in data processing

c. Computer hardware and software

d. Advantages and disadvantages of manual and computerized accounting processing system

 

Objectives:

Candidates should be able to:

i. relate and differentiate between manual and computerized accounting processing system;

ii. identify the processes involved in data processing;

iii. relate the different components of computer;

iv. identify the advantages and disadvantages of manual and computerized accounting processing system

 RECOMMENDED TEXTS

Abdullahi D. Z. (2014) Modern Financial Accounting, Husab Global Press Concept Ltd.

Adeifa O. Ajileye, J. O and Oluwasanna, R. O (2001) Get your Financial Accounting Right. Book One:Oyo, Tenlad Press International.

Ajileye, J. O. and Adetifa O. (2001); Get your Financial Accounting Right, Book Two: Lagos:De Hadey Printing Services

Akinduko, A. O (2001) Basic Accounting: Akure: Spetins

Awoyemi, E. O. (1989) A guide to Government Accounting and Internal Audit, Ibadan: Onibonje Press

Dodge, R. (2002) Foundation of Business Accounting, (Second Edition), Bershire: Chapman and Hall

Ekwere, A. B. (1997) Contemporary Accounting, Abuja: Aflon Finance (Control and Management) Act 1959

Ekwue K. C. (2010) Principles of Accounts, Book 1 & 2, Adson Publishing Company, Onitsha

Femi L. (2013) Simplified and Amplified Financial Accounting

Frankwood and Alan S. (2002) Frankwood's Business Accounting, Prentice Hall International Edition

Hassan M. M. (2001), Government Accounting, Lagos: Malthouse Press Limited

Igben, R. O. (2004) Financial Accounting Made Simple (Vol. I) Lagos: Roi Publishers

Longe, O. A. and Kazeem, R. A (2006) Essential Financial Accounting for Senior Secondary Schools:Lagos: Tonad Publishers Limited

Millichamp, A. H. (1989) Foundation Accounting: An Introduction manual for Accounting Students,London: DP Publications

Okwoli, A. A. (1995) Financial Accounting, Zaria: Tamaza Publishers

Oshisami, K. (1997) Government Accounting and Financial Control: Ibadan: Spectrum