Get access to latest and updated syllabus of PIPFA Level 1 Basic Accounting now. Here you will find detailed course content or syllabus of PIPFA Level 1 Basic Accounting for upcoming attempt.
Unfortunately, PIPFA does not publish it’s own study text. But you need not to worry as you can use study texts of ICAP and/or ICMAP. You will have the advantage on other students. The reason being ICAP and ICMAP study texts are comparatively more difficult than the books recommended by PIPFA examination body.
Syllabus GRID:
Here is the grid for syllabus of PIPFA Level 1 Basic Accounting.
| GRID | Weightage |
| Introduction to Accounting | 8 – 12 |
| Book Keeping | 35 – 45 |
| Preparation of Financial Statements of a sole trader | 20 – 30 |
| Preparation of Accounts from Incomplete Records | 20 – 30 |
| Total | 100 |
Detailed Syllabus Contents:
The detailed syllabus of PIPFA Level 1 Basic Accounting for upcoming attempt is given below.
Introduction to Accounting
- Business Entities and Business Transaction
- Forms of business organizations (sole proprietorship, partnership and limited liability companies)
- Fundamental accounting concepts (Accrual, going concern, true and fair view, consistency, prudence, substance over form, materiality, completeness)
- Financial Statements (Quantitative Characteristics of Financial Statements,
- Objective, Components, Assumptions of Preparing Financial Statements & Users)
Book Keeping:
- Elements of financial statements (Assets, Liabilities, Equity, Income, Expense)
- Double entry system and rules for debit and credit
- General Journal
- Cash Book
- Sales Journal and Sales Ledger
- Purchase Journal and Purchase Ledger
- General Ledger
- General Ledger Control Accounts and their reconciliation with subsidiary ledgers
- Bank Reconciliation Statement
Preparation of Financial Statements of a sole trader:
- Unadjusted trial balance
- Adjustments
• Depreciation on fixed assets and methods of depreciation (Straight Line, Diminishing Balance, Sum of Years’ digits, Number of Units produced)
• Allowance for bad debts and write offs
• Closing inventory
• Prepayments and accruals
• Correction of errors including those relating to bank reconciliations and other control account reconciliations
- Statement of Financial Position (Balance Sheet)
- Income Statement
Preparation of Accounts from Incomplete Records
DETAILED SYLLABUS:
Introduction to Accounting:
- Explain the characteristics of a business
- Classify transactions that fall under the definition of business transactions.
- Describe the key features of sole proprietorship, partnership and limited company
- Differentiate amongst the features of sole proprietorship, partnership and limited company
- Explain the difference between book-keeping and accounting
- Understand and apply the main accounting concepts, namely, accrual, consistency, and completeness
- Demonstrate familiarity with the concepts of true and fair view, materiality, prudence, going concern and substance over form.
- List the components of a set of financial statements
- Explain the characteristics and purpose of the statement of financial position and the statement of comprehensive income
- Describe the basic presentation layout of statement of financial position and statement of comprehensive income
- Identify users of financial information and describe how the information is useful to them.
Book Keeping:
- Define and identify examples of assets, liabilities, equity, income and expenses
- Apply the underlying concepts of assets, liabilities, income and expenses.
- Understand and apply, the accounting equation (Assets = Liabilities + Equity)
- Identify financial and nonfinancial transactions in a well- defined scenario
- Understand and apply the concept of double entry accounting
- Understand the use of business documents as source of information
- Understand the use and format of the cash book and its types
- Record their respective entries
- Describe the basic contents of the sales day book, sales ledger,
- Customer/debtor’s ledger, purchase day book, purchase journal and purchase ledger/creditors ledger
- Describe the main features of the general ledger
- Post entries in the general ledger
- Balance the ledger accounts as required, make transfers to the final accounts
- Understand the need for a bank reconciliation
- Identify the main reasons for differences between the cash book and bank statements
- Prepare a bank reconciliation statement in the circumstances of simple and well explained transactions
- Correct cash book errors and post journal entries after identifying the same in bank reconciliation statement.
Preparation of Financial Statements of a sole trader:
- Understand the purpose of the trial balance
- Understand and demonstrate mapping between general ledger balances and the trial balance
- Identify the limitations of a trial balance.
- Explain the nature of depreciation expense and accumulated depreciation
- Calculate depreciation expense using straight line, diminution balance, sum-of-digits and number of units produced methods
- To understand that the Closing stock is the amount of inventory that a business still has on hand at the end of a reporting period
- Understand the journal entry of closing inventory and appreciating the impact of increase and decrease of closing inventory on reported profit or loss of entity
- Post journal entries to record depreciation expense
- Understand the disposal of fixed assets and gain/(loss) on disposal
- Post journal entry of disposal and gain or loss on disposal
- Estimate allowance for bad debts based on a given policy.
- Post journal entry to record bad debt expense
- Compute and record write-off and understand its impact on allowance of bed debts
- Understand the matching concept that applies to prepayments and accruals
- Post journal entries and ledgers entries for prepayments and accruals
- Post adjusting entries to recognized revenue or expenses
- Identify the types of error which occur in a record keeping system
- Calculate and understand the impact of errors on the financial statements within a reporting period
- Prepare journal entries to correct errors that have occurred within a reporting period
- Explain the difference between a trading and a service business
- Understand the purpose of the statement of financial position
- Prepare simple statements of financial position from information provided.
- Understand the purpose of the statement of comprehensive income
- Prepare simple statements of comprehensive income from information provided.
Preparation of Accounts from incomplete records:
- Define ‘incomplete record’
- Understand the cause & effect of incomplete record
- Using Comparison Method & Analysis Method
- Prepare financial report from incomplete record
Focus:
syllabus of PIPFA Level 1 Basic Accounting syllabus of PIPFA Level 1 Basic Accounting syllabus of PIPFA Level 1 Basic Accounting syllabus of PIPFA Level 1 Basic Accounting syllabus of PIPFA Level 1 Basic Accounting syllabus of PIPFA Level 1 Basic Accounting
